Dustin Group AB (publ) (DUST) Earnings Call Transcript & Summary

Hello, everyone, and most welcome to Dustin's Capital Markets Day 2021. I hope you had a good day so far. We are in a beautiful Stockholm live here from a stage, digital, of course, as the circumstances are. We will have a great agenda now for 2 hours, where you will -- we will go through the plan where we are right now and how the plan forward looks. We'll first start off with an introduction from myself with the vision and then going to the strategy by Johan Karlsson, CFO. Moving into sustainability, having a short little break and then go into operations, brand the different segments we have with SMB and LCP and then, of course, have a summary and the Q&A. So with 2-hour full pack schedule, and I hope you are enjoying yourself during this -- right during these 2 hours. The people you will meet today is the full management team with myself; Johan Karlsson; you have seen before many of you have, Alexandra Fürst, who's Head of Operations in the Nordics. We have Angelo Bul, who is heading the LCP sales segment in Benelux. Gijsbert Geerders, who heads up operations in the Benelux. And then Martin Lindecrantz, Head of HR and Sustainability; Michael Haagen heading up LCP in the Nordics; and Morten Jakobi, heading up SMB in the Benelux; and Rebecca Tallmark, heading up SMB in the Nordics and last but not least, Stephanie Forsblom, heading up the communication and brand. So we will meet the full team, and you can, of course, also pose questions to them later on. But we will have a Q&A session at the final part of the presentation. Great. But with no further ado, let's go into where we are now and just to wrap up where sort of Dustin is and what Dustin is for those of you who are new into the company. Dustin at a glance. We are a hardware and software company, also adding services to our portfolio. We have around 280,000 products and software -- hardware and software products in our assortment. All those products are and software services are sold primarily online, 60% of our business is online and 40% is offline. The off-line part is typically more advanced products or more complex solutions toward public sector or large corporate sector, but we focus on building our online engine, of course. That has proven been very successful over the years. We are present in all Nordic countries, Sweden, Norway, Denmark, Finland and now also in Netherlands and the Belgium market. And now since the acquisition of Centralpoint, which we'll go through deeper, we are also the largest market on our sales is now in Netherlands with 35% of sales. We are more or less complete B2B company. 97% of our sales is B2B, sweeter than in small medium-sized businesses and large corporate and public sector. 3% is B2C. And B2C, we have, because we can, you can say, more or less out of scale. We make the full assortment available also for the consumers that can also buy the full assortment from us. And the same good customer experience. We have around 2 million orders passing through our systems every year. And as you see on the slide here, you can see also that the average order value for our customers is on SMB is around SEK 8,000. On LCP, it's about SEK 15,000. And on the consumer side, it's about SEK 2,000. So it's many, many small orders that pass through our systems every year. Moving on into our position, and this has been the founding principle of Dustin since the beginning. We have -- we saw or our founders saw already in 1984 that there will be a need of an aggregator with all the vendors and all the manufacturers, as you see on the left-hand side on this slide. They need an aggregator to interact with all the customers that you see on the right-hand side. In between, there are also distributors that we use, but we have, of course, close contact with all the vendors, distributors, in order to create a relevant package towards all our customers. What we have added during the last years is also our private label products, which we call Dustin products, is primarily low complex products like cables, adapters, screens, displays, et cetera, accessories. What we also have added now during the years, for those who have followed us, you know this, we have acquired a lot of small service companies Those we have now built our own service portfolio with. So now we have what we call Dustin services, which are typically services aimed towards small and medium-sized businesses. But of course, we also resell services from our third-party vendors. These are services that are primarily aimed towards the SMB market but also can scale up towards larger corporates and public. So this is where we are. And the aggregate role, I think, is interesting because the aggregator role as such is also becoming stronger. The more complex the -- the left-hand side of this picture is, the more need of an aggregator because the companies of today, they want a solution. They don't want to pick and choose from every vendor that is possible out there. They want someone who can cater for their full IT sort of solution, and that is where we come in. And it's interesting that the aggregator becomes stronger and stronger. So we enjoy ourselves very much in this position. We also see that we have a high growth position in a very large market. This market overall, the IT market as such is very fragmented. It consists of many, many small companies and some large. And we see that our addressable part of the market is around SEK 300 billion, where we have now around SEK 20 billion of those, and there are some other large ones, of course, but there are many, many small players, typically an IT company in the corner of a building, serving all the companies in the building. And a guy or a girl running around with the on his arm or fixing the computer, and that is now changing rapidly, especially now we have seen that during the pandemic. We built our strategy on the 4 key trends -- the key market trends, as you see on the slide here, which is, of course, obviously, the increase in sales or demand online. It's increasing demand for security, for mobility, for cloud services; is, of course, also the increasing demand for sustainable IT, that we will come back to later on as well, but how companies are evolving in the thinking of sustainability, which, of course, is great. And then last but not least, I mean, the digitalization as such is driving the importance or it increases the importance of IT in the organization. IT is no longer a shaded department somewhere in the corner of a company no one understands what they're doing. Now it's the core heart of every company. And that is, of course, really good for us. What we see in speaking of addressable market, we have around 7% of market share in the Nordics, and we have about 5% in the Benelux region. So roughly the similar size. But given our size and that we are one of the largest ones, you can also imagine that there are a lot of small players in the market. And how do we then build the growth from this? Yes, what we do, if you look at the right-hand side of this slide, you see the trends that we build on. And then we have our position with a very strong online foundation. We have a broad customer offering that we can support all the customers with. We, of course, are increasing our sales towards the -- our existing customers, but we're also expanding our offering towards new markets and also expand the offering in the markets we are in. And from that, we build -- we see that, okay, we can capitalize on the underlying growth of the market. It's around 5% to 6%. If you compare the underlying growth as well as the online part of the growth, then we can see that we can have actually reach a premium growth on the services side. And from that, we see that, okay, we actually have the capacity to grow around 8% over a cycle. To this, we also add 2% to 3% of growth from smaller acquisitions. So around 10% of CAGR growth is what we estimate to have over the cycle, and that is how so we build this up. If you look then what has happened since the IPO. Dustin was listed in 2015. And since then, we have had a good development. If you look at the top on this, if you look at net sales, we have had a CAGR of 15% in sales. On the EBITDA level, we have had a CAGR of 17%. We have generated roughly SEK 2.7 billion in cash. And some of that cash, we have used to acquire companies. We have done 17 acquisitions so far, primarily the smaller service companies but also larger ones, as you've seen now with Centralpoint and previously Vincere Group in the Netherlands. We have, of course, also grown in employees as we grow with the company. So we are roughly 1,500 people more now in the company than we were at the listing. And what we've also seen now during the year, speaking of sustainability is that we have for long measured Scope 1 and 2 when it comes to CO2 emissions. But now finally, we can also start to measure the Scope 3, which, of course, as you see in this is where it matters. That is where we should put in our efforts. And then dividend, we have a financial target of -- have a dividend of 70% of the net profit. And this we have done all over the years. We have handed out now have a dividend of SEK 1.3 billion, which is roughly SEK 14.8 per share, and that is before the dividend that are proposed now for the coming AGM. So we have had a good development of the share, and that has given us a total shareholder return of about 162%. So in January, it has been very good development. Dustin has been a very good investment, and we work like hell to continue to be that. But now let's continue, and let's see where are we heading now. [Presentation]

Great. What we call -- what we now start is what we call our fourth chapter. And what I mean by that is that if you look back, you can say that Dustin is more or less a textbook example of how companies evolve during different leadership, different ownerships. We had our first phase, our founder space, where Bo Lundevall founded the company in 1984, found out that there will be a good market for selling floppy disks, they called it floppy disks. They started the company. Luckily, they named it Dustin, actually it was the dog that they bought they was supposed to call Dustin, but they changed. So Dustin was the name of the company. Then they evolved. In 1995, we launched our first -- actually, one of the first e-commerce players in the Nordics, in Sweden. And they started to found out that, that is a very good model to have, the online model to have to reach primarily small- and medium-sized companies because it's very cost efficient. We continue to evolve. Bo and Ulla sold the company to a Swedish private equity Altor in 2006. And they in typical private equity way in a very good way, they started to develop the company, started to expand to new territories. We went to Denmark, Norway, Finland. We invested in the warehouse. We invested in IT platform. Changed to a new ERP system. And then took the company and preparing it actually for listing. And then listed the company in 2015. In 2015, when we were listed, we started our sort of way of maturing and professionalizing ourselves, in came also [ Axel Johnson ] as a major shareholder and still is the major shareholder. And we have worked on that also expanding to new territories. We have expanded to Netherlands in 2018. And now with the acquisition of Centralpoint that we did during the spring. We also see that now we start the fourth chapter and now we start to write the fourth chapter of Dustin, where we have a strong foothold now in the European mainland also combining with the strong presence we already have in the Nordics. So 2 strong regions, and that is what we mean by the fourth chapter. What we're now paving the way for is to build the European IT powerhouse. Dustin today has around 2,400 coworkers. We are about the SEK 21.6 billion in revenues, and we are about SEK 1 billion in EBITDA, adjusted EBITDA. We have around 0.5 million customers, and we are now the eighth largest player in EMEA of IT partners and resellers. And size matters in our business. That's very good. Because of the position now that we see that we can have in Europe, it's good to be big. And what is this position then? Well, the position, if you look at the European market, it's very large. It's very -- it's a very growing market. IT, as I said before, the trends for the underlying drive of IT is increasing rapidly. We see still it's very fragmented. The most of the market shares still come from small players but the consolidation is happening in the market due to the fact that the customers -- the customized solutions is now moving into standard solutions. And therefore, you need scale in order to build that. And what is driving this going away from the customization is actually the complexity of IT, that IT becomes much more of a central part of each company. And then you cannot have too much of a standard -- of customized solutions. You need a standard solutions, have someone else have a partner that can develop the services for you. And there we come in. Then of course, the trends towards consolidation is there. I mean there is a need for -- especially when we move to cloud, there is a need for becoming bigger and therefore, it's room for consolidation. Of course, also the online is gaining ground. I mean there's a lot of investments in building out the online platforms, the online offerings, how to package things in order to make them even more available and relevant for the customers. And that is, of course, also gaining ground. And with this position we have now, where we are #8 on this list, of course, that is what we see as our next chapter in this and what we now start to write. And when we then end sort of in 5 years' time, when we sort of write the last sentences of the fourth chapter and entering the fifth chapter, where will we be then? Well, right now, we are at these levels, as you see on this slide. And we're aiming towards more or less doubling the company where we see that we have a possibility to do so that -- so we aim for our targeted sales of SEK 40 billion in '25, '26. We aim for an EBITDA of about SEK 2 billion, have an EBITDA margin of between 5% and 6% and going from the position as the Nordic IT powerhouse to become the true European IT powerhouse. That is what we aim for. And of course, now I know that you are very eager to say, okay, how will we actually do this. So now let's go into and look into how the plan looks. Great. Most welcome Johan Karlsson, CFO.

Thank you very much.

And you will now take us through more of the details of the plan that we have started to describe.

Thank you, Thomas, and good afternoon, everyone. It's a great pleasure to be here and explain our strategy to reach our financial ambition, as you've seen before. We set out this work with the financial targets as the base and also with our sustainability commitments. This has formed the basis for the strategy going forward. And as part of that, we actually looked through the financial targets as a consequence of the acquisition of Centralpoint, and we came to the conclusion that we would remain with our financial targets throughout this planning period of the next 5 years. That means if we would look at the financial targets and commitments on sustainability that on growth, we were expecting 8% organic growth, as we have seen previously, adding that with -- adding that 2 acquisitions as well, adding to the 8%. And on margin, we'll remain with our 5% to 6% adjusted EBITDA margin, following the capital structure where we believe that our leverage, that is the net debt-to-EBITDA should remain in the range of 2 to 3. And all this complemented with the dividend policy of 70% of net result as dividend. This has been complemented with our sustainability targets and commitments where climate impact is the first, and we would like to be net zero neutral on CO2. And on circularity, we are aiming to get a 100% circular offering by 2030. This is added with social equality activities or actions, 100 of them in the next 10 years. So this formed the base for our plan. If we then move on to look at how we will then do the sales target in terms of the SEK 40 billion that Thomas mentioned before. Well, actually, throughout the years, we have been growing both organically and through acquisitions. And this is also the plan going forward. If we look at the first 3 boxes on this slide, that represents the organic growth for the next 5 years. The first box is the biggest and most important is how we grow the core business. This is really the heart of Dustin, the hardware software business in both Nordics and the Benelux. And we have divided them in 2 levers. One, which is the online part, where we believe that we can further improve the operating model. And combining that with the web personalization and more delivery options, we can create growth in the online engine. Added to that, we are moving towards the larger customers with a more specific offering. So we are developing offering that is more suitable to large customers as well, typically in the IT and web area or in the sustainability area. With these alternatives and extra offerings, we believe that we can reach a higher growth also in the LCP area. If we move to the next box, which is all about services. As you remember, we have made 15 acquisitions since the IPO. The majority of these ones are now integrated to our services platform. This gives us really the base to accelerate services sales in an efficient way. And with the market growing rapidly, we believe that here we can capture extra growth for Dustin in total. The third box represents the sales synergies of the merge between Centralpoint and Dustin. Here, we see 2 clear levers. One is the implementation of the SMB operative model from the Nordics in the Benelux region. This is a unique model, and we believe that this can capture both new customers and add sales to the customers that we already have in the Benelux, clearly leaving us with a higher sales growth than in most of our areas in the company. And we can also use the tender [ desk ] capacity that was in the former Centralpoint unit in the Nordics. This is a unique competence that we had in the Benelux region, and we can benefit from that in the Nordic and win more tenders in the Nordic. This also will add to the total growth of the company. So these are the organic growth engines. And as you can see below in this slide, we actually have 8% plus 1% growth in the area of organic, 8% which is more the basic growth and then we add 1% with the synergies. So added to the organic growth, we have acquisitions. We have divided them in our plan in 2 groups. One would be the bolt-on acquisitions that you've seen before and the other one would be the regional expansion. If we look at it more in detail on the acquisitions. Again, you see the 2 groups, the bolt-on value-adding acquisitions on the left-hand side and the geographic expansion on the right-hand side. The left-hand side is characterized of many small acquisitions. As I said before, we have done 15 of them since the IPO, and we will continue to do them going forward. We actually expect the sales from these acquisitions to represent 2% to 3% growth every year throughout the planning period. And what are the characteristics with these acquisitions? Basically, we do them for 2 reasons. We either protect the current business. That means we either buy let's say, a customer base to become more scalable in one country or we can buy an adjacent product or service that will complement something that we already have. The other part of acquisition when it comes to bolt-on would be totally new offerings. Here, we are looking for either a higher share of wallet with the customers that we have or to reach a totally new customer group that we didn't reach before. And with that, we can add all our assortment. So these 2, let's say, M&A areas we have in the bolt-on acquisitions. Then on the geographical side, obviously, the reason to do them are to get a bigger reach and use our scalability. And by that, increase the addressable market. And that could be -- usually, these will represent larger acquisitions and less acquisitions, obviously. So these are the 2 types of acquisitions we have in the plan so far. If we then summarize, we go from SEK 21.6 billion of sales to SEK 40 billion of sales. It's a combination of organic growth and acquired growth. On the organic side, we are slightly above our own target of 8% because we have the synergies coming from the merger between Centralpoint and Dustin. Quite a solid plan in order to reach our solid SEK 40 billion sales. We then move on to margin. At the moment, we are slightly below the target of 5% to 6%, at 4.8%, and we are looking at improving the margin to reach our own target. And there are 4 distinct levers to improve that margin. The first one, you could say, is really in the heart of our operative model, it's efficiency and scalability. Here, there are 2 groups of levers. The first one really being automation of our processes. As you know, we have been automating warehouses. We have been automating purchasing processes all through the last couple of years, and we will continue to do that throughout this period of -- the 5-year period of the plan. Added to that is our move of our IT platform to the cloud where we believe that, that the operations of the IT platform can be more efficient if it's cloud-based, but also the cost of creating business value can increase or can decrease and be more efficient if we are cloud-based. Both these 2 will add more -- additional margin. And in our view, this will be approximately 0.1% per year throughout this period. Then comes an area where it's all about selling more profitable products. And here, we have 2 areas which are mostly important. It's the continuation of the rollout of private label. Here, we have a success story. We're doing very good. What we can do here is expand the number of customers. This is all about the Nordics, by the way. We will come back to the Benelux in private label. But we can expand the number of customers buying private label, and we can also expand the assortment of private label. And also further to that, as we talked about before on sales, when we develop more specific offerings to the larger customers in typically sustainability or IT web functionality, we believe that we have the ability to choose between the tenders in a better way, and that by itself can enhance the margins. So choosing the right products, improving the assortment is really important to margin. In the third box, we come back to the synergies in the merger between Centralpoint and Dustin. Here, there are clear synergies and levers in that work. And private label, again, is one of the most important, the launch of private label in the Benelux region is something that we have been working on since actually the acquisition, and we are very close now to launch private label in the Benelux. Addition to that is obviously putting organizations together. We can use the scale of that organization and improve efficiency of the organization and be less people. That's something that we are working on, and we will come back on. And third, on the synergies would be the purchase power and increasing purchase value, obviously, will give us some advantages, both the -- with the vendors and with the distributors. And here, we can improve margins coming from that. And fourth, way to introduce or to improve margin would be the introduction of a takeback program. So here, we are building capacity to do takeback, and we are increasing the offering or enlarging the offering when it comes to takeback. This is I think a great opportunity for us where the market is booming at the moment. And by increasing our capacity, we can cover a larger ground on the value chain and by that, improving our margins. So these 4 levers is really something that can drive the Dustin margin forward. However, as we said before, geographic expansion usually comes with a larger acquisition of more a tilted LCP company that will, we believe, slightly reduce the margin during this period when it's done, and therefore, we've taken it into this bridge. All in all, I would say that with this plan, our position is very good to reach at least the midpoint of our target of 5% to 6% margin. So we have heard a little bit about the synergies in this presentation. I would like to take the opportunity to go through the synergies on one slide, just to make a summary of it. As you know, we have indicated that we think there is 150 million of synergies per year coming from the merger between Centralpoint and Dustin, and we still believe that. And we divide them in 2 different groups. We have the revenue synergies on one side and the cost synergies on the other side. On the revenue side, we heard before, we have the SMB model from the Nordics launched in the Benelux, and we have the LCP tender business in Centralpoint actually exported to the Nordics. And here, what I'm trying to express with this slide is that the dark part of these lanes is actually how the value creation will be done. So actually, what you see in SMB is that there is a longer investment period in the beginning in order to create value. But obviously, when the value is starting to creating, the upside of that value creation is very high. And this is just captured because it's only 3 years, but the value creation on SMB can continue for many years after the time on this slide. LCP tender business will come slightly earlier and will follow the renewal of tenders in the Nordic business, and that usually, as you know, is more or less a cycle time of 4 years. When it comes to cost synergies, we are on it in a faster way. It's actually easier to implement. Private label as said before, is on its way to be launched. Procurement, we are already negotiating with distributors and vendors. And back office efficiency. Well, that will follow our actions to simplify the business. So moving on to one brand, moving on to one IT system that will liberate people and that will, in the end, create the efficiency on the FTE side. All in all, we still believe that SEK 150 million of synergies per year is what we're aiming for. I would also like to take the opportunity today to explain a little bit about the Dustin financial model. And as you know, the financial model of Dustin is built on the fact that we create a lot of cash flow, a very high cash conversion. And in combination with low working capital and low CapEx, creates a very good cash in order to be used for the bolt-on acquisitions and the dividends policy. And if you look at the actions of the last 2 years here on this slide, you can see that we created roughly SEK 1.3 billion of cash flow. And actually, in this period, we lowered the working capital and then hence, generating cash from working capital. This is really an effect of the pandemic, but still an improvement of cash flow coming from that. And then we spend some of it on CapEx. But again, quite a lot left to do the bolt-on acquisitions and the dividend at the same time. And obviously, this has been done in the period when leverage has gone from 2.6 to 2.1. So I think we have a very strong model to continue to facilitate a strong organic growth at the same time as we acquire companies, and we keep to our dividend policy.

That's great. Thank you very much, Johan. Thank you for this going through the model as it looks, and it really caters for our full model this. Very good. Great. Let's continue now. Let's move into sustainability, and start with looking at the movie. [Presentation]

Great. And with me here on stage, I have Martin Lindecrantz, heading up the HR and also the sustainability area, which is really good. Most welcome to the stage.

Thank you.

I can also start by saying that sustainability for us has been -- we have been working with this for a very long time since actually before the listing. And it has been a true part of our strategy and now become even more. So we have a true sustainable strategy. And we have learned a lot now we have set new commitments that you will take us through. Most welcome, Martin.

Yes. We are proud of our 2030 commitments. And as you heard, they are decided to redefine the impact of our business, recognizing what takes place both upstreams and downstreams, we promised to collaborate with those around us. And yes, that requires a certain mindset, and also the ability to engage with stakeholders to create value through sustainable business. And we are up for it because we see that there is an amazing opportunity actually in us for creating profits through driving the sustainability across the value chain. And the trends, yes, they really speak in our favor. Climate reduction is becoming increasingly important in tenders. So as an example, in the Netherlands, sustainability gives more points than price in many tenders. The demand for circular products and solutions is increasing. And by now, I think you could say that it's a hygiene factor to be responsible and transparent in your supply chain management. So summarizing, sustainability is becoming an integral part of buying IT. So where are we at Dustin today? Well, we have recently launched in-house takeback, both in the Nordics and in the Benelux. We already see that we have an advantage in tenders, given the sustainability work that we do. And we are frontrunners actually in having communicated just a couple of weeks ago that we have linked our sustainability targets to our credit facility. And that gives us another incentive, something that else that actually has a very significant impact is the way that we now are able to increase -- to include the whole value chain, so including Scope 3. So now recognizing the other plus 90%. We are compliant with TCFD. And in our external integrated reporting, our auditors actually they treat sustainability exactly the same as finance. And of course, there is plenty of potential looking forward. And obvious is to start to sell refurbished products as part of our standard offering online. We also see the possibility of using data to help our customers make the right choices, the sustainable choice. We also see that offering an increased amount of circular options adds clear customer value. And also interestingly enough, the demands that we see or the expectations from our large corporate and public customers in procurement in terms of sustainability, we can actually use to develop offers that we leverage towards our small- and medium-sized customers to help them drive change because they want to do that because they think it's important, but they don't really have the possibility. So we help them. So good potential for us actually in being in both segments. Let's look closer at our 2030 commitments and particularly our path towards climate neutrality. We've collected data, a lot of benchmark information from our partners. We've crunched that, and we're playing with scenarios. And here, it's actually great that we now finally can include the entire Scope 3 and bring in really significant components such as production and the user phase, for example. So as you see at the lower left -- at the lower left side here of the slide. And of course, everything is based on assumptions, but we should use what we have at hand today, and we should adjust as we go. But right now, this is what we believe in. And to begin with, we will continue to partner with private label suppliers, both through energy investments by the ones that we already have partnerships with, but also engaging with new ones. We see there is a push for this in certain parts of China, in particular, but we believe we need to be there with our support in order for the transition to take place. And this, we believe, will contribute with roughly 10%. Another 20% to 30% will come from leading suppliers having their own commitments. Some aiming to be CO2 neutral by 2030, such as Apple and Microsoft and others are still aiming at 2040. And we will advocate to where those that we think should step up. And at the same time, we will maintain close relationships with climate leaders. I talked about refurbished products before. Part of our growth will come from the secondary markets where Dustin has not really played a role before. But looking ahead, yes, used products will make up a certain share of our volumes as opposed to new products. And that will contribute with another roughly 10% to 20%. Another scenario is that we will collaborate with our vendors to get data, and we will make it accessible to our customers. So as an example, we will display product information on our web page to ensure that our customers that they have the possibility to make those smart choices because they want to. A big chunk, 25% to 35% is estimated to come from new partnerships. And we believe that might balance our portfolio of vendors. And lastly, and this is important. If by 2030, there is a residual, we will take proactive measures by offsetting. Of course, making sure that the offsets are as small as they can be. Now let's take a quick look at our path to become fully circular. As of today, we are at 18.3% of sales. And by the way, I'm really happy that we are able to measure this as well. And the first step on this staircase, takeback, again, yes, it's estimated to make up quite a large share. Moving on the second step, it will come from us increasing the share of software in our offering. Selling refurbished products as part of our offering, yes, that will also contribute, and managed services as well, which will enable us to control the product life cycle. All these things will take us to 100% by 2030, defined as circular revenue being the same as reported revenue. I am so proud of working for a company that makes a profit by driving sustainability across the whole value chain, that actually puts us in the forefront of transforming sustainability in the entire industry. And by that, I think that our 2030 commitments, they are really a commitment to make things moving.

Great. Thank you very much for that, Martin. It's really good to hear the plan we have there, and it's a lot of exciting -- excitement in that plan, of course. Now we will have a short 10-minute break. And for you to refill your coffee cups and make maybe a technical break, if needed. But see you back here in 10 minutes. [Break]

Great. Welcome back from the break. And now I'm here at the stage with Alexandra Fürst, who heads up the Nordic operations; and then Gijsbert Geerders, heading up the Benelux operations. Most welcome to the stage.

Thank you.

Good to see you.

Yes, let's talk a bit about through how operations will support the growth we have for then going to you, Alexandra. Can you sort of indicate how operations will support the Dustin's growth journey that we have ahead of us now?

Sure. Let's start a bit with what we do in operations. We work with sourcing and procurement. We work with ensuring a strong customer experience via customer service and inside sales. We work with ensuring a scalable and flexible IT platform. And we work, of course, with delivery of both our product and services. You could say operations is really the full process operations from A to Z, covering everything we do. So with that said, I mean, operations in Dustin is really an important foundation in both the growth journey, but also the margin journey that we heard Johan described in detail. And we do this by having processes and ways of working that enables scale, that is at our core. And discussing with Gijsbert and looking a bit back, we can really see that we have a great history of both growth and margin development looking back. But also then looking ahead, what do we do? You could say that there are 2 things that I would like to highlight from an operational perspective. First of all, that we are careful when we make choices on what to invest in. And secondly, that we have a constant focus on continuous improvement. We strive each day to become a little better than we were yesterday. And the key for us in operations is really how to take use of our scale and work with our processes. And when we can't really come further with changing way of working and improving the processes, we dare to invest in optimization and digitization projects. And one recent example that we've done in the Nordics is how we have enabled one customer view for our customer service. And this, of course, give upside on the customer experience, but also an upside in an efficient way of working. I also like to highlight how we have worked with procurement and sourcing, especially the strategy in the past years and how we have successfully been able to meet the demands in the market with our strategy. And we take really use, as we also heard you talk about our size, size matters and size is important. So if we look ahead, we see a great opportunity now leveraging on the European multiregional sourcing opportunity that lies ahead of us to further leverage on our size. So to summarize, I mean, in general, you can say that we believe that operational excellence is really at the core for a good customer experience and a basis for a margin journey and our future growth.

That's good to hear. And over to you, Gijsbert, how do you think operations can facilitate the synergies that we see between Benelux and the Nordics?

Yes, of course, it is a real pleasure to realize synergies by the best practices from 2 very solid regions. Centralpoint had already decided to renew the IT platform for the core processes by implementing Microsoft Dynamics cloud solution. And Dustin is also to its way to the cloud, to the same solution. In the Nordics, we have a great example of automation in a warehouse where we implemented the Robot [ Rosey ]. Today, we pick 83% of all orders via the Robot. And that gives a lot of efficiency about SEK 10-plus million a year. So this gives a lot of inspiration for future automation. What typical -- what use to be typical regional projects, Alexandra and I combining these projects into an interregional approach. And I think this is the strength, the practical approach. We learn from each other every day. A lot of many steps we make in the operation we can make many steps in the operations in the day-to-day operations. So we learn from each other that way. Operations, of course, will keep on the agile way working on these processes. It's really important to strive to improve. That is one of our core values in the organization, many small steps forward. Operations is a strong and agile organization that can support further growth at a desired quality level in both regions. So we are, in that case, flexible, scalable and robust. We have well-trained people on board with a broad set of competencies, so that makes us really flexible. We have 2 regions on the map. But in cooperation and connecting people, we are one. At the end of the day, that's all that matters.

Yes. It is. And back to you then Alexandra, how do you think we can keep up and how can we facilitate the IT platform now going when we supporting our growth? And where will the platform be in 5 years' time?

We are, as we all know, in an ever-changing business environment. And this of course causes high demands on an IT platform, especially for us as a company. So we have put up a strategic goal saying that we want our IT platform to be scalable and flexible to enable this future growth in this ever-changing environment that we act in. And to reach this goal, we have some principles when we design and think and take decisions. And just a few other key elements on this journey. First is customer focus. We always have the customers best in front of our eyes when taking decisions and designing our solutions. And this also for us means that in this area, we believe we have an opportunity to create the uniqueness to be separate or special from the others on the market. And this is also something we would like to have close to our hearts and have our own build solutions. When it comes to -- as we also heard Johan talk about cloud, of course, it's about the time to market, but it's also about leveraging for on the investments that cloud actors do in their solutions. So we have a cloud-first thinking moving ahead also as Gijsbert described on these core processes and the journey towards the cloud there. And on the same page, there's an opportunity to buy before build, where we don't create uniqueness where we have the opportunity to use commodity further on. And last but not least, we believe that we will have a centralized platform for Dustin moving on. So we believe in scale as you hear, and that there is really an opportunity to have 1 centralized platform supporting the 1 processes that we have for the full group. And the journey towards this goal, it might sound ambitious. And the question is, when are you done? But it's actually already started. And our 2 regions are continuously discussing and deciding on next steps towards 1 IT platform.

Good. Then finally, to you, Gijsbert, how do we then -- we talked about the automation. You mentioned the automation process you have in here in the Nordics. But how do we optimize the deliveries for our customers then?

Yes. Let's start with the logistics process. The typical process of inbound storage and outbound, the Benelux region is relatively small and crowded. As we can see on the map in the Benelux region, we have now 3 warehouses and first -- the first step will be to consolidate the warehouse activities because we believe in scalability and logistics and warehousing. To keep an efficient operations, it is important to consolidate those actions. Another important topic is flexibility. The work and the numbers are different every day. That's why it's really important that our teams has a broad set of competencies. When we look to the entire delivery process to our customers, automation and simplification are central, for example, working according standard processes and work instructions so that we are flexible and efficient. The same applies to our services activities such as volume services, like impact delivery, on-site preparation, customer images and many services like everything as a service. So the key message for operational excellence for delivering to our customers is consolidation, automation and simplification. That's how we run the business, is a key function for us. It's a solid foundation on which we continue to build as it is a really important part of our customer needs and our future growth strategy.

Great. That's great to hear. I really like it that you go to bed and wake up with the words consolidation, simplification, automation. It's always very encouraging to hear. Thank you very much. Thank you both. And now let's continue on looking into how the brand will support that. Great. And now I'm joined here at the stage by Stephanie Forsblom. Most welcome.

Thank you.

Have you had a good day so far?

Yes, I have.

Very good. Great. You are responsible for communication and brands. And how do you see that the brand will contribute to our 5-year plan of going forward?

If we look at our position in the value chain and actually coming back to one of your previous slides about us being the aggregator in the value chain, I would say that our success and our strategy, well, it builds upon, first of all, high internal operational efficiency and excellence, but also strong external attractiveness. The power of a strong brand is really its ability to attract both customers, vendors, partners, employees. When a brand really lives up to its promises, we see the effect in multiple dimensions. We see it in new customer intake. We see it in customer loyalty. We see it in lower price sensitivity. We see it in advertising effectiveness. We see it in employee engagement and recruitment of new talent. The beauty of the Dustin brand is really that it caters for everything, from the smallest SMB to the large corporate, from products to services, from relational sales to transactional sales. We are attractive. We are relevant. We have the knowledge to really meet the needs and add value to the small SMB to the large corporates. And our customer loves us for this. And we have been successful. If you look at our more established market or our more mature market where we have built this position, this brand position over time, we actually see the effect both in margin and in the growth numbers that we present to the market. And this is, of course, the uniqueness of the Dustin brand. And this is, of course, the position we aim to build on all our markets.

And if you look at the -- how it looks today, we have one brand in the Nordics, but now we also have acquired companies also in Netherlands and Benelux. And this is how we look at the site. This is what it looks today with a lot of scattered brands. How will this -- when will this see the change of brand, one brand also in the Benelux?

By the end of August 2022, we will be one brand in the Benelux region. As you said, today, we are 8 brands, including the Dustin brand presented on the Benelux market, each with own value proposition and really to provide clarity both internally and towards our customers and vendors to provide efficiency both how we do things and how we do our advertising and to really gain impact, we will become one brand by the end of August 2022. And we will start the rebranding, actually now immediately. So throughout the spring, you will see the rebranding taking place.

That's really good. So by end of August, we will see how this transform and we will cover a larger part of Europe or at least our part of Europe one brand.

Exactly.

Very good. Thank you very much, Stephanie. Thank you for joining in here. And good to hear also about the brand and also the operations. Thank you very much, everyone here on the stage. And now let's continue now to go deeper into the segments, and we will hereby start by looking into SMB and LCP, and we will now start with SMB. [Presentation]

Great. And here we are. We will start off with the SMB Nordics headed by you, Rebecca Tallmark, and you will tell us more about the story going forward now. So most Welcome.

Well, thank you, Thomas. SMB Nordics will continue to deliver growth while securing the margin. We will deliver 8% annual growth target, and we have been delivering 8% yearly since the last Capital Markets Day. And stating the obvious, we do this by the number of customers and average sales per customer that is what drives the revenue for us. And in terms of customer base, our goal is to grow that with 1% to 2% annually, and we do that through increased loyalization and new customer intake. And then we have selling more to each customer. Here, our target is around 6% per year. We drive this through higher frequency, increasing the average order value, and we also have the target to double the number of service contracts. And as you can see, we have a higher target on selling more to each customer. And it is key for us to drive the share of wallet for our customers. It gives a better experience for our customers. It makes it more efficient for them, but also for us. And also, it forces us to really focus on the customers' need and our entire offering portfolio. Underlying our growth target, we have 3 pillars: the broad offering, the customer experience and our continuously developing our operating model. And I will take the moment to deep dive a little bit into our operating model. Because it is a strong operating model, it is valued across both products and services. And it is what makes us able to deliver good margin sales and growth to all those SMBs. The core is e-com. That's where we start. We think online and digital first. Practically, all our customer intake is via e-com. We are led by customer insights and highly data-driven in all the decision making. Standardization act as a backbone to everything we do and from that standardization and all the data, we can automate. We optimize and we can personalize with our size. Serving SMBs is a volume game in every single aspect. And we also thrive on scale, both total and local scale. Our size becomes a competitive advantage for us, and therefore, growth is so important. With our size, we've become relevant for vendors and customers in our markets. We have 1 platform, and we can develop 1 customer experience and leverage that. Our size also allows us to have specialist competence in many different areas. And if we look a little bit on this model, it's all these circles, and of course, we optimize each and every one of those by itself. But the beauty of this is the optimization and the sync and collaboration across all those circles. And I will give you a few examples of what we have done in the past years. So key in our model for the hardware offering is that we procure the stock. We basically make bets on what we think we'll sell. And we commit to that volume. We do that to secure a good offering for our customers, but it's also been key to us in the way we have managed to secure availability in a market that has been having some availability challenges, as you know. In the past year, we have managed to ship 70% of all orders the same day from our warehouse, of course, giving our customers a good experience on the delivery. We secured 2 million price points every single day. We do that in a dynamic and proprietary setup. The pricing and procurement domain, it is huge. And though we have done a lot of development in this area, we see that we have lots more to do, and that is good. Because our way of pricing is really what secures us to be able to have a good margin in a highly competitive market. One example of what we have done here in the past year is that we have priced our articles based on the availability we have relative to other availabilities in the market, so with our competitors. In our e-com, we have crossed the Nordics for Dustin 9 million unique visitors every year. We always strive to keep our offerings relevant, our product subscriptions relevant and our sites attractive. 70% of our sales comes from organic traffic. And that is something we have had as a target for many years and actually achieved as well. So a good balance there. We will continuously work on improving our operating model. And on top of that, we will also add new and more customer value, and we have a clear path for that. We want to continue being the #1 for SMBs. And to do that and still make a profit, it is quite tricky because there are many customers, as you know. To be able to do that, it requires a high degree of standardization and a great digital experience. So striving very much for the Northeast corner. And we want to take all our offerings to the Northeast corner over time, moving more and more in that direction. With hardware, we are already there. It is standard, and we provide a great digital experience. Still, we will continue to develop our hardware offering, all the different categories, securing a great experience because what is a good offering today will not be a good offering tomorrow. And then we have our other offerings, the software product and services, sustainability offerings and managed services. But we're also pushing more and more to the Northeast corner. And we do that because that's the way we want to serve the SMBs, to serve them efficiently to give them a good experience, and we know that they want to have that digital experience over time because the trends are clear. Customers want to self-serve and they want to buy online or at least be able to have that digital experience in the very beginning of the purchase journey. If you look at Managed Services, it is slightly different from hardware. We have now standardized our offerings. But when we deploy them at the customer sites, the customer sites will be a little bit different at every customer. And here, we are very much improving the efficiency in that delivery to make it as smooth as possible for our customers and ourselves, and that's supported also by digital tools in the onboarding. And Managed Services, the industry is not as mature as hardware yet, but over time, it is moving in the direction of hardware and customers more and more expect a digital experience, but they are not really there yet expecting a full digital experience. So we are testing and learning, innovating, experimenting and collaborating with our customers to find the right digital approach that suits all the different offerings we have. And we are also testing and learning on what kind of offerings that best suit the digital channel because we can also repackage our offerings to make it a good channel fit. We want to share our IT competence, both in all personal contacts and the digital contacts. So we also filled our offerings with digital guidance and we give sustainability filtering, prompting sustainability options and moving more and more to that over time, developing the offering for our customers, adding new value on top of what we already have. We also have launched a couple of digital assessments, where we assist our customers on assessing where they stand, for example, on security topics, which they pay for. And there, we actually can sell our competence to our customers. Hassle-free experience is always going to be important for our customers. And here, we focus on improving for our customers where it matters -- where it really matters the most. We also personalize where it has value. So there is a clear plan ahead for us to continue to be the #1 for SMBs, to really optimize our operating model and, of course, deliver on our growth targets. And it's possible to leverage what we do in other markets. And Morten, who's responsible for SMB in Benelux will tell you more about that. So over to you, Morten.

Thanks a lot, Rebecca. So as you have all just heard, we have quite a unique SMB business in the Nordics. We have a lot of experience as [indiscernible] not just the customer base but also developing our share wallet with good -- with the customers during the entire customer journey. So when we put spotlight on Benelux, we can clearly see that the market potential of this region is really strong. It's equal to the Nordics. So there is really much for us to do now in our growth journey there. The foundation show is in place. We have been present in the Netherlands for 3 years actually. We marked our entry into the region back in 2018 with the acquisition of Vincere Groep, that also adding to Dustin's strategic services journey. In 2019, we launched dustin.com. That was our first step in implementing the SMB operating model. At first, we based it on organic development. But this year, we marked a big development, acquiring the leading partner and aggregator of IT in the region, Centralpoint. Here, we acquired a company with strong LCP and SMB history, close customer relationship and a strong value proposition. This really paving way for us becoming the European IT powerhouse. So it really gives us a strong starting point in the SMB space in the Benelux. And now we do see the opportunity to make a real dent in the market. We can benefit from the Centralpoint customer base and leverage the existing cost in operating model that you heard so much about now, and that has been so successful across the Nordics. And we can, of course, base that on our experience with an online excellence and deliver a great customer experience and high customer satisfaction. We already now can combine and join our different operations in the Benelux. We can build on existing knowledge and close collaboration between Benelux and the Nordics, and we can scale on our supply chain and enable operational efficiency in the move to becoming one. So we benefit from the foundation of this regional legacy we have and also the strength of the acquired companies. And this goes from a variance of services to all the way to solutions and, of course, specifically on the people, the competence and the culture. So we can deliver on the SMB journey. So moving on to the next slide. You can see a bit on how we can take this strong starting point and really build a plan around that, that will make us deliver on the synergies that you also heard about earlier today. First of all, our profitable growth will be based on the development of loyalty on our current customer base. This will, of course, lead to an increase in the net spend per customer and then we can reach the level of Nordics there. Like in SMB Nordics, we can do this through strong collaboration between strategic procurement and our product management. And this way, you can optimize on both sales and margin. Of course, with a clear focus on category level, we can develop, broaden and standardize relevant offerings and solutions for the SMB market. In combination with this, we can push our hardware sales, both online and of course, through our sales, the sales specialists. And in this way, we can increase the order frequency. The average order value is already high, but we, of course, want to maintain and develop that exactly like in the Nordics. And of course, at the end of the day, get higher revenue per customer. In parallel with this, we, of course, also focus on growing our customer base. As in the Nordics, we will drive profitable customer intake, online. So branding that you heard about through marketing activities and performance marketing. We also acquire customers a new business. We'll do that through our dedicated sales specialist, and hereby, we can cover all the areas of SMB from 0 to 500 employees Continuously at the same time, we will work on growing and expanding our market presence and share both in the Netherlands where we, as you have seen, had a strong customer base from Centralpoint, but also in Belgium, where there is a huge market potential for us to develop in. In combination with that, we can reach economies of scale as an effect of higher efficiency, which we get from leveraging our operating model on a customer base with critical mass throughout region. Finally, we want to ensure we will ensure to position Dustin as complete for SMB in the Benelux. This by ensuring the full customer journey, the loyalty and the profitability of our customers by delivering the standardized and scalable services offerings, in the same way as you just heard Rebecca described for the Nordics. Here, we will harmonize our current services offerings. These are deriving from the acquisition of the Vincere Groep and the companies within. But also we will develop a standardized portfolio based on the building blocks from there and, of course, aligned with the Nordics. So if we move on to summarizing here on the next slide. Now that we are active and have a critical mass of customers in both the Netherlands and Belgium as well as the great market potential, we really see a unique opportunity to leverage on our many years of SMB experience and success. And here, of course, our goal that SMB Benelux will be an important contributor to the overall growth, but of course, sticking to and driving our well-proved SMB operating model. We will build on our unique Dustin strength, leveraging knowledge from the group, but with a local flavor and according to market conditions as the aggregator of IT hardware, software and services between our suppliers on one hand and our customers on the other. Here, we'll, of course, benefit from focus on positioning and branding Dustin in the region, which will increase our awareness that you heard Stephanie talk more about earlier. All in all, this will lead to economies of scale through joint common processes and shared resources within the group. We will take use of local resources where necessarily and of course, also shared resources when not to optimize on our business and make the real dent on the SMB market in the Benelux. And with that, back to you guys in the studio.

Thank you very much, Morten. Thank you, Rebecca, for telling the story of SMB, and Morten, you were with us live from Denmark. Now let's go into the next segment into LCP. [Presentation]

Good. And with me presenting LCP Nordic large corporate and public segment, Nordic is Michael Haagen, who is also with us here live on a link from Denmark. Well, good to see, Michael, and the stage is yours.

Thank you, Thomas. And since the last Capital Markets Day, we have grown in both net sales and margin. And we have built our progress in 3 elements. We protect and we build and invest. We protect as we every year, renew, 1/4 of our contracts. Of course, there are differences between the corporate and the public as corporate don't necessarily have an end date and the public runs 3- to 4-year average. But currently, we actually see a high seasonality of contracts. And as an example, we have just rewon the Finnish [indiscernible] PC agreement, so we definitely protect. We also built. While we constantly work with our contracts over the period, we optimized versus new assortment from the vendors. We provide thereby cross-sell and upsell opportunities. but also adding volume services, meaning config and logistics services and definitely our own private label year-on-year. Here again, it's -- there is a difference between the corporate and public as certain line of businesses might be excluded in certain public tenders, but it is very important to drive share wallet for the margin journey, but also for the relation because we add value while we are doing that, and that is what we are utilizing to safeguard volume. We also invest. We invest in winning and building relationships with existing and new customers, but we also invest in new areas. One particular example is how we have been building our audio and video capabilities in both Finland and Sweden and thereby really investing in new opportunities. Let's go to the next slide, please. Because these 3 elements are the same levers that we will drive our growth on. So we will continue to build by introducing a Nordic tender desk, leveraging on our European capabilities, both on tenders, frame agreement, but also on mini-tenders and RFPs. And at the same time, increasing our customer experience with functionality on sustainability, but also increased self-service like asset management and ticketing system, but also providing increased security through [indiscernible] access. All of these will probably become high [indiscernible] factors in our industry going forward in the next 5 years. We will continue to build, expand our capabilities, but also again, further volume services, project and logistics, but also driving share of wallet through hybrid solutions. While we again and again optimize on contracts. The cross-sell, upsell, the take back, the volume service is hugely important because we are partnered to our customers and we develop the way we do business together with them in order for them to reach their goals. We will also continue to invest. We will invest in capabilities and customer insight for instance, by adding SaaS and audio video solutions as hybrid workplace will definitely continue to grow to all our markets and thereby enabling the service journal, but we will also invest in winning more corporate customers. thereby giving us the opportunity to cherry-pick the best marketing journey ahead. With that, let's proceed with LCP Benelux. Angelo, please?

In the Benelux. As you can see, around 85% of our market share is based on the public market. That means 15% is on the enterprise. And that also means we haven't reached our fair share there, and there's opportunity to actually grow. 43% of our total revenue will be from our top 10 customers and the average contract tenure will be around 10 years from the top 10. We have -- we are leading the market in the public sector. And of course, we have a deep relationship with our vendors there. And we also have, as a company, a market-leading position in the workplace. Looking at the characteristics of LCP Benelux. We're using a hybrid model from our warehouse. We're offering consolidation, safety stock, take-back services as well. We do our own in-house services, which consists of preparation and on-site roll-offs as well. And we also do certified tender services such as break and fix and rollouts, for example. Last, but not least, we have an exceptional strong tender desk capability. So our tender win rate will be around 70% of all the tenders were actually Then how are we going to grow? How are we going to accelerate growth for LCP in the Benelux? First of all, we improve our customer satisfaction to retain our commercial customers. Secondly, we have a high rewin rate on our current tenders. So we rewin the current one, and we win the new ones if available. And we move with the market from ownership to use as well. If you look, what are to build in the coming 5 years? We improve the margin profiles on the large software deals that we already won. We come to cross-sell services. We incorporate our workspace penetration, our workspace we already have, and we unlock our Dutch volume services capabilities into the Belgium market. And we also heavily invest in both markets in our data center offerings. For the investment for the coming 5 years, we will be heavily focusing on attracting new corporate customers. we will try to win network and tender business, but we will try to win network and manage tenders, both in the public and in the commercial side, and we increase the tender participation on the Belgium market. And as last we heavily invested in offering professional and managed services to other customers. Back to you, Thomas. Thank you very much.

Thank you very much, Angelo, and thank you, Michael, for participating also live from Denmark and Angelo being here live in the studio. Very good. Now let me summarize somewhat of what you have heard here because now we have been through sort of our plan going forward. And what you have heard here is the plan where we have been through the foundation, what is actually the founding principle of Dustin, what are we driving? Where are we as an aggregate in the value chain? How do we drive margin? How will we drive revenues and growth going forward? And also how now we will -- you have seen also through the different segments. And if you summarize that in one, what we are building right now is, of course, we are building a European or I should say, The European IT powerhouse. We have a sustainable unique business model, and that is set for the future. We built it, of course, continued strong sales growth. We built it on margin improvements. We built it also as Morten was into on sustainability, obviously, which is a clear part of our strategy that we have become -- on our way to become climate neutral throughout the value chain, and of course, working towards 100% circular offering towards our customers. So with that, we are building the IT European powerhouse. And the key building blocks for that is, of course, what we were into in the operations that we're into consolidation, it's automation, it's simplification, and that will drive the operational excellence. One brand that Stephanie told you about, is also will create clarity. It will create an efficiency. It will create an impact all over since we are -- the brand is one of the important pillars of us building the business that we recognize and we deliver and we deliver on the promise that we promise our customers, and therefore, we believe in 1 strong brand and 1 strong brand platform. Our business model is, if you look at our competitors and the other ones on the top 12 list that you saw earlier that where we are #8, we have a unique position. We have an online position that actually no one else has in the same way as we have it, where we have found scalable, large buy to stock model towards SMBs, which we also can utilize in order to drive more sales towards LCP. And with the cost-efficient model that we have with the online model we have, we can reach a lot of the smaller SMBs with a very cost-efficient and unique sales model. And that is, of course, what has built us in all over the years, and now we're continuing to build that. And we also see the possibility now to export that model to the Benelux and to other regions going forward. What we also do is, of course, now and what Morten was into and what Rebecca told you is that we will leverage the Nordic way of doing that into Benelux. And that is, of course, one of the key synergies that we see going forward also now when we did the acquisition of Centralpoint. As you know, when we started in the Netherlands, we started off by buying service companies with -- under the umbrella of Vincere Groep. Smaller service companies, but we also saw the need for having large scale in hardware in order to build the SMB platform also in the Benelux region. And that we are now starting off and setting off and our building as we speak. Then, of course, I mean, as both Angelo and Michael was into, we are enabling scalability and long-term margin improvements within LCP by broadening the portfolio of customers. So the more we broaden ourselves now with also adding on the Centralpoint LCP part, we also broadened the whole portfolio of customers within LCP, so that we gain the same momentum as we can gain on the portfolio we have on SMB customers. So that broadens the whole customer offering, it broadens sort of the scale for the whole group as such. The KPIs that we will look into, of course, that you will follow us on is obviously the sales where we now are SEK 21.6 billion in sales, and we target SEK 40 billion in sales in 5 years time. That will be delivered through the organic growth where we set out the 8% organic growth. We will also add on the bolt-on acquisitions that we have done over the years. And to that, we also, of course, look forward to see potential growth into new regions given the fact that we have seen over the years now that our model -- our business model is very possible to export to other regions. Adjusted EBITDA margin right now at 4.8%, just beneath the target of between 5 and 6. And you saw Johan telling the story on how that will develop and how we will work on that to develop the margin journey ahead and to reach our financial target of being between 5 and 6. Gross margin now at 14.8% -- 14.9%, obviously, that will move upwards. The more we add new types of categories becoming even better in working with the margin journey together with our customers, enabling the SMB growth in the Benelux region as well as adding private label to the Benelux region as well. OpEx to sales today at 11.3%. That will move downwards because of the scalability, we believe in that. And we can see that we gain scale and then can achieve more with the resources and all the people we have in the organization. CapEx to sales are today at around 0.5% on sales versus sales. And that we believe will stay at that level over this. So it will, of course, be at the same -- at the same percentage level given the growth we have. And then net working capital, as we talked about, Johan told you about that, how our asset-light and networking capital model works, and we will continue to strive for that. Right now, we are at a negative 192, And we have a target of being between negative 100 and a negative 200. And that is where we aim to be, to have a very efficient asset-light model to drive business from. Net sales -- or sorry, net debt to -- on the adjusted EBITDA or net debt level is today at 3.4, slightly above our target due to the acquisition of Centralpoint. And we have the long-term financial targets to be between 2 and 3. And as you know, previously before the acquisition, that is where we were typically between 2 and 3. And that is also where we aim to be long term. And as Johan explained also, the model as such, works for doing the -- with the cash -- we generate with the cash we get, we can do the smaller bolt-ons. But when we go outside and do a new region or a larger acquisition, then we come back to the market. And as we did during August, we did the rights issue. And then finally, last but not least, obviously, the dividend. We believe in dividend. We think that's a good way of increasing the total shareholder return, and we have a target of -- have a dividend of 70% of the net profit. And that we have had since the IPO, and we will continue to strive to achieving that, and we will continue to have the 70% of the net profit as a dividend. So with that, we reiterate our targets and we drive for the future, but we aim to build now the European IT powerhouse. So it's a very exciting journey ahead. And as you saw the team here, we are thrilled to drive this and to build this company going forward now and continue to deliver shareholder value back to all the shareholders and owners. Great. That sums up what we were planning to go through today. And now I think we should open up for Q&A.

Great. Here we are back. Johan is with me here at the side. Good to be back, and we also have the full team at on the stage, very good, ready to take questions. And as you have seen, you take -- you post your questions in the chat and we will have some live questions and some chat, queuing those, I will receive them here on this iPad and then we will read up and them, of course. So you can state whatever questions you want to ask on the presentations. The slides are also available on our website that you can, of course, download and look upon afterwards. And if you have further questions, when you have stepped on the presentation, then you're always free, as you know, to come back with that. Great. But we have some questions coming in actually here. And I think we have 1 here, the first one, let's start off with that. Of the margin initiatives presented, which do you feel most comfortable with? And where do you see risk or challenges to obtain the indicated margin impact? I think that you were very diligent when you went through the margin journey. So you can...

Of course, like all the margin improvement initiatives. I think we proved over the years that private label is something that we can sell and we can use our engine to sell it. I think I'm very comfortable that we can do that also in the Benelux region. That, together with the other cost efficiency improvements, we can do coming from the integration and the merge between Dustin and Centralpoint, I think we are very comfortable on delivering these values to improve margin. Obviously, on the risk side, yes, there are a couple of things that we always have to be aware of. I think the customization of offerings is one thing that will hinder our automation to a greater sense. So we need to always be diligent to stick to the standard and deliver the standard. It should be good enough for the customers and not keep changing the standard for each customer. Then we will fail on automation, and that's a big part of our margin journey.

That is actually also when we acquire smaller bolt-ons, then we -- tradition as Rebecca was in to be moving them up to what we call the Northeast corner of transforming it to our model. And that is also quite a hard work to do, but we see also a lot of benefits in it.

Yes. I think that is the beauty of online. It's the standardization, the simplification, that drives the efficiency and the online engine is really forcing us standardize, and that's good in the margin -- on the margin side.

Yes, that's great. Now I think actually, we have a question from Erik Elander at Handelsbank and see if we can get to Erik on screen. And there you are, Erik, welcome. Let's see if we can hear you. We don't have any sound yet. Do we?

Can you hear me?

Now, you're unmute. Classic comment. Now you are here. Now you're here. Great. Good. It was on our side.

Okay. Great. Yes. So first of all, I mean, just quite an incredible Capital Markets Day. I mean Thomas, you can host a TV show. So impressive.

Thank you.

Yes. Anyways, so actually I had a question because when I looked at the list here of the top 12 players or something in the IT infrastructure market in Europe and also considering the ambition that you want to be this kind of European IT powerhouse going forward. When I see the top 4 players, I know 4 of them -- 3 of them quite well. And from what I've understood, IT infrastructure is becoming a little bit more complex, and the customers kind of appreciate this one-stop shop model that these kind of players offer. They have a lot of own consultants and do this kind of service stuff. Now you have -- this is actually especially as I thought as well through within the LCP segment. Now you're actually through the Centralpoint acquisition, expanding into LCP, but more into hardware sales. So like 85% of hardware sales. So my question is, can you actually become an IT infrastructure powerhouse in the Europe without offering more sophisticated services than you are today. And why I have this question is because Softcat is pretty much like Dustin as least what -- as I understand, and it's #12 on the list. What's your thought on this?

I think that -- thank you, Eric, for the question. Very good question. I think -- and that goes back to what we talked about here before. It goes back to our uniqueness in the model that we see. And when we look around Europe, we see and you look at this list, there's not many online players in that. And if you ask your -- our peers and the ones you talk to you, they will also recognize that we actually have another model. And we are aiming for other segments, especially the SMB segment when we find our growth. we will build the powerhouse. The definition of power for us is actually an online European IT powerhouse, where we focus a lot on that, and we find growth in that with a very cost-efficient model. And back to the -- what Johan said on the standardization, we also see that the large corporates typically or at least previously have requested more customized solutions. But now we see the development going forward now, especially that has been cleared during the pandemic that the CIOs of the large corporates, they strive to get more into standard solutions because as also mentioned in the beginning, you don't want to sit in a dark corner as a CIO of a company with the user or the employee of the company is requesting more and more and more, and it costs you a lot more to have customized solutions. So we believe in finding the customers that like the standardized model, like the cost-efficient model of acquiring, like the close connection, of course, to all the support you need in terms of IT infrastructure cloud, whatever it can be. And we believe that, that we can build for that part of the segment. So I think the -- for us, building the IT European powerhouse, it's very focused on online. It's very focused that we see that the SMB segment of the market, is actually fairly underserved in the European market. And therefore, we believe that we can take this position and we can gain the position. But with that said, of course, the players before, as you mentioned, the players before us on the list and also Johan talked about, they are, of course, on their toes as well. So of course, the competition is there, but we know that we have a very good confidence in our way of doing business. Softcat, by the way, has -- they are very similar to us, but they have a slightly model when it comes to distribution of sales. Softcat typically build a sales office and then they have salespeople running out from that office, very regionally strong. And quite a different model where we build it more on a centralized platform model to acquire the sales. So we have a lot of work to do, but we believe and we see that this position is very possible for us to take. I hope that answered your question somewhat, Erik.

Yes, it did. And actually, just a quick follow-up because I think this is actually really interesting. Despite the fact that IT infrastructure is becoming more complex, you can standardize your offering and still win business. Is that actually true?

Yes, it is true because we see you can compare it with -- we have our friends in Denmark. You can compare it with LEGO where we set out a different LEGO pieces from that build customized solutions for the customers. So it is actually possible to do. With this, of course, we reach not a full market. We have our position where we drive and we will not go into more IT strategic consultancy like some of our competitors does. That is not for us. We do not go into ERP solutions and that type of solution. That's not for us. We focus on building standardized solutions that can cater for many of the small companies and many, of course, of the large companies as well. And the reason for us looking for when we -- as [indiscernible] when we look for acquisitions on the geographical expansion, that is, of course, also that we see that the most players in Europe that are up for sort of would be possible for us tilted towards LCP, but we use that scale and have done all over the years back -- if you look back in our playbook, you can see that we have used the capacity of a large corporate player to build out the SMB portfolio. And that has been sort of the how we have played the cards all over the years when we have done the acquisition. So we believe Yes, we believe it's possible. Thank you very much, Eric, and thanks for tuning in. Let's see. We have another question here from Yes, we have another question here. What kind of service offer fit the Dustin model and what doesn't fit? Are you focusing less or more managed services today compared to before? I think I could actually direct that question to Rebecca on how we do on managed services, how we think about that.

Well, thank you, Thomas. We start from the customer's perspective and our customers quite natural for them to first buy the computer and then add the software and managed services on top of that. So it's no contradiction in that. It's more the total integrated offering that we are focusing on taking a large share of wallet with our customers as possible.

Yes. It's true. So we start -- the customer comes into us for buy a computer and we address that computer with services. Great. Thank you, Rebecca. And now I think we have another live question, this one from Simon Granath at ABG. Are you with us, Simon? Yes, here you are.

Yes, I am. Thank you so much for the presentation, Thomas and the rest of the team, very impressing stuff -- impressive stuff indeed. A couple of questions from me, finding synergies in terms of private labels is a growth lever for you. And historically, your private label solution have been relatively uncomplex in lack of better word. Although clearly, margin accretive. So my question is whether you would like to launch more high-end private label solution? Or is it more of the same that you plan for going forward?

It's a good question, Simon. I think what we have found as a success from the start when we started the private label, it was like 3 -- 4 years old, we saw that where we can really gain ground is on the private label products where the customer is not as brand sensitive as you typically are when you buy whatever it can be. But on a cable, you're not that brand sensitive. So we have found a good formula there, and we will continue to do that. We might expand into new categories, but we have over the years, found that, okay, we -- sort of the most advanced we have today is probably screens or displays. We have been thinking about other more complex products, but we see that, okay, we can really drive margin and we can really have a position and also keeping a good, of course, relationship with all our vendors that are of high importance for us to drive. So we keep a good relation with them and at the same time, delivering low complex products on private label. So to -- in short to answer your question, I should say, we will stick to that type of assortment.

I think it would be rather that we would do segmentations within the categories that we are at the moment rather than addressing very advanced categories.

Exactly.

And another question for me is I feel quite confident that your dynamic price model is one of the reasons for why you have performed well as recently and perhaps it has even more beneficial in challenging times as the one we are currently Do you expect to benefit just as much from this model going forward as the society starts to return to a normal state? Or would you anticipate the Delta contribution from this model to be negative or positive?

I think what we have learned, and you can fill in here as well on, but what we have learned over the -- during the pandemic, especially is that the dynamic where you're working in when it comes to pricing, procuring and deliveries has been very successful. And of course, we have learned a lot during the pandemic on how to work with this and how to set the pricing. And as Rebecca mentioned, we do around 2 million price checks per day in our systems, very highly automated systems, and we do also highly automated purchasing. So the automated pricing and the automated purchasing delivers a lot for us and has done during the period. So of course, we'll see how the market develops. But we see a great possibility for us to continue to develop this dynamic pricing model. And so as we look at it, it will perform on the positive side of the delta in that sense.

I think there -- I mean, as a comment to that, I think we are -- we have learned that availability is really something that the customers like, and therefore, we can price for it. And that will stay with us for a long, that's the pandemic situation.

Great. Thank you very much, Simon. Thank you for joining in and tuning in. Let's see, we have more questions here. How is your position relative to with regards to the product take back offering. Let's see here. Maybe could I ask Angelo or Michael to take that question on this. Michael with us on link?

Yes, I am.

Yes. Did you hear the question there?

So check back how we are positioned versus competitor?

Exactly.

Yes. We are very well positioned. We are building our own capabilities right now. We have both an opportunity to scale, but also the opportunity with our big contracts to actually to have the volume that will then create is an opportunity both for us being able to resell it to going forward, but definitely also to live up to our sustainable targets. So we see that this opportunity is a great one for us. And we definitely also see that our customers will look to us as a reseller to help them living up to the United Nations 2030 requirements.

Great. Thank you, Michael. We have another one for you, Angelo, you talked about the uniqueness in tender capabilities in Benelux. And what is actually the uniqueness there? That's the question.

Not sure I'm ready to reveal all the secrets. But there are a couple of things. It's the cooperation between the people in the tender desk and the people doing the wholesales. And if you look at the leadership in both teams, it's quite strong. They've been around the block for a couple of years. So it's actually the people that make the whole difference there. It's like a pretty large group and a very experienced in this one. The corporation is very good. So the whole formula that we are actually using stands out into the market.

Yes I have a follow-up on that one. What is -- you mentioned the hit rate on LCP in Benelux. Did you mention that in the...

I mentioned that, yes.

What was it? That was a follow-up here -- a follow-up question.

Yes, it's between 68% and 72% for this year.

So we're quite a good hit rate on that.

Yes. And that's actually most important because it costs a lot of money to actually enter a tender. It's a lot of work. It's a lot of paper to produce.

But we also develop a lot when we do the tendering because we develop our customer offering constantly. That's the beauty of working with customers. Michael, we also have a question, how are sort of the hit ratio in the Nordics developed over the last years?

We have increased our hit rate. But over the years, we have been also looking into our historic wins and failures, making sure that all of that knowledge had gone into a database. So we've been also progressing. We would like to have progressed even further by adding the capabilities from our Benelux friends. So looking forward to the journey there.

Yes. Good. Good. Let's see. I have a question here for SMB Morten, SMB Benelux, how our ambition is to increase this with 20%, the average order per customer are you with us here Morten? Yes, you are. Are there any specific items or services that you see that will drive this?

Well, first of all, what we have looked into is how we have done this in the Nordics, use the operating model that you saw. You, for instance, mentioned areas like availability, areas like deliveries. And of course, also this magic between our product management, driving the categories, but also the strategic procurement. And this has really been vital for us in order to securing the average spend that we have there. So when we start really consolidating, and working on the customer base with our tooling that we have in the Nordics and can really leverage upon, then we see a great opportunity. And we do not really question whether we will reach this level, we're quite certain we will reach this level.

Yes. Sounds encouraging and comforting, Morten. Thank you very much. Well, we have a last question. We are soon about to close here, but we have a last question, which is really interesting. Do you see any major market opportunities coming from future use of virtual or extended reality equipment in business settings or business meetings? Well, I think this is a really interesting part, how will actually the meetings and how would the business environment evolve now when we have learned so much during the pandemic. I think the -- what we see and what we test is, of course, that the hybrid meetings will evolve a lot, and we have learned a lot how to do these digital settings. So we see a lot of things coming up. Individual cameras, how do you set up the meeting rooms. We have a request from our customers that they should change the meeting rooms more to movie or to a theater setting. So we are really focusing on the screens. And we ourselves have digital first as our way of working nowadays. So we always start with the digital and delivering our meetings on that. So it's a really exciting future. And we ourselves have a very exciting future now when we set out for our fourth chapter now when we start to write the full team here and the full team of the Dustin Group. With that, I would just like to thank everyone here on stage participating today, and thank you, everyone that has listened to us and tuned in and just download the presentation from the site and get back to us if any more questions. Thank you very much for participating today and looking forward to see you soon. Thank you.