Q4 20/21

Oct 6, 2021

Hello and welcome to the Dustin Group Audiocast with teleconference Q4 2020 to 2021. Throughout the call, all participants will be in listen only mode And afterwards, there will be a question and answer session. Just to remind you, this conference call is being recorded. Today, I am pleased to present CEO, Thomas Ekman and CFO, Johan Karlsson. Please begin your meeting. Good. Thank you very much, operator. And good morning and most welcome, everyone, both our existing and new and potential new shareholders, to our 4th quarter presentation and conference call. Hope you're all well and had a good morning so far. And here, nice that is on the call is myself, Soma Teckmann and Johan Karlsson, CFO. So today, we present our Q4, also ending our fiscal year for 2021. And this Q4 has been a transformative quarter in many ways. First, we see that our markets and the world is opening up and the corona restrictions that have been in place for the last 18 months is loosened. Secondly, we are experiencing a very strong growth built from an underlying demand, which we have managed well to capture during the quarter. And thirdly, we closed the transaction of Central Point Beginning of June and from this quarter, the shapes of our consolidated group are visible. And I want to also take the opportunity to emphasize I'm really proud of our achievements on everyone on Dustin Group for their strong contribution in helping and supporting our customers and continuously enable them to stay in the forefront, especially now also when you see the numbers. So moving on then to Slide 2 for the financial highlights to see how we are improving and performing now during the Q4. A really strong 20.5 percent organic growth, which is really good. And we have strengthened our position in the market. And our Productivity and strong position in the value chain benefited our performance in the market, which has been impacted somewhat by component shortages and supply chain disruptions due to the pandemic. But however, we managed that well and in combination with an intensive cost focus, good demand And the acquisition of Centerpoint resulted in an adjusted EBITDA increasing to SEK 229,000,000. The EBITDA margin strengthened to 4.5%. And in addition, our online core business performed strongly in page with a higher share of online retail and a greater need for mobility, cloud services And those trends, the market trends that we build our strategy on, the online shift, The growth for mobility and cloud services, the demand for predictable IT costs, focus on security and integrity and last but not least, Sustainability, all those have continued during the quarter and during the year, and they are increasing in importance, making our long term position even stronger. So what is also interesting to see, I think, during this quarter is that our customers in SMB, they have increased their average order value with around 15%, Partly driven by price and that they've also increased their frequency, I. E, how often they buy from us, with 11% versus last year. So it is really high activity among our customers, which is really encouraging to see. Total net sales were SEK 5,100,000,000, up with 77.6 percent versus last year. And as said, the organic growth was up To 20.5%, of which SMB showed a very positive 17.9% and LCP really coming back at a plus 23.7% and B2C at 7.9%. So overall, strong organic growth, which shows not only good underlying demand, but also our capability to make use of it and deliver. Gross profit was SEK 758,000,000 compared to last year's SEK 434,000,000. That gives us a gross margin of 14.8%, somewhat down from last year's 15.1% because of us adding more S and P volume from Centerpoint. Our adjusted EBITDA increased a lot and came in at SEK 229,000,000 versus last year's SEK 101,000,000. And as I said, that gave us an adjusted EBITDA margin at 4 point 5% for the quarter versus last year's 3.5%. So very strong performance and strong earnings. The margin also to mention that the margin also improved by good performance and the structural changes we're doing combined with the good cost control with all segments. And both SMB and S and P show good progress in the margin uptake. Consequently, EBIT was Up to SEK 154,000,000 compared to last year's SEK 84,500,000 and items affecting comparability was minus SEK 37,900,000. And EPS at SEK 0.65 versus last year's SEK 0.75 And our leverage at the end of the quarter was 3.4 versus 2.6 last year as a consequence of the acquisition of Central Point. And the cash flow, strong cash flow from operating activities at SEK 201,000,000 compared to last year's SEK 110,000,000. So apart from an intense quarter in general from an operational perspective, we completed and consolidated the acquisition of Centrepoint in the Benelux on June 3. And as you know, we also made a right issue, which was fully subscribed at approximately SEK 1,200,000,000. And we did strong results and with the cash, we or the board proposes a dividend at SEK 2.21 per share. Good. Johan, you can take us in deeper deep dive in the segment. Yes. Let's move to Slide 3 then on the S and D segment for some more details. Let's say sales for the quarter ended SEK 1,713,000,000, an increase of 36.7% over last year. That represented an organic Growth of 17.9%. Base growth continues to be strong despite challenges in the global supply chain. As in Q2 and Q3, we continue to see good sales developments in the hardware categories from all customer groups in the segment. The acquisition of Centrepoint in the Netherlands affected the sales numbers in the quarter by SEK 236,000,000, and sales there were in line with expectations. Consulting and project related sales continues to be affected by the pandemic. However, we saw strong sales growth in the entities that were integrated during Full year 2019 2020 and recurring sales in the integrated units grew by 19% compared to Q4 last year. Geographically, sales development was strongest in Norway and Finland. If we look at segment margin for the quarter, it reached 9.8% Compared to last year's SEK 8.3 billion, the main reasons for the good margins were high volume growth with the shortage in the market and our ability to capture margin from that shortage. The acquisition of CenterPoint, Strong sales of private label products and effects from cost efficiency initiatives earlier this year and last year. This was in this was, as in previous quarters, somewhat offset by the lower sales of high margin project related services. If you look at software and services sales, that amounted to SEK 389,000,000 in the quarter compared to last year's SEK 337,000,000, which was an increase of 15.2%. The share, however, of software and services was 22 0.5%, down from 26.7% last year, mainly due to the strong hardware sales and in the Nordics and the acquisition of Central Point. In total, segment results ended at SEK 170,100,000 compared to last year's SEK 105,000,000 or an increase of 62%. Yet another strong quarter from SMB, both in regards to sales and margins. We'll then move to LCP on Slide 4. Sales in LCP was SEK 3,240,000,000 in the quarter, An increase of 118%, of which SEK 23.7 percent was organic. During the quarter, we saw a very strong sales Increase in public sector, both in demand from customers and but also in deliveries. Sales to corporate customers continue to be strong and is, to a lesser affected by the shortage situation in the market. CenterPoint added to the sales by approximately SEK 1,400,000,000 And sales from sales points were in line with planned, but as in the Nordics, affected by the turbulence in the global supply chain. Geographically, we saw strong sales in Finland and Sweden, while larger contracts in Denmark was affected negatively, And hence, growth was lower in Denmark. Segment margin ended at 7.1% compared to last year's 6.1%. The increase over last year is mainly explained by the general improved margins in some of the larger contracts, cost benefits coming from larger volumes and effects from last year's cost efficiency activities. Margins in the Benelux was in line with the ones in the Nordics. Segment result improved from last year's SEK 90,400,000 to SEK 230,000,000 or by 154%. All in all, a very strong performance in LCP, both from the Nordic and the Benelux region. Moving then to Slide 5 and B2C. B2C continues to perform well and reported a sales increase of 7.6% from SEK 125,000,000 to SEK 135,000,000. Of the growth, 7.9% was organic. The main reason for the sales increase was strong underlying demand for basic hardware such as mobile phones and computers. The segment margin was up from 5.5% last year to 8.5% this year. The high margin situation generated Our good performance in purchasing in a market characterized by shortage continues. That, together with good cost development, contributes to high margins. Then moving on to Slide 6 and net working capital. Net working capital was negative SEK 256,000,000 compared to last year's negative SEK 4 22,000,000. Last year was highly affected by the actions taken as a consequence of the pandemic, where focus was on securing working capital to mitigate potential risk in accounts receivable. Further to that, the inclusion of Central Point has affected the individual items in working capital significantly. If we then look at the details, we can see that inventory in the quarter ended at SEK 1,016,000,000 compared to last year's SEK 4.93,000,000. The main reason for the increase was the inclusion of Central Point adding SEK 400,000,000 and the higher purchase volume to reduce the risk from shortage of components. Accounts receivables were up SEK 1,199,000,000, mainly as a result of Centrepoint, adding SEK 735,000,000 But also higher business volume in general and more sales during the end of the quarter added to the total balance. Moving on to accounts payables, which was SEK 1,604,000,000 higher than last year, again mainly Affected by Central Point adding SEK 1,128,000,000 but also supplier mix and higher business volume added to the total balance. In total, we continue to see strong performance in the area of working capital, where we continue to stay in or below our target range of negative SEK 100,000,000 2 100,000,000. Looking at leverage, as Thomas said before, then the net was SEK 3.4 If we include the pro form a numbers from Centrepoint and as you remember, our target is to stay between 23. The main effect on the leverage in the quarter was obviously the acquisition of CenterPoint. So then look at cash flow and investments on Slide 7. You can see that the cash flow for the quarter was SEK 130,000,000 in total. Last year was negative SEK 38,000,000 And if we look at parts, cash flow from operating activities before change in net working capital was SEK 201,000,000 compared to SEK 110,000,000 last year, While the change in net working capital was negative SEK 423,000,000 compared to negative SEK 90,000,000 last year, the main difference being It was SEK 3,000,000,000 compared to SEK 19,000,000 negative last year, where the acquisition of Centrepoint affected the numbers. Cash flow from financing activities was positive CHF 3,000,000,000 4.24,000,000 compared to negative CHF 39,000,000 last year, Main difference being the loans raised for the acquisition of Centrepoint and the rights issue. Moving to investments. Total investments amounting to SEK 54,000,000 compared to last year, SEK 31,000,000 CapEx related to IT development What's that SEK 15,000,000? SEK 9,000,000 was the number for last year. And if we look at the increase, SEK 6,000,000 came from Central Point. And investment in tangible and intangible assets increased from to SEK 24,000,000 from SEK 7,000,000 last year, where Centrepoint added SEK 7,000,000 and our new circularity center in Wekwe added SEK 4,000,000. Investments in assets related Service delivery was slightly lower than last year at SEK 15,000,000. All in all, SEK 30,000,000 out of the SEK 54,000,000 in CapEx was affecting cash flow. The others were changing lease or rent contracts. With that, moving back to Thomas. Thank you, Johan. And then continuing to Slide And just want to show what we are now entering since we now include also center point numbers In our own numbers, we are also entering a new chapter where Dostin is what I would call a textbook example of how Companies actually can develop under different management and different ownerships where we first had our founders phase with starting in 1984. And then from that 1995, developing starting to develop an online platform. The company was acquired by private equity company Back in 2006. And then the Nordic expansion started with entering new markets, build out of IT systems, warehouses and so. And then the IPO in 2015, where we have since then professionalized ourselves, put a clear strategy on services as well as continuing expanding to new And now when with the acquisition of Central Point, we clearly put our strong foothold in Mainland Europe with And build a strong platform for further expansion. So it's a really interesting and transformative year behind us, but this also shows the possibility of our robust business model. Moving on to Slide number 9. This to show the transformers acquisition, we pave our way in creating this European IT powerhouse where we now add all the capabilities from Centerpoint with the 700 co workers, SEK 7,400,000,000 in sales and SEK 330,000,000 in adjusted EBITA and around 50,000 customers. And combining DUSTIN in the Nordics with Central Point is also on Slide number 10, the combined entity, which then Consist of around SEK 2,400,000,000 in revenue pro form a as well as SEK 1,000,000,000 in A bit of performer and around 500,000 customers. And this puts us also at number 8 on the largest EMEA IT partner retailers. And as you know, being large in our industry is a good thing in terms of purchasing power, influence of the whole value chain, Drive the market and driving both sustainability and profit through our scale. So this is a new company with Two strong regions where we set out for further expansions in the markets and further out. Moving on then to Slide number 11. We have an and to see how we will build this. We have an attractive value creation agenda to speed up the ability to achieve our long term target, Where we keep the strong momentum in the core LCP segments, in the Benelux, of course, and we realize sales and efficiency synergies of about SEK 150,000,000 annually on both the local and group level. We will also accelerate the growth both in Nordics and Benelux Through our targeted capability transfers in both SMB and S and P, we see big opportunities for SMB rollout also in the Benelux region, of course. And we will continue the rollout expansion in Benelux based on our proven Nordic recipe. And synergies are expected in areas such as procurement, private label, IT platform and functionalities as well as knowledge sharing, of course. We also estimate that the investor that we invest approximately SEK 50,000,000 in the coming year to extract the synergies and that we will reach them in full by 2023, 2024. And continuing on the value creation, over to Slide number 12. We work on our 2,030 commitments that we have showed you before, which will create value both for us, for our customers and for our society. And just some highlights of our achievements this year is a reduction of 36% in CO2 in the comparable scopes, so one including the 1 and 2 and 3 of the scopes. We have reached the circularity level of the business at 18.3% now, our reported net sales in 2021, during last year. And we have also conducted the plan, the 10 activities we have for social equality in the whole value chain, Such as working conditions in the factories, doing the audits in the factories, security general pay gap closure that exists in the world. And this has been very good progress all over the year. And you can, of course, read more about our whole work in this in our annual report that will be published very soon. And then moving on to Slide 13. Now 18 months later, After the pandemic or post pandemic, we can see that the markets are opening up after we've been through the pandemic. It's not over, Definitely not, but we have learned to cope with it as it is in some parts of the world. The pandemic is, as we all know, it is a human tragedy, but it has also taught us a new way of working. This was already in the cards also before corona, but it has clarified the need of efficient and secure digital tools and digital way of working. And for us, it has meant that our position is clearly strengthened and that our business model is very robust both before, during and after pandemic. The trends that we have seen that I mentioned before, they have accelerated with distinct changes in customer behavior. There is an increased IT service demand arising among SMBs and LCPs, especially larger SMBs. And there's an increased demand for instant availability online as well as security, mobility and remote management. And we have, of course, an extensive experience in this and knowledge and can serve our customers in all our markets. All this shows our robust The business model and our ability to ensure good access to products and services, which, in the other end, enables us to continue on a strong margin development. So In short, you can say that we are very well positioned for what is happening. And before going into Q and A, let's To summarize the fiscal year of 2021 on Slide 14. Net sales grew with 20.3 percent to SEK 15,800,000,000 where organic growth for the group was SEK 9.6, with SMB at a strong 11.6%, S and P at At a really good 8% and B2C at a strong 8.8%. Gross margin ended at 15.6% versus 15.5% last year Or the year before, up due to our dynamic pricing model, together with higher volumes and strong sale of private label products, somewhat offset by changed We're mixed with the acquisition of Central Point. Adjusted EBITA came in at a good SEK 759,000,000, giving us an EBITA margin for the year at 4.8%, An increase from last year, SEK 3.9 billion. The initiatives or the actions we have taken on the cost side, both the strategic and short term, has given effect as well as So of course, strong performance and volumes during the quarter. EBIT at SEK 576,000,000 compared to last year's SEK 3 SEK 87,000,000 and an EPS at SEK 3.82 billion versus last year's SEK 304 billion. And on balance sheet, as Johan mentioned, operating cash flow came in at SEK 7 SEK40 million and leverage ended for the quarter at SEK 3.4 billion to EBITDA. So with the solid and good organic growth and Strong earnings in Q4 as well as for the full year. We see that we are, as said, correctly positioned with a strong and unique digital relationship with 100 of thousands of customers An even more optimized e commerce platform combined with strong relations sales force towards large corporates and public entities, Even more now enhanced with the acquisition of Central Point. And with our service offerings coming back in demand, we further increased our relevance to the benefit of our customers. And that combined, I should say, with our strong financial position means that we are very well equipped to face the opportunities and challenges presented by the business climate and of course our customers. Good. I think that was that, and we are happy to take any questions you might have. Operator? Thank You may do so by pressing 2 to cancel. You can ask as many questions as you wish, but please ask them 1 at a time. There will now be a brief pause while questions are being registered. The first question comes from Daniel Tauschian from ABG. Please go ahead. Your line is open. Yes. Thank you very much. I start With a question on potential price increases here. So how much did increased prices drive the organic growth versus volume in this quarter? I guess the contribution from you being able to have a dynamic pricing model and using the component shortages for competitors In a favorable way for you and how for how long time do you think that will be sustainable? Well, as you know, our pricing is very intense in terms of, let's say, how we do pricing. So there is it's a Very tough thing to talk about price increase from our side. What we have seen is that the prices of that our purchase prices are going up. But we are able So let's say adjust our own prices in accordance with that and even improve that a little bit, meaning we have higher margins on hardware in this quarter compared to, I'd say a more stable quarter where prices are, yes, developing in a more stable way. So I would say that the price increases we have seen coming from suppliers, we have been able to transfer to our Customers in the same way as before or even slightly better. Yes, exactly. I understand that. Could we quantify that? I mean, are we talking around 1%, 2% or is it 5%, 6% or up to 10% or Because there was certainly strong organic growth right now. And I guess that has partly to do with prices, not you improving prices, but the whole value chain, obviously. There are a couple of percentage price increase in that, but we don't really follow it in that way. So it's hard to give you a number, but It's a couple of percent, for sure. Yes, absolutely. That's fine. And then the second question on inventory. I may have missed the details there before the comments. But Should we see the buildup in inventory right now as a sign that you expect to see strong deliveries in the next few quarters as well? I mean, you are still delivering lots of products in this quarter, growing fast. And despite that, you're building up inventory on a net basis. And will you be able to deliver to customers? Is that how Yes, I think I think you should see that we are building up stock because from a seasonality perspective, the quarters coming is stronger than the quarters we had just had. So it's a natural thing that we build up stock at the moment. And we are building up stock in order to achieve the same thing as we achieved in Q4. So no change actually in our way of working. But it's a security to continue to operate the way we have done it in the last two quarters. Okay. Okay. I see. And then the final question on product specifics related to the component shortages we have in the market, which products are most Scarce at the moment for customers and has that potential mix effect from your product mix affected your margin either positive or negative? The products in the most difficult to get are the ones that are built to a Specific specification for a specific customer because the as there is a shortage And the production problems, they are the manufacturers are running longer production runs with more, let's say, Normal or general products and not customer specific. So it's really hard to get customer specifics into the factory. That's why. Okay. But can you say if it's like computers, laptops, screens, something like that, that could change your mix, Which is driving margin either up or downwards? The most sold product we do is, of course, laptops. And so that affects on that, that is us. But it has been shortages in all So also the more non strategic like Wi Fi connectors and so forth. But we see that, that is being Coped with in a better way now going forward, which is good, of course. So but in fact, what you want to tell there, it's for us, it's more to secure that when we have Large orders of, for example, 10,000 laptops, then that can be harder to get the exact specification. But there are products available if you just have the purchasing power to get them. Okay. Excellent. Thank you very much. Good. Thank you. Thank you. The next question comes from the line of Frederic Stenkel from Nordea. Please go ahead. Your line is open. Yes, good morning. Congrats on a good quarter. I have a question on Central Point. From the perspective, it looks to have grown even faster than the 12% organic rates you presented at the announcement. So Could you comment a bit on what's been driving that? And also if you see a risk for sort of normalization in the year ahead with regards to hardware sales? And also how that would balance better margins in the project based sales potentially coming back now? I think overall, CenterPoint has had a good spring and also good summer. So that has been good. And you're always cautious when you sort of think about when you're doing large acquisition like this, how the sort of historical growth has been. But it we see the same patterns that we see in the Nordics for Benelux with Centrepoint there. So it's the same drive in high demand. And as You saw the our LCP organic growth of 23.7 percent was, of course, strong and due to the underlying demand in the market. So there is a strong demand and the same as I said, the same pattern we see in Benelux, such as in the Nordics. So it has been improved since the prospectus, yes. And on to The second question, how that will materialize, I mean, still, we I mean, there is underlying demand in the market, and let's see how that continues. But Let's also back to what Johan mentioned there that we are building up so we can deliver also to the larger entities and as well as the S and L, of course, now during the call. And then you also had a question on the Project related or services, right, Frederic, yes. And I think that we see is I mean, the more People are coming back to offices. The more sort of the offices are opening up or the countries are opening up, there is also an increased demand for services. And that, of course, can benefit us now when we have also built a stronger platform for services, and we also are able to deliver it not only in the Nordics but also in the Benelux region. In Van Laxton, what Centrepoint brings into the table is, of course, a very strong position within what we call volume services, Where they do a lot of customer specific services for larger corporates as well as larger SMBs. And that is also something that we are Building up also in the Nordics in the same way. So yes, it has been a good period for both in the Nordic and the MENBLOCs. Okay. Excellent. Thank you. Thanks. Thank you. The next question comes from the line of Mikael Lecien from Carnegie. Please go ahead. Your line is open. Yes, thank you. I've got a question on Central Point and if you can comment how the integration is developing and SEK 38,000,000 in items affecting comparability. What have you achieved with these costs? I think integration, if we take that first to start off, I mean, we have set out a plan for the integration for the next, let's say, very intensive for the next 12 to 15 months. And integration is basically working in 2 directions. 1 is the cost synergies and the other one are the on the revenue side. So And the first step there is that we have created a totally, let's say, global leadership team that are able to Drive the implementation of the synergies in the various regions and the various business units. And that's been done during this quarter. And we are in the process of Putting detailed plans together for each of the value streams that where we are expecting to capture synergies. That work has, I think shown that the assumptions that we did in the as part of the acquisition is still realistic, and We still have the potential to reach the numbers that we've said before. So that's the status at the moment. And your second question, maybe it was? Yes. Well, it was the items affecting comparability, SEK 38,000,000. Yes. I mean, the part of it was the acquisition cost, of course, direct acquisition So there, actually, we got the company. So that's good. And then we have put some integration costs in items affecting comparability Where you should see them as part of the work we're doing to put the old acquisition, Bingeere, together as one unit in order to then Put them together with CenterPoint, so we get to one entity in the vendor. So what we are doing now is Actually, as of this week, we are moving into one brand for the Vince Sherry Group under the brand name of Dustin in the Netherlands, which is a great achievement from the team down there. So that will have a super impact on our ability to drive the Services and Online Business in primarily SMB then in the Netherlands. I think we have and that achieved a lot by this step. Okay, interesting. And going forward and the coming quarters, how will you take the rest of the Integration costs, I think you expected to have around SEK 50,000,000. Yes. And I think we've said that Since the integration costs primarily will come with reducing the number of people and reducing the number of sites, We believe that the majority of the cost will come in, in this fiscal year, so until the end of August. And there, we will also have initiated, let's say, the cost associated to that The cost reduction associated to that cost at the end of this financial year. I think that's the plan we have at the moment. Okay. Okay. Got it. And just another one on Central Point on the supply chain I mean, obviously, demand is strong there. But did you see any negative effect that you couldn't deliver really In line with demand. So how much was the negative effect? We have very similar situation in the Benelux. It's You would say that this has not so much to do with a regional question. It's more on Sure. By manufacturers, so the different brands, they are in different situations. So some at certain stages, Dell is more difficult than HP and the other month is the other way around. So it depends a little bit. And that's they treat everyone more or less we have the same situation in the Benelux with the same suppliers. So I would say very similar situation. Okay. Yes, fair enough. And my final one, if I may, it's on the software and services Part of your business, how the so called service factory is performing and your work there. And also the data center integration projects, You can update our slides, please. Yes. I think the I mean, you should take the Service Factory, as we said, actually, the our remember, our intention To integrate the companies that we did in order to create the factory and the base for services going forward, that was a bit interrupted From the pandemic, but before that, we actually integrated all about 5 of the acquisitions. And we can now see that the development in these integrated These entities are performing very, very well and actually growing by almost 20% in the quarter when it comes to recurring sales. So you must say that the development of our standardized service portfolio sold by our own sales reps is performing very well. So I think that has been a great success throughout this quarter. Now we still have 5 entities not integrated Where we are now reinitiating that work in the Nordics to put them into the same, let's say, environment as we have for the other integrated companies and hence hoping that, that will give us a better sales development in these entities. So that's the work we're doing at the moment. But I think we can say that both from a, That's a standardization perspective, where we have now a portfolio of highly standardized services for small and medium sized businesses. And from a sales efficiency perspective, where we now have a combination of relation sales and online sales, It's working very well. And the data center part. The data center is done, so in the Nordics. So we are now With the data centers that we say said we would achieve, obviously, this is So it continues work, unfortunately, because as we are integrating new companies, basically all the acquisitions that we made come with the data center. So We need to continue this, but of course, on a lower scale. Because if we integrate 1 company, then there will be 1 data center to move Into the base that we now have in the Nordics. So it's much easier work, of course. Okay. Thank you. Good. Thanks. Thank you. The last question comes from Erik Elanda from Handelsbanken. Please go ahead. Your line is open. All right. Good morning and congratulations to a fantastic quarter. It was really impressive. Great stuff. So first of all, I was just wondering, when I look back at the historical numbers of organic growth for DUSTIN, Like every other year, it has been strong and every other year, it has been somewhat not so strong, like 2% or Stuff like that. So now when you have almost 10% in this year, should we expect this trend to continue, meaning that next year is Going to be around 2%. And also, what is the reason behind this every other year volatility? I think you can say I mean, first of all, it's also that we are all in this call, everyone is as good as to project the future. But we, of course, see that what we have behind us With or behind us, we are in Lolit, you might say, for the pandemic. That has proven to be a very strong shift in how people work. And that, of course, we can foresee will continue. And the changes in working environment will, of course, also affect the digital way of working and which, of course, benefits us. So I should say, it's we still foresee a strong demand. We still foresee good opportunities for growth and for us to grabbing that growth. And to answer your question on the volatility, it has been also been very much affected over how we have dealt with the public side primarily, Which has been a bit volatile during the last year. But now when we have sort of added up and built a stronger portfolio in the large corporate and public segment, especially That sort of mitigates the volatility. And the same is now happening for us in the public side, where we grow a lot and have a wider portfolio of And also with the acquisition of channel point, we have broadened our portfolio, which then can mitigate the volatility in the growth numbers. So but that is the reason for it, if you look back on the sort of numbers. Okay. So we see that we are strengthening our position. Yes, sorry. Yes, you're actually catching up on the big Norwegian guys. Yeah. I don't know who you're talking about now. No, me neither. All right. Perfect. So I was also like interested in In 2019, before the pandemic, the hardware market was quite weak in the Nordic region and you Also as the other players in this sector suffered from that. Then became the pandemic and also the remote work purchases and stuff like that. Now the market is really, really strong once again post the pandemic and post on the remote work purchases. What has changed from 2019 to now? I think overall, it's a level up Of how people work and what kind of tools and what they use. I mean, what the more you use the digital tools for working, the better components You need the better equipment you need, the better tools you have, the more productive you will be. And we see that the same sort of Things are happening in your different workplaces. People upgrade their home office in the same pace they upgrade their sort of Office equipment in the offices. Because you want to be you work so much digital now, so you need good equipment. You need good networks. You need good routers. You need good screens. We see now that people buy larger screens. Last year, the average Screen solver to 27 inches Now it's 33 inches So people are increasing in their or they're buying better equipment And better cameras and better keyboards and better hardware. It's with more memory, more better stronger processors and so forth. That can continue. I think also you would see a trend towards the fact that if your home office Used to be kind of a B2C customer buying that. Nowadays, there are much more B2B customers equipping their employees' home office. So There is an enlargement of the B2B market, obviously, where we are stronger, but we can capture that trend and equipping home offices from a B2B perspective. That's good for us. And that has been a strong trend among our customers to do that. So that's what we do both home and office equipment for them. Interesting. So actually like the pandemic triggered remote work purchase Those that we see is actually continuing right now and will do for maybe 1, 2 years. So what do you expect about that? I mean, I think we will have a situation now, which the very well known word hybrid is or famous word right now. But It will continue because this also has shown. I mean, the tools that we actually have had for 10 years with the camera in the PC and the camera in the phone and we have had Skype and Teams and so forth, but we haven't used it on a broader scale. And that people do now. Everyone knows how to use Teams. Everyone knows how to share a PowerPoint presentation and so forth. And that was that demanded lots of change programs and stuff before, but now people are just diving into it and use it. And that, of course, creates a demand for That's the product. I said, that's the product, that's the cameras, and you want to level up. And I think that is an important factor here that this will this as we As we see, it will continue. Okay, cool. And my last question actually. So we talked about the big Norwegian guys that you can't mention here because that's like swearing in the church. And then we have the big German guys, Which I also can't mention here, but we start with a D. And you have now entered Like, yes, some years ago entered into the Netherlands and the Van Der Werft region, which is very similar as I see in terms of IT development overall. What would be the next interesting market for you now that you say that you are going to expand into a broader European area? Because These other companies have big market positions and they have not entered into the Nordics Because you have such a strong position and other companies as well, how can you compete with those? And What countries would be of interest for you? I think overall, if you look back, then you can say that we have been Spanning to new territories every 3rd or 4th year if you look historically. And that's about the time it takes for us to prove ourselves in the markets we are. And but I think overall, you can see what we find really exciting is that our SMB model with the online efficient, cost efficient sales model With things on the shelves, products on the shelves, that is really attractive also for the wider European market because it's not so common. Most IT companies and most of our competitors come from a service part. They come from the sort of service consultancy, and then they have moved into hardware somewhere. But they are not At all on the same level of delivering a push more than as we have in the Nordics. But we have also seen that we in order to gain that position, we need the hardware We need a scale in hardware, hence our acquisition of CenterPoint. Because with that, then you can get the large volumes and then you can really start to build up a strong SMB position where you can find more attractive margins, you can find more attractive and more sort of standardized offerings, which suits us very well. So I think in general, you can say that these there are openings in the markets in different markets like Germany, France And so forth. It is. But then we might not need to take the full of Germany or full of France. You can take areas of Germany, for example. Germany is a massive market. So if we go into Dislav, we can probably find a good business just in Dislav. So we'll see where we end up. But we, of course, see this as the stronghold we're now building in Benelux will, for sure, serve for further expansion in the future. So this is interesting. Would you say not just try to not make this as biased as possible, would you say that Dustin is the Next generation IT infrastructure delivery model. Yes, I would say definitely, Even though I'm not biased. No, but of course, no, but we see that we have a strong position. But I think it's built you should also make it The 5 the underlying trends, which is very strong on the online position, the drive for security mobility, the drive for predictable IT costs. You don't want to have an IT department in the company anymore, which is dark and costs a lot of money. You want to have visibility. You want to know what it costs, You understand that IT is not no longer someone else's issue in a company. It's your issue as running the company. It's the heart of the business. And of course, that suits us, our position very well. Okay. Thank you so much, guys. Great answers and a great quarter. Talk to you later. Thank you very much. Thank you. Talk to you later. Thank you. Thank you. We have no further questions, so I will pass back to the speakers. Good. Okay. Thank you very much, everyone, for listening in. And if any further questions, just send us an e mail or reach out in any possible means, and we will answer them. Otherwise, we will see each other later on during the day. Thank you very much. Thank you.