Annual Report • Oct 18, 2017
Annual Report
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| All amounts in SEK million, unless otherwise | Q4 | Q4 | Full-year | Full-year |
|---|---|---|---|---|
| indicated | 16/17 | 15/16 | 16/17 | 15/16 |
| Net sales | 2,262.4 | 1.951.8 | 9.306.2 | 8.300.8 |
| Organic sales growth (%) | 12.2 | 10.2 | 8.6 | 4.4 |
| Gross margin (%) | 14.3 | 15.3 | 14.8 | 15.0 |
| Adjusted EBITA | 91.9 | 80.7 | 426.1 | 389.6 |
| Adjusted EBITA margin (%) | 4.1 | 4.1 | 4.6 | 4.7 |
| EBIT | 73.7 | 64.7 | 349.5 | 323.5 |
| Profit for the period | 48.4 | 25.1 | 239.1 | 224.9 |
| Earnings per share, including discontinued operations, before dilution, (SEK) |
0.64 | 0.33 | 3.14 | 2.95 |
| Earnings per share, including discontinued operations, after dilution, (SEK) |
0.63 | 0.33 | 3.13 | 2.95 |
| Cash flow from operating activities | $-13.6$ | $-74.8$ | 213.6 | 447.2 |
| Net debt/adjusted EBITDA (multiple)* | 2.3 | 2.1 | ||
| Return on equity (%) | 16.1 | 15.8 | ||
| For definitions, see page 25. |
We concluded the financial year with a robust sales growth of 16 per cent at the same time as adjusted EBITA increased by 14 per cent, despite challenging comparative figures. Sales performance was positive for all customer groups in the B2B segment and we delivered large volumes of computers, mobile phones and tablets during the quarter. Our assessment is that Dustin is gaining significant market shares in our addressable market.
Total sales growth in the fourth quarter amounted 15.9 per cent, of which an organic growth of 12.2 per cent. Growth was strong within the entire B2B segment, both to the small and medium-sized business customer group and to the large companies and the public sector customer group. Overall sales in the B2B segment rose 13.8 per cent organically.
The gross margin in the quarter was 14.3 per cent (15.3). The change was attributable to a high share of client sales (computers, mobile phones and tablets) with a lower margin Further, a continuing high share of sales to the large companies and the public sector customer group under new framework agreements with initially lower profitability has affected the quarter. The gross margin in the small and medium-sized business customer group strengthened slightly, mainly as a result of completed acquisitions with a larger share of more advanced products and services.
Adjusted EBITA for the quarter increased 14 per cent to SEK 92 million (81), corresponding to an adjusted EBITA margin of 4.1 per cent (4.1). EBITA was impacted positively by an increase in sales and higher gross profit. Operating expenses increased compared with the year-earlier quarter, as a result of a continued focus on private label products and services sales with a higher margin.
We intend to continue expanding our portfolio of advanced products and services, and to continuously seek potential acquisition candidates to complement and strengthen our existing operations. Our aim is to add three to five acquisitions per year.
After the end of the quarter, we acquired Danish Norrig's business area for hosting and outsourcing of IT services, as well as signed an agreement to acquire Norwegian Core
Services, which is one of the leading players in the new generation data center solutions. The acquisitions give us cutting edge expertise in hosting solutions together with data centers, IT infrastructure and security solutions as well as a broader customer base in the core small and medium-sized business segment in the Danish and Norwegian markets.
As we have announced earlier, I will leave my assignment at Dustin at the turn of the year. At the beginning of October, the Board appointed Thomas Ekman as new President and CEO. He starts his assignment on January 1, 2018 and I feel confident to hand over to Thomas who will lead the continued journey in line with Dustin's strategy.
The Board of Directors proposes a dividend of SEK 2.80 (2.40) per share, corresponding to a total divided of SEK 213 million (183), which is in line with our dividend policy to distribute more than 70 per cent of net profit. Our net debt in relation to adjusted EBITDA was 2.3 at the end of the period and is in the lower range of our financial target for net debt (2.0-3.0). This provides us with good opportunities for both organic and acquired growth and will enable a continued positive dividend trend over the coming years.
We conclude the year in strong fashion and summarize the fiscal year with a growth well on par with our financial target of an organic growth of 8 per cent over a business cycle. We feel secure in our ability to, over time, maintain an organic growth rate in line with our financial targets.
During the financial year, Dustin strengthened its position as the leading e-retailer in the Nordic region's B2B market, by continuously refining our attractive product and service offering and increasing online sales.
We stand by our medium term target to achieve an adjusted EBITA margin of 5-6 percent, supported by acquisitions and our initiatives on the service side as well as an increasing share of private label products.
Nacka, October 2017
Georgi Ganev, CEO
Dustin is a leading Nordic IT reseller, with a wide range of hardware, software and related services and solutions. Our centralised warehouse and efficient logistics platform ensure fast and reliable delivery. The addition of high-level IT expertise and competitive prices enables us to meet the needs of primarily small and medium-sized businesses, but also large businesses, the public sector and the B2C market.
Dustin employs a multichannel model where the majority of sales take place online, supplemented by relationshipbased and consultative sales over the telephone or through customer visits. Dustin conducts operations in Sweden, Denmark, Finland and Norway through two business segments: B2B (the business-to-business market) and B2C (the business-to-consumer market). These segments are in turn supported by several scalable and shared central functions, including the online platform, purchasing, warehousing and logistics, pricing, marketing, IT and HR.
Dustin is well positioned in the market, where an evergreater share of sales of products and basic services takes place online, thanks to its efficient online platform and focus on small and medium-sized business, a group of customers that is more flexible and growing rapidly. We see increasing demand for advanced services as requests for mobility and accessibility grow. By combining products and services into integrated solutions, and by adding more advanced services through acquisitions, Dustin is continually expanding its customer offering and is able to meet an ever-greater share of its customers' IT needs in accordance with its vision. Our offering encompasses services and solutions in areas including "Clients", "Infrastructure", "Software", "Mobility" and "Print".
Dustin Group AB is a Swedish public limited company with its head office in Nacka Strand outside Stockholm. The share was listed in the Mid Cap segment on Nasdag Stockholm on February 13, 2015.
Footnote: The distribution between online and offline as well as the geographical split between countries refers to fiscal year 2016/17.
Income statement items and cash flows are compared with the year-earlier periods. Balance-sheet items pertain to the position at the end of the period and are compared with the corresponding year-earlier date. The quarter refers to June 2017-August 2017.
Net sales for the quarter rose 15.9 per cent to SEK 2,262 million (1,952), with very strong sales in both the small and medium-sized businesses customer group and the large companies and the public sector customer group. Organic growth in fixed exchange rates increased to 12.2 per cent $(10.2)$ .
During the quarter, gross profit rose SEK 27 million, corresponding to 8.9 per cent, to SEK 325 million (298). The gross margin was 14.3 per cent (15.3), a decrease mainly attributable to a changed product mix with a larger share of client sales with lower margins in the entire B2B segment, and a continuing high share of sales to the large companies customer group under new framework agreements with initially lower profitability.
Adjusted EBITA for the quarter increased 13.9 per cent to SEK 92 million (81). The adjusted EBITA margin was unchanged at 4.1 per cent (4.1), impacted by a lower gross margin and a slightly higher cost level resulting from continuing investments in the service offering and private label products. Adjusted EBITA includes earnings from discontinued operations, but excludes items affecting comparability, which are specified in Note 4 Items affecting comparability. For a comparison of adjusted EBITA and EBIT, see Note 2 Segments.
EBIT for continuing operations amounted to SEK 74 million (65). EBIT includes items affecting comparability amounting to a negative SEK 1 million (-), which for the quarter pertains to acquisition-related costs. See Note 4 Items affecting comparability.
Financial expenses amounted to SEK 11 million (29), with the costs for the quarter primarily pertaining to borrowing costs totalling SEK 10 million (8) for external financing. Financial expenses in the comparative period included negative currency effects related to external financing totalling SEK 21 million. The corresponding currency effects for this quarter were reported in other comprehensive income since the hedging of net investments in foreign subsidiaries has been applied as of the first quarter of 2016/17.
Financial income amounted to SEK 0.3 million (0.5).
The tax expense for the quarter was SEK 15 million (10), corresponding to an effective tax rate for continuing operations of 23.1 per cent, compared with 29.0 per cent in the year-earlier period.
Profit for the quarter, including discontinued operations, totalled SEK 48 million (25). Discontinued operations had no impact on profit during the quarter but amounted to a negative SEK 0.4 million in the year-earlier quarter. Earnings per share, including discontinued operations, amounted to SEK 0.64 (0.33) before dilution and SEK 0.63 (0.33) after dilution.
Cash flow for the quarter was a negative SEK 24 million (neg: 91).
Cash flow from operating activities was a negative SEK 14 million (neg: 75). This was primarily the result of negative changes in working capital of SEK 92 million (neg: 166) The change in working capital is due to lower accounts payable at the end of the quarter. For further information regarding working capital, refer to the Net working capital section.
Cash flow from investing activities amounted to a negative SEK 10 million (neg: 14) and mainly pertained to the settlement purchase consideration regarding the acquisition of Saldab IT amounting to SEK 4 million. Investments in tangible and intangible assets amounted to a negative SEK 5 million (neg: 5), of which a negative SEK 3 million (neg: 3) pertained to IT development.
Cash flow from financing activities amounted to a negative SEK 0.4 million (neg: 2) and pertained to cash flow from changes to financial leasing liabilities during the quarter.
Dustin announced on June 26 that President and CEO Georgi Ganev will be stepping down from his position. Georgi Ganev remains in his role until Thomas Ekman assumes the position as new President and CEO on January 1, 2018. Thomas Ekman joins from Cabonline Group where he has had the role as CEO and has before that, inter alia, been CEO of Tele2 Sweden and is today member of the board of directors of Com Hem.
Net sales for the year rose 12.1 per cent to SEK 9,306 million (8,301), with strong sales in both the large companies and the public sector customer group and the small and medium-sized businesses customer group. Organic growth in fixed exchange rates was 8.6 per cent $(4.4).$
Gross profit rose SEK 133 million, corresponding to 10.7 per cent, to SEK 1,380 million (1,246). The gross margin was 14.8 per cent (15.0), which reflected the fact that the positive impact of earlier acquisitions with a higher proportion of advanced products and services was not sufficient to fully compensate for strong client sales with lower margins and a high share of sales under new framework agreements with initially lower profitability.
During the year, adjusted EBITA rose 9.4 per cent to SEK 426 million (390). The adjusted EBITA margin amounted to 4.6 per cent (4.7), impacted by investments in the service offering and private label products. Adjusted EBITA includes earnings from discontinued operations, but excludes items affecting comparability, which are specified in Note 4 Items affecting comparability. For a comparison of adjusted EBITA and EBIT, see Note 2 Segments.
EBIT for continuing operations amounted to SEK 349 million (324). EBIT for the year was adversely impacted by items affecting comparability amounting to a negative SEK 7 million (neg: 5), primarily comprising a positive earnings effect of SEK 22 million from the impairment of a performance-based earn-out for Idenet, provisions totalling SEK 18 million for a legal dispute in Norway and acquisition-related costs of SEK12 million. A full summary of items affecting comparability is presented in Note 4 Items affecting comparability.
Financial expenses for the year amounted to SEK 43 million (38), and primarily pertained to borrowing costs totalling SEK 38 million (32) for external financing. In the comparative year, financial expenses included negative currency effects of SEK 3 million attributable to external financing. Effective from the first quarter of 2016/17, these currency effects will be reported in other comprehensive income due to the application of hedging of net investments in foreign subsidiaries. Adjusted for this, financial expenses amounted to SEK 35 million in the comparative period.
Financial income in the period amounted to SEK 1 million $(1).$
The tax expense for the year was SEK 69 million (62), corresponding to an effective tax rate for continuing operations of 22.4 per cent, compared with 21.6 per cent in the year-earlier period.
Profit for the year, including discontinued operations, totalled SEK 239 million (225). Earnings per share, including discontinued operations, amounted to SEK 3.14 (2.95) before dilution and SEK 3.13 (2.95) after dilution.
Cash flow for the year was a negative SEK 174 million (pos: 168). During the period, dividends were paid to shareholders in the amount of a negative SEK 183 million (neg: 129).
Cash flow from operating activities amounted to SEK 214 million (447), with the year-on-year decline mainly attributable to changes in working capital. The change for the period was a negative SEK 110 million (pos: 105) and primarily pertained to an increase in accounts receivable, which was partly offset by increased debt. The increase in accounts receivable is the result of sales growth to large companies and the public sector.
Cash flow from investing activities amounted to a negative SEK 201 million (pos: 80) and mainly pertained to acquisitions of operations, including a paid contingent consideration totalling a negative SEK 174 million (neg: 148). Acquisitions during the period related to IKT Gruppen, Purity IT and Saldab IT. The paid earn-out was attributable to the acquisition of Resolute. The comparative period was positively impacted by the divestment of the lease operations for SEK 249 million. Investments in tangible and intangible assets amounted to a negative SEK 27 million (neg: 36), of which negative SEK 17 million (neg: 19) was attributable to costs for IT development. In addition, a negative SEK 14 million was invested in Dustin's pricing platform during the comparative period.
Cash flow from financing activities was a negative SEK 186 million (neg: 359) and mainly pertained to shareholder dividends of negative SEK 183 million (neg: 129), inward consideration payments of SEK 2 million (4) for warrants and borrowing expenses of negative SEK 3 million (-). The comparative period was primarily impacted by cash flow from the lease portfolio of a negative SEK 180 million, resulting from the settlement of the loan facility for the lease operations in conjunction with the divestment of the operations.
Net working capital amounted to SEK 118 million (32) at the end of the year. The change compared with the yearearlier period was mainly the result of higher accounts receivable due to increased sales to large companies and the public sector. Increased debt was mainly attributable to a rise in tax liabilities and a provision for future repayment requirements.
| SEK million | Aug 31, 2017 | Aug 31, 2016 |
|---|---|---|
| Inventories | 261.9 | 229.3 |
| Accounts receivable | 1.047.1 | 877.7 |
| Tax assets, other current receivables, as well as prepaid expenses and accrued income |
173.7 | 148.2 |
| Accounts payable | $-956.3$ | $-912.8$ |
| Tax liabilities, other current liabilities and accrued expenses and deferred income |
||
| $-408.2$ | $-310.7$ | |
| Net working capital | 118.1 | 31.6 |
At the end of the period, net debt amounted to SEK 998 million (826). In total, cash and cash equivalents amounted to SEK 71 million (243), a decrease by SEK 171 million for the period. At the end of the period, there was also an unutilised overdraft facility of SEK 270 million (270) and a credit facility of SEK 400 million (-).
Net debt in relation to adjusted EBITDA was 2.3 (2.1) at the end of the period.
| SEK million | Aug 31, 2017 | Aug 31, 2016 |
|---|---|---|
| Liabilities to credit | ||
| institutions | 1,068.6 | 1.066.4 |
| Finance lease liabilities Cash and cash |
12 | 28 |
| equivalents | $-71.5$ | $-242.9$ |
| Net debt | 998.3 | 826.3 |
The average number of full-time employees during the period was 977, compared with 944 in the year-earlier period. The increase is attributable to this year's acquisitions.
In September, Dustin acquired the Denmark-based Norriq's business area for hosting and outsourcing of IT services. In connection with the acquisition, Dustin and Norrig entered into a strategic cooperation that will broaden the customer offering for both companies. Dustin is strengthening it offering for advanced services and solutions in the Danish market and expanding its customer base in the core small and medium-sized business segment.
Norriq's business area for hosting and outsourcing of IT services has 28 employees and reported sales of about
DKK 57 million in 2016. The acquisition is expected to have a marginal impact on Dustin's earnings per share during the current financial year.
In October, Dustin signed an agreement to acquire Norwegian Core Services, one of the leading players in the new generation data center solutions, Software Defined Datacenter. Core Services, which specializes in data room products and solutions, broadens Dustin's range of more advanced products and services and strengthens its position as a turnkey supplier of IT infrastructure.
Core Services has 20 employees and reported sales of NOK 236 million in 2016. The acquisition is expected to have a marginal impact on Dustin's earnings per share during the current fiscal year.
The Board of Directors of Dustin has appointed Thomas Ekman to new President and CEO. He will assume the position as per 1 January 2018. Thomas Ekman joins from Cabonline Group where he has had the role as CEO and has before that, inter alia, been CEO of Tele2 Sweden and is today member of the board of directors of Com Hem. He succeeds Georgi Ganev who leaves his position by the year-end.
Dustin announced in October that the company invites investors, financial analysts and media to a Capital Markets Day at the Group's logistics center in Rosersberg on November 30, 2017. The purpose of the Capital Markets Day is to give a detailed presentation of Dustin's operations, the strong online position and the initiatives within managed and cloud-based services and how these supports the business. In addition, the acquisition strategy and some of the recent acquisitions will be highlighted. Dustin will be represented by President and CEO Georgi Ganev, incoming President and CEO Thomas Ekman, CFO Johan Karlsson and the other members of Group Management.
Dustin is impacted by seasonal variations. Each quarter is comparable between years. Sales volumes are normally higher in November and December, and lower during the summer months when sales and marketing activities are less intense. Similar seasonal variations occur in all geographical markets.
Dustin Group AB (Corp. Reg. No. 556703-3062), which is domiciled in Nacka, Sweden, only conducts holding operations. Overall external financing is with the Parent Company.
Net sales for the period amounted to SEK 0.4 million (0.4). Profit for the period totalled SEK 138 million (160) and the year-on-year change was largely attributable to a positive net currency position of SEK 2 million (neg: 11), of which SEK 2 million (neg: 3) was attributable to external financing.
Aside from transactions with subsidiaries, the Parent Company had no related-party transactions.
Dustin has a structured and Group-wide process to identify, classify, manage and monitor a number of strategic, operational and external risks.
For a detailed description of the risks that are expected to be particularly significant for the future development of the Group, refer to Dustin's Annual Report 2015/16.
There were no significant related-party transactions during the current period or comparative period.
The Parent Company's share has been listed on Nasdaq Stockholm since February 13, 2015, and is included in the Mid Cap index. At August 31, 2017, the price was SEK 66.75 per share (60.00), representing a total market capitalisation of SEK 5,085 million (4,570).
At the end of the quarter, the company had 5,129 shareholders (5,822). As of August 31, 2017, the company's three largest shareholders were Axmedia AB (Axel Johnson AB) with 25.0 per cent, Swedbank Robur funds with 11.6 per cent and the Fourth Swedish National Pension Fund with 7.1 per cent. Dustin's shareholder register with the largest shareholders is presented on the company's website.
Dustin's Annual General Meeting (AGM) will be held at the Playhouse Theatre, Drottninggatan 71A, in Stockholm, Sweden, on December 13, 2017, at 2:00 p.m. Shareholders who wish to have a matter considered should submit a written request to the Board by October 25, 2017 at the latest to ensure that the matter is included in the notice convening the AGM.
Requests by mail should be addressed to: Dustin Group AB (publ) Attn: Sara Edlund Box 1194 SE-131 27 Nacka Strand, Sweden
or by e-mail to: [email protected]. Information on how shareholders can notify the company of their attendance at the meeting will be published prior to the AGM.
Dustin's Annual Report and Corporate Responsibility Report are scheduled for publication on November 17 on Dustin's website.
The Nomination Committee ahead of the AGM on December 13, 2017 comprises the following members: • Caroline Berg, Axel Johnson AB/Axmedia AB, Committee Chairman
The Nomination Committee will prepare motions for the 2016/17 AGM relating to the Chairman of the Meeting, Chairman of the Board, Board members, remuneration for Board and Committee work, fees to auditors and, where necessary, proposals for changes to the terms of reference for the Nomination Committee.
The Board of Directors proposes a dividend of SEK 2.80 (2.40) per share, corresponding to SEK 213 million (183).
Dustin's operations are divided into two business segments: B2B and B2C. Within B2B, customers are served through both the online platform and relationship selling. Dustin's sales model has been adapted to meet customer needs as efficiently as possible. In addition to the core B2B segment, Dustin also serves private customers in the B2C business segment. In the B2C segment, customers are only served through the online platform. Through this customer segment, Dustin gains insight into trends and pricing as well as increased sales with limited additional costs.
| Q4 | Q4 | Change | Full-year | Full-year | Change | |
|---|---|---|---|---|---|---|
| SEK million | 16/17 | 15/16 | % | 16/17 | 15/16 | % |
| Net sales | 2,127.2 | 1,806.2 | 17.8 | 8,715.4 | 7,703.3 | 13.1 |
| Segment results | 167.1 | 150.3 | 11.1 | 732.9 | 660.3 | 11.0 |
| Segment margin (%) | 7.9 | 8.3 | ۰ | 8.4 | 8.6 | $\overline{\phantom{a}}$ |
Net sales for the quarter rose 17.8 per cent to SEK 2,127 million (1,806). Organic growth at fixed exchange rates was 13.8 per cent (10.6). The increase is explained by strong growth in the entire B2B segment, both within the the large companies and public sector customer group and in the small and medium-sized businesses customer group. A higher proportion of sales within new framework agreements, especially in Denmark and Norway, as well as a strong development within the small and medium-sized businesses customer group in Sweden, contributed positively to developments.
The segment results for the quarter rose SEK 17 million to SEK 167 million (150). This improved result was due to increased sales and the positive earnings effect derived from previous acquisitions. The segment margin was 7.9 per cent (8.3), a decrease mainly attributable to a changed product mix with a higher proportion of low margin client sales and also a continued high share of sales under new framework agreements with initially low profitability Segment costs were also impacted by continuing investments in the service offering and in private label products.
| Q4 | Q4 | Change | Full-year | Full-year | Change | |
|---|---|---|---|---|---|---|
| SEK million | 16/17 | 15/16 | % | 16/17 | 15/16 | % |
| Net sales | 135.2 | 145.6 | $-7.1$ | 590.8 | 597.5 | $-1.1$ |
| Segment results | 8.1 | 5.6 | 44.5 | 24.6 | 22.4 | 9.7 |
| Segment margin (%) | 6.0 | 3.8 | $\overline{\phantom{a}}$ | 4.2 | 3.7 | $\overline{\phantom{a}}$ |
Net sales for the quarter declined 7.1 per cent to SEK 135 million (146). Organic growth at fixed exchange rates was a negative 7.8 per cent (pos: 5.5). While the quarter was impacted positively by increased sales in Finland, this could not fully compensate the decline in Sweden, Norway and Denmark.
Dustin's central functions hold the key to efficient delivery of the Group's offerings in all markets, the generation of economies of scale and the simplification of the integration of acquired operations. Costs in the fourth quarter for central functions amounted to 3.7 per cent $(3.9)$ of sales.
The costs related to the central functions has partly been affected by integration of completed acquisitions, where
The segment results for the quarter increased to SEK 8.1 million (6.7) and were adversely affected by lower sales and a slightly weaker gross margin. The segment margin was 6.0 per cent (3.8).
former local functions now form part of the central platform, and partly by further investments in the service offering and private label products.
For additional financial data on the segments, see Note 2 Segments, and to Segment information by quarter on page 24.
The undersigned certify that this interim report gives a true and fair presentation of the Parent Company's and the Group's operations, financial position and profits and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.
Nacka, October 18, 2017
Georgi Ganev, CEO In accordance with authorisation by the Board of Directors
This report has not been reviewed by the company's auditors.
| Q4 | Q4 | Full-year | Full-year | ||
|---|---|---|---|---|---|
| SEK million | Note | 16/17 | 15/16 | 16/17 | 15/16 |
| Continuing operations: | |||||
| Net sales | $\overline{2}$ | 2,262.4 | 1,951.8 | 9,306.2 | 8,300.8 |
| Cost of goods and services sold | $-1,937.8$ | $-1,653.8$ | $-7,926.7$ | $-7,054.7$ | |
| Gross profit | 324.6 | 298.1 | 1,379.5 | 1,246.1 | |
| Selling and administrative expenses | $-247.7$ | $-229.5$ | $-1,016.3$ | $-911.5$ | |
| Items affecting comparability | 4 | $-0.8$ | $-7.3$ | $-5.0$ | |
| Other operating income | 1.3 | -0.4 | 5.9 | 5.6 | |
| Other operating expenses | $-3.8$ | $-3.4$ | $-12.3$ | $-11.6$ | |
| EBIT | $\overline{2}$ | 73.7 | 64.7 | 349.5 | 323.5 |
| Financial income and other similar income-statement items | 0.3 | 0.5 | 1.2 | 1.4 | |
| Financial expenses and other similar income-statement items |
$-10.9$ | $-29.4$ | $-42.6$ | $-38.2$ | |
| Profit after financial items | 63.0 | 35.9 | 308.1 | 286.8 | |
| Tax attributable to continuing operations | $-14.6$ | $-10.4$ | $-69.0$ | $-62.1$ | |
| Profit for the period from continuing operations | 48.4 | 25.5 | 239.1 | 224.7 | |
| Discontinued operations: | |||||
| Profit for the period from discontinued operations | 5 | $-0.4$ | 0.0 | 0.2 | |
| Profit for the period | 48.4 | 25.1 | 239.1 | 224.9 | |
| Other comprehensive income | |||||
| Translation differences | $-19.8$ | 21.0 | $-3.2$ | 2.9 | |
| Change in hedging reserves | 21.1 | $-3.1$ | 10.6 | $-5.4$ | |
| Tax attributable to change in hedging reserves | $-4.6$ | 0.6 | $-2.3$ | 1.2 | |
| Other comprehensive income (all items that will be transferred to the income statement) |
$-3.3$ | 18.4 | 5.1 | -1.3 | |
| Comprehensive income for the period is attributable in its | |||||
| entirety to Parent Company shareholders | 45.1 | 43.5 | 244.1 | 223.6 | |
| Comprehensive income for the period attributable to Parent Company shareholders arose from: |
|||||
| Continuing operations | 45.1 | 43.9 | 244.1 | 223.4 | |
| Discontinued operations | $-0.4$ | 0.0 | 0.2 | ||
| Total comprehensive income | 45.1 | 43.5 | 244.1 | 223.6 | |
| Earnings for continuing operations per share (SEK) | 0.64 | 0.33 | 3.14 | 2.95 | |
| Earnings for continuing operations per share after dilution | |||||
| (SEK) | 0.63 | 0.33 | 3.13 | 2.95 | |
| Earnings per share, including discontinued operations (SEK) | 0.64 | 0.33 | 3.14 | 2.95 | |
| Earnings per share after dilution including discontinued operations (SEK) |
0.63 | 0.33 | 3.13 | 2.95 |
| SEK million | Note | Aug 31, 2017 |
Aug 31, 2016 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 2,105.8 | 1,894.7 | |
| Other intangible assets attributable to acquisitions | 357.9 | 364.4 | |
| Other intangible assets | 6 | 115.1 | 112.2 |
| Tangible assets | 6 | 24.6 | 20.3 |
| Deferred tax assets | 8.4 | 6.5 | |
| Other non-current assets | 2.9 | 2.7 | |
| Total non-current assets | 2,614.7 | 2,400.8 | |
| Current assets | |||
| Inventories | 261.9 | 229.3 | |
| Accounts receivable | 1,047.1 | 877.7 | |
| Tax assets | 7.6 | 6.2 | |
| Other receivables | 7.7 | 4.0 | |
| Prepaid expenses and accrued income | 158.5 | 138.0 | |
| Cash and cash equivalents | 71.5 | 242.9 | |
| Total current assets | 1,554.1 | 1,498.0 | |
| TOTAL ASSETS | 4,168.8 | 3,898.9 | |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Equity attributable to Parent Company shareholders | 1,485.1 | 1,422.2 | |
| Total equity | 1,485.1 | 1,422.2 | |
| Non-current liabilities | |||
| Deferred tax and other long-term provisions | 133.3 | 122.3 | |
| Liabilities to credit institutions | 1,068.6 | 1,066.4 | |
| Acquisition-related liabilities | 7 | 78.3 | 26.0 |
| Derivative instruments | $\overline{7}$ | 6.5 | 9.0 |
| Total non-current liabilities | 1,286.6 | 1,223.7 | |
| Current liabilities | |||
| Accounts payable | 956.3 | 912.8 | |
| Tax liabilities | 59.3 | 35.9 | |
| Derivative instruments | 7 | 0.1 | |
| Other current liabilities Acquisition-related liabilities |
115.1 | 68.3 | |
| Accrued expenses and deferred income | $\overline{7}$ | 31.3 | 26.6 |
| Total current liabilities | 235.0 | 209.3 | |
| TOTAL EQUITY AND LIABILITIES | 1,397.1 | 1,253.0 | |
| 4,168.8 | 3,898.9 |
| SEK million | Aug 31, 2017 |
Aug 31, 2016 |
|---|---|---|
| Opening balance, September 1 | 1,422.2 | 1,323.7 |
| Profit for the period | 239.1 | 224.9 |
| Other comprehensive income | ||
| Translation differences | $-3.2$ | 2.9 |
| Change in hedging reserves | 10.6 | $-5.4$ |
| Tax attributable to change in hedging reserves | $-2.3$ | 1.2 |
| Total other comprehensive income | 5.1 | $-1.3$ |
| Total comprehensive income | 244.1 | 223.6 |
| Dividends | $-182.8$ | $-129.5$ |
| Subscription with the support of warrants | 1.6 | 4.3 |
| Total transactions with shareholders | $-181.2$ | $-125.2$ |
| Closing equity as per the balance-sheet date, attributable to | ||
| Parent Company shareholders in its entirety | 1,485.1 | 1,422.2 |
| Q4 | Q4 | Full-year | Full-year | ||
|---|---|---|---|---|---|
| Note SEK million |
16/17 | 15/16 | 16/17 | 15/16 | |
| Operating activities | |||||
| Profit before financial items including operating profit from | |||||
| discontinued operations | 73.7 | 64.8 | 349.5 | 323.9 | |
| Adjustment for non-cash items | 18.5 | 18.7 | 63.3 | 71.6 | |
| Interest received | 0.3 | 0.5 | 1.2 | 1.4 | |
| Interest paid | $-1.8$ | $-4.6$ | $-34.2$ | $-26.2$ | |
| Income tax paid | $-12.0$ | 11.6 | $-56.4$ | $-28.9$ | |
| Cash flow from operating activities before changes in working | 78.7 | 91.0 | 323.4 | 341.9 | |
| capital | |||||
| Decrease (+)/increase (-) in inventories | 34.3 | 13.2 | $-28.5$ | 12.1 | |
| Decrease (+)/increase (-) in receivables | 4.5 | 0.6 | $-143.8$ | $-86.4$ | |
| Decrease (-)/increase (+) in current liabilities | $-131.0$ | $-179.6$ | 62.5 | 179.5 | |
| Cash flow from changes in working capital | $-92.3$ | $-165.8$ | $-109.9$ | 105.2 | |
| Cash flow from operating activities | $-13.6$ | -74.8 | 213.6 | 447.2 | |
| Investing activities | |||||
| Acquisition of intangible assets | 6 | $-3.6$ | $-4.2$ | $-18.1$ | $-32.1$ |
| Acquisition of tangible assets 6 |
$-1.9$ | $-0.8$ | $-9.2$ | $-3.8$ | |
| Acquisition of operations 3 |
$-4.4$ | $-9.3$ | $-147.2$ | $-109.4$ | |
| Divestment of operations | $\blacksquare$ | 248.7 | |||
| Contingent consideration paid | $-26.6$ | $-38.8$ | |||
| Cash flow from leasing operation, financial services | 15.1 | ||||
| Cash flow from investing activities | $-9.9$ | $-14.4$ | $-201.0$ | 79.7 | |
| Financing activities | |||||
| New share issue | 1.6 | 4.3 | |||
| Repayment of debt | $-1.9$ | -54.4 | |||
| Dividend | $-182.8$ | $-129.5$ | |||
| Paid bank arrangement fees | $-3.3$ | ||||
| Change in financial leasing liability | $-0.4$ | $-1.6$ | |||
| Cash flow from leasing portfolio, financial services | $-179.7$ | ||||
| Cash flow from financing activities | $-0.4$ | $-1.9$ | $-186.1$ | $-359.3$ | |
| Cash flow for the period | -23.8 | -91.1 | $-173.6$ | 167.5 | |
| Cash and cash equivalents at beginning of period | 90.8 | 333.9 | 242.9 | 77.8 | |
| Cash flow for the period | $-23.8$ | $-91.1$ | $-173.6$ | 167.5 | |
| Exchange-rate differences in cash and cash equivalents | 4.5 | 0.0 | 2.2 | $-2.5$ | |
| Cash and cash equivalents at the close of the period | 71.5 | 242.9 | 71.5 | 242.9 |
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| SEK million | 16/17 | 15/16 | 16/17 | 15/16 |
| Net sales | 0.1 | 0.1 | 0.4 | 0.4 |
| Selling and administrative expenses | $-1.5$ | $-1.7$ | $-10.4$ | $-6.7$ |
| Other operating expenses | 0.0 | 0.0 | 0.0 | 0.0 |
| EBIT | $-1.5$ | $-1.6$ | $-10.0$ | $-6.3$ |
| Financial income and other similar income-statement items | 2.5 | 48.4 | 20.0 | 48.7 |
| Financial expenses and other similar income-statement items | 8.3 | $-29.3$ | $-45.9$ | $-41.0$ |
| Profit/Loss after financial items | 9.4 | 17.5 | $-35.9$ | 1.4 |
| Appropriations | 212.4 | 196.5 | 212.4 | 196.5 |
| Tax | $-48.9$ | $-41.9$ | $-38.8$ | $-38.3$ |
| Profit/Loss for the period | 172.9 | 172.2 | 137.6 | 159.6 |
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| SEK million | 16/17 | 15/16 | 16/17 | 15/16 |
| Profit/Loss for the period | 172.9 | 172.2 | 137.6 | 159.6 |
| Other comprehensive income | - | - | ||
| Comprehensive income for the period | 172.9 | 172.2 | 137.6 | 159.6 |
| SEK million | Aug 31, 2017 |
Aug 31, 2016 |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Participations in Group companies | 1,211.6 | 1,221.7 |
| Total non-current assets | 1,211.6 | 1,221.7 |
| Current assets | ||
| Receivables from Group companies Tax assets |
619.9 0.6 |
460.9 |
| Prepaid expenses and accrued income | 6.3 | 10.0 |
| Other receivables | 0.2 | |
| Cash and bank balances | 42.9 | 147.4 |
| Total current assets | 669.8 | 618.3 |
| TOTAL ASSETS | 1,881.4 | 1,839.9 |
| EQUITY AND LIABILITIES | ||
| Restricted equity | ||
| Share capital | 380.9 | 380.9 |
| Total restricted equity | 380.9 | 380.9 |
| Non-restricted equity | ||
| Share premium reserve | 388.1 | 388.1 |
| Retained earnings | $-251.5$ | $-229.9$ |
| Profit/Loss for the year | 137.6 | 159.6 |
| Total non-restricted equity | 274.3 | 317.9 |
| Total equity | 655.2 | 698.7 |
| Untaxed reserves | 109.4 | 50.6 |
| Non-current liabilities | ||
| Non-current liabilities to credit institutions | 1,068.6 | 1,066.5 |
| Total non-current liabilities | 1,068.6 | 1,066.5 |
| Current liabilities | ||
| Accounts payable | 0.2 | 0.1 |
| Tax liabilities | 45.1 | 22.2 |
| Other current liabilities | 0.3 | 0.2 |
| Accrued expenses and deferred income | 2.6 | 1.6 |
| Total current liabilities | 48.2 | 24.1 |
| TOTAL EQUITY AND LIABILITIES | 1,881.4 | 1,839.9 |
This report has been prepared in accordance with IFRS, applying IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting policies are consistent with those presented in the Group's Annual Report for the 2015/16 financial year.
The Parent Company applies the Swedish Annual Accounts Act, and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.
None of the changes and interpretations in existing standards that have been applied from the financial year beginning September 1, 2016 had any material impact on the financial statements for the Group or the Parent Company.
A number of new standards, amendments and interpretations of standards are effective for financial years beginning after January 1, 2017. These have not been applied in the preparation of this report. The following amendments are expected to impact Dustin's financial statements:
The standard replaces IAS 39 Financial Instruments: Recognition and Measurement. It contains rules for classification and measurement of financial assets and liabilities, impairment of financial instruments and hedge accounting. The assessment is that this standard will not impact the recognition of financial instruments, but will primarily affect disclosures and categorisation. The standard is effective for financial years beginning on or after January 1, 2018.
The standard deals with the recognition of revenues from contracts with customers and the sale of certain non-financial assets. The new standard replaces IAS 11 Construction Contracts, IAS 18 Revenue and related interpretations. The standard is to be applied from January 1, 2018, which for Dustin means the financial year beginning September 1, 2018. During the financial year, Dustin worked to identify the effects of the standard with respect to revenue recognition and disclosure requirements. This process included a review of existing customer contracts and the establishment of procedures for ensuring compliance with the standard. Dustin has not yet been able to quantify the new standard's impact on the Group's financial statements.
This standard, which encompasses the recognition of lease agreements, comes into effect on January 1, 2019, which for Dustin means the financial year beginning September 1, 2019. Dustin's financial statements will be impacted by this standard and work is currently being carried out to evaluate the effects. Dustin has not yet been able to quantify the new standard's impact on the Group's financial statements.
This report has been prepared in SEK million, unless otherwise stated. Rounding-off differences may occur in this report.
As of the first quarter of the 2016/17 financial year, hedge accounting according to IAS 39 Financial Instruments: Recognition and Measurement has been applied to net investments in foreign subsidiaries. As a consequence of this, currency translation of external loans in foreign currencies will be recognised in other comprehensive income, in the item Change in hedging reserves, instead of being included in financial items in the income statement. The change is prospective and adjustments will not be made retroactively.
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| All amounts in SEK million, unless otherwise indicated | 16/17 | 15/16 | 16/17 | 15/16 |
| Net sales | ||||
| B 2 B | 2,127.2 | 1,806.2 | 8,715.4 | 7,703.3 |
| B 2C | 135.2 | 145.6 | 590.8 | 597.5 |
| Total | 2,262.4 | 1,951.8 | 9,306.2 | 8,300.8 |
| Segment results | ||||
| B 2 B | 167.1 | 150.3 | 732.9 | 660.3 |
| B2B, segment margin (%) | 7.9 | 8.3 | 8.4 | 8.6 |
| B 2 C | 8.1 | 5.6 | 24.6 | 22.4 |
| B2C, segment margin (%) | 6.0 | 3.8 | 4.2 | 3.7 |
| Central functions | $-83.3$ | $-75.2$ | $-331.3$ | $-293.1$ |
| Costs for central functions, excluding items affecting | ||||
| comparability in relation to net sales (%) | $-3.7$ | $-3.9$ | $-3.6$ | $-3.5$ |
| Adjusted EBITA | 91.9 | 80.7 | 426.1 | 389.6 |
| Reconciliation with profit after financial items | ||||
| Items affecting comparability | $-0.8$ | ÷, | $-7.3$ | $-5.0$ |
| Amortisation and impairment of intangible assets | $-17.4$ | $-15.9$ | $-69.3$ | $-60.6$ |
| Less: Operating profit attributable to discontinued operations | 0.0 | 0.0 | $-0.4$ | |
| included in segment results for B2B | ||||
| EBIT, Group | 73.7 | 64.7 | 349.5 | 323.5 |
| Financial income and other similar income-statement items | 0.3 | 0.5 | 1.2 | 1.4 |
| Financial expenses and other similar income-statement items | $-10.9$ | $-29.4$ | $-42.6$ | $-38.2$ |
| Profit after financial items, Group | 63.0 | 35.9 | 308.1 | 286.8 |
On October 1, 2016, Dustin acquired all of the outstanding shares in the Norway-based company IKT Gruppen AS. IKT Gruppen is specialised in sales and operations of standardised IT services for small and medium-sized businesses. Following the acquisition, Dustin holds 100 per cent of the total voting rights. The purchase consideration amounted to SEK 52 million, of which SEK 28 million pertained to an expected earn-out.
On March 1, 2017, Dustin acquired all of the outstanding shares in the Norway-based company Purity IT AS. Purity IT specialises in cloud-based services for backup, storage and disaster recovery. Following the acquisition, Dustin holds 100 per cent of the total voting rights. The purchase consideration amounted to SEK 108 million, of which SEK 56 million pertained to an expected earn-out.
On April 1, 2017, Dustin acquired all of the shares in the Sweden-based company Saldab IT AB. Saldab IT AB offers IT solutions for small and medium-sized businesses. Following the acquisition, Dustin holds 100 per cent of the total voting rights. The purchase consideration amounted to SEK 110 million, of which SEK 24 million pertained to an expected earnout.
This year's acquisitions are strategically important in terms of complementing Dustin's service offering with respect to more advanced products and services.
The total acquisition costs are presented in Note 4 Items affecting comparability.
| Fair value of acquired assets and liabilities | IKT Gruppen AS | Purity IT AS Saldab IT AB | |
|---|---|---|---|
| Intangible assets (excl. goodwill) | 4.4 | 19.0 | 9.0 |
| Tangible assets | 0.1 | 5.3 | 1.9 |
| Inventories | 0.9 | 1.9 | 1.7 |
| Other current assets | 3.0 | 16.3 | 33.4 |
| Cash and cash equivalents | 4.3 | 11.6 | 3.6 |
| Other current liabilities | 6.6 | 33.4 | 30.9 |
| Total identifiable assets | 6.2 | 20.8 | 18.7 |
| Consolidated goodwill | 46.2 | 87.1 | 91.6 |
| Purchase consideration including estimated contingent earn-out |
52.3 | 107.9 | 110.2 |
| Less: | |||
| Cash and cash equivalents | 4.3 | 11.6 | 3.6 |
| Estimated contingent earn-out | 28.2 | 55.9 | 24.2 |
| Net cash outflow | 19.8 | 40.5 | 82.5 |
During the third quarter, a provision of SEK18 million was made for the repayment requirement attributable to the judgment in the Group's dispute with a Norwegian customer. A new assessment was also made of liabilities attributable to acquisition-related liabilities, which resulted in a positive earnings effect of SEK 22 million. Costs attributable to acquisitions amounted to SEK 12 million during the year and mainly pertained to remuneration to consultants and attorneys for financial and legal advisory services in conjunction with acquisitions.
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| SEK million | 16/17 | 15/16 | 16/17 | 15/16 |
| Acquisition and divestment-related expenses | $-0.8$ | $\overline{\phantom{a}}$ | $-11.6$ | $-5.0$ |
| Change in value of acquisition-related liabilities | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 22.3 | |
| Provision for repayment requirement | $\overline{\phantom{a}}$ | ٠ | $-18.0$ | |
| Total | $-0.8$ | -7.3 | -5.0 |
During the first quarter of the preceding financial year, the operation previously reported as Financial Services was divested through a business transfer to an external party. This means the business is defined as a discontinued operation in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. As a result, this part of the operations has been recognised as discontinued operations in the income statement. No transactions took place during the quarter.
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| SEK million | 16/17 | 15/16 | 16/17 | 15/16 |
| Financial services | ||||
| Interest income | ۰ | 0.0 | 5.7 | |
| Interest expense | $\overline{\phantom{a}}$ | 0.0 | 0.0 | $-0.4$ |
| Net interest income | $\overline{\phantom{0}}$ | 0.0 | 0.0 | 5.3 |
| Selling and administrative expenses | $\overline{\phantom{a}}$ | 0.0 | $-6.3$ | |
| EBIT, financial services | 0.0 | 0.0 | $-0.9$ | |
| Capital gains from divestment of operations | ۰ | 0.0 | 1.3 | |
| Tax | $-0.4$ | 0.0 | $-0.2$ | |
| Profit/loss for the period from discontinued operations | $-0.4$ | 0.0 | 0.2 |
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| SEK million | 16/17 | 15/16 | 16/17 | 15/16 |
| Capitalised expenditure for IT development (integrated IT- platform and other long term strategic IT-systems) |
$-3.1$ | $-3.1$ | $-16.9$ | $-19.1$ |
| Other investments in tangible and intangible assets | $-2.3$ | $-2.0$ | $-10.3$ | $-16.9$ |
| Total | -5.5 | $-5.0$ | $-27.3$ | $-36.0$ |
Financial instruments measured at fair value consist of derivative instruments and acquisition-related liabilities. As regards other financial items, these essentially match fair value and book value.
Derivative instruments measured at fair value consist of interest-rate derivatives and currency futures. Interest-rate derivatives have been structured as hedges for variable interest on external bank loans. Currency futures pertain to hedging for USD purchases from China. The Group applies hedge accounting for interest-rate derivatives and currency futures. The fair value measurement is Level 2 in accordance with the definition in IFRS 13 Fair Value Measurement. The valuation level is unchanged compared with August 31, 2016.
At August 31, 2017, the fair value of liabilities for derivative instruments was SEK 7 million (9).
During the previous financial year, some parts of former derivatives were repaid prematurely and replaced with new interest-rate derivatives. This was mainly done to achieve greater maturity spreads.
Acquisition-related liabilities pertain to contingent earn-outs. Measurement is carried out on a continuous basis at fair value and changes in value are recognised in profit or loss under Items affecting comparability. If a change in value occurs prior to the preparation of the acquisition analysis and the change is of such a nature that the event arose from the date of acquisition, measurement is carried out via the balance sheet. The fair value is calculated as defined for Level 3 in IFRS 13, meaning according to inputs that are not based on observable market data. The calculation of the contingent earnout liability is based on the parameters of each acquisition agreement. These parameters are usually linked to the outcome of performance measures taken for up to three years from the date of acquisition. Changes to the balance sheet item are shown in the table below. Acquisitions during the period pertained to the Norway-based companies IKT Gruppen (SEK 28 million) and Purity (SEK 56 million) and the Sweden-based company Saldab (SEK 24 million).
| Change in acquisition-related liabilities measured at fair value based on inputs that are | Aug 31, | Aug 31, |
|---|---|---|
| not based on observative market date (Level 3) | 2017 | 2016 |
| Opening balance | 52.6 | 66.4 |
| Remeasurements recognised in profit or loss: | ||
| Unrealised remeasurement of contingent earn-out recognised under items affecting comparability |
$-22.3$ | |
| Discount of contingent earn-out recognised under Financial expenses and other similar income-statement items |
0.9 | |
| Remeasurements recognised under other comprehensive income: | ||
| Unrealised exchange-rate differences recognised under Translation differences | $-3.1$ | $-1.0$ |
| Changes recognised via the balance sheet: | ||
| Payments attributable to previous acquisitions | $-26.6$ | $-38.8$ |
| Acquisitions | 108.0 | 26.0 |
| Closing balance | 109.6 | 52.6 |
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| All amounts in SEK million, unless otherwise indicated | 16/17 | 15/16 | 16/17 | 15/16 |
| Income statement | ||||
| Organic sales growth (%) | 12.2 | 10.2 | 8.6 | 4.4 |
| Gross margin (%) | 14.3 | 15.3 | 14.8 | 15.0 |
| EBIT | 73.7 95.6 |
64.7 83.2 |
349.5 438.4 |
323.5 400.2 |
| Adjusted EBITDA Adjusted EBITA |
91.9 | 80.7 | 426.1 | 389.6 |
| Adjusted EBITA margin (%) | 4.1 | 4.1 | 4.6 | 4.7 |
| Return on equity (%) | 16.1 | 15.8 | ||
| Balance sheet | ||||
| Net working capital | 118.1 | 31.6 | 118.1 | 31.6 |
| Capital employed | 269.1 | 173.3 | 269.1 | 173.3 |
| Net debt | 998.3 | 826.3 | 998.3 | 826.3 |
| Net debt/adjusted EBITDA (multiple) | 2.3 | 2.1 | ||
| Maintenance investments | $-5.5$ | $-0.8$ | $-27.3$ | $-4.7$ |
| Equity/assets ratio (%) | 35.6 | 36.5 | ||
| Cash flow | ||||
| Operating cash flow | $-2.1$ | $-83.4$ | 301.2 | 500.7 |
| Cash flow from operating activities | $-13.6$ | $-74.8$ | 213.6 | 447.2 |
| Data per share | ||||
| Earnings per share, including discontinued operations before dilution (SEK) |
0.64 | 0.33 | 3.14 | 2.95 |
| Earnings per share, including discontinued operations after | ||||
| dilution (SEK) | 0.63 | 0.33 | 3.13 | 2.95 |
| Equity per share before dilution (SEK) | 19.50 | 18.67 | 19.50 | 18.67 |
| Equity per share after dilution (SEK) | 19.50 | 18.67 | 19.50 | 18.67 |
| Cash flow from operating activities per share before dilution | ||||
| (SEK) | $-0.18$ | $-0.98$ | 2.80 | 5.87 |
| Cash flow from operating activities per share after dilution (SEK) | $-0.18$ | $-0.98$ | 2.80 | 5.87 |
| Average number of shares | 76,173,115 | 76,173,115 | 76,173,115 | 76,173,115 |
| Average number of shares after dilution | 76,366,919 | 76,173,115 | 76,338,787 | 76,173,115 |
| Number of shares issued at end of period | 76,173,115 | 76,173,115 | 76,173,115 | 76,173,115 |
Dustin applies financial measures that are not defined under IFRS. Dustin believes that these financial measures provide the reader of the interim report with valuable information, and constitute a complement when assessing Dustin's performance. The performance measures that Dustin has chosen to present are relevant in relation to its operations and the company's financial targets for growth, margins and capital structure and in terms of Dustin's dividend policy. The alternative performance measures are not always comparable with those applied by other companies since these companies may have used different calculation methods. The Definitions section on page 29 presents how Dustin defines its performance measures and the purpose of each performance measure. The data presented below is complementary information from which all performance measures can be derived.
| Q4 | Q4 | Full-year | Full-year | |
|---|---|---|---|---|
| All amounts in SEK million, unless otherwise indicated | 16/17 | 15/16 | 16/17 | 15/16 |
| Organic growth | ||||
| Sales growth (%) | 15.9 | 11.0 | 12.1 | 4.6 |
| Acquired growth (%) | $-2.7$ | $-1.1$ | $-1.7$ | $-1.2$ |
| Currency effects in sales growth (%) | $-1.0$ | 0.3 | $-1.8$ | 1.0 |
| Organic sales growth (%) | 12.2 | 10.2 | 8.6 | 4.4 |
| Profit before financial items including EBIT for | ||||
| discontinued operations | ||||
| EBIT continuing operations | 73.7 | 64.7 | 349.5 | 323.5 |
| EBIT discontinued operations | $\qquad \qquad \blacksquare$ | 0.0 | 0.0 | 0.4 |
| Total | 73.7 | 64.8 | 349.5 | 323.9 |
| All amounts in SEK million, unless | Q4 | Q3 | Q 2 | Q1 | Q4 | Q3 | Q 2 | Q1 | Q4 |
|---|---|---|---|---|---|---|---|---|---|
| otherwise indicated | 16/17 | 16/17 | 16/17 | 16/17 | 15/16 | 15/16 | 15/16 | 15/16 | 14/15 |
| Net sales | 2,262.4 | 2,257.4 | 2,502.9 | 2,283.6 | 1,951.8 | 1,988.9 | 2,236.6 | 2,123.6 | 1,758.7 |
| Organic sales growth (%) | 12.2 | 9.2 | 8.7 | 4.4 | 10.2 | 3.6 | 2.4 | 2.5 | 5.6 |
| Gross margin (%) | 14.3 | 15.1 | 14.9 | 14.9 | 15.3 | 15.4 | 14.7 | 14.8 | 14.2 |
| Adjusted EBITA | 91.9 | 94.3 | 124.1 | 115.8 | 80.7 | 91.4 | 112.7 | 104.8 | 67.3 |
| Adjusted EBITA margin (%) | 4.1 | 4.2 | 5.0 | 5.1 | 4.1 | 4.6 | 5.0 | 4.9 | 3.8 |
| B2B segment | |||||||||
| Net sales | 2,127.2 | 2,125.3 | 2,349.9 | 2113.0 | 1,806.2 | 1,847.6 | 2,069.4 | 1,980.1 | 1,620.5 |
| Segment results | 167.1 | 176.2 | 203.1 | 186.5 | 150.3 | 155.6 | 183.2 | 171.1 | 117.5 |
| Segment margin (%) | 7.9 | 8.3 | 8.6 | 8.8 | 8.3 | 8.4 | 8.9 | 8.6 | 7.3 |
| B2C segment | |||||||||
| Net sales | 135.2 | 132.0 | 153.0 | 170.6 | 145.6 | 141.3 | 167.2 | 143.4 | 138.2 |
| Segment results | 8.1 | 4.9 | 5.9 | 5.5 | 5.6 | 6.7 | 6.0 | 4.1 | 4.8 |
| Segment margin (%) | 6.0 | 3.7 | 3.9 | 3.3 | 3.8 | 4.7 | 3.6 | 2.9 | 3.4 |
| Central functions | |||||||||
| Central functions | $-83.3$ | $-86.8$ | $-84.9$ | $-76.2$ | $-75.2$ | $-70.9$ | $-76.5$ | $-70.4$ | $-55.0$ |
| Percentage of net sales | $-3.7$ | $-3.8$ | $-3.4$ | $-3.3$ | $-3.9$ | $-3.6$ | $-3.4$ | $-3.3$ | $-3.1$ |
| IFRS measures: | Definition/Calculation |
|---|---|
| Earnings per share | Net profit/loss in SEK in relation to average number of shares, according to IAS 33. |
| Alternative performance measures: |
Definition/Calculation | Purpose |
|---|---|---|
| Acquired growth | Net sales for the relevant period attributable to acquired companies in relation to net sales for the comparable period. |
Acquired growth is eliminated in the calculation of organic growth. |
| Adjusted EBITA | EBIT according to the income statement and EBIT for Financial Services, which is recognised under discontinued operations, before items affecting comparability and amortisation and impairment of intangible assets. |
Dustin believes that this performance measure shows the underlying earnings capacity and facilitates comparisons between quarters. |
| Adjusted EBITA margin | Adjusted EBITA in relation to net sales. | This performance measure is used to measure the profitability level of the operations. |
| Adjusted EBITDA | EBIT according to the income statement and EBIT for Financial Services, which is recognised under discontinued operations, before items affecting comparability and amortisation/depreciation and impairment of tangible and intangible assets. |
Dustin believes that this performance measure shows the underlying earnings capacity and facilitates comparisons between quarters. |
| Capital employed | Working capital plus total assets, excluding goodwill and other intangible assets attributable to acquisitions, and interest- bearing receivables pertaining to finance leasing, at the end of the period. |
Capital employed measures utilisation of capital and efficiency. |
| Cash flow from operating activities |
Cash flow from operating activities, after changes in working capital. |
Used to show the amount of cash flow generated from operating activities. |
| Cash flow from operating activities per share |
Cash flow from operating activities as a percentage of the average number of shares outstanding. |
Used to show the amount of cash flow generated from operating activities per share. |
| Currency effects | The difference between net sales in SEK for the comparative period and net sales in local currencies for the comparative period converted to SEK using the average exchange rate for the relevant period. |
Currency effects are eliminated in the calculation of organic growth. |
| EBIT | EBIT is a measurement of the company's earnings before income tax and financial items. |
This measure shows Dustin's profitability from operations. |
| Equity per share | Equity at the end of the period in relation to the number of shares at the end of the period. |
Shows Dustin's equity per share. |
| Equity/assets ratio | Equity at the end of the period in relation to total assets at the end of the period. |
Dustin believes that this measure provides an accurate view of the company's long-term solvency. |
| Gross margin | Gross profit in relation to net sales. | Used to measure product and service profitability. |
|---|---|---|
| Items affecting comparability |
Items affecting comparability relate to material income and expense items recognised separately due to the significance of their nature and amounts. |
Dustin believes that separate recognition of items affecting comparability increases comparability of EBIT over time. |
| Maintenance investments |
Investments required to maintain current operations. |
Used to calculate operating cash flow. |
| Net debt | Current and non-current interest-bearing liabilities, excluding acquisition-related liabilities and shareholder loans, less cash and cash equivalents and receivables from finance leasing, at the end of the period. |
This performance measure shows Dustin's total liabilities adjusted for cash and cash equivalents. |
| Net debt/EBITDA | Net debt in relation to EBITDA. | This performance measure shows the company's ability to pay its debt. |
| Net working capital | Total current assets less cash and cash equivalents, current financial lease assets and current non-interest-bearing liabilities, at the end of the period. |
This performance measure shows Dustin's efficiency and capital tied up. |
| Operating cash flow | Adjusted EBITDA less maintenance investments plus cash flow from changes in working capital. |
Used to show the amount of cash flow generated from operating activities and available for payments in connection with dividends, interest and tax. |
| Organic growth | Growth in net sales for the relevant period adjusted for acquired growth and currency effects. |
Provides a measure of the growth achieved by Dustin in its own right. |
| Return on equity | Net profit for the year in relation to equity at the end of the period. |
Dustin believes that this performance measure shows how profitable the company is for its shareholders. |
| Sales growth | Net sales for the relevant period in relation to net sales for the comparable period. |
Used to show the development of net sales. |
| Segment results | The segment's operating profit excluding amortisation/depreciation and items affecting comparability. |
Dustin believes that this performance measure shows the earnings capacity of the segment. |
| Word/Term | Definition/Calculation |
|---|---|
| B 2 B | Pertains to all sales to companies and organisations. |
| B 2C | Pertains to all sales to consumers. |
| Central functions | Includes all non-allocated central expenses, including amortisation and depreciation, and excluding items affecting comparability. |
To be the customer's first choice and set the standard for efficient and sustainable IT.
To make it possible for our customers to focus on their core business.
Dustin solves your IT challenges.
Dustin's Board of Directors has established the following financial targets:
Dustin's target is to achieve average an annual organic growth of 8 per cent over a business cycle. In addition to this, Dustin intends to expand through acquisitions.
Dustin's target is to increase the adjusted EBITA margin over time, and to achieve an adjusted EBITA margin of 5-6 per cent in the medium term.
Dustin's capital structure should enable a high degree of financial flexibility and provide scope for acquisitions. The company's net debt target is a 2.0-3.0 multiple of adjusted EBITDA for the past 12-month period.
Annual Report for the period September 1, 2016-August 31, 2017
November 30, 2017 Capital Markets Day in Rosersberg, Stockholm
December 13, 2017 Annual General Meeting in Stockholm
First quarter interim report, September 1, 2017-November 30.2017
April 11, 2018 Second quarter interim report, December 1, 2017–February 28, 2018
July 4, 2018 Third quarter interim report, March 1, 2018-May 31, 2018
October 17, 2018 Year-end report, September 1, 2017-August 31, 2018
November 15, 2018 Annual Report for the period September 1, 2017-August 31, 2018
December 11, 2018 Annual General Meeting in Stockholm
Dustin Group AB Johan Karlsson, CFO [email protected] 0708-677997
Fredrik Sätterström. Head of Investor Relations [email protected] 0705-10 10 22
This information is information that Dustin Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 8:00 a.m. CET on October 18, 2017.
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