Thank you, and good morning, everyone, and welcome to Dustin's presentation of our third quarter results. My name is Samuel, and I'm joined here today by our CFO, Julia Lagerqvist, and together we will take you through the highlights of the quarter before we open up for questions.

I'm pleased to report yet another quarter with organic growth, improved margins, strong cash flow and reduced leverage, while continuing to sharpen our commercial focus and the efficiency of our operations. Net sales development was positive in the quarter, with organic growth of 2.6%.

Growth was driven by continued strong performance from the public sector and supported by orders brought forward to secure pricing and availability in the light of the component shortage. The gross margin increased to 14.4% compared with 13.4% last year, and is also a sequential improvement compared to the second quarter.

The higher margin is mainly explained by higher market pricing and improvements within Large Corporate and Public. Adjusted EBITA improved to SEK 118 million compared to SEK 72 million a year ago, explained by the stronger gross margin and earlier implemented efficiency measures.

The margin increased to 2.3% compared to 1.4% last year. Cash flow from operating activities increased to SEK 259 million compared to minus SEK 139 million last year, primarily driven by improved net working capital.

Leverage, measured as net debt-to-EBITDA, dropped to 2.3x and is now well within our target range of 2 to 3x, significantly improved compared to 4.1x last year. During the quarter, we completed several important initiatives.

First, we completed the implementation of our new sales organization. Regional leadership is now fully in place across the Nordics and Benelux, including the appointment of Anne Nillesen as EVP Relations Sales Benelux and member of Dustin's group management team.

Second, we completed the efficiency measures announced last quarter, expected to deliver annual savings of approximately SEK 80 million with a full run rate effect expected from the fourth quarter. We also took an important strategic step by defining a clear exit plan for our nonstandardized services business, supporting our continued transformation towards our standardized service offering.

As a part of this, we recognized an SEK 800 million noncash impairment during the quarter. On the balance sheet, targeted efforts to improve systems and processes to reduce trade receivables in Benelux have paid off and receivable levels have returned to a normalized level.

Finally, we're pleased to receive several important partner awards from NVIDIA, Dell and HPE. And by this, I hand over to Julia to give you some more details on our results and financials.

Thank you, Samuel. Looking more closely at the LCP segment — Large Corporate and Public.

Sales in LCP was SEK 4.0 billion in the quarter, or 8.1% higher than last year. Organic growth was also 8.1%, so basically no ForEx effect.

The growth was mainly driven by increased demand in the public sector, leading to larger rollouts, and also customer orders brought forward in the light of the memory component shortage as customers wanted to secure volumes. From a geographic perspective, we saw strong growth in Sweden and Belgium, driven by the larger rollouts in the public sector.

We also saw growing demand within our life cycle services offering. We can see some large volatilities in sales between the quarters in LCP.

Gross margin improved versus previous year and versus previous quarter. The margin benefited from higher market prices, coupled with a slightly more selective approach to new businesses.

In addition, margin was also supported by a more mature contract portfolio in Belgium, where we last year had low initial margins on new frame agreements. Improved profitability in takeback also had a positive impact on margin and EBITA.

The growing volumes and margins led to a segment result of SEK 170 million versus SEK 63 million last year, and the segment margin ended at 2.9% versus 1.7% last year. Moving to the overview of the SMB segment — sales landed at SEK 1.2 billion or 11.7% below last year.

Organic growth was at minus 11.9%, so very little ForEx effect. Adjusted for the exit from B2C, the organic growth was minus 5.3%.

This is a strategic move to better focus on our core business, and we always expected some sales headwind from this. We see some signs of stabilization, but customers remain cautious due to the ongoing economic uncertainty.

The hardware and software business in the Nordics developed positively and remains a key focus area going forward. The gross margin improved versus previous year, supported by higher market prices and a continued strong price discipline.

This was partly offset by weak performance within nonstandard services, which has burdened profitability, even though we see some improvement versus the previous quarter. The improved cost base from efficiency measures partly protected the segment result, but could not fully offset the lower volumes and weak performance in nonstandard services.

The segment result landed at SEK 34 million versus SEK 37 million last year, corresponding to a segment margin of 2.8% versus 2.7% last year. We have now established a clear exit plan for our nonstandard services and begin to execute.

This clean-up plan also led to an impairment of the SMB segment of SEK 800 million carried out in this quarter. The impairment has no cash impact.

Moving to cash flow. Cash flow for the period was plus SEK 167 million versus a little bit over SEK 1 billion last year, where last year was impacted by the completed rights issue.

Cash flow from operating activities was plus SEK 259 million, a clear improvement versus last year, driven by both improved operational results as well as targeted work on tax management and improvement in net working capital. Cash flow from investing activities was minus SEK 40 million, mainly related to development of our IT platforms.

Cash flow from financing activities was at normal level and mainly linked to leasing. The combination of improved operational results and improved cash flow led to further improved leverage, now at 2.3x and well within the target range of 2 to 3.

On net working capital — net working capital landed at SEK 182 million, an improvement versus last year where we were at plus SEK 261 million. Inventory increased roughly SEK 44 million versus last year, expected and part of managing the ongoing shortage in memory components.

Accounts receivable decreased, driven by continued active efforts to settle receivables from previous periods and some positive timing effects. We note that Q4 is usually seasonally weaker in terms of net working capital levels due to timing of large rollouts at the end of the quarter driving higher receivables.

Our long-term target for net working capital remains around minus SEK 100 million. I will hand back to Samuel.

Thank you, Julia. To summarize the quarter, we report continued organic growth supported by strong development within the public sector.

Gross margin increased, supported by higher market pricing and improvements within the Large Corporate and Public segment. The adjusted EBITA margin increased, benefiting from the gross margin improvement and earlier performed efficiency measures.

Cash flow from operations was strong, and our leverage decreased to well within our target range. On the market outlook, component shortages remain a key factor in the market.

These have already resulted in higher pricing and limitations in supply, and we expect both higher prices and tighter product availability, particularly in the low and mid-range PC segments, to continue well into 2027. At the same time, these supply constraints have made some customers bring forward purchases.

While this has supported demand during the third quarter, it also creates some uncertainty around the timing of demand going forward. Our priorities remain very clear.

We will continue to build on our position as the trusted IT partner for B2B customers. The new sales organization and regional leadership are now fully in place, and our priority is to leverage this to strengthen our local go-to-market execution and improve commercial performance.

We will continue to execute on our transformation of our services portfolio, with a clear exit plan for nonstandard services and an acceleration towards a standardized service offering where we see strong customer demand and attractive margins. In parallel, we will develop the SMB business through a more focused approach on the services and customer segments where we see the strongest potential.

Efficiency remains an important priority, and following the completed cost measures, we will finalize our review of indirect spend to further improve our cost base. While the market environment remains somewhat uncertain, we are well positioned to support our customers through our strong supplier relationships, high delivery capabilities and broad product availability.

We believe we're on the right path. While there is still a lot more work ahead, our priorities are clear, and we remain fully focused on building a new stronger Dustin by executing our strategy, improving profitability and delivering sustainable long-term growth.

And with that, we conclude the presentation and open up for Q&A.

Samuel and Julia, I hope you can hear me.

Yes.

Yes, we can.

Beginning with LCP — we saw 8% organic growth. How much was price relative to volume in this growth number?

It's a bit hard to say exactly what is driving the different factors. But I would say the larger part is still volume-related, coming from these larger rollouts, and a much smaller part is from the pricing increases.

Of course, we have had some large price increases in the market in general, but that's the way we have split it up.

So you think you still have a benefit from price increases going forward in this segment?

You mean for the following quarters?

Yes. You mentioned prebuying and volumes being the main drivers and less from pricing, so shouldn't that mean you have some more benefit on pricing?

There is of course some benefit of pricing. But if we look at the results in the quarter, the majority of the growth and also the gross margin improvements come from volume.

We had some really good rollouts and sales. And from a margin perspective, pricing is a part of it, but it's also that we have been a bit more prudent given the uncertainty in the market on the deals we take, and we've also had an improvement in Belgium where we had very new customer contracts last year and are now at a more normalized level from a contract and margin perspective.

And on hardware in SMB, it fell 7% year-on-year — I guess that's mostly volume-driven as well?

Yes. Here, you maybe see a bit more pricing on the smaller customers, I would say.

But it's also volume-driven.

On the prebuying effect — do you have any estimate how much it was in the quarter, like 3% to 4% of growth?

We talked about this last quarter and said we saw prebuying in the area of roughly SEK 200 million. In this quarter, I would say around SEK 300 million.

It's of course very hard to say. As I talked about LCP before, volumes can move between the quarters, but these are the volumes we have identified as clear prebuying linked to pricing.

One last question. When do you expect the nonstandardized services to be fully phased out?

What percentage of sales is related to nonstandard services, and what kind of margin do you have on these contracts versus the standardized?

We're expecting a full phase-out to take roughly a maximum of 2 years. It's a minor part of the full managed services portfolio, and it's today an area where we're not making money.

So with this fully phased out, we definitely foresee an improvement in profitability going forward.

I wonder if you can talk a bit about the long-term target for margins in SMB. You still have a 6.5% long-term margin and we saw a 2.8% margin in SMB this quarter.

After exiting nonstandardized services, what are the key levers to rebuild margins? And what time frame do you view as realistic for margins in the SMB segment to get near to your long-term target?

In terms of long-term targets, it's still the Board that aligns and approves on what those targets are, and we as management work towards them. Obviously, as you point out, at the moment, we are quite far away from our long-term target and have a journey to go there, specifically on the SMB side.

Samuel, do you want to add a bit more?

If we look at the different buckets of our SMB business — starting with services, we've now taken a strategic decision to fully focus on our standardized portfolio, where we see good customer demand, attractive margins and good profitability already today. With that decision also comes the clear exit plan on nonstandard services, which will take up to 2 years to fully exit, and then we expect clear profitability improvements.

So growth in managed services in the standard portfolio coupled with completely exiting the nonstandard is one lever. The second lever is the Nordic hardware and software business, where we are starting to see underlying improvements — we have a very strong position and a very strong online engine and brand.

And the third aspect is Benelux and specifically Netherlands, where we will take a slightly different approach going forward and not focus at all on the smallest B2B customers, but rather go after the opportunity we see in mid-sized to slightly larger companies, which also plays much better to our local strength and positioning in that market.

The gross margin in Q3 was 14.4%. Do you view this as a sustainable level?

What effects in Q3 were structural and which may be temporary?

The price increase benefits will not go on forever, so those are a little bit more temporary. The Belgium contract maturity is hopefully a bit more stable during the contract period for these bigger framework contracts, but of course that can always change as contracts come and go.

So the contract maturity in Belgium is hopefully a bit more stable and the pricing-driven benefit is a bit more temporary.

With your balance sheet now much stronger and leverage down to 2.3x, should we expect further deleveraging, resumed M&A or dividends once profitability stabilizes?

For us, we always have M&A on our long-term agenda, but it's not something we are looking at right now. We're focusing on turning around the business that we have — we still have a long journey to go to be where we want to be.

That's the main focus for us as a company right now. In terms of the dividend, that's not something the management decides — that's a Board and ultimately an AGM decision.

A few follow-ups. First on LCP — how much of the prebuying was concentrated to a few large public sector contracts or countries, or was it broad-based?

No, it was related to a few larger customers predominantly in the public space.

For those ones we have defined — it's hard to see exactly what is prebuying and what is else, but the ones we have defined are related to LCP, yes.

Sweden was clearly stronger this quarter while the Netherlands was weaker. Is this sort of an effect of the prebuying situation?

No, I think it's more a variance between quarters. We had some really larger rollouts with some customers in Sweden and slightly lower seasonality in the Netherlands.

Nothing to read into that in terms of prebuying.

Can you comment on what you're seeing in underlying SMB demand currently in the market?

In the Nordic hardware software business, we are starting to see slight improvement, but from very low levels, and still a lot of uncertainty. A lot of the SMB customers that I talk to and meet are still very cautious and are still postponing purchase decisions.

So it's still a cautious market with some slight improving trends, but still fragile.

On the pricing situation — hardware vendors are increasing prices by something like 20%. How will this impact you?

How do we think about the net effect on your business?

If we look at what external analysis firms are saying, and we're seeing the same, we expect volume — i.e., the number of units — to come down, especially in the low-end segment, and we're seeing that happen already now. But with prices going up, the value stays flat or slightly positive.

I think ADC is projecting like 2% growth or something like that. So all in all, it seems to be netting out quite much.

On the nonstandardized services — can you explain what the services consist of and how much revenue you currently have?

This is a legacy portfolio of older solutions and older customer contracts in the managed services space, where we manage networks and services and workplaces. It's very hard to scale — a lot of them are customer unique, built on legacy platforms.

They don't have a very long future and we see very limited possibilities to build scale and profitability over time. That's why we've taken the deliberate decision to exit this portfolio completely and focus on the standardized portfolio, which is the majority of our managed services business.

Julia, if you want to elaborate on the size?

We don't share those specific sales numbers by department, but it's a very small part of our business — what remains of the legacy or nonstandard segment. It's not a huge part of total managed services sales, but from a profitability point of view the standardized managed services is a big contributor to profitability.

On the nonstandard, where we have been declining over time and are stuck with some fixed costs, we have very poor profitability — basically not making money.

When this exit is completely done, just to give you some view of the size of the prize — we do expect a run rate improvement of profitability in tens of millions on the yearly run rate, in annual terms. It's not huge, but it is impacting, and it's an important step for us to get more focused, more profitable and focused on the scalable parts of our business.

With the SEK 80 million cost adjustment announced last quarter — have you managed the overall cost structure in the nonstandardized part, or will there be remaining cost effects over the 2-year reduction?

The SEK 80 million is not linked to nonstandardized cost efficiencies — it's the rest of the business. We have of course sized down a bit on personnel also on nonstandard, but they are 2 separate projects.

On the SEK 800 million impairment — what triggered this? You did a SEK 2.5 billion goodwill impairment last year.

Is this primarily goodwill?

It is primarily goodwill.

What triggered it right now?

The trigger was the decision we've now taken to clearly exit this part of our business. Already before, we had the focus on the standardized services and a plan of transforming the majority of our business into the standardized portfolio.

But during this quarter, we took the decision to drive complete exit of the nonstandardized services, and then that led to the need of a write-down in goodwill primarily.

Maybe to add a bit of perspective on the accounting side — as written in our annual report, where we did the impairment last year, it obviously means that we have quite a low headroom versus the impairment. So when businesses like our nonstandard underperform, an impairment need can appear.

That is what we've seen happening here, quite linked to the accounting setup.

Is this the Benelux part, since the Nordic side seems to be developing well?

We have a bit of nonstandard across the business. If you know about our history of acquisitions, we have acquired service companies also in Finland and historically in Denmark that are not performing according to plan.

On the cost savings announced last quarter — how much did you have in the P&L this quarter, and how much do you expect in Q4?

We have had a small part this year because we have obviously started, but the full effect is going to come in Q4.

The new organization including this was implemented on the 1st of May, so basically one month out of three maximum for this quarter.

First one on LCP — do you expect to see a reverse of prebuying activity in LCP to the extent that it could turn negative organic growth already in Q4, or is that more likely to happen in the next fiscal year?

With the uncertainty we're seeing in the market, it's impossible to project that in a perfect way. We just want to be transparent with what we're seeing in the quarter.

Of course, prebuying from some customers now can affect Q4 and Q1 demand, but it's very hard to predict given the market circumstances right now.

On the gross margin — it sounds like it was driven by higher prices and maybe a lag effect on delivering on inventory. Is there a risk that the gross margin contracts in the coming quarters due to higher market prices?

Since we have this volatility in the market and also within the LCP segment, it can vary. As I said before, there are some cost effects this quarter from the pricing which we are not expected to see to the same level in Q4.

But overall, we don't guide on the margins.

On inventory management — are you cautious to see how the market develops, or are you building inventory faster than historically?

We took some decisions in this quarter to build a bit of inventory. But going forward, we are not planning to do any further increases, being a bit more cautious.

We don't want to start building inventory to new heights.

Final one on SMB — were there any regions standing out with positive organic growth in Q3, or did you see declining markets across all segments?

Across all segments, but of course in varying degrees. We are starting to see some underlying positive developments in the Nordic business and predominantly in Sweden.

But as I said, they're early, from a low level and fairly fragile in a cautious market. So we do not want to overpromise on that, but it's definitely something we will closely monitor and focus on building going forward.

I hope you can hear me.

Yes.

Just one additional question related to what you've been speaking about — units in the market can be down but prices more than compensate. Do you feel that customers are getting sufficient volume, or is there some form of pent-up demand building in terms of underlying units?

In the low and mid-range segments, we are seeing limited supply, so there could be some pent-up demand there. We know there is a pent-up demand in the SMB market, but customers are still very cautious.

Besides that, no major trends or anything out of the ordinary. But in low and mid-end, we see an impact and we know there is a pent-up demand in SMB where customers are still very cautious.

Okay. Thank you very much.

That concludes our third quarter results presentation and Q&A. Thank you very much for listening in.

Thank you for all the questions. As said, it concludes this presentation.

Thank you, and have a great day.