Dustin Group AB (publ)

Today we present our first quarter results for our fiscal year 2021-2022. We kick off our financial year with really strong performance. Solid growth accompanied by solid margin development. I am, as always, very proud of everyone at Dustin for doing their utmost every day to deliver the great customer experience, but it might even be slightly more from this quarter given the circumstances. The overall turmoil in the world with markets opening and closing back and forth, which gives the challenges in supply chain and also, of course, in sourcing of products. But despite all these challenges, we managed to have a double degree of organic growth and capture the demand from our customers. The first quarter, once again, also showed that the availability and delivery capacity generated high growth. We have, as you know, worked hard during the last year to automate our purchasing, our pricing, and our logistics.

This work obviously never stops. We can always improve, but it's encouraging to see that it for sure pays off both in growth and efficiency in margin. Let's go to slide number two, just to give you a brief on Dustin at a glance. Most of you have seen this one before. As you know, we are a hardware, software, and service company. 280,000 hardware and software products in our assortment, primarily solo line. It is now 60-40, given the changes we have seen also when we acquired Central Point. We are across the Nordics and the Benelux. Now, the Netherlands is our biggest market, with 35% of the sales, followed by Sweden at 26%, and then Norway, Denmark, and Finland at between 10% and 15%, and Belgium at 3%. And we are primarily a B2B company, and 97% of our sales is to B2B, and 3% is on B2C, so it's a small area. And then 50-50 roughly on SMB and LGP. So that's us in a short nutshell, but let's move to slide number three and go through the financials, financial highlights. A really strong organic growth, as said, at 11%.

We have strengthened our position in the market, and our productivity and strong position in the value chain has also benefited our performance. This is in combination with an incentive to cross-focus over high economic activity in society, which gave us an adjustment to the data. increased to 301 million seconds. And these are some of the strengths and weaknesses for our business. And in addition, our online business performs strongly in the case with the high share of online research and the great need for mobility. from the underlying strong trends. And these market trends that we build our strategy on, I mean, the online series, they grow more and more in the cloud services, demand more, they like to focus on security and find the have continued during the quarter and increased in importance as well. And that makes the long-term position even stronger. So the next day, we're at 6.2 billion tests. Up with 69% versus last year on the reported level, and the organic growth instead was up 11%, which is a very positive 11.7%, and has a very good proud 0.9%. And B2C at a negative 17.4% as an effect of much less campaigning on Black Friday due to the overall component shortage. But 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 $8.94 million compared to last year's $577 million, giving us a gross margin of 14.3%, somewhat down from last year's $15.6 million because of us adding more energy to the volume from the central point. But when we compare the numbers, it's on the same level as last year's. Our adjustment to the beta increased the loss, passing now 300 million SEK and came in at 301 million SEK versus last year's 171. And that gave us an adjusted beta margin at 4.8% for the quarter versus last year's 4.6%. So a very strong performance and strong earnings.

The margin is improved by good performance and the structure changes we are doing combined, of course, with good cost control within all segments. But both SMB and S&P show really good progress in the margin uptake in the quarter. Items affecting comparability was minus 7 million SEC, consequently then giving us an EBIT at 251 million SEC compared to last year's 132 million SEC. And ETS earnings per share grew to 147 sec per share versus last year's 0.99. And our leverage at the end of the quarter was 3.1 versus 2.2 last year, increased because of the acquisition of Central Point, but the leveraging very good sequentially from Q4. And cash flow also strong from operating activity was 369 million sec compared to last year's 265. So apart from an intense quarter in general from an operation perspective, we have continued the integration work with Central Point. Furthermore, in the Benelux, Vincere is now operating under the Dustin brand. And as a consequence of that, we have done a reclassification of segment costs and also transferred customers between our segments. We have also completed our refinancing and signed the sustainability link credit facility. And worth mentioning, given the power and electricity mess that's going on, we have also installed solar cells on the roof of our central warehouse, which not only reduces our costs, but it, of course, also reduces our climate emissions.

So that's been a good project. And now, if you want, you can take us through the financial for the different segments. Yes, thanks so much. Let's move to slide four and the SMB segment in some more detail. So sales for the quarter ended at 1,925,000,000, an increase of 18.7% over last year. representing an organic growth of 11.7%. Sales growth continues to be strong, despite the challenges in the global supply chain, mainly as a result of very strong economic performance, both in the Nordics and in the NLACs. As in previous quarters, we continue to see good sales development in hardware categories groups in the segment. However, in Q4, we have particularly strong sales toward the larger SME customers. In terms of services, we have good development of the integrated recurring services with above average growth rates. At the same time, project-related services are now stabilized on a higher level. Geographically, Norway has the strongest sales growth, followed by Sweden and the Netherlands. In the quarter, the sales towards SMB was affected by customer moves between the segments. The effect was 140 million less sales in SMB and the same addition in LCP. The shift of customers from SMB to LCP was done to harmonize the segment definition in the group. This explains the major part of the difference between reported sales and organic sales development in the quarter in SMB. Segment margin for the quarter was 12% compared to last year's 10%. Reclassification of segmented costs to central costs and customer moves affected this year margin positively by 1.1%. The reclassification was done as the Vichyri Group is now run as an integrated part of Dustin and hence forms part of Dustin's central platform. Further to that, scalability as a result of higher volumes in S&P affected the margins positively. Also, in private players, we performed well in the quarter, adding to the margin improvements. Software and services sales was in line with last year. But share of total sales declined from 21.2% of last year to 19.5% this year, mainly as a result of the strong hardware sales development. Let's move to slide five and LCP.

LCP sales in the quarter was 4,183,000,000. an increase of 119.4%, of which 12.9% was organic. During the quarter, we saw very strong sales increase in both public sector and large corporates. As discussed before, the public sector sales have remained strong throughout the pandemic, while corporate sales dipped at the beginning of the pandemic, but is now back in full swing. Turbulence in the supply chain is still there, but we have secured good supplies during the quarter. Geographically, we saw strong sales in Norway, followed by Finland and Sweden. Segment margins ended at 7% compared to last year's 6.7. From a business perspective, the increase over last year is mainly explained by generally improved margins in some of the larger contracts. Cost benefits coming from larger volumes and effects from last year's cost efficiency activities. And also coming from customer moves from S&P 140 million and the move of segment costs to central costs affected the margin positively by 0.3%. Segment results improved from last year's 127 million to 293 million or by 130%.

All in all, a very strong performance in LCT, both in the Nordic region and in the Vandelax region. We then move to slide 6 and the D2C. B2C had a tougher quarter in regards to volume and declined by 16.8%, of which 17.4% was organic. B2C represented in the quarter 2% of the total sales of Austria. The main reason for the sales decrease was the black strike they made due to lower campaign sales as the market shortage of products continued. Our focus was therefore again on margins and securing the same results. We performed well on keeping margins up and ended with a segment margin of 11.1% compared to last year's 6.3%. In total, this descended to the segment result of 16 million up from 11 million last year. If we then move to net working capital on slide seven. So net working capital was negative 334 million compared to last year's negative 531 million. 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 risks in accounts residuals. Further to that, the inclusion of central points has affected the individual items in the working capital significantly. Moving on to look at the details of working capital, We can see that inventory in the quarter was 1,138,000,000 compared to 507,000 last year. The main reason for the increase was the inclusion of Centrepoint, adding 421,000,000 and higher purchase volumes to reduce the risk with the shortage of components. Accounts receivables was up 1.4 billion, mainly as a result of central point adding approximately 1.2 billion, and the rest explained by higher business volumes. In accounts stable, which was 3,713,000,000, which was an increase of 1.7 billion, Centrum Point added the majority of the difference compared to last year. 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 1 to 200 million euros.

Leverage, that means net debt in relation to 12-month rolling EBITDA at the end of Q1 was 3.1, including rolling 12-month EBITDA of Centerpoint. And as you remember, our target is to stay in the range of 2 to 3. Strong operative cash flow reduced the leverage from 3.4 at the end of last year to 3.1 at the end of Q1. Moving on to slide eight and cash flow. Cash flow for the quarter was 294 million. That's compared to 176 million last year. If we look at the parts and cash flow from operating activities before changing net version capital was 283 million compared to 169 million last year. Change in network capital was 86 million positive compared to 96 million positive last year, and there the difference is mainly the increase of inventory debtors due to the market turbulence. Cash flow from investing activities was negative 40 million compared to negative 52 last year, where the majority comes from capex. Cash flow from financing activities was negative 35 compared to negative 37 last year, where the main, it mainly consists of reduction of lease liabilities in line with IFRS 16.

To get investments in some more detail, total investment amounted to 81 million compared to last year's figure. IT development was 19 million compared to 10 last year. The main difference came from the investment we are doing in Centerpoint IT platform. Investment in tangible and intangible assets was 46 million compared to 33 last year. where the new circularity center in Beko was finalized during the quarter. Investment in assets related to services was 17 million compared to last year's 12. All in all, 40 million out of the 81 in CapEx was affecting cash flow. The others were changing in lease or rent contracts. And like that, we move back to Thomas. Great. Thank you, Johan. And let's continue to slide number nine. As I mentioned before, we are entering a new chapter for Dalton, and we expand our strong Nordic position to a European strong position. I know some of you tuned in to our capital market day. We had it just before Christmas in November. But let me repeat some of our messages from that. We think it's our financial policy and aim to continue delivering 80% organic growth and also continue to search for both an acquisition that can further increase our addressable market and our relevance for our customers. As you can see on this slide, we have different buckets and levers that will contribute to our target to be a 40 billion sales company by 2025. First, we find growth, obviously, within our core business, within SMB and SMB segments, as well as we continue to grow within services. where we see good development in recurring business and especially now in the integrated bottom that we have previously done. Then we work on the integration of central points and from that we estimate synergies both on sales and costs. Last but not least, you can see that we, given our stronghold now also in mainland Europe, we continue to look and search for further geographical expansion. With our business model and approach towards both SMB and S&P, where we use a combination of push and pull sales, we see good potential in taking market shares and finding our customer segments also in new markets and territory projects. With all these levers, we aim to reach 40 billion in sales by 2025-2026.

And then over to the next slide, slide 10, on our margin development. We aim to reach 5% to 6% beta margin, even though we now take on more LTP volumes. We continue our automation journey, making us more efficient in delivery, operations, and procurement. We also see opportunities with our scale to serve a broader base of larger customers, as well as increase our private label penetration, both in the Nordics, where it has been very successful, and now we're also launching our private label sales in the Benelux. We are also, as previously announced, building up our own, as Johan also mentioned, our circularity center in southwest Sweden, covering for the Nordics, and that will also contribute positively to the margin development. And when we enter a new region or market, it will have a short-term effect on the margin, but our many levers and our daily efficiency hunting will make us deliver on this target. And then over to slide 11, adding to our pure financial targets, we of course also drive our sustainability commitments for 2030. We aim to reduce our CO2 emissions to zero. and we aim to have a fully circular offering by 2030, and also do 100 actions and initiatives to improve social equality in our value chain. For us, this is not something we do at the site, this is fully incorporated in our strategy, and we look at sustainability as a driver for increased profitability.

We have and are doing a lot of actions here, and some of the actions worth mentioning This quarter is the launch of our payback production facility, and that will increase the circularity, of course, and give us growth, and it also gives us growth from the increased demand for second-hand products, as well as an expansion. We have also linked our long-term financing to our sustainability kit guide, which gives us a clear incentive to drive this Meaning, in short, if we perform as we want, we decrease our financing costs, and if not, we don't. But we will, and we know how to do this. Then, combining with changing to renewable energy at all our sites and offices, we have also built solar cells on the roof of our warehouse. And that's a good timing, given the challenges and thermals and the mess that we have on the And that will, of course, reduce costs, but more importantly, it will also reduce our emissions. So high activity in this area as well. And so before going into Q&A, let me just sum up on slide 12 our first quarter results. And S6 grew 69% on report 11 to 6.2 billion sex, where organic growth for the group was 11%, with SMB at a strong 11.7%, LCP at an equally strong 12.9%, and BGC at a negative 7.4%. Gross profit at $894 million set versus $577 million last year, and gross margin at $14.3 million versus $15.6 million. And change in sales mixed with a higher share of LCP sales and a strong demand in harvest sales also drives the change in gross margin. But on comparable numbers, it's on the same level as last year. Adjusting the beta, passing now 300 million tech at a good 301 million tech, giving us a beta margin for the quarter at 4.8. And the increase from the last year is 4.6. And the initiatives and actions that we have taken on the quarter. fatigue and short-term has given effect as well as our strong performance during the quarter. EBIT at the 251 million SEC compared to 132 and earnings per share EPS at 1.47 SEC per share versus last year's 2.99. And on balance sheet, strong operating cash flow, as you wanted to, at 369 million SEK. And leverage ended for the quarter at 3.1. A good leverage from Q4, 3.1 to the EA.

So solid growth and strong earnings in the quarter, with the pandemic still raging over the world. That has taught us a lot, or teaching us a lot, not to least a new way of working. The market trends have accelerated with the distinct changes in customer behavior. The IT service demand is there and there is an increased demand for instant availability online as well as the underlying trend for security, for mobility and for remote management. We have extensive experience and knowledge and can serve our customers in all our markets and for us these last years I must say has meant that our position is clearly strengthened and shows that our business model is very robust. So in short, we are well positioned for what's going on in the world. I think with that we can conclude our presentations and we are happy to take any questions you might have. Operator, will you support us in that?

Thank you. If you do wish to ask a question, please press 01 on your telephone keypad. If you wish to withdraw your question, you may do so by pressing 02 to cancel. There will be a brief pause while questions are being registered. Our first question comes from Daniel Torsson with ABG. Please go ahead.

Yes, hi, thank you very much. First question on the reclassified costs from Vincere to Central Costs in SMB. Should we see these costs as scalable going forward, or should they grow in line with the rest of the business as if they were part of S&P? And you can look at the other central costs that we have, that they are scalable going forward at the same level of scalability as we have in the rest of the business. So yes, they are moving into a more scalable platform than we had before. And that's the reason why you reached out to them, I guess. Yeah, you could say that. It's the step we're taking towards a more integrated way of working with the Dutch entities. Okay, thanks. The second question relates to the market. You say that Norway is strongest both in SMB and LCP. Is there any reason for that, or what's the main driver, product or services-wise? It's hard to say what is the reason. Norway seems to be doing quite well under the pandemic, but from an economic perspective. We are really driven by hardware safes in Norway. We are doing very good there. We have a very good team in Norway for extremely low at the moment. So I think it comes from both external factors, but also our own performance in Norway. It's a combination of the economic activity, but also our own performance. Yeah, okay. Is it driven by any large tenders, larger deals, or is it broad-based? Road-based, yes, which we find very good. Okay, thanks.

And then the last question is obviously that the net effect from the supply chain issues are negatively by the fact that you cannot source everything.

But you're also positively affected by the fact that you probably are better off than smaller competitors than you can drive with pricier tires. Do you think that the current situation has a net positive effect for you? And in what case, you know, can you kind of quantify that? Or what kind of the magnitude is that? is a slightly positive net effect. Margin-wise, we see the possibility to work with margins as we have supply and others don't.

And obviously, being one of the biggest resellers in the Nordics and Benelux, we have the possibility to purchase. On the other hand, it adds to working capital and it adds to the volatility of volumes coming in. Let's say that's the negative side. But overall, I would say we are slightly positive from this situation, from our strong business model at this moment.

Okay, fair enough. I follow up with the last one. On the CapEx guidance, can you give us some hints on what to expect in the different quarters in this fiscal year from CapEx? I saw it was up more than twice in this quarter on the IT development cost, for example.

Yeah, I think we have said previously that you can expect cash CapEx to be in the range of 120 to 140 on a yearly basis. And there isn't a big difference between the quarters, actually. Excellent, thanks.

Our next question comes from Mikael Lassian with Carnegie.

Please go ahead. Okay, hi and good morning. Three questions from my side. How would you describe the current supply situation for different hardware categories and how this has changed the last quarter and what you see ahead?

In general, it has been, I mean, as you know, during the pandemic and also before the pandemic, there was a lot of semiconductor shortages, but that was there before the pandemic as well. That has somewhat eased up a bit, but there are still shortages when it comes to other components in the computers. So it is a general shortage, but it's also not only the shortage from a production perspective. It's also the overall turmoil with harbors in quarantine and troubles in shipping and so forth. And that is also putting extra pressure on the workforce. So there's no specific products.

It is, in general, as we have said before, it is the more, if you have a large order of custom specific products, then it might be harder to get everything in place in one go.

But there are products available, and for us, as you saw also in this video, this quarter. I mean, availability for us is what drives the growth. So there are products available, but you need to be really on your toes. And I think our combination of automation and human interaction is what has given us a lot of benefits during this quarter. Okay. Is it a dependent on the shipping side that's of counting batches or is it sort of a steady flow quite easy to foresee or can you elaborate a bit on that? I think you can maybe divide it in two different product categories. One is the one that are highly dependent or affected by the work from home like headsets and the equipment you bought in order to upgrade your home office, they have been on a shortage for a long time as a product group. They are getting better now because, of course, the effect is less now than a year ago. If you then look at PCs and mobile phones, they're a different kind of challenge we have because there we are a broad liner so we sell all the brands for pieces for example so one quarter there might be an issue with supplies of HP and the next quarter there might be on a Lenovo side but there we can equal out a little bit between the different vendors but it continues to be a challenge if you would look at the total market but As we are selling older brands, we can benefit a little bit from that portfolio risk.

Okay. So how are you performing, do you think, compared with your competitors and other players in the market in the Nordics and in the Benelux?

Without knowing the details, it seems like we are performing maybe slightly better than the market. We believe we gain market shares in this quarter. We do. We can see that the benefits of having, as also mentioned before, having the combination of a push and pull model has been really good. And we have a long experience in buying to our own stock and buying to our own warehouse and make use of that model. So that is really paying off. It has really paid off during this pandemic, I must say.

Okay. And can you also... Talk about the competitive situation right now and the market climate and the pricing climate.

Pricing has been, as we mentioned before, pricing has been up somewhat from some of the vendors, but overall it is obviously a competitive market given that IT as such is moving in more to the heart of every business. and it's more crucial than before for everyone. So in that sense, of course, there is the underlying economic activity and underlying demand is strong. But in all markets where there's high demand, there's also a lot of competitors coming to the market.

But I think our business model and our strength and our scale, of course, gives us benefits to deliver. But again, I think it's the... The possibility of having everything available for the customers, so the instant availability is what has been an important driver during this quarter. And there we are, even though being humble, I think we have taken a good position there during the quarter. Okay, great. I just have one follow-up here on the sort of why you shifted costs from the S&D and S&P segment to central functions. Can you elaborate a bit more on that and explain that more in detail? Yeah. When we acquired the company, Before it's integrated, we keep all their, let's say, complex costs as segment costs because they don't form part of our, let's say, group functions as not integrated. And that has been the case with being shared in the Netherlands up until this quarter. So what we have done now is that we are classifying their cost because they participate in the platform cost as of the 1st of September. And therefore, the cost that was previously in segment cost is now classified as standard cost. That has this effect on moving costs, let's say, down in the P&M from segment cost to And that has the effect of 1.1% approximately on the S&P margins and 0.3% on S&P. Okay. It's an integration move that we're making with a totally shared group that we haven't done financially before. This makes it a bit difficult to evaluate the performance of the modern development for SMB and LCP compared to the central functions and how we should look at that historically and also going forward. But I assume that this will be the same also in the coming years. We should add 1.1 percentage points to the SLE margin, and so on. And what happens when you do this with central points, or have you already done that?

Yes, we have already done that. That's a progress from previous ways of doing it.

Okay. So this is basically the large, larger chunk that you will see moving in this direction. Okay. And as you say, indication-wise, it will be the same and move every quarter.

Got it.

Okay.

Thank you.

Thanks. I remind you that if you wish to ask a question, please press 01 on your telephone keypad. Our next question comes from Erik Elander with Handelsbanken. Please go ahead. Erik, if you are on mute, please unmute your microphone so you can ask your question.

Yes, I was on mute. I'm always on mute. Anyways, so yeah, I was just wondering about what is actually driving the demand that you have, that you see in the market right now. And the reason I asked you for that is that we saw in 2020 due to the pandemic that people work from home and then you got boost from the home office in terms of hardware sales.

Because in 2019, before the pandemic, the hardware market was really weak. Is it still the home of sales driving the demand in the market?

Or what is actually the difference between 2019, where the hardware market was weak, 2020, when it was strong due to the pandemic?

home office purchases and right now and what do you see in the future? I think overall you can say that there is a strong I mean overall there is a strong economic activity obviously in the United States as a whole but it has also what has really happened during the since 2019 is that the importance of IT and the usage of all the applications that everyone is now using. I mean, in 2019, the usage of Teams were nothing compared to what it is right now, which demands more power in the computers. It demands more processor power. It demands other types of graphic cards. It demands other types of specifications in the computer. And that is going on in all companies. Everyone is leveling up on this. And you need to have a better capacity in your networks in the company. You need to be more secure. So there are a lot of investments which we could have seen coming, or we have talked about it for several years, also before the pandemic, that this is where we're going, given that the world is going more digital. But the pandemic has, of course, boosted this a lot. So we have taken the leaps that we were talking about before. And we see also that the upgrading The upgrading of home offices also continues. The first 2020 move was to get everything up and working, and everyone was at home and started to work from home. But now you're upgrading your home offices. You need a better screen, you want a better... work space at home or where we work and then many companies are moving from towards laptop usage so there's a lot of peripherals also selling of course like docking stations and keyboards and larger screens etc and better cameras so there are a general upgrade which we I mean you can see continue because of the fact that we have learned a new way of working. So I think there's an overall uplift in the IT environment, both within the company, but also in the other workspaces like for home work. okay so it's basically a structural change which is for you and how how long do you expect these kinds of investments and upgrades to prolong for it's like five ten years so do you see any end to it because

I think historically, when I look at your organic growth numbers, it tends to be a little bit lumpy. One year is very good due to, I guess, high investments among customers, and the other year is a little bit weaker because the prior year was a bump, and then you get a little bit of a valley the year after. Do you see it's going to be structurally at a higher level due to this kind of upgrade trend going forward?

I think the average spend per, let's say, employee is higher. That's going to stay. So we don't see any reason why that should not be continuing. However, obviously, to reach that higher level, we have had a bit of a boost now to upgrade everyone because no one was on the higher level before. I think going back to your comment on it being a bit lumpy, I mean, we should remember that our In the historic numbers, at least, we have been affected by the SMBs quite a lot. And they are a little bit lumpy in their behavior because they react to the economic outcome. They get cautious and then stop buying a little bit, and then they come back and continue to buy again. So that's the waves we see coming from the economic activity of each of our markets.

And that will continue, but obviously now, right now, that has a lesser impact on the total sales, because now LCP is slightly higher on share at the moment. Okay, great. So, I mean, at the moment, you're performing really, really well. You've done that for a workers right now and it really feels like it's really flying for you fundamentally. If the thing does not go according to plan for 2022, what has happened? Meaning what keeps up at night? What could go wrong for us right now this year? There's a lot of things. We sleep well at night because we work a lot in the day. But I think overall it's for us to continue to be on our cloud for sourcing, for overall procurement, be very close to our vendors, be very close to our partners. But in general, it's more if there are other economic turns in the society that can affect us. But as you almost mentioned before, we are a roadliner. We sell a lot of brands, so we're not specifically linked to specific brands. for what we can see now is that the IT market as such will continue to develop and it will continue to move even closer of importance in companies. But it's just we have our crystal ball probably looks like yours and see how it should develop. But It's just to continue to be where we are and be awake every morning for what can come our way and be relevant for our customers. I think that is the most important part. Okay. I'm very glad to hear that you sleep well. I do, too. Then I have a last question, and that is related to the fact that you want to expand geographically. Given where we are right now in Europe, in the Nordics you are a really strong Portuguese region already, but in Europe you're mainly in the Bermudas region.

And then if you go to the right on the map, you have Germany, which has a very big German player. And then if you go to the left on the map, you have the UK and you have some other big players, also listed companies as well. So where could they actually go, given that this is really a volume business and have a competitive edge to it?

I think overall also the reason for us moving in to Benelux is of course that we see that our business model is very good to export. We have slightly different models than the other competitors you were talking about in Germany, for example, where we have nearly a consumer-driven model towards SMBs. which is not the typical thing that is possible to get in other countries. And we see, of course, the opportunity of building that up with all the experience and all the knowledge we have. And it's not something that you just can do just like that. It's just not start up and then start to because it's a complete change of how you do your business if you go that way. So I think we are also perceived from our competitors in Europe that we have another model, a slightly different model, even though we work in the same market. So we see potential, of course, in that. But what we look for is to see where we can find the same customer behavior, where we can find markets where we have internet usage and internet networks that are up to speed and markets up for change.

And all markets right now in Europe are changing. a lot, and there are new demands coming from, especially the small and medium-sized companies. But with that said, also, for us entering a new market, we have seen that our way of entering the market is to find, preferably, an LTP player where we can build volume from that scale out to SMB, as we do now in the Benelux. And that has been the same table we have used in Finland and in Norway and in Denmark in the same way. And then build out the strong S&V position from an LTP volume perspective. So that we will continue to look for. And we see the possibility for that. You basically feel that if you were, for instance, entering Germany, there would be room for you and Digby. Yeah, yeah. I mean, if you talk about fragmented markets, then you can say that Germany is one of the most fragmented markets. There are like 90,000 companies stating that they're IP companies. So there are a lot of room, but competition also builds the market, and we see an opportunity, of course, in taking on that. All right. Great. Thank you very much, and have a nice day. Thank you. There are no further questions. I'd like to turn to our speakers. Great.

Thank you very much. And thank you, everyone, for tuning in and listening in.

And just get back to us if there are any more questions.