Interim / Quarterly Report • Jan 10, 2018
Interim / Quarterly Report
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"Positive start to the financial year"
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| All amounts in SEK million, unless otherwise indicated | 17/18 | 16/17 | 12 months | 16/17 |
| Net sales | 2,591.8 | 2,283.6 | 9.614.4 | 9.306.2 |
| Organic sales growth (%) | 8.8 | 4.4 | 9.7 | 8.6 |
| Gross margin (%) | 15.6 | 14.9 | 15.0 | 14.8 |
| Adjusted EBITA | 130.9 | 115.8 | 441.2 | 426.1 |
| Adjusted EBITA margin (%) | 5.1 | 5.1 | 4.6 | 4.6 |
| EBIT | 108.5 | 97.5 | 360.5 | 349.5 |
| Profit for the period | 75.8 | 67.8 | 247.1 | 239.1 |
| Items affecting comparability* | $-3.5$ | $-2.4$ | $-8.4$ | $-7.3$ |
| Earnings per share, before dilution, (SEK) | 1.00 | 0.89 | 3.24 | 3.14 |
| Cash flow from operating activities | 453.1 | 304.8 | 361.9 | 213.6 |
| Net debt/adjusted EBITDA (multiple) | 2.0 | 2.3 | ||
| Return on equity (%) | 15.8 | 16.1 |
For definitions, refer to page 26.
*Refer to Note 4 Items affecting comparability for more information.
As the new President and CEO of Dustin, it is with great confidence and belief in the future that I present the interim report for the first quarter of the financial year. It was a strong quarter in terms of both sales and earnings, with net sales increasing to SEK 2,592 million (2,284) and adjusted EBITA to SEK 131 million (116). Our strategy remains firm and we are now continuing to advance from a highly favourable position.
It is very inspiring and exciting to now be firmly in place at Dustin. I have familiarised myself with many parts of the operations during my initial time at the company and have met many of our fantastic employees. This has further reinforced my already positive perception of the company. Dustin holds a strong market position, possesses in-depth know-how and has professional employees who continuously endeavour to make life easier for our customers and thus make Dustin better as a company. I see great potential for our strong performance to continue.
We experienced a positive start to the financial year, reporting a sales increase of 13.5 per cent, of which organic growth accounted for 8.8 per cent. All three segments delivered organic growth in line with or exceeding our financial target. Adjusted EBITA increased 13.0 per cent, corresponding to an adjusted operating margin of 5.1 per cent (5.1). It is gratifying to see that our acquisitions make a positive contribution to the development. We made a change to our segment reporting in the first quarter to further enhance understanding of the dynamic in our operations. The former B2B segment has now been divided into two new segments based on customer group: SMB (Small and Medium-sized Businesses) and LCP (Large Corporate and Public sector).
Dustin arranged its first, and well-attended, Capital Markets Day just over a month ago, where we presented a clear plan for future growth and how we will achieve our margin targets in the medium term. We feel secure in our ability to maintain over time an organic rate of growth in line with our financial targets. We are benefiting from underlying trends, such as an increasing share of online retail and strong growth in mobility, security and cloudbased services. We have comfort that, based on completed and continued acquisitions combined with a higher share of sales of proprietary products and managed services, we will achieve our margin target and further strengthen customer loyalty through a higher percentage of subscription services.
We broadened our portfolio of advanced products and services with three supplementary acquisitions in the first quarter. Danish company Norriq's business area for hosting and outsourcing IT services provides additional cutting-edge expertise in hosting solutions and broadens our offering in the Danish market. We also gained a strategic partner in Norriq, which provides further growth opportunities for our business in subscription services. With the acquisition of Core Services in Norway, which is one of the leading players in the new generation of data centre solutions, known as software defined data centres, we are strengthening our position as a total supplier of IT infrastructure and security solutions. The acquisition of JML-System, one of Sweden's leading suppliers of audio/video solutions, supplements our offering of advanced solutions for meetings and conferences.
I, along with the Executive Management Team and all of our employees, look forward to driving Dustin to a stronger market position. Our strategy remains firm and we have a clear and realisable plan for achieving our financial targets over time. We have a strong financial position and we are well-equipped for continued expansion - both organically and via acquisitions.
To summarise, Dustin performed well during the first quarter of the financial year and we have a positive view for the future. As the largest e-retailer to the B2B market in the Nordic region, we can further consolidate our position though the continued development of our product and service offering together with a growing share of online sales and active sustainability activities, and generate significant value for our customers, our owners and society.
Nacka, Januari 2018
Thomas Ekman, 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 corporates, 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 selling over the telephone or through customer visits. Dustin conducts operations in Sweden, Denmark, Finland and Norway through three business segments: SMB (small and medium-sized businesses), LCP (large corporate and public sector) 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.
As one of the leading B2B e-retailer in the Nordic region, Dustin is well positioned in the market thanks to its efficient online platform, with more and more sales of both products and core services now taking place online. Our market position is also strengthened by our focus on the more agile and fast-growing customer category of small and medium-sized businesses. 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 advanced services through acquisitions, we are continuously expanding our customer offering. We are able to solve more and more of our customers' IT needs, which is in line with our vision. Our range of packaged services and solutions includes clients, licenses, network, data storage, security, IT operations, mobility and print.
Dustin Group AB is a Swedish public limited company with its head office in Nacka Strand. The share was listed on Nasdaq Stockholm's Mid Cap Index in 2015.
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 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.
Responsible business is a prerequisite for a healthy and successful company. Active corporate responsibility has always played a role in Dustin's operations in different forms, and these efforts have been structured and intensified in recent years. "Sustainable IT" embraces so much more than the environment and working conditions. As a reseller, Dustin plays a major role, with an ability to influence both suppliers and customers.
To us, responsible business concerns not only how we ourselves operate, but also what takes place before and after us in the value chain. Our vision of efficient and sustainable IT is about how the products are manufactured and transported, how they are used and how they are reused and recycled. This also entails combining products with services and solutions that in turn can contribute to a reduced environmental footprint.
Our five focus areas are in line with our updated vision and cover our own operations and the impact both at the start and the end of the value chain. In our opinion, corporate responsibility must be a natural part of the entire business if it is to have an effect. Our five focus areas are: Responsible manufacturing (1) focuses on how the products are manufactured while Responsible use of resources (2) is about what happens after the product has been used. Equality and diversity (3) as well as Business ethics (4) are about how we run our business while Reduced climate impact (5) concerns all areas of the business.
Dustin performed five factory inspections in China during the quarter as part of the Responsible manufacturing focus area. All of the audits were led by Dustin's Head of Corporate Responsibility together with local experts trained in our Supplier Code of Conduct. A total of 110 shortcomings were identified, which was better than expected. The majority of these were of a minor character, and no "zero tolerance" deviations were confirmed. Dustin is actively involved in ensuring measures are implemented at the factories. Regular follow-up meetings are held between the factories and Dustin's purchasing organisation, Head of Corporate Responsibility and external experts.
In the first quarter, 6,122 sold products were collected as end-of-life returns, which is in line with plan. 5,568 of these products could be reused, and the remaining 554 were recycled. We have collected a total of 35,068 products as end-of-life returns since 2014/15. Dustin's target is for a total of 140,000 products to be collected as end-of-life returns by 2019/20.
Dustin
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 September 2017-November 2017.
Net sales for the quarter rose 13.5 per cent to SEK 2,592 million (2,284), of which organic growth in fixed exchange rates was 8.8 per cent (4.4). Acquired growth was 5.4 per cent (1.1).
During the quarter, gross profit rose SEK 63 million, corresponding to 18.4 per cent, to SEK 404 million (341). The gross margin was 15.6 per cent (14.9), where the increase primarily is attributable to the positive effects from acquisitions completed during the quarter and in prior quarters.
Adjusted EBITA for the quarter increased 13.0 per cent to SEK 131 million (116). The adjusted EBITA margin was 5.1 per cent (5.1). Adjusted EBITA 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 amounted to SEK 108 million (98). EBIT includes items affecting comparability amounting to a negative SEK 3 million (neg: 2), which for the quarter pertains to acquisition-related costs; see Note 4 Items affecting comparability.
Financial expenses amounted to SEK 11 million (11), with the costs for the quarter primarily pertaining to costs totalling SEK 10 million (9) for external financing. Financial income amounted to SEK 0.3 million (0.3).
The tax expense for the quarter was SEK 22 million (20), corresponding to an effective tax rate of 22.3 per cent, compared with 22.4 per cent in the year-earlier period.
Profit for the quarter totalled SEK 76 million (68). Earnings per share amounted to SEK 1.00 (0.89) before dilution and SEK 0.99 (0.89) after dilution.
Cash flow for the quarter was SEK 117 million (280).
Cash flow from operating activities amounted to SEK 453 million (305), of which SEK 372 million (219) was attributable to changes in working capital with the positive effect mainly related to higher accounts payable. As in prior periods, accounts payable were impacted by favourable payment terms that pertain to an agreement with a supplier and apply until further notice. For further information regarding working capital, refer to the Net working capital section.
Cash flow from investing activities amounted to a negative SEK 336 million (neg: 24), primarily attributable to acquisitions of operations.
The purchase consideration paid in the quarter for Danish company Norrig's business area for hosting and outsourcing IT services amounted to SEK 141 million, for the Norwegian company Core Services AS SEK 104 million (of which SEK 73 million was settled during the quarter) and for JML-System AB SEK 107 million (of which SEK 106 was settled during the quarter). Investments in tangible and intangible assets amounted to a negative SEK 8 million (neg: 5), of which a negative SEK 4 million (neg: 4) pertained to IT development.
Cash flow from financing activities amounted to a negative SEK 0.5 million (neg: 0.2) and pertained to repayments of financial leasing liabilities during the quarter.
Net working capital amounted to a negative SEK 198 million (neg: 174) at the end of the quarter. The low level of working capital at the end of the period was attributable to the same reason as in the year-earlier period - higher accounts payable due to more favourable payment terms. Net working capital was also impacted by higher accounts receivable due to increased sales. The level was seasonably low as a percentage of sales at the end of the quarter compared with other quarters.
| SEK million | Nov 30, 2017 |
Nov 30. 2016 |
Aug 31, 2017 |
|---|---|---|---|
| Inventories | 356.1 | 301.8 | 261.9 |
| Accounts receivable Tax assets, other current receivables, as well as prepaid expenses and accrued income |
1,180.0 248.5 |
1.095.6 167.5 |
1.047.1 173.7 |
| Accounts payable Tax liabilities, other current liabilities and accrued expenses and deferred income |
$-1,522.6$ $-459.5$ |
$-1,386.8$ $-352.1$ |
$-956.3$ $-408.2$ |
| Net working capital | -197.5 | -174.0 | 118.1 |
Net debt amounted to SEK 920 million (576) at the end of the quarter. In total, cash and cash equivalents amounted to SEK 181 million (522), a decrease by SEK 340 million. At the end of the quarter, 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 2.0 (1.4) at the end of the quarter.
| SEK million | Nov 30. 2017 |
Nov 30, 2016 |
Aug 31, 2017 |
|---|---|---|---|
| Non-current liabilities | 1.092.3 | 1.094.4 | 1.068.6 |
| Finance lease liabilities | 8.4 | 26 | 12 |
| Cash and cash equivalents | $-181.2$ | $-521.5$ | $-71.5$ |
| Net debt | 919.5 | 575.5 | 998.3 |
The average number of full-time employees was 1,063 during the quarter, compared with 917 in the year-earlier period. The increase is attributable to this year's acquisitions.
As previously announced, the Board of Directors of Dustin appointed Thomas Ekman as new President and CEO. He assumed his new position on January 1, 2018. Thomas Ekman's most recent position was as CEO of Cabonline Group. Before that he was, inter alia, CEO of Tele2 Sweden and he is currently a Board member of Com Hem. He replaced Georgi Ganev, who stepped down at year-end.
In September, Dustin acquired Denmark-based Norrig's business area for hosting and outsourcing IT services on the basis of an asset transfer. With the acquisition, Dustin is strengthening its offering of advanced services and solutions in the Danish market and expanding its customer base in the core small and medium-sized business segment. Norrig's business area for hosting and outsourcing 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 acquired all of the shares outstanding in the Norwegian company Core Services AS, which is one of the leading players in the new generation of data centre solutions, known as software defined data centres. The acquisition will broaden Dustin's offering in more advanced products and services and strengthen Dustin's position as a total supplier of IT infrastructure. Core Services reported sales of NOK 236 million in 2016 and has 20 employees. The acquisition is expected to have a
marginal impact on Dustin's earnings per share during the current financial year.
In November, Dustin acquired all of the shares in the Swedish company JML-System AB, which offers installation and service of audio/video solutions for meeting rooms and conferences. JML-System has 55 employees and reported sales of approximately SEK 160 million during the 2016/17 financial year. The acquisition is expected to have a marginal impact on Dustin's earnings per share during the current financial year.
For more information regarding acquisitions during the quarter, refer to Note 3 Acquisition of businesses during the period.
Dustin presented new segment reporting at the end of November, with the former B2B segment divided into two new segments. The new segments are SMB (Small and Medium-sized Businesses) and LCP (Large Corporate and Public sector) as well as the existing B2C segment. The segments were changed to harmonise the external reporting with Dustin's internal organisation and governance. Reporting with the new segments will take place from the first quarter of 2017/18.
Dustin's Annual General Meeting was held on December 13, 2017. The Annual General Meeting voted to support all proposals presented by the Board of Directors and Nomination Committee at the Meeting.
The Annual General Meeting re-elected the Board members Caroline Berg, Mia Brunell Livfors, Gunnel Duveblad, Johan Fant, Tomas Franzén and Mattias Miksche, and elected Morten Strand as a new Board member. Former Chairman of the Board Fredrik Cappelen and Board member Maija Strandberg declined re-election and the Meeting elected Mia Brunell Livfors as Chairman of the Board. The Annual General Meeting resolved to reelect the registered auditors Ernst & Young AB as the company's auditor for the period until the end of the 2017/18 Annual General Meeting. Jennifer Rock Baley will remain as Auditor in Charge.
The Annual General Meeting approved the Annual Report for 2016/17 and decided on a dividend of SEK 2.80 per share.
At the Annual General Meeting on December 13, 2017, the shareholders resolved to adopt a long-term incentive programme for 2018 that encompasses Group Management and other key individuals at Dustin, about 35 people in total. The programme comprises the issue of a maximum of 1,017,956 warrants, in one series, within the framework of the incentive programme. The right to
subscribe for warrants will accrue to the wholly owned subsidiary Dustin Aktiebolag, which will transfer the warrants to employees of the Group. The warrants will be transferred to the participants at a price corresponding to the market value of the options. Based on the existing number of shares and votes in the company, the proposed incentive programme will, when all 1,017,956 warrants are exercised, entail a full dilution corresponding to approximately 1.32 per cent of the total number of shares and votes in the company. The incentive programme also includes the possibility for participants in Norway to take part in a synthetic options programme. The aim of the incentive programme is to increase ownership among key employees, motivate them to remain with the company and increase commitment to Dustin's earnings performance.
Dustin sold IT-Hantverkarna Sverige AB to an external party at the start of December. The divestment of IT-Hantverkarna allows Dustin to streamline its offering and concentrate on standardised IT operation services for small companies and advanced services and solutions for large companies. IT-Hantverkarna's operations for standardised services were integrated with Dustin prior to the divestment. Slightly more than 80 employees of IT-Hantverkarna will be transferred to the new owner.
The divested business has not been deemed to be material from a financial perspective and thus is not recognised as discontinued operations in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations. The total sales for the divested part amounted to SEK 98 million for the 2016/17 financial year and EBIT to SEK1 million. The divestment essentially took place at carrying amount.
A previous court dispute in Norway was concluded through a settlement after the end of the quarter. The outcome is in line with previous provisions, which means that the judgement is not deemed to have any material impact on earnings.
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 quarter amounted to SEK 0.1 million (0.1). The loss for the quarter totalled SEK 24 million (loss: 27) and the year-on-year change was largely attributable to an improved net currency position of a negative SEK 22 million (neg: 26), attributable to the 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, operative 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 pages 50-53 of Dustin's 2016/17 Annual Report.
There were no significant related-party transactions during the current period or comparative period.
The Parent Company's share has been listed on Nasdag Stockholm since February 13, 2015, and is included in the Mid Cap index. At November 30, 2017, the price was SEK 75.75 per share (60.75), representing a total market capitalisation of SEK 5,770 million (4,628).
At the end of the quarter, the company had a total of 6,384 shareholders (6,555). The company's three largest shareholders were Axmedia AB (Axel Johnson AB) with 25.0 per cent, Swedbank Robur Fonder with 11.6 per cent and Franklin Templeton with 5.1 per cent as of November 30, 2017. Dustin's shareholder register with the largest shareholders is presented on the company's website.
Dustin presented new segment reporting at the end of November, with the former B2B segment divided into two new segments. Dustin's operations are divided into three business segments: SMB (Small and Medium-sized Businesses), LCP (Large Corporate and Public sector) and B2C (Business to Consumer).
Within the SMB and LCP segments, customers are served through both the online platform and relationship selling. Within the B2C segment, customers are served through only the online platform and through this customer segment, Dustin gains insight into trends and pricing as well as increased sales with limited additional costs.
| All amounts in SEK million, unless otherwise indicated | Q1 | Q1 | Change | Rolling | Full-vear | Change |
|---|---|---|---|---|---|---|
| SMB | 17/18 | 16/17 | % | 12 months | 16/17 | % |
| Net sales | 1.059.8 | 893.2 | 18.7 | 3.697.4 | 3.530.8 | 4.7 |
| Segment results | 121.8 | 97.6 | 24.8 | 401.7 | 377.5 | 6.4 |
| Segment margin (%) | 11.5 | 10.9 | 10.9 | 10.7 |
Net sales for the quarter rose 18.7 per cent to SEK 1,060 million (893). Organic growth in fixed exchange rates amounted to 9.5 per cent (3.6) and was due to strong sales, primarily in Sweden and Norway. Norrig's business area for hosting and outsourcing IT services was consolidated on October 1 and JML-System on November 1.
The segment results for the quarter rose SEK 24 million to SEK 122 million (98). This improved result was due to increased sales and to a general improvement in the product mix in comparable units and completed acquisitions. The segment margin was 11.5 per cent (10.9). Our investments in advanced products and services continued and at the end of the quarter the customer
base for SaaS configurations via the cloud platform amounted to 1,040 active customers (431), corresponding to 33.400 users (10.241).
| All amounts in SEK million, unless otherwise indicated | Q1 | Q1 | Change | Rolling | Full-vear | Change |
|---|---|---|---|---|---|---|
| LCP | 17/18 | 16/17 | % | 12 months | 16/17 | % |
| Net sales | 1.348.4 | 1.219.8 | 10.5 1 | 5.313.2 | 5.184.6 | 2.5 |
| Segment results | 88.8 | 88.9 | $-0.1$ | 355.3 | 355.4 | 0.0 |
| Segment margin, % | 6.6 | $\overline{\phantom{a}}$ | 6.7 | 6.9 |
Net sales for the quarter rose 10.5 per cent to SEK 1,348 million (1,220). Organic growth at fixed exchange rates was 8.3 per cent (3.3). The increase for the quarter was mainly attributable to continued high sales under new framework agreements, primarily with the public sector (the public sector corresponds to about two-thirds of total net sales in LCP). Norway and Finland performed positively, while the growth rate in Sweden and Denmark was adversely impacted by higher comparative figures for the year-earlier quarter. Core Services was consolidated from November 1.
The segment results amounted to SEK 89 million (89), which was in line with the year-earlier quarter. The segment margin was 6.6 per cent (7.3), a decrease attributable to the high share of sales under framework agreements and a changed product mix with a higher proportion of clients. Segment costs were also impacted by continuing investments in the offering of advanced products and services.
| All amounts in SEK million, unless otherwise indicated B 2 C |
Q1 17/18 |
Q1 16/17 |
Change % |
Rolling 12 months |
Full-vear 16/17 |
Change % |
|---|---|---|---|---|---|---|
| Net sales | 183.5 | 170.6 | 7.6 | 603.7 | 590.8 | 2.2 |
| Segment results | 7.9 | 5.5 | 42.1 | 26.9 | 24.6 | 9.5 |
| Segment margin (%) | 4.3 | 3.3 | $\overline{\phantom{0}}$ | 4.5 | 4.2 |
Net sales for the quarter increased 7.6 per cent to SEK 184 million (171). Organic growth in fixed exchange rates was 8.5 per cent (17.4). The quarter was positively impacted by increased sales in both Finland and Denmark. Sales were also positively affected by the "Black Friday" campaign activities.
The segment results for the quarter increased to SEK 8 million (6) and the segment margin was 4.3 per cent (3.3).
| All amounts in SEK million, unless otherwise indicated | Q1 | Q1 | Change | Rolling | Full-vear | Change |
|---|---|---|---|---|---|---|
| Central functions | 17/18 | 16/17 | % | 12 months | 16/17 | % |
| Costs for central functions | $-87.5$ | $-76.2$ | 14.8 | $-342.6$ | $-331.3$ | 3.4 |
| Costs in relation to net sales (%) | $-3.4$ | $-3.3$ | $\sim$ | $-3.6$ | $-3.6$ | $\sim$ |
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 first quarter for central functions amounted to 3.4 per cent (3.3) of sales. Costs for central functions amounted to SEK 88 million (76), with the increase attributable to
continued investments in the product and service offering as well as integration of acquired businesses.
For additional financial data on the segments, refer to Note 2 Segments, and to Segment information by quarter on page 25.
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, January 10, 2018
Thomas Ekman, CEO In accordance with authorisation by the Board of Directors
This report has not been reviewed by the company's auditors.
Dustin
| Q1 | Q1 | Rolling | Full-year | ||
|---|---|---|---|---|---|
| SEK million | Note | 17/18 | 16/17 | 12 months | 16/17 |
| Net sales | $\overline{2}$ | 2,591.8 | 2,283.6 | 9,614.4 | 9,306.2 |
| Cost of goods and services sold | $-2,188.1$ | $-1,942.7$ | $-8,172.1$ | $-7,926.7$ | |
| Gross profit | 403.6 | 340.9 | 1,442.3 | 1,379.5 | |
| Selling and administrative expenses | $-288.6$ | $-240.3$ | $-1,064.6$ | $-1,016.3$ | |
| Items affecting comparability | 4 | $-3.5$ | $-2.4$ | $-8.4$ | $-7.3$ |
| Other operating income | 0.9 | 1.3 | 5.5 | 5.9 | |
| Other operating expenses | $-4.0$ | $-1.9$ | $-14.4$ | $-12.3$ | |
| EBIT | $\overline{2}$ | 108.5 | 97.5 | 360.5 | 349.5 |
| Financial income and other similar income-statement items | 0.3 | 0.3 | 1.2 | 1.2 | |
| Financial expenses and other similar income-statement items |
$-11.3$ | $-10.5$ | $-43.4$ | $-42.6$ | |
| Profit after financial items | 97.5 | 87.3 | 318.3 | 308.1 | |
| Tax | $-21.7$ | $-19.5$ | $-71.2$ | $-69.0$ | |
| Profit for the period, in its entirety attributable to Parent | 75.8 | 67.8 | 247.1 | 239.1 | |
| Company shareholders | |||||
| Other comprehensive income (all items will be transferred to the income statement) |
|||||
| Translation differences | 23.6 | 28.7 | $-8.3$ | $-3.2$ | |
| Change in hedging reserves | $-20.1$ | $-21.8$ | 12.3 | 10.6 | |
| Tax attributable to change in hedging reserves | 4.4 | 4.8 | $-2.7$ | $-2.3$ | |
| Other comprehensive income | 8.0 | 11.7 | 1,4 | 5.1 | |
| Comprehensive income for the period is attributable in its | 83.8 | 79.4 | 248.5 | $\overline{244.1}$ | |
| entirety to Parent Company shareholders | |||||
| Earnings per share before dilution (SEK) | 1.00 | 0.89 | 3.24 | 3.14 | |
| Earnings for per share after dilution (SEK) | 0.99 | 0.89 | 3.23 | 3.13 |
| Note | Nov 30, 2017 | Nov 30, 2016 | Aug 31, 2017 | |
|---|---|---|---|---|
| SEK million | ||||
| ASSETS | ||||
| Non-current assets | ||||
| Goodwill | 2,564.0 | 1,966.2 | 2,105.8 | |
| Other intangible assets attributable to acquisitions | 390.4 | 355.9 | 357.9 | |
| Other intangible assets | 5 | 112.3 | 111.3 | 115.1 |
| Tangible assets | 5 | 34.2 | 18.0 | 24.6 |
| Deferred tax assets | 9.2 | 5.0 | 8.4 | |
| Other non-current assets | 3.3 | 2.8 | 2.9 | |
| Total non-current assets | 3,113.4 | 2,459.2 | 2,614.7 | |
| Current assets | ||||
| Inventories | 356.1 | 301.8 | 261.9 | |
| Accounts receivable | 1,180.0 | 1,095.6 | 1,047.1 | |
| Derivative instruments | 6 | 0.2 | ||
| Tax assets | 4.5 | 6.9 | 7.6 | |
| Other receivables | 10.8 | 2.2 | 7.7 | |
| Prepaid expenses and accrued income | 233.3 | 158.4 | 158.5 | |
| Cash and cash equivalents | 181.2 | 521.5 | 71.5 | |
| Total current assets | 1,966.0 | 2,086.4 | 1,554.1 | |
| TOTAL ASSETS | 5,079.4 | 4,545.6 | 4,168.8 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Equity attributable to Parent Company shareholders | 1,568.9 | 1,501.6 | 1,485.1 | |
| Total equity | 1,568.9 | 1,501.6 | 1,485.1 | |
| Non-current liabilities | ||||
| Deferred tax and other long-term provisions | 138.4 | 121.2 | 133.3 | |
| Liabilities to credit institutions | 1.092.3 | 1,094.4 | 1,068.6 | |
| Acquisition-related liabilities | 6 | 223.5 | 48.0 | 78.3 |
| Derivative instruments | 6 | 6.9 | 4.6 | 6.5 |
| Total non-current liabilities | 1,461.0 | 1,268.2 | 1,286.6 | |
| Current liabilities | ||||
| Accounts payable | 1,522.6 | 1,386.8 | 956.3 | |
| Tax liabilities | 47.2 | 29.4 | 59.3 | |
| Derivative instruments | 6 | 0.1 | ||
| Other current liabilities | 112.0 | 76.1 | 115.1 | |
| Acquisition-related liabilities | 6 | 59.0 | 34.3 | 31.3 |
| Accrued expenses and deferred income | 308.7 | 249.2 | 235.0 | |
| Total current liabilities | 2,049.5 | 1,775.8 | 1,397.1 | |
| TOTAL EQUITY AND LIABILITIES | 5,079.4 | 4,545.6 | 4,168.8 |
| SEK million | Nov 30, 2017 | Nov 30, 2016 | Aug 31, 2016 |
|---|---|---|---|
| Opening balance, September 1 | 1,485.1 | 1,422.2 | 1,422.2 |
| Profit for the period | 75.8 | 67.8 | 239.1 |
| Other comprehensive income | |||
| Translation differences | 23.6 | 28.7 | $-3.2$ |
| Cash-flow hedging | $-20.1$ | $-21.8$ | 10.6 |
| Tax attributable to cash-flow hedges | 4.4 | 4.8 | $-2.3$ |
| Total other comprehensive income | 8.0 | 11.7 | 5.1 |
| Total comprehensive income | 83.8 | 79.4 | 244.1 |
| Dividends | $-182.8$ | ||
| Subscription with the support of warrants | 1.6 | ||
| Total transactions with shareholders | $-181.2$ | ||
| Closing equity as per the balance-sheet date, attributable to | |||
| Parent Company shareholders in its entirety | 1,568.9 | 1,501.6 | 1,485.1 |
| Q1 | Q1 | Full-year | ||
|---|---|---|---|---|
| SEK million | Note | 17/18 | 16/17 | 16/17 |
| Operating activities | ||||
| Profit before financial items | 108.5 | 97.5 | 349.5 | |
| Adjustment for non-cash items | 23.3 | 19.5 | 58.1 | |
| Interest received | 0.3 | 0.3 | 1.2 | |
| Interest paid | $-9.1$ | $-8.8$ | $-27.4$ | |
| Income tax paid | $-41.6$ | $-22.4$ | $-57.9$ | |
| Cash flow from operating activities before changes in working capital | 81.4 | 86.1 | 323.4 | |
| Decrease (+)/increase (-) in inventories | $-84.9$ | $-70.2$ | $-28.5$ | |
| Decrease (+)/increase (-) in receivables | $-101.1$ | $-217.4$ | $-143.8$ | |
| Decrease (-)/increase (+) in current liabilities | 557.7 | 506.3 | 62.5 | |
| Cash flow from changes in working capital | 371.8 | 218.7 | $-109.9$ | |
| Cash flow from operating activities | 453.1 | 304.8 | 213.6 | |
| Investing activities | ||||
| Acquisition of intangible assets | 5 | $-4.4$ | $-4.5$ | $-18.1$ |
| Acquisition of tangible assets | 5 | $-3.1$ | $-0.1$ | $-9.2$ |
| Acquisition of operations | 3 | $-328.2$ | $-19.8$ | $-147.2$ |
| Contingent consideration paid | $-26.6$ | |||
| Cash flow from investing activities | $-335.7$ | $-24.4$ | $-201.0$ | |
| Financing activities | ||||
| New share issue | 1.6 | |||
| Dividend | $-182.8$ | |||
| Paid bank arrangement fees | $-3.3$ | |||
| Change in financial leasing liability | $-0.5$ | $-0.2$ | $-1.6$ | |
| Cash flow from financing activities | $-0.5$ | -0.2 | -186.1 | |
| Cash flow for the period | 116.9 | 280.2 | $-173.6$ | |
| Cash and cash equivalents at beginning of period | 71.5 | 242.9 | 242.9 | |
| Cash flow for the period | 116.9 | 280.2 | $-173.6$ | |
| Exchange-rate differences in cash and cash equivalents | $-7.3$ | $-1.5$ | $2.2\phantom{0}$ | |
| Cash and cash equivalents at the end of the period | 181.1 | 521.5 | 71.5 |
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| SEK million | 17/18 | 16/17 | 12 months | 16/17 |
| Net sales | 0.1 | 0.1 | 0.4 | 0.4 |
| Selling and administrative expenses | $-1.8$ | $-2.3$ | $-9.9$ | $-10.4$ |
| Other operating expenses | $-0.1$ | 0.0 | $-0.1$ | 0.0 |
| EBIT | $-1.8$ | $-2.2$ | $-9.6$ | $-10.0$ |
| Financial income and other similar income-statement items | 3.7 | 10.4 | 13.3 | 20.0 |
| Financial expenses and other similar income-statement items | $-32.1$ | $-42.6$ | $-35.3$ | $-45.9$ |
| Profit/Loss after financial items | $-30.2$ | $-34.5$ | $-31.6$ | $-35.9$ |
| Appropriations | $\overline{\phantom{a}}$ | 212.4 | 212.4 | |
| Tax | 6.6 | 7.7 | $-39.9$ | $-38.8$ |
| Profit/Loss for the period | $-23.5$ | $-26.8$ | 140.9 | 137.6 |
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| SEK million | 17/18 | 16/17 | 12 months | 16/17 |
| Profit/Loss for the period | $-23.5$ | $-26.8$ | 140.9 | 137.6 |
| Other comprehensive income | ||||
| Comprehensive income for the period | $-23.5$ | $-26.8$ | 140.9 | 137.6 |
| SEK million | Nov 30, 2017 |
Nov 30, 2016 |
Aug 31, 2017 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Participations in Group companies | 1,211.6 | 1,211.6 | 1,211.6 |
| Total non-current assets | 1,211.6 | 1,211.6 | 1,211.6 |
| Current assets | |||
| Receivables from Group companies | 543.2 | 489.1 | 619.9 |
| Tax assets Prepaid expenses and accrued income |
1.3 6.3 |
0.6 7.9 |
0.6 6.3 |
| Other receivables | 0.6 | 0.2 | 0.2 |
| Cash and bank balances | 83.7 | 122.0 | 42.9 |
| Total current assets | 635.0 | 619.9 | 669.8 |
| TOTAL ASSETS | 1,846.6 | 1,831.4 | 1,881.4 |
| EQUITY AND LIABILITIES | |||
| Restricted equity | |||
| Share capital | 380.9 | 380.9 | 380.9 |
| Total restricted equity | 380.9 | 380.9 | 380.9 |
| Non-restricted equity | |||
| Share premium reserve | 388.1 | 388.1 | 388.1 |
| Retained earnings | $-113.8$ | $-70.3$ | $-251.5$ |
| Profit/Loss for the year | $-23.5$ | $-26.8$ | 137.6 |
| Total non-restricted equity | 250.8 | 291.0 | 274.3 |
| Total equity | 631.6 | 671.9 | 655.2 |
| Untaxed reserves | 109.4 | 50.6 | 109.4 |
| Non-current liabilities | |||
| Non-current liabilities to credit institutions | 1,092.3 | 1,094.6 | 1.068.6 |
| Total non-current liabilities | 1,092.3 | 1,094.6 | 1,068.6 |
| Current liabilities | |||
| Accounts payable | 0.0 | 0.5 | 0.2 |
| Tax liabilities | 11.2 | 12.0 | 45.1 |
| Other current liabilities | 0.1 | 0.2 | 0.3 |
| Accrued expenses and deferred income | 1.9 | 1.7 | 2.6 |
| Total current liabilities | 13.3 | 14.3 | 48.2 |
| TOTAL EQUITY AND LIABILITIES | 1,846.6 | 1,831.4 | 1,881.4 |
This report has been prepared by 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 2016/17 financial year, except for the information provided about segment reporting on page 73 in the Annual Report's description of significant accounting policies. New segment reporting was presented during the quarter; refer to page 7 Presentation of new segment reporting.
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 amendments and interpretations in existing standards that have been applied from the financial year beginning September 1, 2017 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, 2018. 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 revenue from contracts with customers and the sale of certain nonfinancial assets. The new standard replaces IAS 11 Construction Contracts and 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 quantified the impact of the new standard on the consolidated 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 quantified the impact of the new standard on the consolidated financial statements.
This report has been prepared in SEK million, unless otherwise stated. Rounding-off differences may occur in this report.
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| All amounts in SEK million, unless otherwise indicated | 17/18 | 16/17 | 12 months | 16/17 |
| Net sales | ||||
| LCP | 1,348.4 | 1,219.8 | 5,313.2 | 5,184.6 |
| SMB | 1,059.8 | 893.2 | 3,697.4 | 3,530.8 |
| B 2 C | 183.5 | 170.6 | 603.7 | 590.8 |
| Total | 2,591.8 | 2,283.6 | 9,614.4 | 9,306.2 |
| Segment results | ||||
| LCP | 88.8 | 88.9 | 355.3 | 355.4 |
| SMB | 121.8 | 97.6 | 401.7 | 377.5 |
| B 2 C | 7.9 | 5.5 | 26.9 | 24.6 |
| Total | 218.5 | 192.0 | 783.8 | 757.4 |
| Central functions | $-87.5$ | $-76.2$ | $-342.6$ | $-331.3$ |
| Adjusted EBITA | 115.8 | 441.2 | 426.1 | |
| Segment margin | ||||
| LCP, segment margin (%) | 6.6 | 7.3 | 6.7 | 6.9 |
| SMB, segment margin (%) | 11.5 | 10.9 | 10.9 | 10.7 |
| B2C, segment margin (%) | 4.3 | 3.3 | 4.5 | 4.2 |
| Costs for central functions, excluding items affecting comparability in relation | ||||
| to net sales (%) | $-3.4$ | $-3.3$ | $-3.6$ | $-3.6$ |
| Reconciliation with profit after financial items | ||||
| Items affecting comparability | $-3.5$ | $-2.4$ | $-8.4$ | $-7.3$ |
| Amortisation and impairment of intangible assets | $-18.9$ | $-15.9$ | $-72.3$ | $-69.3$ |
| EBIT, Group | 108.5 | 97.5 | 360.5 | 349.5 |
| Financial income and other similar income-statement items | 0.3 | 0.3 | 1.2 | 1.2 |
| Financial expenses and other similar income-statement items | $-11.3$ | $-10.5$ | $-43.4$ | $-42.6$ |
| Profit after financial items, Group | 97.5 | 87.3 | 318.3 | 308.1 |
In September, Dustin acquired Denmark-based Norrig's business area for hosting and outsourcing IT services on the basis of an asset transfer. With this acquisition, Dustin is strengthening its offering of advanced services and solutions in the Danish market and expanding its customer base in the core small and medium-sized business segment. The acquired business area has 28 employees and reported sales of about DKK 57 million in 2016. The purchase consideration amounted to SEK 216 million, of which SEK 75 million pertained to an estimated earn-out. The asset-transfer acquisition was consolidated with the Group from October 1.
In October, Dustin acquired all of the shares outstanding in the Norwegian company Core Services AS, which is one of the leading players in the new generation of data centre solutions, known as software defined data centres. The customer base primarily comprises companies in the LCP segment. The acquisition will broaden Dustin's offering in more advanced products and services and strengthen
Dustin's position as a total supplier of IT infrastructure. Core Services reported sales of NOK 236 million in 2016 and has 20 employees. The acquisition entails that Dustin holds 100 per cent of the total voting rights. The purchase consideration amounted to SEK 186 million, of which SEK 42 million pertained to an estimated earn-out and SEK 31 million to a transfer consideration that has not yet been settled. The company was consolidated on November 1.
All of the shares in the Swedish company JML-System AB were acquired in November. JML-System AB offers installation and service of audio/video solutions for meeting rooms and conferences, primarily to small and medium-sized businesses. The company reported sales of approximately SEK 160 million during the 2016/17 financial year and has 55 employees. The acquisition entails that Dustin holds 100 per cent of the total voting rights. The purchase consideration amounted to SEK 136 million, of which SEK 33 million pertained to an estimated earn-out and SEK1 million to transfer consideration that has not yet been settled. The company was consolidated on November 1.
| Norrig | ||||
|---|---|---|---|---|
| Infrastructure | ||||
| & Cloud | Core Services | JML-System | ||
| Fair value of acquired assets and liabilities | Services | AS | AB | Total |
| Intangible assets (excl. goodwill) | 32.8 | 7.0 | 7.4 | 47.2 |
| Tangible assets | 1.3 | 0.0 | 8.2 | 9.5 |
| Financial assets | 0.1 | 0.1 | ||
| Inventories | 0.1 | 6.9 | 7.0 | |
| Other current assets | 41.2 | 51.2 | 92.4 | |
| Cash and cash equivalents | 39.9 | $-4.2$ | 35.7 | |
| Other current liabilities | 11.8 | 30.1 | 44.3 | 86.1 |
| Total identifiable assets | 22.4 | 58.1 | 25.3 | 105.8 |
| Consolidated goodwill | 193.3 | 127.9 | 110.6 | 431.9 |
| Purchase consideration including estimated contingent earn-out | 215.8 | 186.0 | 135.9 | 537.7 |
| Less: | ||||
| Cash and cash equivalents | 39.9 | $-4.2$ | 35.7 | |
| Transfer consideration not yet settled | 31.3 | 1.1 | 32.4 | |
| Estimated contingent earn-out | 74.6 | 42.0 | 32.9 | 149.5 |
| Net cash outflow | 141.2 | 72.8 | 106.1 | 320.0 |
The maximum performance-based earn-out liability for acquisitions in the quarter totals SEK 184 million. These acquisitions are strategically important in terms of complementing Dustin's service offering with respect to advanced products and services. The total acquisition costs are presented in Note 4 Items affecting
comparability. Acquired goodwill comprises new distribution channels, new sales channels for advanced products and services, and employee expertise. The fair value of the acquired receivables is expected to be fully regulated. The contracted gross amounts essentially correspond to the fair values of the receivables.
Costs attributable to acquisitions during the financial year amounted to SEK 3 million and mainly pertained to remuneration to consultants and attorneys for financial
and legal advisory services in conjunction with acquisitions.
| Q 1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| SEK million | 17/18 | 16/17 | 12 months | 16/17 |
| Acquisition and divestment-related expenses | $-3.5$ | $-2.4$ | $-12.6$ | $-11.6$ |
| Change in value of acquisition-related liabilities | $\overline{\phantom{m}}$ | 22.3 | 22.3 | |
| Provision for repayment requirement | ۰ | $-18.0$ | $-18.0$ | |
| Total | -3.5 | $-2.4$ | $-8.4$ | $-7.3$ |
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| SEK million | 17/18 | 16/17 | 12 months | 16/17 |
| Capitalised expenditure for IT development (integrated IT-platform and other long term strategic IT-systems) |
$-3.8$ | $-4.5$ | $-16.3$ | $-16.9$ |
| Other investments in tangible and intangible assets | $-3.8$ | $-0.1$ | $-14.0$ | $-10.3$ |
| Investments in financial lease assets | $-0.8$ | $-0.8$ | ||
| Total | $-8.4$ | -4.6 | $-31.0$ | -27.3 |
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. Derivative instruments 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 derivatives and currency futures, and the fair value measurement is Level 2, according to the definition in IFRS 13. The valuation level is unchanged compared with August 31, 2017.
At November 30, 2017, the fair value of liabilities for derivative instruments was SEK 7 million (5).
Acquisition-related liabilities pertain to contingent earnouts. Measurement is carried out on a continuous basis at fair value and the liability is settled as required via profit or loss. If a change in value occurs prior to the preparation of the purchase price allocation and is not the result of events following the acquisition date, 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 earn-out 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 quarter refer to the Danish company Norriq's business area for hosting and outsourcing IT services (SEK 75 million), Norwegian company Core Services (SEK 73 million) and the Swedish acquisition of JML-System (SEK 34 million).
| Change in acquisition-related liabilities measured at fair value based on inputs that are not based on observative market date (Level 3) |
Nov 30. 2017 |
Nov 30. 2016 |
Aug 31, 2017 |
|---|---|---|---|
| Opening balance | 109.6 | 52.6 | 52.6 |
| Remeasurements recognised in profit or loss: | |||
| Unrealised remeasurement of contingent earn-out recognised under items affecting comparability |
$\overline{\phantom{a}}$ | $-22.3$ | |
| Discount of contingent earn-out recognised under Financial expenses and other similar income-statement items |
0.9 | 0.9 | |
| Remeasurements recognised under other comprehensive income: | |||
| Unrealised exchange-rate differences recognised under Translation differences | $-1.8$ | 0.6 | $-3.1$ |
| Changes recognised via the balance sheet: | |||
| Payments attributable to previous acquisitions | $-8.1$ | $-26.6$ | |
| Acquisitions | 182.0 | 29.1 | 108.0 |
| Closing balance | 282.5 | 82.3 | 109.6 |
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| All amounts in SEK million, unless otherwise indicated | 17/18 | 16/17 | 12 months | 16/17 |
| Income statement | ||||
| Organic sales growth (%) | 8.8 | 4.4 | 9.7 | 8.6 |
| Gross margin (%) | 15.6 | 14.9 | 15.0 | 14.8 |
| EBIT | 108.5 | 97.5 | 360.5 | 349.5 |
| Adjusted EBITDA | 134.4 | 118.5 | 454.3 | 438.4 |
| Adjusted EBITA | 130.9 | 115.8 | 441.2 | 426.1 |
| Adjusted EBITA margin (%) | 5.1 | 5.1 | 4.6 | 4.6 |
| Return on equity (%) | 15.8 | 16.1 | ||
| Balance sheet | ||||
| Net working capital | $-197.5$ | $-174.0$ | $-197.5$ | 118.1 |
| Capital employed | $-38.5$ | $-36.9$ | $-38.5$ | 269.1 |
| Net debt | 919.5 | 575.5 | 919.5 | 998.3 |
| Net debt/adjusted EBITDA (multiple) | 2.0 | 2.3 | ||
| Maintenance investments | $-4.6$ | $-0.1$ | $-31.7$ | $-27.3$ |
| Equity/assets ratio (%) | 30.9 | 35.6 | ||
| Cash flow | ||||
| Operating cash flow | 501.6 | 337.0 | 465.8 | 301.2 |
| Cash flow from operating activities | 453.1 | 304.8 | 361.9 | 213.6 |
| Data per share | ||||
| Earnings per share before dilution (SEK) | 1.00 | 0.89 | 3.24 | 3.14 |
| Earnings per share after dilution (SEK) | 0.99 | 0.89 | 3.23 | 3.13 |
| Equity per share before dilution (SEK) | 20.60 | 19.71 | 20.60 | 19.50 |
| Cash flow from operating activities per share before dilution (SEK) | 5.95 | 4.00 | 4.75 | 2.80 |
| Cash flow from operating activities per share after dilution (SEK) | 5.93 | 4.00 | 4.74 | 2.80 |
| Average number of shares | 76,173,115 | 76,173,115 | 76,173,115 | 76,173,115 |
| Average number of shares after dilution | 76,444,213 | 76,193,089 | 76,413,884 | 76,338,787 |
| 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 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. Definitions on page 26 present 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. The sources of Net working capital and Net debt are described on pages 6 and $7.$
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| All amounts in SEK million, unless otherwise indicated |
17/18 | 16/17 | 12 months | 16/17 |
| Organic growth | ||||
| Sales growth (%) | 13.5 | 7.5 | 13.6 | 12.1 |
| Acquired growth (%) | $-5.4$ | $-1.1$ | $-2.9$ | $-1.7$ |
| Currency effects in sales growth (%) | 0.7 | $-2.0$ | $-1.0$ | $-1.8$ |
| Organic sales growth (%) | 8.8 | 4.4 | 9.7 | 8.6 |
| Q1 | Q1 | Rolling | Full-year | |
|---|---|---|---|---|
| SMB | 17/18 | 16/17 | 12 months | 16/17 |
| Organic growth | ||||
| Sales growth (%) | 18.6 | 7.2 | 15.0 | 11.9 |
| Acquired growth (%) | $-9.6$ | $-2.1$ | $-6.5$ | $-4.4$ |
| Currency effects in sales growth (%) | 0.5 | $-1.4$ | $-0.8$ | $-1.3$ |
| Organic sales growth (%) | 9.5 | 3.6 | 7.8 | $6.2$ |
| Q1 | Q1 | Rolling | Full-year | |
| LCP | 17/18 | 16/17 | 12 months | 16/17 |
| Organic growth | ||||
| Sales growth (%) | 10.5 | 6.3 | 15.0 | 14.0 |
| Acquired growth (%) | $-3.0$ | $-0.5$ | $-0.8$ | $-0.1$ |
| Currency effects in sales growth (%) | 0.8 | $-2.6$ | $-1.2$ | $-2.1$ |
| Organic sales growth (%) | 8.3 | 3.3 | 12.9 | 11.8 |
| Q1 | Q1 | Rolling | Full-year | |
| B 2 C | 17/18 | 16/17 | 12 months | 16/17 |
| Organic growth | ||||
| Sales growth (%) | 7.7 | 18.8 | $-3.4$ | $-1.2$ |
| Acquired growth (%) | 0.0 | 0.0 | 0.0 | 0.0 |
$0.9$
$\overline{\overline{\mathbf{8.5}}}$
Currency effects in sales growth (%)
Organic sales growth (%)
$-1.5$
$-2.7$
$-0.8$
$-4.1$
$-1.5$
$17.3$
| All amounts in SEK million, unless otherwise | Q1 | Q4 | Q3 | Q 2 | Q1 | Q4 | Q3 | Q 2 | Q1 |
|---|---|---|---|---|---|---|---|---|---|
| indicated | 17/18 | 16/17 | 16/17 | 16/17 | 16/17 | 15/16 | 15/16 | 15/16 | 15/16 |
| Net sales | 2,591.8 | 2,262.4 | 2,257.4 | 2,502.9 | 2,283.6 | 1,951.8 | 1,988.9 | 2,236.6 | 2,123.6 |
| Organic sales growth (%) | 8.8 | 12.2 | 9.2 | 8.7 | 4.4 | 10.2 | 3.6 | 2.4 | 2.5 |
| Gross margin (%) | 15.6 | 14.3 | 15.1 | 14.9 | 14.9 | 15.3 | 15.4 | 14.7 | 14.8 |
| Adjusted EBITA | 130.9 | 91.9 | 94.3 | 124.1 | 115.8 | 80.7 | 91.4 | 112.7 | 104.8 |
| Adjusted EBITA margin (%) | 5.1 | 4.1 | 4.2 | 5.0 | 5.1 | 4.1 | 4.6 | 5.0 | 4.9 |
| Net sales per segment | |||||||||
| $LCP*$ | 1,348.4 | 1,296.1 | 1,228.0 | 1,440.7 | 1,219.8 | ||||
| SMB * | 1,059.8 | 831.1 | 897.2 | 909.2 | 893.2 | ||||
| B 2 B | 2,408.2 | 2,127.2 | 2,125.3 | 2,349.9 | 2,113.0 | 1,806.2 | 1,847.6 | 2,069.4 | 1,980.1 |
| B 2 C | 183.5 | 135.2 | 132.0 | 153.0 | 170.6 | 145.6 | 141.3 | 167.2 | 143.4 |
| Segment results | |||||||||
| $LCP*$ | 88.8 | 76.5 | 83.9 | 106.1 | 88.9 | ||||
| SMB* | 121.8 | 90.6 | 92.3 | 97.0 | 97.6 | ||||
| B 2 B | 210.6 | 167.1 | 176.2 | 203.1 | 186.5 | 150.3 | 155.6 | 183.2 | 171.1 |
| B 2 C | 7.9 | 8.1 | 4.9 | 5.9 | 5.5 | 5.6 | 6.7 | 6.0 | 4.1 |
| Segment margin (%) | |||||||||
| LCP* | 6.6 | 5.9 | 6.8 | 7.4 | 7.3 | ||||
| $SMB^*$ | 11.5 | 10.9 | 10.3 | 10.7 | 10.9 | ||||
| B 2 B | 8.7 | 7.9 | 8.3 | 8.6 | 8.8 | 8.3 | 8.4 | 8.9 | 8.6 |
| B 2 C | 4.3 | 6.0 | 3.7 | 3.9 | 3.3 | 3.8 | 4.7 | 3.6 | 2.9 |
| Central functions | |||||||||
| Central functions | $-87.5$ | $-83.3$ | $-86.8$ | $-84.9$ | $-76.2$ | $-75.2$ | $-70.9$ | $-76.5$ | $-70.4$ |
| Percentage of net sales | $-3.4$ | $-3.7$ | $-3.8$ | $-3.4$ | $-3.3$ | $-3.9$ | $-3.6$ | $-3.4$ | $-3.3$ |
* Comparative figures for the 2015/16 quarters have not been restated.
| 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 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 before items affecting comparability and amortisation/depreciation and impairment of intangible and tangible 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. |
| Clients | Umbrella term for the product categories computers, mobile phones and tablets. |
| LCP | Pertains to all sales to large corporate and public sector. As a general rule, this segment is defined as companies and organisations with more than 500 employees or public sector operations. |
| SaaS | Software as a service (SaaS) is a type of cloud service that provides software over the Internet. |
| SMB | Pertains to all sales to small and medium-sized businesses. |
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
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 January 10, 2018.
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