Presentation - Q4 2017/18 - October, 2018 - Dustin Group

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Presentation - Q4 2017/18 - October, 2018 - Dustin Group
Presentation – Q4 2017/18
October, 2018
Presentation - Q4 2017/18 - October, 2018 - Dustin Group
YEAR-END REPORT 2017/18

Dustin at a glance
     255,000 hardware and software products…                                                                               …sold online…                                            Net sales
                                                                                                                                                                  SEK
                                                                                                                                            Dustin (B2B)
Software and services                                      Hardware                                                                                               million
       ~12%                                                                              Offline
                                                                                         ~20%                                                                     10,000

                                                 Clients                 Servers                                                                                  8,000
                                                           Software
                                                                                                                                                                  6,000
                                                                                                                                         Dustin Home (B2C)
                                                                                                                                                                  4,000
                                                    OS                    SaaS
                                                           Services                                                                                               2,000

                 Hardware                                                                              Online                                                     0,000
                  ~88%                                                                                 ~80%
                                                Financing             Cloud solutions
    Refers to financial year 2017/18                                                    Refers to integrated operations financial year 2017/18

                       …across the Nordics…                                                                    …to B2B customers                                            Adjusted EBITA and margin
                                                                                                                                                                  SEK
                Netherlands*                                                                 % net sales          Customers      Offering            Avg. order
                                                                                                                                                                  million
                    ~2%
          Norway                                                                                                                                                  500                                   6,0%
           ~16%                                                                                                   SMB            Full assortment     SEK 7,000
                                                                                                                                                                  475
Denmark                                                                                       94%                                                                 450                                   5,5%
 ~16%                                                                                                             Public/Large   Replienishment IT SEK 11,000     425
                                                                                                                                                                  400                                   5,0%
                                                                                                                                                                  375
                                                                                                6%                B2C            IT products         SEK 2,000    350                                   4,5%
                                                                                                                                                                  325
           Finland              Sweden
                                                                                                                                                                  300                                   4,0%
            ~16%                 ~50%                                                                                 1.2 million orders
    Refers to financial year 2017/18 *Consolidated as of July 4, 2018.                  Refers to financial year 2017/18

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Presentation - Q4 2017/18 - October, 2018 - Dustin Group
YEAR-END REPORT 2017/18

Q4 17/18 High operational activity in the quarter

Operational Highlights
New framework agreement in Denmark
    •   Danish government, municipalities and regions. Annual value estimated at around DKK 500 million
New agreement in Norway
    •   Cloud-based services (back-up and storage) with public service company NRK.
Acquired DAV Partner in Sweden
Acquired ITaito in Finland
Acquired Vincere Groep
    • One of the leading Managed Services companies within SMB in the Netherlands
    • Dustin’s addressable market increases from SEK 162 to SEK 262 billion
.

Operational Highlights after the end of the fourth quarter
New organisation announced
    • To create greater clarity within segments and further increase scalability of support functions
Preferential rights issue
    • To continue existing growth strategy in existing markets in the Nordic region and the Netherlands
Extraordinary General Meeting
    • Approval of announced rights issue

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Presentation - Q4 2017/18 - October, 2018 - Dustin Group
YEAR-END REPORT 2017/18

Strong rationale for the acquisition of Vincere Groep

            Substantial increase of the addressable market          Increased share of recurring revenues
            Growth from approximately 162 BSEK to 262 BSEK          High share of recurring Managed Services contracts

            A perfect platform for expansion and consolidation      Low customer dependency
            Ample consolidation opportunities in the Dutch market   Largest customers accounts for less than 5% of total sales

            Highly experienced and driven management team           High customer satisfaction
            Similar corporate values as Dustin                      Loyal client base ensuring low customer churn

             Very attractive financial profile                      Highly interesting growth components
             Substantial earning contribution already in 2018/19    E.g. further consolidation and launch of Dustin online platform

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Presentation - Q4 2017/18 - October, 2018 - Dustin Group
YEAR-END REPORT 2017/18

Q4 17/18 Higher service content strengthening profitability

Financial Highlights                                                           Net sales and adjusted EBITA margin
Net sales grew by 11.6% to 2,524 (2,262) MSEK
                                                                                      3,000                                       10%
    • Organic growth of -4.7% in constant currency, of which SMB 8.0%,
      LCP -13.4% and B2C 1.1%                                                                                     2,524
                                                                                      2,500
Gross profit of 417 (325) MSEK                                                                   2,262                            8%

    • Gross margin of 16.5% (14.3%)

                                                                                                                                        Adjusted EBITA margin
                                                                                      2,000
Adjusted EBITA of 119 (92) MSEK                                                                                                   6%

                                                                               MSEK
    • Adjusted EBITA margin of 4.7% (4.1%)                                            1,500
                                                                                                                   4.7%
                                                                                                  4.1%
Items affecting comparability of 3.6 (-0.8) MSEK                                                                                  4%
                                                                                      1,000
Earnings per share increased to 0.91 (0.64) SEK
                                                                                                                                  2%
                                                                                      0,500
Cash flow from operating activities of 59 (-14) MSEK
Net debt of 1,731 (998) MSEK                                                          0,000                                       0%
    • Net debt/adjusted EBITDA up to 3.3x (2.3x) in the past 12-month period                    2016/17          2017/18

The Board proposes a total dividend of SEK 239 (213) MSEK                                     Net sales   Adjusted EBITA margin

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YEAR-END REPORT 2017/18

Financial Development – SMB

Solid growth in the SMB segment                                                 Net sales and segment margin
Net sales growth in SMB of 38.9% y/y                                                                                    1,154
                                                                                       1 200
       • Organic growth of 8.0% in constant currency                                                                                   20%
                                                                                       1 000

                                                                                                                                             Segment margin
                                                                                                  831
Segment result increased 45.5% to 132 (91) MSEK                                         800                                            15%

                                                                                MSEK
                                                                                                                        11.4%
       • Segment margin improved to 11.4% (10.9%)                                       600
                                                                                                                                       10%
Acquisitions and strong online performance                                              400       10.9%
                                                                                                                                       5%
       • Acquired and consolidated ITaito (June 1), DAV Partner (July 2) and            200
         Vincere Groep (July 4)                                                           0                                            0%
       • Robust sales performance, primarily in Sweden and Denmark                               2016/17            2017/18
                                                                                                  Net sales    Segment margin
Favorable product mix drives margin improvement
       • A general improvement in the product mix in comparable units as        MSEK
                                                                                                       Q4         Q4       Organic       Q4 y/y
         well as completed acquisitions drives margin development                                  2017/18    2016/17       growth      growth

       • Positive margin contribution from higher private label product sales   Net sales            1,154       831            8.0%     38.9%

       • The customer base for SaaS configurations grew to 1,227 active         Segment result          132       91               –     45.5%
         customers (980), corresponding to 53,988 users (30,150)
                                                                                Segment margin       11.4%     10.9%               –                –

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YEAR-END REPORT 2017/18

Financial Development – LCP

Selective approach towards lower margin contracts                                   Net sales and segment margin
Net sales growth in LCP of -5,1% y/y                                                                                                          20%
                                                                                           1 500
       • Organic growth of -13.4% in constant currency                                                1,296                   1,230
                                                                                           1 250

                                                                                                                                                    Segment margin
                                                                                                                                              15%
Segment result slightly lower at 74 (76) MSEK

                                                                                    MSEK
                                                                                           1 000
       • Segment margin improved to 6.0% (5.9%)                                             750                                               10%
                                                                                                      5.9%                    6.0%
Selective approach to lower margin volume transactions                                      500
                                                                                                                                              5%
       • More selective in lower margin volume transactions under certain                   250
         framework agreements for the public sector, particularly in Finland,                 0                                               0%
         Denmark and Norway                                                                          2016/17              2017/18
                                                                                                      Net sales      Segment margin
       • Robust sales performance in the Large Corporate customer group in all
         markets, with a reported total growth of slightly more than 26%
                                                                                                           Q4           Q4       Organic        Q4 y/y
       • Deliveries within Danish framework agreement starts in the first quarter   MSEK
                                                                                                       2017/18      2016/17       growth       growth
         and is expected to generate a positive effect on growth going forward
                                                                                    Net sales            1,230        1,296          -13.4%     -5.1%
Slightly improved margins
                                                                                    Segment result             74       76               –      -3.2%
       • Margin improved slightly, mainly as a result of a more favorable sales
         balance between the large corporate and public sector customer groups      Segment margin        6.0%        5.9%               –                 –

7
YEAR-END REPORT 2017/18

Financial Development – B2C

Stable growth – focus on margin                                         Net sales and segment margin
Net sales growth in B2C of 3.3% y/y                                            200                                             12%

       • Organic growth of 1.1% in constant currency                                                             140
                                                                                                                               10%

                                                                                                                                      Segment margin
                                                                               150        135
Segment result slightly lower at 7.2 (8.1) MSEK                                                                                8%

                                                                        MSEK
                                                                               100                               5,2%          6%
       • Segment margin at 5.2% (6.0%)                                                    6,0%
                                                                                                                               4%
Complement segment representing around 6% of total sales                       50
                                                                                                                               2%
       • Positive sales development in Denmark and Norway
                                                                                0                                              0%
       • Strong sales in the mobile phones and infrastructure product                    2016/17             2017/18
         categories                                                                       Net sales     Segment margin

Continued focus on margin                                                                      Q4          Q4      Organic       Q4 y/y
                                                                        MSEK
                                                                                           2017/18     2016/17      growth      growth
       • Pricing discipline and flexible cost base
                                                                        Net sales                140      135           1.1%        3.3%
       • Valuable segment to understand market trends and to get
         access to consumer assortment                                  Segment result           7.2       8.1             –    -10.3%

                                                                        Segment margin          5.2%     6.0%              –                 –

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YEAR-END REPORT 2017/18

Net Working Capital

Continued low net working capital
                                                                                                         Net Working Capital
• Net working capital was -192 MSEK (118)
                                                                                   250            1,3%    0,9%
• Account payables still high due to temporary favorable credit terms from                0,5%
  distributors. The effect was slightly higher than in prior periods, mainly due   200
                                                                                                                 -0,2%           -0,1%   -0,4%
  to higher share or purchases from these distributors                             150                                   -0,9%
                                                                                                                                                 -1,8%
• Account receivables higher than last year, primarily as a result of higher       100
  sales volumes                                                                     50
• Inventory level slightly higher, due to higher sales volumes and increasing        0
  share of Dustin private label products                                            -50
                                                                                   -100
                                                                                                                   x
                                                                                   -150
                                                                                   -200
                                                                                   -250

                                                                                                 NWC      Average LTM NWC as % of LTM sales

9
YEAR-END REPORT 2017/18

Cash flow and capex

Improved operating cash flow
• Cash flow for the quarter was -121 (-24) MSEK                                                              Cash Flow
• Cash flow from operating activities, before changes in working capital,     150
  increased to 97 (79) MSEK, mainly due to higher profits                                                       +55
                                                                               50                 +18
• Changes in working capital was positive by 55 MSEK versus last year,
  mainly as a result of higher account payables                                -50
                                                                                       -24                                               +559
• Cash flow from investing activities decreased due to completed              -150                                                                   -121
  acquisitions during the quarter
                                                                              -250
• Cash flow from financing activities improved by 559 MSEK, affected by a
  new bank agreement and repayment of previous financing                      -350

                                                                              -450
Continued low levels of capex
                                                                              -550
• Total capex at 0.9% (0.2%) of net sales
                                                                              -650
      • Capex related to IT development (integrated IT-platform and other
        long term strategic IT-systems) of SEK 5.1 (3.1) million                                                            -729
                                                                              -750
                                                                                     Q4 16/17   Operating    Changes in   Investing    Financing    Q4 17/18
      • Other capex of SEK 17.1 (2.3) million, of which the majority refers                     activities    working     activities   activities
        to computer purchases for internal use                                                                 capital

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YEAR-END REPORT 2017/18

Leverage above target range

Higher net debt in relation to adjusted EBITDA
                                                                                  Net debt and Net debt/adjusted EBITDA
Net debt increased to 1,731 (998) MSEK
Net debt/adjusted EBITDA up to 3.3x (2.3x) at the end of 2017/18                                                1,731
        • Above target of a net debt/adjusted EBITDA of 2-3x
        • Acquisitions of Norriq ICS, Core Services, JML System, DAV
          Partner, ITaito and Vincere Groep in 2017/18
                                                                                                                 3.3x
                                                                                      998
Leverage limits execution of current acquisition strategy                                          x
        •   Future cash flow generation will be enough to reach target range in       2.3x
            2018/19
        •   Limited execution of current acquisition strategy
        •   Retained dividend, no change in dividend policy
                                                                                     2016/17                   2017/18

                                                                                      Net debt    Net debt/adjusted EBITDA

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YEAR-END REPORT 2017/18

Rationale for the rights issue

            Proven growth story                                                    Drive market consolidation
            Average net sales growth (CAGR) of 13.6 percent (2012/13 -             Ability to respond to increased market activity and continue to be
            2017/18) of which organic growth corresponded to 8.6 percent           active and a driving part in the current market consolidation

            Maintain current acquisition strategy                                  Further strengthen position
            Flexibility and ability to maintain the current acquisition strategy   Further strengthen position as the leading IT partner online in the
            within the existing markets in the Nordics and the Netherlands         Nordic region

            Increased transaction activity                                         Continued margin expansion
            Increased transaction activity in all markets. Driven by strong        Broaden offering of more advanced services and solutions to
            company performances combined with several successful                  further strengthen margins
            transactions
            Inflow of potential acquisition candidates                             Increase customer loyalty and share of recurring revenues
            Current large inflow of potential acquisition candidates in all        Higher share of services and solutions increases proportion of
            existing markets. Dustin now seen as natural industrial                recurring revenues and strengthens customer loyalty
            partner/buyer for entrepreneurs and financial sellers

12
YEAR-END REPORT 2017/18

Terms for the rights issue

7 old shares provides subscription rights to subscribe for 1 new                      Overview of terms for the rights issue

share                                                                                 # of shares pre-issue – Million shares                          77.2
                                                                                      Pre-issue share price at closing on 4 Oct, 2018 – SEK           85.4
       • For each share held in Dustin one (1) subscription right is obtained
       • Seven (7) subscription rights entitle to subscription of one (1) new share
                                                                                      Terms                                                   1:7 (1 new for 7 old)
                                                                                      # of new shares issued – Million                                11.0

Discount to TERP of 23.7%1)                                                           Subscription price – SEK                                         63
       • Subscription price: SEK 63 per new share                                     Theoretical ex-rights price   (TERP)1)   – SEK                  82.6
       • Issue proceeds of c. SEK 695 million before the deduction of transaction
           costs                                                                      Discount to TERP1) – %                                         23.7%
                                                                                      Theoretical value of subscription right – SEK
                                                                                                                               1)
                                                                                                                                                      2.80

Dustin’s number of shares increase by c. 11,032,357 to c.                             Total issue size – MSEK                                        695.0
88,258,859 issued shares
                                                                                      # of shares post-issue – Million shares                         88.3
                                                                                      New shares as % of total # shares post-issue                   12.5%

1) Based on Dustin’s closing share price as of 4 Oct, 2018

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YEAR-END REPORT 2017/18

Rights issue timetable

DATE                    EVENT

                                                                                          OCTOBER 2018
17 Oct                  Record date for the rights issue
                                                                                              M T W      T F S S
                                                                                          v40 1   2 3     4 5 6 7
                                                                                          v41 8   9 10   11 12 13 14
18 Oct                  Prospectus published                                              v42 15 16 17   18 19 20 21
                                                                                          v43 22 23 24   25 26 27 28
                                                                                          v44 29 30 31
19 Oct – 7 Nov          Subscription period

                        Trading in subscription rights (ends 5 Nov) and paid subscribed
19 Oct – 9 Nov
                        shares (BTA)                                                      NOVEMBER 2018
                                                                                               M T W T F S S
                                                                                                         1 2 3 4
9 Nov                   Outcome of rights issue announced by press release                 v44
                                                                                           v45 5   6 7 8 9 10 11
                                                                                           v46 12 13 14 15 16 17 18
                                                                                           v47 19 20 21 22 23 24 25
13 Nov                  Settlement date for subscription without preferential rights       v48 26 27 28 29 30

15 Nov                  First day of trading with new shares

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YEAR-END REPORT 2017/18

Summary FY 2017/18

Solid growth and positive margin trend
Net sales increased by 10.7% to SEK 10,300 (9,306) million
     • Organic net sales growth of 2.0% in constant currency
     • Robust growth in SMB and B2C, while volume volatility within LCP burdens total growth

Gross margin at 15.9% (14.8%)
     • Positively affected by a more favorable product mix primarily from completed acquisitions

Adjusted EBITA margin of 4.9% (4.6%)
     • Positively impacted by a higher gross margin and a more favorable mix between segments.

Earnings per share increased 27% to SEK 3.99 (3.14)

The Board proposes a total dividend of SEK 239 (213) million, corresponding to
SEK 3.10 (2.80) per share before consideration of proposed rights issue

High operational activity during the year, acquired Norriq ICS, Core Services,
JML-System, DAV Partner, ITaito and Vincere Groep

15
CORPORATE PRESENTATION

Dustin at a glance
     255,000 hardware and software products…                                                                            …sold online…                                            Net sales
                                                                                                                                                               SEK
                                                                                                                                         Dustin (B2B)
Software and services                                   Hardware                                                                                               million
       ~12%                                                                           Offline
                                                                                      ~20%                                                                     10,000

                                              Clients                 Servers                                                                                  8,000
                                                        Software
                                                                                                                                                               6,000
                                                                                                                                      Dustin Home (B2C)
                                                                                                                                                               4,000
                                                 OS                    SaaS
                                                        Services                                                                                               2,000

              Hardware                                                                              Online                                                     0,000
               ~88%                                                                                 ~80%
                                             Financing             Cloud solutions
 Refers to financial year 2017/18                                                    Refers to integrated operations financial year 2017/18

                    …across the Nordics…                                                                    …to B2B customers                                            Adjusted EBITA and margin
                                                                                                                                                               SEK
             Netherlands*                                                                 % net sales          Customers      Offering            Avg. order
                                                                                                                                                               million
                 ~2%
       Norway                                                                                                                                                  500                                   6,0%
        ~16%                                                                                                   SMB            Full assortment     SEK 7,000
                                                                                                                                                               475
Denmark                                                                                    94%                                                                 450                                   5,5%
 ~16%                                                                                                          Public/Large   Replienishment IT SEK 11,000     425
                                                                                                                                                               400                                   5,0%
                                                                                                                                                               375
                                                                                             6%                B2C            IT products         SEK 2,000    350                                   4,5%
                                                                                                                                                               325
        Finland              Sweden
                                                                                                                                                               300                                   4,0%
         ~16%                 ~50%                                                                                 1.2 million orders
 Refers to financial year 2017/18 *Consolidated as of July 4, 2018.                  Refers to financial year 2017/18

17
CORPORATE PRESENTATION

High growth position in a large market
Large and fragmented addressable market                                                                                                           Key trends driving Dustin’s underlying growth

                                                                                                                                                             Channel shift from offline
                                                                                                                                                            to online

                                                                                                                                                             Growth pockets within advanced
                                                                                                                                                            products and services

                                                                                                                                                             Higher growth for smaller
                                                                                                                                                            companies

*Compound Annual Growth Rate
Note: Market data based on calendar year. The addressable market refers to hardware sales to the B2B segment and selected parts of software and
services to the customer group small and medium enterprises.
Source: Dustin estimates based on market data from IDC and market analysis from a senior advisor.
18
CORPORATE PRESENTATION

     Dustin has a strong position in the value chain

                  ~2,800 brands1)                                                                                                                                                                                                                               Dustin’s customer base2)
     Hardware
                                                                                                                                                                                                                                                                           ~5k
                                                                                                                                                                                                                                                                         customers
                                                                                                                                                                                                                                                    Public/
                                                                                                                                                                                                                                                    Large
                                                                               Distributors                                                                                                                                                      corporations

                                                                                                                                                                                                                                                                          ~100k
                                                                                                                                                                                                                                                       SMB               customers
     Software

                                                                                                                                                                                                                                                                          ~350k
                                                                                                                                                                                                                                                Consumers
                                                                                                                                                                                                                                                                         customers

               Value proposition to OEMs and distributors                                                                         High barriers to entry                                                              Value proposition to customers

       Distribution to customers that are difficult to serve                                                    Significant scale                                                                Wide product and service offering

       >100k loyal B2B customers                                                                                Long term experience                                                             High IT knowledge

       Unique partner for campaigns / product launches                                                          Market leading brand                                                             Fast and reliable delivery

                             A LARGE NUMBER OF SUPPLIERS…                                                            ...NEED AGGREGATOR TO INTERACT WITH...                                                              …A LARGE NUMBER OF CUSTOMERS

     1) Purchased from ~390 suppliers (OEMs or distributors). 2) Defined as customers that have made at least one purchase during last 18 months. For consumers, the unique identifier is account number rather than personal identification number.

19
19
CORPORATE PRESENTATION

Unique position combining cost efficiency with high service level

                                                             High
            ERP implementation
                                                                                                                                                                                                      Illustrative
          Strategic IT consultancy                                                                                        Atea

                                                                                                      Advania
            Integrated solutions

                                                             Degree of value added service
              On-site services

                                                                                                                                                      Small and medium
           Product-near services                                                                                         Small IT                     sized businesses
                                                                                                                      infrastructure
             High IT knowledge                                                                                         and service
                                                                                                                        companies

                Fast delivery

     Wide offering of ~255k IT products
                                                                                                                                                                                                       Komplett
            Strong brand name

                                                                                                                                                                                           Verkkokauppa
      Non-IT related consumer products
                                                             Low

     Dustin’s focus areas                                                                    Low                                                      Cost efficiency                                             High

     Non SMB related services                                                                                     Scale                High online share             Efficient execution           Central functions
                                                                                               net sales (2013)
                                                                                               SG&A as % of

                                                                                                                          24%             21%
1) 2014. Refer to the financial year ended 31 August. 2014.
                                                                                                                                                               13%                 11%                11%1)
Source: Annual reports. industry analysis and management analysis.
                                                                                                                      Caperio             Atea             Verkkokauppa          Komplett             Dustin
20
CORPORATE PRESENTATION

Multi-channel approach to drive growth and margins

                                          Product                             Customer needs              Three tiered           Customer needs
                                          portfolio                   Basic      Medium        Advanced   sales model    Basic      Medium        Advanced

                               Stand-alone services
                                  and solutions
                                                                                                          CONSULTATIVE
                                                                                                                                                             Offline
                                                                                                         SALES                                              ~25%
                                                                                                                                                             of net sales
                              Cloud solutions          MPS1)
 Higher gross margin

                                Advanced products
                                                                                                          OUTBOUND
                                                                                                
                                                                                                          SALES
                            Server             SaaS       Financing                                                                                          Online
                                                                                                                                                             ~75%
                                                                                                                                                             of net sales

                                     Basic products
                                                                                                          ONLINE
                                                                                               
                                                                                                          SALES
                                     Clients          Software

21
CORPORATE PRESENTATION

Financial targets
                                            Financial targets                                                          Historical performance
                                                                                               8% organic
                   Dustin’s target is to achieve average annual organic net sales growth        growth           Period:   2013/14 – 2017/18
     Net sales     amounting to 8 percent over an economic cycle
      growth                                                                                   Average per
                                                                                               year over a       Average: ~8% organic growth per year
                   In addition, Dustin targets to grow through acquisitions
                                                                                                  cycle

                                                                                                  5–6%           Period:   2017/18
                   Dustin’s target is to increase adjusted EBITA margin over time and in
 Profitability                                                                                  Adj. EBITA
                   the medium term achieve 5–6 percent adjusted EBITA margin                                     Actual:   4.9%
                                                                                                 margin

                   Dustin´s capital structure shall provide a high degree of financial
                   flexibility and allow for acquisitions                                       2.0–3.0x         Period:   2017/18
      Capital
     structure                                                                                Net debt to adj.
                   Dustin targets to have a net debt, over time, amounting to a multiple of                      Actual:   3.3x adjusted EBITDA
                                                                                                 EBITDA
                   2–3 times adjusted EBITDA for the last twelve months

                   Dustin’s target is to pay a dividend corresponding to more than 70
                                                                                                                 Period:   2017/18
     Dividend      percent of net profit                                                          >70%
      policy                                                                                                     Actual: Total dividend of SEK 239 million,
                   The dividend shall take into account acquisitions, the company’s            Pay-out ratio
                   financial position, cash flow and future growth opportunities                                 corresponding to 78% of reported net profit.

22
CORPORATE PRESENTATION

Continue leveraging dynamic market trends and new service offerings

                                         2017/18                                                                                                        2021/22
                                                                                                CAGR:
                                                                                                ~10%
      •     Pan-Nordic footprint with one               Net sales                                                           •    One-stop shop for SMBs in all        Net sales
            common platform supporting
            product and service offerings
                                                        SEK   10.3 bn                                                            Nordic countries and the
                                                                                                                                 Netherlands
                                                                                                                                                                      SEK   ~15* bn
      •     Nordic governance structure with            EBITA margin                                                        •    Fully integrated online experience EBITA margin
            highly skilled central online team
            and local sales organization
                                                        4.9%            •   Based on financial target of 8% organic
                                                                                                                                 for product and service sales
                                                                                                                                                                      5-6%*
                                                                                                                            •    Large Corporates to reach more
      •     Around 250 sales specialists       Number of FTEs               growth over a cycle                                  than 50% sales share within LCP
            addressing more than 10,000
                                                        1,152           •   Bolt-on acquisitions in existing markets in          segment
            customers with a wide portfolio of                              the Nordics and the Netherlands                 •    More than 4 bn SEK in advanced
            IT-solutions
                                                                        •   Leverage integrated platform – infrastructure        products and services sales driven
      •     Cloud portal securing growth in                                 and customer offerings in all geographies            by acquisitions and organic growth
            SaaS and managed services
                                                                        •   Realize sales synergies of newly acquired       •    More than 1 bn SEK in recurring
                                                                            offerings and expanding customer base                revenues

          Product split                 Segment split                   •   Accelerate sales of managed services                Product split         Segment split
      Services &                                                            towards SMB to increase recurring revenues      Services &
      Solutions         Advanced              B2C                           and margin expansion                            Solutions      Advanced          B2C
                        products                                                                                                           products
                                                                        •   Continue consolidation of specialized VAR
                                                                            market through M&A
                                  LCP                                                                                                             LCP
                                                    SMB                                                                                                            SMB
          Basic                                                                                                             Basic
          products                                                                                                          products

Source: Dustin. *based on financial targets

23
CORPORATE PRESENTATION

Well defined levers will contribute to the margin journey
Margin journey potential FY21/22
                                                                                                                            0.3-0.5%

                                                                                             0.6-0.8%
                                                                                                                                                          ~6%

                                                                      0.2-0.4%
                                          0.1-0.3%

                 4.6%

Adjusted EBITA margin 16/17        Increased share of SMB           Private label      Value accretive M&A              Managed services       Adjusted EBITA margin 21/22

              Increased share of SMB                          Private label                       Value accretive M&A                            Managed services

 • SMB growing faster than LCP due               • Targeting 25% of sales in each of   • Target to raise share of advanced             • Scalable platform aggregating a
   to our cost efficient online platform           the selected categories to reach      products and services and recurring             wide portfolio of SaaS to the B2B
   to serve SMB customers and a                    annual private label sales of 400     revenue by adding 3-5 bolt-on                   market
   continued focus on SMB offerings                MSEK within 3 years with an           acquisitions annually                         • Target to reach 10,000 customers
                                                   incremental EBITA margin of
                                                                                       • Supporting customer journey by                  adding 300 MSEK in sales within 3
                                                   around 10 percentage points on
                                                                                         driving both margin and loyalty                 years enabling 20-50% gross margin
                                                   average                                                                               on incremental SaaS sales and
                                                                                                                                         attached services

Source: Dustin, November 2017

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CORPORATE PRESENTATION

     Dustin’s Cloud Platform - The one-stop-shop targeting SMBs
                                                                                                                                                                      Dustin’s
                                                                                                                                                                   customer base

                                                                                                                                                                         ~5k
                                                                                                                                                                       customers
                                                                                                                                                  Public/
                                                                                                                                                  Large
                                                                                                                                               corporations

                                                                                                                                                                        ~100k
                                                                                                                                                  SMB                  customers

                                                                                                                                                                        ~350k
                                                                                                                                               Consumers
                                                                                                                                                                       customers

                              Seats and customers                                              Increasing share of high-margin recurring revenue
      60,000                                                           2,000
      50,000                                                                    Scalable platform aggregating a wide portfolio of SaaS to the Nordic B2B market
                                                                       1,500
      40,000                                                                    Launch being Microsoft centric due to strong legacy and cloud services brand recognition
      30,000                                                           1,000    Fast growth within Dustin’s SMB customer base and significant cross-selling opportunities
      20,000
                                                                       0,500    SaaS bundled with in-house Dustin solutions. e.g. Office 365 migration and Helpdesk
      10,000
       0,000                                                           0,000    Ease of use to order and manage subscriptions
                Q4    Q1    Q2      Q3  Q4    Q1     Q2     Q3  Q4              Dustin’s multi-channel sales model ideal to convert and migrate transactional HW customers
               15/16 16/17 16/17 16/17 16/17 17/18 17/18 17/18 17/18
                        Number of seats     Number of customers

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