Presentation Nordea Small & Mid Cap Seminar August, 2018 - PowerPoint PPT Presentation

Presentation Nordea Small & Mid Cap Seminar August, 2018

CORPORATE PRESENTATION Dustin at a glance 250,000 hardware and software products… …sold online… Net sales SEK Hardware Dustin (B2B) million Software and services ~11% Offline 10,000 ~25% Clients Server 8,000 Software 6,000 4,000 Dustin Home (B2C) OS SaaS 2,000 Services 0,000 Online Hardware ~75% ~89% Financing CaaS Refers to fiscal year 2016/17 Refers to fiscal year 2016/17 …across the Nordics and Netherlands… …to B2B customers Adjusted EBITA and margin SEK % net sales Customers Offering Avg. order million Norway ~15% 475 6,0% SMB Full assortment SEK 6,000 450 5,5% 94% 425 Denmark ~17% Public/Large Replienishment IT SEK 7,000 400 5,0% 375 350 6% B2C IT products SEK 2,000 4,5% Finland 325 ~17% Sweden 300 4,0% 1.4 million orders ~51% 14/15 Q1 14/15 Q2 14/15 Q3 14/15 Q4 15/16 Q1 15/16 Q2 15/16 Q3 15/16 Q4 16/17 Q1 16/17 Q2 16/17 Q3 16/17 Q4 17/18 Q1 17/18 Q2 17/18 Q3 Refers to fiscal year 2016/17 Refers to fiscal year 2016/17 2

CORPORATE PRESENTATION Growth position in a large and expanding 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-sized businesses. Source: Dustin estimates based on market data from IDC and market analysis from a senior advisor. 3

CORPORATE PRESENTATION Strong position in the value chain Dustin’s ~ 2.500 brands 1) customer base 2) Hardware ~5k customers Public/ Large corporations Distributors ~100k customers SMB 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… …A LARGE NUMBER OF CUSTOMERS ...NEED AGGREGATOR TO INTERACT WITH... 1) Purchased from ~350 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. 4 4

CORPORATE PRESENTATION Unique position combining cost efficiency with high service level High ERP implementation Large Illustrative corporations 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 and service High IT knowledge companies Fast delivery Wide offering of ~200k IT products Komplett Strong brand name Verkkokauppa Consumers Non-IT related consumer products Low Low Cost efficiency High Dustin’s focus areas Scale High online share Efficient execution Central functions Non SMB related services net sales (2013) SG&A as % of 24% 21% 13% 11% 1) 11% 1) 2014. Refer to the financial year ended 31 August. 2014. Source: Annual reports. industry analysis and management analysis. Caperio Atea Verkkokauppa Komplett Dustin 5

CORPORATE PRESENTATION Multi-channel approach to drive growth and margins Customer needs Customer needs Product Three tiered portfolio sales model Basic Medium Advanced Basic Medium Advanced Stand-alone services Offline and solutions CONSULTATIVE  ~ 25% SALES of net sales MPS 1) Cloud solutions Higher gross margin Advanced products OUTBOUND   SALES Online Server SaaS Financing ~ 75% of net sales Basic products ONLINE    SALES Clients Software 6

CORPORATE PRESENTATION Continue leveraging dynamic market trends and new service offerings 2016/17 2021/22 CAGR: ~10% Net sales Net sales • • Pan-Nordic footprint with one One-stop shop for SMBs in all SEK 9.3 bn SEK ~15* bn common platform supporting Nordic countries product and service offerings • Fully integrated online experience • EBITA margin EBITA margin Nordic governance structure with for product and service sales 4.6% 5-6%* highly skilled central online team • +4 bn SEK in advanced products and local sales organization • and services sales driven by Based on financial target of 8% organic • +250 sales specialists addressing Number of FTEs acquired companies and organic growth over a cycle +10.000 customers with a wide growth 977 • 3-5 acquisitions per annum portfolio of IT-solutions • +1 bn SEK in recurring revenues • Leverage integrated platform – infrastructure • Cloud portal securing growth in and customer offerings in all geographies SaaS and managed services • Realize sales synergies of newly acquired offerings and expanding customer base Product split Segment split Product split Segment split • Accelerate sales of managed services B2C Services B2C Services Adv. products Adv. products towards SMB to increase recurring revenues LCP LCP and margin expansion • Continue consolidation of specialized VAR market through M&A Basic Basic SMB SMB products products Recurring Solution Online Recurring Solution Online revenue revenue specialists excellence specialists excellence Source: Dustin. *based on financial targets 7

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% Margin 16/17 Customer mix Private label Value accretive M&A Managed services Margin 21/22 Customer mix Private label Value accretive M&A Managed services • SMB growing faster than LCP due • Targeting 25% of sales in each of • Scalable platform aggregating a • Target to raise share of advanced 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 years enabling 20-50% gross margin driving both margin and loyalty average on incremental SaaS sales and attached services Source: Dustin 8

CORPORATE PRESENTATION Higher share of recurring revenue increases loyalty and margin Recurring revenue potential FY21/22 ~500 MSEK ~1,000 MSEK ~300 MSEK ~100 MSEK 147 MSEK Recurring revenue FY16/17 Current run-rate Organic growth Value accretive M&A Recurring revenue FY21/22 Current run-rate Organic growth Value accretive M&A • • • Acquisition of IKT, Purity and Saldab in Recurring revenues will exceed growth of Further acquisitions will be focused in FY16/17 ordinary business due to market dynamics areas with recurring revenue as a standard • • Acquisition of Norriq ICS, Core Services Increased investments in managed and JML System in Q1 17/18 services Source: Dustin. Note: Recurring revenue is defined as services which are automatically renewed and billed on a regular basis where Dustin plays an active part in the delivery/handling. Warranties, financing and traditional software agreements (e.g OVS) are not included 9 9

CORPORATE PRESENTATION Financial summary of Q3 17/18 Continued solid growth in SMB Net sales and adjusted EBITA margin Net sales grew by 9.0% to 2,462 (2,257) MSEK 3 000 10% • Organic growth of 1.6% in constant currency, of which SMB 9.4%, LCP -5.0% and B2C 10.9% 2 462 2 500 8% Gross profit of 396 (341) MSEK 2 257 • Gross margin of 16.1% (15.1%) Adjusted EBITA margin 2 000 Adjusted EBITA of 108 (94) MSEK 6% • Adjusted EBITA margin of 4.4% (4.2%) MSEK 1 500 4,4% 4,2% Items affecting comparability of 0.6 (-4.2) MSEK 4% 1 000 Earnings per share increased to 0.87 (0.62) SEK 2% 500 Cash flow from operating activities of 221 (-23) MSEK Net debt of 968 (997) MSEK 0 0% • Net debt/adjusted EBITDA slightly down to 2.0x (2.3x) in the past 12- 2016/17 2017/18 month period (2.3x at year end 2016/17) Net sales Adjusted EBITA margin 10