distit - introduce · distit’s q3’19 figures came in surprisingly weak. sales were sek 539m...
TRANSCRIPT
Please refer to important disclosures at the end of this report This research product is commissioned and paid for by the company covered in this report. As such, this report is deemed to
constitute an acceptable minor non-monetary benefit (i.e. not investment research) as defined in MiFID II.
DistIT
Reason: Post-results comment
Company sponsored research
Not rated
Further challenges and unexpected costs
EBIT loss due to restructuring and write-downs
Weak sales and continued cost pressure likely
Value range down ~15% to SEK 20-75
Sales down 6% y-o-y, adj. EBIT margin down 190bp
DistIT’s Q3’19 figures came in surprisingly weak. Sales were SEK 539m
(-8% vs. ABGSCe at SEK 582m), down 6% y-o-y. Aurora was the main
culprit, down 19% y-o-y, while Deltaco grew 9% and the smaller
segments Septon and Sominis grew -33% and +149%, respectively. The
gross margin declined to 20.0% (21.7%), impacted by a negative product
mix and unfavourable FX effects. In addition to previously communicated
restructuring costs of SEK 9m, EBIT was burdened by a write-down of
SEK 30m relating to Deltaco’s ERP system. This meant that EBIT came
in at SEK -23m, while on an adjusted basis SEK 16m (-49% vs. ABGSCe
SEK 31m), on a margin of 3% (ABGSCe 5.3%). With the positive impact
of SEK 45m from the sale of DistIT Fastigheter AB, net profit grew by
15%, resulting in EPS of SEK 1.38 (ABGSCe SEK 4.86).
More disruptions, gives lower confidence in restructuring
So far 2019 has been a year of change and challenges for DistIT, with
the integration of Aurora and Deltaco, tough end-markets, the loss of two
distribution deals for Aurora and the write-down of Deltaco’s ERP system.
If management can execute on its goals, we still believe that the share
will respond well. However, after the last couple of quarters we think that
this will take longer than initially expected. 2019 is a lost year, and we
lower sales by 2% and adj. EBIT by 27%, to SEK 2,379m and SEK 70m,
respectively. For ’20e and ’21e, we lower the EBIT margin by 30bp, to
4.4% and 4.7%. We expect growth to be moderate, at around 3-4%.
Lowering our fair value range by 15% to SEK 20-75
We have previously said that successful restructuring should do wonders
for the share. However, we have yet to see a positive impact, growth is
low and continued disruptions are likely. We feel the risk premium has
increased and we lower our fair value range by ~15%, to SEK 20-75.
28/10/2019
Performance
Equity Research - 30 October 2019 17:33 CET
SEKm 2017 2018 2019e 2020e 2021e
Sales 1,781 2,272 2,379 2,480 2,560
EBITDA 71 84 64 121 131
EBITDA margin (%) 4.0 3.7 2.7 4.9 5.1
EBIT adj 61 86 70 109 119
EBIT adj margin (%) 3.4 3.8 2.9 4.4 4.7
Pretax profit 54 56 3 100 111
EPS rep 34.99 3.27 2.87 6.08 6.73
EPS adj 3.13 4.40 3.85 6.08 6.73
Sales growth (%) 15.5 27.6 4.7 4.2 3.2
EPS growth (%) 684.3 -90.6 -12.2 111.7 10.6
Source: ABG Sundal Collier, Company data
Lead analyst: Oskar Vikström
Estimate changes (%)
2019e 2020e 2021e
Sales -1.9% -1.9% -1.8%
EBIT (rep) -81.1% -7.1% -6.9%
EPS (rep) -58.8% -8.8% -8.4%
Source: ABG Sundal Collier
Share price (SEK) 33.2
Technology Hardware & Equipment, Sweden
DISTIT.ST/DIST SS
MCap (SEKm) 408
MCap (EURm) 37.9
Net debt (EURm) 20
No. of shares (m) 12.3
Free float (%) 64.0
Av. daily volume (k) 12.9
Next event Q4 report: 13 Feb
60
70
80
90
100
110
120
130
140
150
160
Oct 1
6
Dec 1
6
Fe
b 1
7
Apr
17
Jun 1
7
Aug 1
7
Oct 1
7
Dec 1
7
Fe
b 1
8
Apr
18
Jun 1
8
Aug 1
8
Oct 1
8
Dec 1
8
Fe
b 1
9
Apr
19
Jun 1
9
Aug 1
9
DistIT OMX STH PI
1m 3m 12m
Absolute (%) -18.6 -23.1 -18.8
OMX STH PI (%) 5.1 5.9 19.7
Source: FactSet
2019e 2020e 2021e
P/E (x) 11.6 5.5 4.9
P/E adj (x) 8.6 5.5 4.9
P/BVPS (x) 1.07 0.95 0.85
EV/EBITDA (x) 10.0 5.0 4.4
EV/EBIT adj (x) 9.2 5.6 4.9
EV/sales (x) 0.27 0.25 0.23
ROE adj (%) 12.8 18.4 18.1
Dividend yield (%) 6.0 6.5 6.5
FCF yield (%) -0.9 15.0 15.7
Lease adj. FCF yld (%) -0.9 15.0 15.7
Net IB debt/EBITDA 3.3 1.4 1.0
Lease adj. ND/EBITDA 1.7 1.4 1.0
DistIT
30 October 2019 ABG Sundal Collier 2
Quarterly sales and adj. EBIT, SEKm
Source: ABG Sundal Collier, Company data
Business area breakdown, sales, SEKm
Source: ABG Sundal Collier, Company data
EPS estimate changes, 2019e, SEK
Source: ABG Sundal Collier, FactSet
EPS estimate changes, 2020e, SEK
Source: ABG Sundal Collier, FactSet
OpportunitiesNew distribution rights agreements, bolt-on acquisitions
as well as bigger acquisitions with decentralized areas of
responsibilities, synergies and cross-selling.
RisksShift in technology preferences and disruptive
technologies, price pressure.
0
5
10
15
20
25
30
35
40
0
100
200
300
400
500
600
700
800
quarterly sales quarterly adj. EBIT
0
100
200
300
400
500
600
700
800
900
Aurora SweDeltaco Septon Electronic SominisTechnology
Sales
2
3
4
5
6
7
8
ABGSC FactSet Consensus Mean
5.4
5.6
5.8
6.0
6.2
6.4
6.6
6.8
ABGSC FactSet Consensus Mean
Company descriptionDistIT acquires, owns and develops distributors of
accessories for IT, Mobility, Multimedia, Network and
data communications in the Nordic and Baltic countries.
DistIT and its subsidiaries have a firm track record of
value-added acquisitions, but also divestments such as
Alcadon in 2016. Today DistIT consists of Deltaco,
Aurora Group, Septon Electronics and Sominis
Technology. Sales were SEK 1.8bn in 2017 with an EBIT
margin of 3.3%. Financial targets are 10% EPS growth
and an equity ratio >35%. The shares are listed on
NASDAQ First North.
DistIT
30 October 2019 ABG Sundal Collier 3
DistIT in brief
DistIT’s roots can be traced back to Ludvika, Sweden, where it started by importing
and distributing cables from Taiwan under the name Deltaco in 1991. Today, DistIT
has evolved into a large-scale distributor with roughly 25,000 products on offer.
Growth has been enabled by an active M&A approach that continues to search for
strong niche distributors in the IT and consumer electronics industries. Targets
include companies with an attractive product range, good profitability and competent
entrepreneurial leaders.
DistIT has obtained strong market positions across the Nordic and Baltic regions,
with its main markets being Sweden and Denmark. The company aims to offer the
best product range in its niche markets at competitive prices and with fast delivery
times. Its distribution channels target both B2C (~70% of sales) and B2B (~30% of
sales) customers through both physical and digital sales outlets. Customers are
found in a wide range of markets including home electronics, online retail, electric
installers, telecom operators, grocery stores and low-price resellers. In addition to
distributing some of the best-known electronics brands, the company also
manufactures and distributes its own branded products (EMV). EMV brands (~23%
of sales) tend to provide higher margins than traditional distributed brands and allow
for exports into new markets.
Geographic sales split FY’18
Source: ABG Sundal Collier, company data
B2C vs. B2B sales split FY’18
Source: ABG Sundal Collier, company data
EMV vs. distribution FY’18
Source: ABG Sundal Collier, company data
Historical sales and EBIT margin FY’09-FY’18
Source: ABG Sundal Collier, company data
Sweden49%
Norway12%
Denmark22%
Finland9%
RoE8%
B2B30%
B2C70%
EMV23%
Distribution77%
352 380 411494
1,021
1,3911,294
1,542
1,781
2,272
2.0%
7.0%
5.1%
3.8%
2.2%
4.7%
3.1%3.4% 3.3% 3.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
0
500
1,000
1,500
2,000
2,500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sales EBIT-margin
DistIT
30 October 2019 ABG Sundal Collier 4
Operating segments Aurora accounted for 43% of ‘18 sales. The company was founded in 1999 and
mainly focuses on the distribution of EMV (19% of sales) and branded home
electronics, but has recently broadened its offering into other areas. With new
brands such as Duracell® and Braun Oral-B®, the company has expanded into new
channels for B2B (currently 5% B2B sales) customers in the kitchen and appliances
segment. The current customer base includes companies like Clas Ohlson,
Mediamarkt, Elgiganten and Salling Group.
Sales and EBIT margin FY’16-21e
Source: ABG Sundal Collier, company data
Regional sales split FY’18
Source: ABG Sundal Collier, company data
Deltaco accounted for 40% of ’18 sales. The company distributes IT products and
household appliances at competitive prices with with quick deliveries in the Nordic
and Baltic regions. Customers are roughly evenly split between B2B and B2C and
are mainly found in the traditional IT and home electronics markets. Deltaco also
manufactures and sells its own in-house brands such as Streetz™, DELTACO™,
Nordic Home Culture™ and DELTACO Gaming™. The EMV brands have largely
contributed to Deltaco’s growth and improved profitability; today they account for
around 32% of sales. The customer base includes companies such as ATEA, Kjell
& Company, Bauhaus and OKQ8.
Sales and EBIT margin FY’16-21e
Source: ABG Sundal Collier, company data
Regional sales split FY’18
Source: ABG Sundal Collier, company data
Septon Electronic accounted for 13% of ’18 sales. The company started its
operations in 1969 and today is a distributor of high-end audio and video products
(AV) for professional markets and consumers. The product range includes
speakers, amplifiers, Blu-ray players, projectors, monitors, microphones,
headphones, sound mixers and wireless systems. Septon represents several well-
known brands such as Harman Pro, Klipsch and Marantz, to name but a few. The
843
874
982
929
952
973
5.2%5.6%
4.8%
3.9%
4.8%
5.4%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
750
800
850
900
950
1,000
2016 2017 2018 2019e 2020e 2021e
Net sales Reported EBIT margin
Sw eden42%
Norw ay14%
Denmark35%
Finland9%
709 717
913
9861,035
1,085
3.1%
1.7%
3.3%
-2.7%
5.1% 5.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
0
200
400
600
800
1,000
1,200
2016 2017 2018 2019e 2020e 2021e
Net sales Reported EBIT margin
Sw eden63%
Norw ay5%
Denmark10%
Finland12%
Baltics10%
DistIT
30 October 2019 ABG Sundal Collier 5
products are sold at over 300 sales outlets in Sweden. Customers include Dustin,
Effektgruppen SCAN AV and CDON.COM. The group does not currently have EMV
sales, but it is one of the group’s main focus areas. In August, Septon’s subsidiary
LiteNordic acquired a 60% stake in TiGHT LED AB. TiGHT LED is a strong brand
that provides Septon with EMV possibilities.
Sales and EBIT margin FY’16-21e
Source: ABG Sundal Collier, company data
Regional sales split FY’18
Source: ABG Sundal Collier, company data
Sominis Technology accounted for 4% of ‘18 sales. The Lithuanian company was
founded in 2010 and acts as a reseller of surplus electronics and IT products to B2B
customers all over Europe. The business model focuses on buying, reselling and
distributing under-priced products in Europe. Sominis provides low prices, logistics
and customer service.
Sales and EBIT margin FY’16-21e
Source: ABG Sundal Collier, company data
Regional sales split FY’18
Source: ABG Sundal Collier, company data
103120
295
346359 367
14.7%
10.1%
7.5%
3.5%
7.4%8.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0
50
100
150
200
250
300
350
400
2016 2017 2018 2019e 2020e 2021e
Net sales Reported EBIT margin
Sw eden50%
Norw ay28%
Denmark22%
8289
121
133 135
0.0%
3.4%
1.7%2.6% 2.5% 2.5%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0.0%
2000.0%
4000.0%
6000.0%
8000.0%
10000.0%
12000.0%
14000.0%
16000.0%
2016 2017 2018 2019e 2020e 2021e
Net sales Reported EBIT margin
Denmark8%
Rest of Europe92%
Segment summary: Aurora and Deltaco >80% of sales
Source: ABG Sundal Collier, company presentation
Aurora Deltaco Septon Sominis
% of group sales 43% 40% 13% 4%
% of group EBIT 46% 31% 22% 2%
Customers
Clas Ohlson
MediaMarkt
Elgiganten
Salling group
ATEA
Kjell & Company
Bauhaus
OKQ8
Dustin
Effektgruppen
SCAN AV
CDON.COM
unclear
Customer
relationship (years)~15 ~15 >10 unclear
EMV (% of sales) 19% 32% 0% 0%
B2B (% of sales) 5% 40% 80% 100%
DistIT
30 October 2019 ABG Sundal Collier 6
Acquisitions DistIT is built on acquisitions – three of the company’s reporting segments stem
from previous acquisitions: Aurora was acquired in 2013, while Septon and Sominis
were acquired in 2017. Other major acquisitions include Winter Wireless in October
2017 and Lydrommet in June 2018. Through its many acquisitions, DistIT has been
able to leverage on synergies relating to logistics, insurance, marketing, purchase
agreements, etc. In a challenging space facing significant pricing pressures, DistIT’s
larger size is able to benefit it throughout all parts of the value chain. We expect that
further acquisitions are likely ahead and a part of the forward-looking growth
strategy. The realisation of the real-estate sale and completion of restructuring,
should provide both the firepower needed and the group structure necessary for
successful acquisitions.
EMV – own brand portfolio EMV accounts for roughly 23% of group sales and grew by 18% y-o-y in 2018 and
24% in Q1’19. In Q2’19, the company decided not to disclose EMV growth, but the
company states that an increasing portion of EMV helped to support a higher gross
margin in the quarter. In late 2018, the board of directors decided to intensify the
focus on EMV products for all segments. One result of this has been the process of
integrating the Aurora and Deltaco acquisitions in an overall effort to expand their
EMV brand offering and distribution network. Septon is currently in the process of
developing its own EMV products with the help of Aurora and Deltaco. In addition,
Septon’s 60% stake in TiGHT LED AB provides EMV opportunities for the segment.
The group has appointed a person responsible for EMV to serve as a common
function for Aurora and Deltaco as well as a support function for Septon.
EMV brands and products
Source: ABG Sundal Collier, company data
Gam
ing
Cab
les
Mo
bil
ity a
nd
au
dio
Ho
me
Brands Product examples
DistIT
30 October 2019 ABG Sundal Collier 7
Q3’19
Deviations
Source: ABG Sundal Collier, company data
Estimate changes
Source: ABG Sundal Collier, company data
Old New Change (%) Change (SEKm)
2019e 2020e 2021e 2019e 2020e 2021e 2019e 2020e 2021e 2019e 2020e 2021e
Net sales 2,425 2,527 2,608 2,379 2,480 2,560 -1.9% -1.9% -1.8% -46.5 -46.9 -47.7
COGS -1,887 -1,963 -2,019 -1,872 -1,931 -1,987 -0.8% -1.6% -1.6%
OPEX -432 -436 -450 -386 -427 -442 -10.7% -2.0% -1.9% 46.1 8.5 8.3
EBITDA 81 128 139 64 121 131 -20.0% -5.4% -5.3% -16.2 -6.9 -7.4
D&A -11 -11 -11 -51 -12 -12 387.6% 14.3% 14.3% -40.7 -1.5 -1.5
EBIT 70 118 128 13 109 119 -81.1% -7.1% -6.9% -56.9 -8.4 -8.9
Adj EBIT 95 118 128 70 109 119 -26.7% -7.1% -6.9% -25.4 -8.4 -8.9
Net f inancials -12 -8 -7 -11 -9 -8 -7.2% 17.6% 18.9%
Tax -14 -24 -27 -10 -22 -24 -31.3% -8.8% -8.4%
EO -25 0 0 -57 0 0 -31.5 0.0 0.0
Net profit 86 82 90 35 75 83 -58.8% -8.8% -8.4% -50.3 -7.2 -7.6
EPS (SEK) 6.97 6.67 7.34 2.87 6.08 6.73 -58.8% -8.8% -8.4% -4.1 -0.6 -0.6
EBIT margin 2.9% 4.7% 4.9% 0.6% 4.4% 4.7% -2.3% -0.3% -0.3%
Adj. EBIT margin 3.9% 4.7% 4.9% 2.9% 4.4% 4.7% -1.0% -0.3% -0.3%
Sales growth Y/Y 6.7% 4.2% 3.2% 4.7% 4.2% 3.2% -2.0% 0.1% 0.0%
COGS/Sales -77.8% -77.7% -77.4% -78.7% -77.9% -77.6% -0.9% -0.2% -0.2%
OPEX/Sales -17.8% -17.3% -17.3% -16.2% -17.2% -17.3% 1.6% 0.0% 0.0%
GM% 22.2% 22.3% 22.6% 21.3% 22.1% 22.4% -0.9% -0.2% -0.2%
Q3'18 Q3'19 Q3'19e Diff (%) Diff (SEKm)
Net sales 570 536 582 -8% -46
Gross profit 124 107 128 -16% -21.0
EBITDA 29 20 26 -24% -6.3
Adj EBITDA 30 59 34 75% 25.2
D&A -3 -3 -3 0% 0.0
EBIT 26 -23 24 -197% -46.6
Adj EBIT 28 16 31 -49% -15.1
EO -2 -39 -8
Gross margin 21.7% 20.0% 22.0% -2.0%
Adj EBITDA margin 5.3% 11.0% 5.8% 5.2%
Adj EBIT margin 4.9% 3.0% 5.3% -2.4%
Reported EBIT margin 4.5% -4.3% 4.1% -8.4%
EPS 1.16 1.38 1.38 -0.4%By division Q3'18 Q3'19 Q3'19e Diff (%) Diff (SEKm)
Net salesAurora 238 192 214 -10% -22
Sw eDeltaco 230 251 246 2% 5
Septon 92 62 109 -43% -47
Sominis 12 30 14 114% 16
DistIT
30 October 2019 ABG Sundal Collier 8
Detailed P&L: Q1’17-Q4’19e and FY’15-FY’21e
Source: ABG Sundal Collier, company data
P/L, SEKm Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19e 2015 2016 2017 2018 2019e 2020e 2021e
Net sales 391 366 414 609 465 514 570 724 556 532 536 755 1,294 1,542 1,781 2,272 2,379 2,480 2,560
COGS -294 -280 -319 -479 -365 -401 -446 -567 -437 -409 -429 -598 -981 -1,178 -1,373 -1,779 -1,872 -1,931 -1,987
OPEX -81 -82 -76 -97 -90 -102 -95 -122 -112 -124 -48 -119 -265 -299 -337 -410 -386 -427 -442
OPEX adj for EO -80 -82 -75 -97 -88 -98 -93 -117 -110 -109 -9 -119 -258 -296 -335 -396 -330 -427 -442
EO items -1 0 -1 0 -3 -4 -2 -5 -2 -16 -39 0 -7 -3 -2 -14 -57 0 0
EBITDA 16 4 19 33 9 11 29 35 7 -1 20 38 48 65 71 84 64 121 131
Adj EBITDA 16 4 20 33 12 15 30 40 9 15 59 38 55 68 73 97 121 121 131
D&A -3 -3 -3 -3 -3 -3 -3 -3 -3 -3 -43 -3 -8 -12 -12 -11 -51 -12 -12
EBIT 12 1 16 30 6 8 26 32 5 -4 -23 35 40 53 59 72 13 109 119
Adj EBIT 13 1 17 30 9 13 28 37 7 12 16 35 47 55 61 86 70 109 119
Net f inancials -1 -2 -2 -1 -2 -4 -6 -4 -4 -3 -1 -3 -10 -5 -5 -16 -11 -9 -8
Tax -2 0 -3 -7 -1 -1 -5 -6 0 0 -3 -7 -6 -11 -12 -12 -10 -22 -24
NCI -1 -1 -2 -2 -1 -1 -1 -1 -1 -1 -1 0 -7 -6 -5 -4 -2 -4 -4
Net profit to shareholders 8 -1 9 20 3 2 14 21 0 -7 17 25 42 424 37 40 35 75 83
Profit from divestments 0 0 0 0 0 0 0 0 0 0 45 0 24 393 0 0 45 0 0
EPS diluted (SEK) 0.64 -0.09 0.76 1.66 0.25 0.17 1.16 1.69 0.03 -0.59 1.38 2.05 3.43 34.50 2.97 3.27 2.87 6.08 6.73
Adj. EPS diluted (SEK) 0.69 -0.09 0.87 1.66 0.46 0.53 1.32 2.09 0.19 0.68 0.94 2.05 1.97 2.69 3.13 4.40 3.85 6.08 6.73
Margins
Gross margin 24.7% 23.6% 23.0% 21.3% 21.4% 22.0% 21.7% 21.7% 21.5% 23.2% 20.0% 20.8% 24.2% 23.6% 22.9% 21.7% 21.3% 22.1% 22.4%
Adj. EBITDA margin 4.1% 1.2% 4.9% 5.3% 2.5% 3.0% 5.3% 5.5% 1.7% 2.7% 11.0% 5.1% 4.2% 4.4% 4.1% 4.3% 5.1% 4.9% 5.1%
Reported EBIT margin 3.1% 0.4% 3.8% 4.9% 1.4% 1.6% 4.5% 4.4% 0.8% -0.7% -4.3% 4.7% 3.1% 3.4% 3.3% 3.2% 0.6% 4.4% 4.7%
Adj. EBIT margin 3.3% 0.4% 4.1% 4.9% 1.9% 2.5% 4.8% 5.1% 1.2% 2.3% 3.0% 4.7% 3.6% 3.6% 3.4% 3.8% 2.9% 4.4% 4.7%
Growth
Sales grow th Q/Q -22% -6% 13% 47% -24% 10% 11% 27% -23% -4% 1% 41%
Sales growth Y/Y 24% 9% 6% 22% 19% 40% 38% 19% 20% 4% -6% 4% 19% 15% 28% 5% 4% 3%
Organic (reported)* 7% 26% 18% 11% 14% n.a. n.a. 4% 0% 2% 20% 2% 4% 3%
EBIT grow th Y/Y 67% -83% 24% 19% -48% 531% 65% 6% -27% n.m. nmf 10% 31% 12% 22% -82% 723% 9%
Adj EBIT growth Y/Y 75% -83% 12% 19% -30% 869% 62% 23% -26% -5% -42% -5% 18% 11% 41% -19% 57% 9%
Adj EPS grow th -21% n.m. -98% 24% -61% n.m. 54% 1% -84% n.m. 19% 22% 36% 17% 40% -12% 58% 11%
Reported EPS grow th -21% -111% -98% 24% -61% -291% 54% 1% -87% -448% 19% 22% 906% -91% 10% -12% 112% 11%
Ratios
COGS/sales 75.3% 76.4% 77.0% 78.7% 78.6% 78.0% 78.3% 78.3% 78.6% 76.8% 80.0% 79.2% 76.4% 77.1% 78.3% 78.7% 77.9% 77.6%
Adj. OPEX/sales 20.6% 22.4% 18.1% 16.0% 18.9% 19.0% 16.4% 16.2% 19.9% 20.5% 1.7% 15.7% 19.2% 18.8% 17.4% 13.9% 17.2% 17.3%
Incrementel margin 7.2% -21% 7.9% 4.4% -5.3% 7.7% 6.8% 6.0% -2.5% -3.2% 33.7% -5.5% 3.4% 2.5% 5.1% -15.2% 39.2% 12.5%
Sales by segment Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19e 2015 2016 2017 2018 2019e 2020e 2021e
Aurora 200 172 194 309 190 203 238 352 198 181 192 359 843 874 982 929 952 973
Sw eDeltaco 169 155 169 224 209 223 230 251 239 238 251 258 709 717 913 986 1,035 1,085
Septon 25 27 27 40 42 66 92 95 85 92 62 108 103 120 295 346 359 367
Sominis n.m. 15 28 40 27 23 12 27 35 26 30 29 n.m. 82 89 121 133 135
EBIT by segment
Aurora 7 2 13 28 3 2 12 26 -2 -8 0 29 44 49 43 19 46 52
Sw eDeltaco 7 -1 1 3 4 9 10 5 9 7 -21 -24 19 11 29 -29 53 55
Septon 3 3 3 2 2 4 6 7 2 5 2 2 15 12 20 11 27 29
Sominis n.m. 0 1 1 1 1 0 0 1 1 1 0 3 2 3 3 3
Group -4 -4 -3 -4 -4 -8 -3 -6 -6 -9 -5 28 -26 -15 -21 9 -19 -20
Sales growth by segment
Aurora 29% 5% -10% 0% -5% 18% 23% 14% 4% -11% -19% 2% 31% 4% 12% -5% 2% 2%
Sw eDeltaco 5% -11% -6% 16% 24% 44% 36% 12% 14% 6% 9% 3% 7% 1% 27% 8% 5% 5%
Septon n.m. n.m. n.m. n.m. 67% 144% 239% 136% 102% 39% -33% 13% n.m. n.m. 147% 17% 4% 2%
Sominis n.m. n.m. n.m. n.m. n.m. 58% -56% -32% 32% 11% 149% 9% n.m. n.m. 8% 36% 10% 2%
DistIT
30 October 2019 ABG Sundal Collier 9
Source: ABG Sundal Collier, Company data
Income Statement (SEKm) Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019e
Sales 465 514 570 724 556 532 536 755
COGS -365 -401 -446 -567 -437 -409 -429 -598
Gross profit 99 113 124 157 119 123 107 157
Other operating items -90 -102 -95 -122 -111 -124 -87 -119
EBITDA 9 11 29 35 7 -1 20 38
Depreciation and amortisation -3 -3 -3 -3 -3 -3 -43 -3
EBITA 6 8 26 32 5 -4 -23 35
EO items -3 -4 -2 -5 -2 -16 -39 0
Impairment and PPA amortisation 0 0 0 0 0 0 0 0
EBIT 6 8 26 32 5 -4 -23 35
Net financial items -2 -4 -6 -4 -4 -3 -1 -3
Pretax profit 5 4 20 28 1 -7 -24 33
Tax -1 -1 -5 -6 -0 0 -3 -7
Net profit 4 3 15 22 1 -6 -27 25
Minority interest -1 -1 -1 -1 -1 -1 -1 -0
Net profit discontinued 0 0 0 0 0 0 45 0
Net profit to shareholders 3 2 14 21 0 -7 17 25
EPS 0.25 0.17 1.16 1.69 0.03 -0.59 1.38 2.05
EPS Adj 0.25 0.17 1.16 1.69 0.03 -0.59 -2.24 2.05
Total extraordinary items after tax -3 -4 -2 -5 -2 -16 -39 0
Tax rate (%) 19.1 21.1 24.0 20.4 16.7 5.9 10.7 22.0
Gross margin (%) 21.4 22.0 21.7 21.7 21.4 23.2 20.0 20.8
EBITDA margin (%) 2.0 2.1 5.0 4.8 1.3 -0.2 3.7 5.1
EBITA margin (%) 1.4 1.6 4.5 4.4 0.8 -0.7 -4.3 4.7
EBIT margin (%) 1.4 1.6 4.5 4.4 0.8 -0.7 -4.3 4.7
Pretax margin (%) 1.0 0.7 3.5 3.8 0.2 -1.3 -4.6 4.3
Net margin (%) 0.8 0.6 2.7 3.0 0.2 -1.2 -5.0 3.4
Growth rates Y/Y Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019e
Sales growth (%) 18.9 40.1 37.7 18.8 19.5 3.6 -6.0 4.3
EBITDA growth (%) -41.3 147.7 51.6 7.7 -18.7 -chg -30.2 9.1
EBIT growth (%) -47.5 530.8 64.7 6.3 -26.6 -chg -chg 10.3
Net profit growth (%) -56.8 +chg 38.2 -0.9 -73.7 -chg -chg 15.8
EPS growth (%) -56.8 +chg 38.2 -0.9 -73.7 -chg -chg 15.8
Adj earnings numbers Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019e
EBITDA Adj 12 15 30 40 9 15 59 38
EBITDA Adj margin (%) 2.5 3.0 5.3 5.5 1.7 2.7 11.0 5.1
EBITA Adj 9 13 28 37 7 12 16 35
EBITA Adj margin (%) 1.9 2.5 4.8 5.1 1.2 2.3 3.0 4.7
EBIT Adj 9 13 28 37 7 12 16 35
EBIT Adj margin (%) 1.9 2.5 4.8 5.1 1.2 2.3 3.0 4.7
Pretax profit Adj 7 8 22 33 3 9 15 33
Net profit Adj 6 7 17 27 3 9 12 25
Net profit to shareholders Adj 6 7 16 26 2 8 12 25
Net Adj margin (%) 1.4 1.4 3.0 3.7 0.5 1.7 2.2 3.4
DistIT
30 October 2019 ABG Sundal Collier 10
Source: ABG Sundal Collier, Company data
Income Statement (SEKm) 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Sales 494 1,021 1,391 1,294 1,542 1,781 2,272 2,379 2,480 2,560
COGS -375 -743 -1,036 -981 -1,178 -1,373 -1,779 -1,872 -1,931 -1,987
Gross profit 120 278 355 313 364 408 493 507 549 573
Other operating items -96 -243 -283 -265 -299 -337 -410 -443 -427 -442
EBITDA 24 35 72 48 65 71 84 64 121 131
Depreciation and amortisation -5 -13 -7 -8 -12 -12 -11 -51 -12 -12
Of which leasing depreciation 0 0 0 0 0 0 0 0 0 0
EBITA 19 23 65 40 53 59 72 13 109 119
EO items 0 0 0 -7 -3 -2 -14 -57 0 0
Impairment and PPA amortisation 0 0 0 0 0 0 0 0 0 0
EBIT 19 23 65 40 53 59 72 13 109 119
Net financial items -7 -3 -6 -10 -5 -5 -16 -11 -9 -8
Pretax profit 12 20 59 30 48 54 56 3 100 111
Tax -6 -5 -13 -6 -11 -12 -12 -10 -22 -24
Net profit 5 15 46 25 37 41 44 -7 78 87
Minority interest -1 -2 -6 -7 -6 -5 -4 -2 -4 -4
Net profit discontinued 0 0 0 0 24 393 0 45 0 0
Net profit to shareholders 4 13 41 18 55 430 40 35 75 83
EPS 0.36 1.07 3.32 1.44 4.46 34.99 3.27 2.87 6.08 6.73
EPS Adj 0.36 1.07 3.32 1.97 2.69 3.13 4.40 3.85 6.08 6.73
Total extraordinary items after tax 0 0 0 -7 -3 -2 -14 -57 0 0
Leasing payments 0 0 0 0 0 0 0 0 0 0
Tax rate (%) 54.3 25.9 21.3 19.4 22.7 23.1 21.6 378.6 22.0 22.0
Gross margin (%) 24.2 27.2 25.5 24.2 23.6 22.9 21.7 21.3 22.1 22.4
EBITDA margin (%) 4.8 3.5 5.2 3.7 4.2 4.0 3.7 2.7 4.9 5.1
EBITA margin (%) 3.8 2.2 4.7 3.1 3.4 3.3 3.2 0.6 4.4 4.7
EBIT margin (%) 3.8 2.2 4.7 3.1 3.4 3.3 3.2 0.6 4.4 4.7
Pretax margin (%) 2.3 1.9 4.2 2.3 3.1 3.0 2.5 0.1 4.0 4.3
Net margin (%) 1.1 1.4 3.3 1.9 2.4 2.3 1.9 -0.3 3.2 3.4
Growth rates Y/Y 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Sales growth (%) 20.2 106.6 36.2 -7.0 19.2 15.5 27.6 4.7 4.2 3.2
EBITDA growth (%) 1.3 47.7 104.2 -32.9 34.1 9.7 17.3 -22.8 88.1 8.3
EBIT growth (%) -9.5 19.5 185.0 -37.9 30.8 12.4 22.2 -81.6 722.5 9.2
Net profit growth (%) -58.6 175.5 217.1 -47.1 49.8 12.5 6.3 -116.0 1,213.9 10.5
EPS growth (%) -65.6 197.7 211.5 -56.6 209.6 684.3 -90.6 -12.2 111.7 10.6
Profitability 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
ROE (%) 2.5 7.7 20.9 8.0 19.5 126.8 11.6 9.6 18.4 18.1
ROE Adj (%) 2.5 7.7 20.9 10.9 11.8 11.4 15.6 12.8 18.4 18.1
ROCE (%) 8.1 7.6 16.6 8.7 9.7 9.4 10.0 1.7 14.1 14.8
ROCE Adj(%) 8.1 7.6 16.6 10.2 10.1 9.7 11.9 9.0 14.1 14.8
ROIC (%) 4.1 5.8 12.8 7.0 7.7 7.3 8.4 -5.3 11.4 11.8
ROIC Adj (%) 4.1 5.8 12.8 8.1 8.0 7.6 10.0 -27.9 11.4 11.8
Adj earnings numbers 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
EBITDA Adj 24 35 72 55 68 73 97 121 121 131
EBITDA Adj margin (%) 4.8 3.5 5.2 4.2 4.4 4.1 4.3 5.1 4.9 5.1
EBITDA lease Adj 24 35 72 55 68 73 97 121 121 131
EBITDA lease Adj margin (%) 4.8 3.5 5.2 4.2 4.4 4.1 4.3 5.1 4.9 5.1
EBITA Adj 19 23 65 47 55 61 86 70 109 119
EBITA Adj margin (%) 3.8 2.2 4.7 3.6 3.6 3.4 3.8 2.9 4.4 4.7
EBIT Adj 19 23 65 47 55 61 86 70 109 119
EBIT Adj margin (%) 3.8 2.2 4.7 3.6 3.6 3.4 3.8 2.9 4.4 4.7
Pretax profit Adj 12 20 59 37 50 56 70 59 100 111
Net profit Adj 5 15 46 31 39 43 58 49 78 87
Net profit to shareholders Adj 4 13 41 24 33 39 54 47 75 83
Net Adj margin (%) 1.1 1.4 3.3 2.4 2.5 2.4 2.5 2.1 3.2 3.4
DistIT
30 October 2019 ABG Sundal Collier 11
Source: ABG Sundal Collier, Company data
Cash Flow Statement (SEKm) 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
EBITDA 24 35 72 48 65 71 84 64 121 131
Net financial items -7 -3 -6 -10 -5 -5 -16 -11 -9 -8
Paid tax -6 -5 -13 -6 -11 -12 -12 -10 -22 -24
Non-cash items 0 0 0 0 0 0 0 0 0 0
Cash flow before change in WC 10 27 54 33 49 53 55 44 90 99
Change in WC -17 -102 -69 -21 -64 -87 -13 -31 -86 8
Operating cash flow -7 -42 16 42 -29 12 70 21 74 77
CAPEX tangible fixed assets -12 -68 -28 -70 -42 -37 -68 -25 -12 -13
CAPEX intangible fixed assets 0 0 0 0 0 0 0 0 0 0
Acquisitions and disposals 0 0 0 0 0 0 0 0 0 0
Free cash flow -18 -109 -13 -29 -71 -26 2 -4 61 64
Dividend paid -12 -15 -15 -18 -20 -34 0 -12 -25 -26
Share issues and buybacks 0 0 0 0 0 0 0 0 0 0
Other non cash items -11 -26 2 1 116 -26 -27 13 -40 24
Decrease in net IB debt -30 -114 -9 -49 43 -71 -5 23 37 38
Balance Sheet (SEKm) 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Goodwill 23 55 69 100 93 127 135 118 119 119
Other intangible assets 0 0 0 0 0 0 0 0 0 0
Tangible fixed assets 51 51 50 49 47 48 49 50 50 51
Right-of-use asset 0 0 0 0 0 0 0 0 0 0
Total other fixed assets 12 11 9 8 38 9 10 11 11 11
Fixed assets 85 117 127 157 178 183 194 179 180 181
Inventories 99 214 259 310 361 403 488 503 528 551
Receivables 80 206 277 306 345 415 434 430 466 479
Other current assets 8 23 20 15 31 31 52 68 35 36
Cash and liquid assets 48 37 59 66 95 77 178 145 162 180
Total assets 319 596 742 855 1,010 1,109 1,345 1,326 1,370 1,426
Shareholders equity 172 169 222 221 340 338 355 383 429 481
Minority 0 0 0 0 8 16 20 22 26 30
Total equity 172 169 222 221 348 355 375 405 455 511
Long-term debt 77 179 210 267 252 305 411 355 335 315
Pension debt 0 0 0 0 0 0 0 0 0 0
Convertible debt 0 0 0 0 0 0 0 0 0 0
Leasing liability 0 0 0 0 0 0 0 0 0 0
Total other long-term liabilities 0 0 0 0 0 0 0 0 0 0
Short-term debt 0 0 0 0 0 0 0 0 0 0
Accounts payable 39 180 226 285 311 337 427 408 382 425
Other current liabilities 32 68 84 82 99 113 132 159 198 174
Total liabilities and equity 319 596 742 855 1,010 1,109 1,345 1,326 1,370 1,426
Net IB debt 28 142 152 200 157 228 233 210 173 136
Net IB debt excl. pension debt 28 142 152 200 157 228 233 210 173 136
Net IB debt excl. leasing 28 142 152 200 157 228 233 210 173 136
Capital invested 224 357 437 488 573 665 689 705 792 785
Working capital 139 241 310 331 395 482 494 526 612 604
EV breakdown 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Market cap. diluted (m) 156 215 370 464 598 505 447 408 408 408
Net IB debt Adj 28 142 152 200 157 228 233 210 173 136
Market value of minority 0 0 0 0 8 16 24 27 31 36
Reversal of shares and participations 0 0 0 0 0 0 0 0 0 0
Reversal of conv. debt assumed equity 0 0 0 0 0 0 0 0 0 0
EV 185 357 522 664 763 749 704 644 612 579
Capital efficiency 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Total assets turnover (%) 166.5 223.1 207.9 162.1 165.4 168.0 185.1 178.1 183.9 183.1
Working capital/sales (%) 26.3 18.6 19.8 24.8 23.5 24.6 21.5 21.4 22.9 23.8
Financial risk and debt service 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Net debt/equity 0.16 0.84 0.68 0.90 0.45 0.64 0.62 0.52 0.38 0.27
Net debt/market cap 0.19 0.66 0.50 0.50 0.30 0.34 0.49 0.51 0.42 0.33
Equity ratio (%) 53.8 28.4 29.9 25.9 34.5 32.0 27.9 30.5 33.2 35.9
Net IB debt adj./equity 0.16 0.84 0.68 0.90 0.45 0.64 0.62 0.52 0.38 0.27
Current ratio 3.30 1.93 1.98 1.90 2.03 2.06 2.06 2.03 2.05 2.08
EBITDA/net interest 3.23 11.77 12.22 4.94 12.73 13.19 5.15 5.99 13.66 15.67
Net IB debt/EBITDA 1.18 4.03 2.10 4.13 2.42 3.20 2.79 3.25 1.43 1.03
Net IB debt/EBITDA lease Adj 1.18 4.03 2.10 3.64 2.32 3.11 2.40 1.73 1.43 1.03
Interest cover 2.57 7.57 10.97 4.10 10.31 10.94 4.46 1.23 12.31 14.24
DistIT
30 October 2019 ABG Sundal Collier 12
Source: ABG Sundal Collier, Company data
Valuation and Ratios (SEKm) 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Shares outstanding adj. 12 12 12 12 12 12 12 12 12 12
Fully diluted shares Adj 12 12 12 12 12 12 12 12 12 12
EPS 0.36 1.07 3.32 1.44 4.46 34.99 3.27 2.87 6.08 6.73
Dividend per share Adj 1.2 1.2 1.5 1.6 2.8 0 1.0 2.0 2.2 2.2
EPS Adj 0.36 1.07 3.32 1.97 2.69 3.13 4.40 3.85 6.08 6.73
BVPS 13.99 13.78 18.04 18.01 27.66 27.54 28.89 31.17 34.95 39.21
BVPS Adj 12.12 9.35 12.46 9.88 20.05 17.24 17.89 21.52 25.28 29.49
Net IB debt / share 2.3 11.6 12.3 16.3 12.8 18.6 19.0 17.1 14.1 11.0
Share price 12.72 17.49 30.14 37.77 48.70 41.10 36.40 33.20 33.20 33.20
Market cap. (m) 156 215 370 464 598 505 447 408 408 408
Valuation 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
P/E 35.5 16.4 9.1 26.2 10.9 1.2 11.1 11.6 5.5 4.9
EV/sales 0.37 0.35 0.38 0.51 0.49 0.42 0.31 0.27 0.25 0.23
EV/EBITDA 7.7 10.1 7.2 13.7 11.8 10.5 8.4 10.0 5.0 4.4
EV/EBITA 9.7 15.7 8.1 16.5 14.5 12.7 9.8 48.5 5.6 4.9
EV/EBIT 9.7 15.7 8.1 16.5 14.5 12.7 9.8 48.5 5.6 4.9
Dividend yield (%) 9.4 6.9 5.0 4.2 5.6 0 2.7 6.0 6.5 6.5
FCF yield (%) -11.8 -50.9 -3.4 -6.2 -11.9 -5.1 0.5 -0.9 15.0 15.7
Lease adj. FCF yield (%) -11.8 -50.9 -3.4 -6.2 -11.9 -5.1 0.5 -0.9 15.0 15.7
P/BVPS 0.91 1.27 1.67 2.10 1.76 1.49 1.26 1.07 0.95 0.85
P/BVPS Adj 1.05 1.87 2.42 3.82 2.43 2.38 2.03 1.54 1.31 1.13
P/E Adj 35.5 16.4 9.1 19.2 18.1 13.1 8.3 8.6 5.5 4.9
EV/EBITDA Adj 7.7 10.1 7.2 12.1 11.3 10.2 7.2 5.3 5.0 4.4
EV/EBITA Adj 9.7 15.7 8.1 14.2 13.8 12.3 8.2 9.2 5.6 4.9
EV/EBIT Adj 9.7 15.7 8.1 14.2 13.8 12.3 8.2 9.2 5.6 4.9
EV/cap. employed 0.7 1.0 1.2 1.4 1.3 1.1 0.9 0.8 0.8 0.7
Investment ratios 2012 2013 2014 2015 2016 2017 2018 2019e 2020e 2021e
Capex/sales 2.3 6.6 2.0 5.4 2.7 2.1 3.0 1.0 0.5 0.5
Capex/depreciation 234.7 538.9 383.8 857.3 338.2 307.4 600.0 48.8 103.3 106.7
Capex tangibles/tangible fixed assets 22.6 133.1 57.3 144.1 89.5 77.7 138.9 49.6 24.6 25.3
Capex intangibles/definite intangibles nm nm nm nm nm nm nm nm nm nm
Depreciation on intangibles/definite intangibles nm nm nm nm nm nm nm nm nm nm
Depreciation on tangibles/tangibles 9.6 24.7 14.9 16.8 26.5 25.3 23.2 101.6 23.8 23.7
DistIT
30 October 2019 ABG Sundal Collier 13
Analyst certification I/We, Oskar Vikström, the author(s) of this report, certify that not withstanding the existence of any such potential conflicts of interests referred to below, the views expressed in this report accurately reflect my/our personal view about the companies and securities covered in this report.
Analyst valuation methods ABG Sundal Collier analysts may publish valuation ranges for stocks covered under Company Sponsored Research. These valuation ranges rely on various valuation methods. One of the most frequently used methods is the valuation of a company by calculation of that company's discounted cash flow (DCF). Another valuation method is the analysis of a company's return on capital employed relative to its cost of capital.
Finally, the analysts may analyse various valuation multiples (e.g. the P/E multiples and the EV/EBITDA multiples) relative to global industry peers. In special cases, particularly for property companies and investment companies, the ratio of price to net asset value is considered. Valuation ranges may be changed when earnings and cash flow forecasts are changed. They may also be changed when the underlying value
of a company's assets changes (in the cases of investment companies, property companies or insurance companies) or when factors impacting the required rate of return change.
Important Company Specific Disclosure ssss
The following disclosures relate to the relationship between ABG Sundal Collier and its affiliates and the companies covered by ABG Sundal
Collier referred to in this research report.
Unless disclosed in this section, ABG Sundal Collier has no required regulatory disclosures to make in relation to an ownership position for the
analyst(s) and members of the analyst's household, ownership by ABG Sundal Collier, ownership in ABG Sundal Collier by the company(ies) to
whom the report(s) refer(s) to, market making, managed or co-managed public offerings, compensation for provision of certain services,
directorship of the analyst, or a member of the analyst's household, or in relation to any contractual obligations to the issuance of this research
report.
ABG Sundal Collier has undertaken a contractual obligation to issue this report and receives predetermined compensation from the company covered in this report.
w
mo
mo
ABG Sundal Collier is not aware of any other actual, material conflicts of interest of the analyst or ABG Sundal Collier of which the analyst
knows or has reason to know at the time of the publication of this report.
Production of report: 30/10/2019 17:33 CET.
All prices are as of market close on 28 October, 2019 unless otherwise noted.
Disclaimer This document has been prepared by ABG Sundal Collier which is the marketing name referring to all or any of ABG Sundal Collier ASA, ABG
Sundal Collier AB or ABG Sundal Collier Partners LLP and any of their affiliated or associated companies and their directors, officers, representatives and employees.
This research product is commissioned and paid for by the company covered in this report. As such, this report is deemed to constitute an acceptable minor non-monetary benefit (i.e. not investment research) as defined in MiFID II.
This research product has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination.
This report is provided solely for the information and use of professional investors, who are expected to make their own investment decisions without undue reliance on this report. The information contained herein does not apply to, and should not be relied upon by, retail clients. This report is for distribution only under such circumstances as may be permitted by applicable law. Research reports prepared by ABG Sundal Collier
are for information purposes only. ABG Sundal Collier accepts no liability whatsoever for any losses arising from any use of this report or its contents. This report is not to be used or considered as an offer to sell, or a solicitation of an offer to buy. The information herein has been obtained from, and any opinions herein are based upon, sources believed reliable, but ABG Sundal Collier makes no representation as to its accuracy or
completeness and it should not be relied upon as such. All opinions and estimates herein reflect the judgment of ABG Sundal Collier on the date of this report and are subject to change without notice. Past performance is not indicative of future results.
This research report does not, and does not attempt to contain everything material that there is to be said about DistIT AB.
The compensation of our research analysts is determined exclusively by research management and senior management, but not including investment banking management. Compensation is not based on specific investment banking revenues, however, it is determined f rom the
profitability of the ABG Sundal Collier Group, which includes earnings from investment banking operations and other business. Investors should assume that ABG Sundal Collier is seeking or will seek investment banking or other business relationships with the companies in this report. The research analyst(s) responsible for the preparation of this report may interact with trading desk and sales personnel and other departments for the
purpose of gathering, synthesizing and interpreting market information. From time to time, ABG Sundal Collier and its affil iates and any shareholders, directors, officers or employees thereof may (I) have a position in, or otherwise be interested in, any securit ies directly or indirectly connected to the subject of this report, or (II) perform investment banking or other services for, or solicit investment banking or other services
from, a company mentioned in this report. ABG Sundal Collier relies on information barriers to control the flow of information contained in one or more areas of ABG Sundal Collier, into other areas, units, groups or affiliates of ABG Sundal Collier.
Norway: ABG Sundal Collier ASA is regulated by the Financial Supervisory Authority of Norway (Finanstilsynet); Sweden: ABG Sundal Collier AB is regulated by the Swedish Financial Supervisory Authority (Finansinspektionen); UK: This report is a communication made, or approved for communication in the UK, by ABG Sundal Collier Partners LLP, authorised and regulated by the Financial Conduct Authority in the conduct of its
business. US: This report is being distributed in the United States in accordance with FINRA Rule 1050(f)(3)(B) by ABG Sundal Collier Inc., a FINRA member which accepts responsibility for its content. Research analysts are not registered/qualified as research analysts with FINRA or the NYSE, and are not associated persons of ABG Sundal Collier Inc. and therefore not subject to FINRA Rule 2241, the research analyst conflict
rules. Research reports distributed in the U.S are intended solely for “major institutional investors”, as defined under Ru le 15a-6 of the Securities Exchange Act of 1934. Each U.S major institutional investor that receives a copy of this research report by its acceptance represents that it agrees it will not distribute this research report to any other person. Any U.S. major institutional investor receiving this report who wishes to effect
DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB DistIT AB
DistIT
30 October 2019 ABG Sundal Collier 14
transactions in any securities referred to herein should contact ABG Sundal Collier Inc., not its affiliates. Further information on the securities
referred to herein may be obtained from ABG Sundal Collier Inc., on request.
Singapore: This report is distributed in Singapore by ABG Sundal Collier Pte Ltd, which is not licensed under the Financial Advisers Act (Chapter
110 of Singapore). In Singapore, this report may only be distributed to institutional investors as defined in Section 4A(1)(c) of the Securities and Futures Act (Chapter 289 of Singapore) (“SFA”), and should not be circulated to any other person in Singapore.
This report may not be reproduced, distributed or published by any recipient for any purpose whatsoever without the prior written express permission of ABG Sundal Collier. Additional information available upon request. If reference is made in this report to other companies and ABG Sundal Collier provides
research coverage for those companies details regarding disclosures may be found on our website www.abgsc.com.
© Copyright 2019 ABG Sundal Collier ASA
DistIT AB
DistIT
30 October 2019 ABG Sundal Collier 15
ABGSC Research Department Joint Global Head of Research
John Olaisen +47 22 01 61 87 Christer Linde +46 8 566 286 90
Strategy
Christer Linde, Quant/Technical +46 8 566 286 90
Derek Laliberte +46 8 566 286 78
Bengt Jonassen +47 22 01 60 98
Capital Goods
Anders Idborg +46 8 566 286 74
Olof Cederholm +46 8 566 286 22
Karl Bokvist +46 8 566 286 33
Chemicals
Martin Melbye +47 22 01 61 37
Bengt Jonassen +47 22 01 60 98
Petter Nyström +47 22 01 61 35
Construction & Real Estate
Tobias Kaj +46 8 566 286 21
Bengt Jonassen +47 22 01 60 98
Laurits Louis Kjaergaard +45 35 46 30 12
Consumer Goods
Petter Nyström +47 22 01 61 35
Morten Raunholt Eismark +45 35 46 30 16
Ludvig Kapanen +46 8 566 286 91
Credit Research
Rikard Magnus Braaten +47 22 01 60 86
Andreas Johannessen +47 22 01 60 31
Haakon Amundsen +47 22 01 60 25
Glenn Kringhaug +47 22 01 61 62
Karl Fredrik Schjøtt-Pedersen +47 22 01 61 65
Eric Wahlström +46 8 566 286 25
Financials
Magnus Andersson +46 8 566 294 69
Mads Thinggaard +45 35 46 30 18
Patrik Brattelius +46 8 566 286 64
Jan Erik Gjerland +47 22 01 61 16
Jonas Bru Lien +47 22 01 61 71
Food & Beverages
Morten Raunholt Eismark +45 35 46 30 16
Healthcare
Rickard Anderkrans +46 8 566 286 73
Daniel Thorsson +46 8 566 286 82
Victor Forssell +46 8 566 286 92
Jannick Lindegaard Denholt +45 35 46 30 13
lnvestment Companies
Derek Laliberte +46 8 566 286 78
IT
Aksel Øverland Engebakken +47 22 01 61 11
Daniel Thorsson +46 8 566 286 82
André Thormann +45 35 46 30 19
Simon Granath +46 8 566 286 32
Jesper Birch-Jensen +46 8 566 286 13
Media
Aksel Øverland Engebakken +47 22 01 61 11 Derek Laliberte +46 8 566 286 78
Metals & Mining
Martin Melbye +47 22 01 61 37
Bengt Jonassen +47 22 01 60 98
Petter Nyström +47 22 01 61 35
Oil & Gas
John Olaisen +47 22 01 61 87
Karl Fredrik Schjøtt-Pedersen +47 22 01 61 65
Oil Service
John Olaisen +47 22 01 61 87
Haakon Amundsen +47 22 01 60 25
Lukas Daul +47 22 01 61 39
Karl Fredrik Schjøtt-Pedersen +47 22 01 61 65
Online Gaming
Aksel Øverland Engebakken +47 22 01 61 11
Erik Moberg +46 8 566 286 87
Stefan Knutsson +46 8 566 286 37
Jesper Birch-Jensen +46 8 566 286 13
Pulp & Paper
Martin Melbye +47 22 01 61 37
Øystein Elton Lodgaard +47 22 01 60 26
Renewable Energy
Casper Blom +45 35 46 30 15
Petter Nyström +47 22 01 61 35
Retail
Fredrik Ivarsson +46 8 566 286 95
Ludvig Kapanen +46 8 566 286 91
Seafood
Martin Kaland +47 22 01 60 67
Services
Morten Raunholt Eismark +45 35 46 30 16
Victor Forssell +46 8 566 286 92
Shipping & Transport
Dennis Anghelopoulos +47 22 01 60 37
Casper Blom +45 35 46 30 15
Lukas Daul +47 22 01 61 39
Telecom Operators
Peter Kurt Nielsen +44 207 905 5631
Utilities
Martin Melbye +47 22 01 61 37
Petter Nyström +47 22 01 61 35
Small Caps
Daniel Thorsson +46 8 566 286 82
Laurits Louis Kjaergaard +45 35 46 30 12
Norway Sweden Denmark United Kingdom USA Germany Singapore
Pb. 1444 Vika Box 7269 Forbindelsesvej 12, 10 Paternoster Row, 5th fl 850 Third Avenue, Suite 9-C Schillerstrasse 2, 5. OG 10 Collyer Quay
NO-0115 OSLO Norway
SE-103 89 STOCKHOLM Sweden
DK-2100 COPENHAGEN Denmark
LONDON EC4M 7EJ UK
NEW YORK, NY 10022 USA
DE-60313 FRANKFURT
Germany
Ocean Financial Center
#40-07, Singapore 049315
Tel: +47 22 01 60 00 Tel: +46 8 566 286 00 Tel: +45 35 46 61 00 Tel: +44 20 7905 5600 Tel. +1 212 605 3800 Tel +49 69 96 86 96 0 Tel +65 6808 6082
Fax: +47 22 01 60 60 Fax: +46 8 566 286 01 Fax: +45 35 46 61 10 Fax: +44 20 7905 5601 Fax. +1 212 605 3801 Fax +49 69 96 86 96 99
DistIT AB