Dustin Group

Quarterly Report • Jun 27, 2023

Interim report

March 1, 2023 – May 31, 2023

dustingroup.com

1

Interim report March 2023 – May 2023

"Strong cash flow in a cautious market"

Third quarter

• Net sales amounted to SEK 5,582 million (5,894).
• Organic sales growth was -9.4 per cent (19.7), of which SMB accounted for -17.4 per cent (8.7) and LCP -5.5 per cent (26.1).
• The gross margin amounted to 15.3 per cent (14.3).
• Adjusted EBITA amounted to SEK 169 million (201), corresponding to an adjusted EBITA margin of 3.0 per cent (3.4).

September 2022 – May 2023

• Net sales amounted to SEK 18,489 million (17,858).
• Organic sales growth was -1.1 per cent (13.5), of which SMB accounted for -11.7 per cent (8.6) and LCP 4.0 per cent (18.4).
• The gross margin amounted to 14.4 per cent (14.8).
• Adjusted EBITA amounted to SEK 582 million (777), corresponding to an adjusted EBITA margin of 3.1 per cent (4.4).
• EBIT totalled SEK 391 million (611), including items affecting comparability of SEK -53 million (-39).
• Profit for the period amounted to SEK 171 million (395).
• EBIT totalled SEK 97 million (140), including items affecting comparability of SEK -25 million (-19).
• Profit for the quarter was SEK 23 million (85).
• Earnings per share before dilution totalled SEK 0.21 (0.75).
• Cash flow from operating activities amounted to SEK 431 million (-277).
• Earnings per share before dilution totalled SEK 1.51 (3.49).
• Cash flow from operating activities amounted to SEK 596 million (480).
• At the end of the period, net debt in relation to adjusted EBITDA over the past 12-month period was 4.5 (3.7). The increase from the previous quarter was primarily attributable to currency effects, at unchanged currency rates between the quarters the key ratio would have been 4.3 (4.4 at the end of February 2023).

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
All amounts in SEK million, unless otherwise indicated	22/23	21/22	22/23	21/22	12 months	21/22
Net sales	5,582.0	5,894.2	18,489.4	17,857.5	24,232.8	23,600.9
Organic sales growth (%)	-9.4	19.7	-1.1	13.5	2.4	11.4
Gross margin (%)	15.3	14.3	14.4	14.8	14.4	14.7
Adjusted EBITA	169.2	201.4	581.7	777.1	783.3	978.7
Adjusted EBITA margin (%)	3.0	3.4	3.1	4.4	3.2	4.1
EBIT	96.9	140.0	391.3	611.2	538.2	758.0
Profit for the period	23.4	84.7	170.9	394.9	253.7	477.7
Items affecting comparability	-25.3	-18.7	-53.3	-38.6	-64.8	-50.1
Earnings per share before dilution (SEK)	0.21	0.75	1.51	3.49	2.24	4.22
Cash flow from operating activities	431.1	-277.2	596.2	479.9	700.6	584.3
Net debt/adjusted EBITDA (multiple)*	-	-	-	-	4.5	3.7
Return on equity (%)	-	-	-	-	4.7	9.4

* Refer to the section on alternative performance measures for the source of the calculation.

Financial key ratios

Strong cash flow in a cautious market

I am pleased and proud to be CEO of Dustin since April, after 14 years as CFO. During the third quarter we faced a challenging market dominated by macroeconomic concerns and a distinctly cautious trend for several of our customer groups. Through our strong position and price discipline together with an improved product mix, we have strengthened the gross margin in the quarter, despite lower sales. The adjusted EBITA margin fell slightly due to lower volumes and continuing cost inflation. Cash flow was strong and tied-up working capital decreased through the continued reduction in inventory. We focus our work on cutting our costs and compensating for high inflationary pressure. Dustin holds a strong market position and our business acumen, entrepreneurial spirit and culture remain as strong as ever. Together with all my colleagues, I am looking forward to further developing the operations.

Short-term focus and long-term goals

After 14 years as CFO of Dustin, I am well aware of our strengths and weaknesses. Dustin holds a strong market position with a strategy that is completely aligned with the long-term positive market trends. Our long-term goals were updated earlier this year and stand firm. The short-term focus is on deleverage, margin improvements and growth, and these will be prioritised in that order. Despite a turbulent market, we have continued our integration with the same focus and are investing to free up synergies over time throughout the organisation. Through a strong culture, coordinated processes and a shared brand and IT platform, we can further strengthen our market position.

Negative growth due to sustained cautious demand

Demand continued to be dominated by general economic uncertainty and a cautious trend among several of our customer groups. A more normalised availability of products and continued healthy demand from the public sector in most of our markets softened the sales decline compared with a comparative quarter with very strong growth. Net sales declined 5.3 per cent to SEK 5,582 million (5,894). Organic growth was -9.4 per cent, of which -17.4 per cent for SMB and -5.5 per cent for LCP.

Demand in the SMB segment remained cautious and the volume trend is to some extent due to strong price discipline in a price-conscious market. The trend was similar in all customer groups in the segment, with the exception of B2C, where sales stabilised in line with the year-earlier quarter. The trend in LCP was in line with the strong comparative quarter in the preceding year, driven by a strong performance in the Netherlands. Adjusted for the major 50.40 framework agreement with SKI in Denmark, which expired during the first quarter, growth in the quarter was equivalent to 8 per cent for the segment. Market data for the Nordic region indicates a sharp sales decline for computers by up to 30-35 per cent during the period, compared with the year-earlier period.

Strong gross margin due to position and price discipline The gross margin improved 15.3 per cent (14.3) for the quarter, which is a distinct improvement compared with 14.6 per cent in the second quarter. The improvement

was mainly due to our strong position and strong price discipline in a price-conscious market, the phase-out of the major Danish framework agreement with low margins and an improved product mix. Adjusted EBITA amounted to SEK 169 million (201) and the adjusted EBITA margin was 3.0 per cent (3.4). The lower margin was mainly related to lower volumes and significant cost inflation. Our focus is to balance the cost base and compensate for the high inflationary pressure. EBIT amounted to SEK 97 million (140), including items affecting comparability of SEK -25 million (-19), which primarily related to the integration and staff reductions.

Strong cash flow and improved net working capital

Cash flow from operating activities increased sharply to SEK 431 million (-277) for the quarter. Net working capital improved further in the third quarter and is now again in negative territory following four quarters of higher tiedup capital in inventory. The inventory declined to SEK 1,031 million compared with SEK 1,220 million in the second quarter and SEK 1,610 million in the first quarter, mainly as a result of reduced customer-specific inventory. Our focus and collaboration with suppliers mean that we are ahead of our target of an inventory value of SEK 1,100 million at the end of the financial year.

Net debt increased slightly compared with the second quarter, due to negative exchange-rate differences. As a result of this and combined with slightly lower profit, net debt in relation to adjusted EBITDA increased to a multiple of 4.5 (4.4 at the end of the second quarter). Adjusted for exchange-rate differences, the debt/equity ratio fell to a multiple of 4.3. Efforts to reduce the level of indebtedness are prioritised, which is expected to gradually decrease over the next few quarters.

Summary and outlook

Over the past few months, I have met many of our employees in the organisation. It is wonderful to see the drive, the spirit of community and the commitment shown by everyone, which also inspires confidence in the positive future development of our operations and culture. Market developments in recent quarters were dominated by general economic uncertainty and a cautious trend among many of our customer groups. We are satisfied with our strong cash flow and improved gross margin during the quarter, despite the continued challenging sales trend. This clearly reflects our strong business model and market position as well as good price discipline. We are investing in efficiency improvements in our processes and systems, and optimising the organisation to create a Dustin that is well equipped for the future. Alongside of this, we are continuing to focus on adapting our cost base. I look to the future with confidence and am convinced that we are well equipped to address the short-term market turbulence and are well placed to meet the strong underlying market trends in the long term.

Nacka, June 2023

Johan Karlsson, President and CEO

Dustin at a glance

With our focus on strong growth under a single brand, we are in a position to become one of Europe's leading IT partners. The foundation for continued growth is our extensive experience and successful Nordic operating model combined with our strength as a supplier to major customers in the private and public sector.

We support our customers in their everyday situations, regardless of whether it involves finding the right product, IT solution or a combination of the two. We draw energy from our strong sense of community, our colleagues' expertise, the size of the company and our efficient work processes. Together, we strive for sustainable growth and a sustainable industry.

Focus on business customers

Operations comprise two business segments: SMB (Small and Medium-sized Businesses) with a sales share of about 32 per cent in 2021/22 and LCP (Large, Corporate and Public Sector) with a sales share of about 68 per cent. The former B2C (Business to Consumer) business segment, with a sales share of about 2 per cent, has been included in SMB since the second quarter of 2022/23. Our sales are mainly made online and are complemented by consultative selling.

Growing service sales

The demand for standardised and managed services is increasing as companies' needs for mobility and accessibility grow. We are broadening our already extensive product offering with services to help our customers with a large share of their IT needs.

Leading online position

The share of products and services purchased online is growing. We have been online since 1995 and have built a strong position, making us the Nordic region's largest e-retailer for the B2B segment.

Focus on sustainability

The future is circular. Responsible business is a prerequisite for modern, sound and successful operations. For us, this entails that we assume responsibility across the value chain. This involves everything from how we compose our offering to how we make it possible for our customers to make more sustainable choices and move toward more circular business models.

Dustin Group AB is a Swedish public limited company with

its head office in Nacka Strand. The share was listed on Nasdaq Stockholm's Mid Cap Index in 2015.

Vision

Our vision is to help our customers to be at the forefront. We achieve this by providing the right IT solution to the right customer and user. At the right time and the right price. That's why our promise to our customers is – "We keep things moving."

Operational targets

Dustin's Board of Directors has established the following long-term financial targets, which were updated on February 20, 2023:

Earnings per share

Growth of earnings per share of at least 10 per cent (three-year average annual rate of growth).

Supporting targets regarding earnings per share: Organic annual growth in net sales for SMB of 8 per cent and for LCP of 5 per cent (annual average over a three-year period).

Achieve a segment margin of at least 6.5 per cent for SMB and at least 4.5 per cent for LCP within the next three-year period.

Our sustainability efforts

Sustainability is an integrated part of our strategy and our operations, enabling us to facilitate sustainable business and to help our customers make sustainable choices. For us, sustainable business encompasses the entire Group's impact on society and our environment.

Our sustainability targets

The sustainability strategy focuses on three areas: climate, circularity and social equality. Our sustainability goals entail that by 2030 we will:

• be climate neutral throughout the value chain
• be 100 per cent circular
• have taken 100 actions to promote social equality throughout our value chain

Code of conduct

Our ambition is to work and collaborate systematically with our suppliers and our suppliers' suppliers based on our model for a responsible value chain. Through close cooperation with the world's largest hardware manufacturers and global distributors, we believe that we can make a difference together. Our Supplier Code of Conduct provides a basis in this work.

The way in which our products are manufactured is another key aspect, with factory audits playing a significant role in our work in this regard. During the third quarter of 2022/23, four factory audits (three) were conducted.

Social equality

For us, social equality entails taking responsibility in such areas as labour, occupational health and safety, anti-corruption and human rights. We have an opportunity to work actively with our partners to

Capital structure

Dustin's capital structure should enable a high degree of financial flexibility and provide scope for acquisitions. The company's target is net debt of 2.0– 3.0 times adjusted EBITDA for the last 12-month period.

CO2 emissions

25-per cent reduction of CO2e/MSEK net sales in the coming three-year period, contributing towards the unchanged 2030 commitment of being fully climate neutral.

Dividend policy

To distribute more than 70 per cent of the year's profit, with the company's financial status taken into consideration.

promote social equality throughout the value chain. It is a challenge that is present in all areas, including raw materials supply, production, delivery, take-back and recovery. We also want to have an open and inclusive work environment. By 2030, we aim to conduct 100 activities to promote increased social equality in our value chain.

Circular key ratios

We work to further develop our circular economy framework in order to adapt to development in the electronics industry towards circular business models, research and new regulations, such as the EU Taxonomy and the future Corporate Sustainability Reporting Directive (CSRD).

Dustin endeavours to increase the circular share of both services and take-back. In the preceding financial year, we worked intensively to broaden our standardised service offering. We have sharply increased our take-back volumes at our facility in the Netherlands and our Nordic facility in Växjö.

Total take-back in the Nordic region by quarter

Financial overview

Income statement items and cash flows are compared with the year-earlier periods. Balance sheet items pertain to the position at the end of the period and are compared with the corresponding year-earlier date. The quarter refers to March 2023–May 2023.

Third quarter

Net sales

Net sales during the quarter amounted to SEK 5,582 million (5,894). Organic growth was -9.4 per cent (19.7), of which SMB -17.4 per cent (8.7) and LCP -5.5 per cent (26.1). Acquisition-related growth was 0.0 percentage points (61.5) and exchange-rate differences had an impact of 4.1 percentage points (2.2). For more information, see source of alternative performance measures.

Gross profit

During the quarter, gross profit amounted to SEK 857 million (842). The gross margin increased to 15.3 per cent (14.3), mainly as a result of good price discipline in a price-conscious market, the phase-out of the major Danish framework agreement with low margins and a slightly improved product mix with a lower proportion of computers.

Adjusted EBITA

Adjusted EBITA amounted to SEK 169 million (201), corresponding to an adjusted EBITA margin of 3.0 per cent (3.4). This margin decline was primarily attributable to the stronger gross margin being unable to fully offset lower volumes and a generally higher, inflation-driven cost level. Adjusted EBITA excludes items affecting comparability of SEK -25 million (-19), mainly pertaining to integration costs for the Netherlands relating to a reduction in the workforce. For more information, refer to Note 3 Items affecting comparability. For a comparison of adjusted EBITA and EBIT, see Note 2 Net sales and segment reporting.

EBIT

EBIT amounted to SEK 97 million (140). EBIT included items affecting comparability of SEK -25 million (-19).

Financial items

Financial expenses amounted to SEK -62 million (-29). External financing expenses amounted to SEK -58 million (-26), attributable to higher interest expenses due to higher interest rates. Financial expenses were also impacted by interest expenses related to leases of SEK -4 million (-4). Financial income amounted to SEK 1 million (0).

Tax

The tax expense for the quarter was SEK -12 million (-26), corresponding to an effective tax rate of 33.9 per cent (23.6). Higher effective tax is mainly attributable to geographic mix effects in profit generation and nondeductible expenses.

Profit for the quarter

Profit for the quarter was SEK 23 million (85). Earnings per share amounted to SEK 0.21 (0.75) before and after dilution.

Cash flow

Cash flow for the quarter was SEK 323 million (-380).

Cash flow from operating activities amounted to SEK 431 million (-277). Cash flow before changes in working capital was SEK 142 million (184) and changes in working capital amounted to SEK 289 million (-461). Inventory decreased SEK 222 million (-218) primarily as a result of lower customer-specific inventory. A decrease in current receivables of SEK 57 million (-76) resulted in a positive cash flow effect combined with current liabilities of SEK 11 million (-166).

Cash flow from investing activities amounted to SEK -58 million (-52) and pertained to investments in tangible and intangible assets. Investments in the IT platform amounted to SEK -45 million (-41) and the remaining SEK -13 million (-11) pertained primarily to investments in new business systems, IT equipment for internal use and improvements to rented property. Of the period's total investments, project-related investments amounted to SEK -21 million (-18). For more information, refer to Note 4 Investments.

Cash flow from financing activities amounted to SEK -50 million (-51) and mainly pertained to a repayment of lease liabilities of SEK -48 million (-46).

Employees

The average number of full-time employees was 2,391, compared with 2,441 in the year-earlier quarter.

Significant events in the third quarter New interim CFO of Dustin

In April, Johan Ryrberg was appointed interim CFO and member of the group management team.

Changes to Dustin's group management

Jenny Ring has been appointed new EVP People, Culture & Sustainability. She assumed her new role and became a member of the group management team in June 2023.

Impairment tests

During the third quarter, the annual goodwill impairment test was carried out and no need for impairment was identified.

September 1, 2022 – May 31, 2023 Net sales

Net sales during the period amounted to SEK 18,489 million (17,858). Organic growth was -1.1 per cent (13.5), of which SMB -11.7 per cent (8.6) and LCP 4.0 per cent (18.4). Acquired growth was 0.0 percentage points (60.7) and exchange-rate differences had an impact of 4.7 percentage points (1.4).

Gross profit

Gross profit for the period amounted to SEK 2,663 million (2,640). The gross margin declined to 14.4 per cent (14.8), primarily due to a changed product mix with a higher share of revenue within the LCP segment in combination with a slightly higher share of computer hardware with lower margins. Together with the phaseout of the major Danish framework agreement with low margins, good price discipline in a price-conscious market has had a positive impact.

Adjusted EBITA

Adjusted EBITA amounted to SEK 582 million (777), corresponding to an adjusted EBITA margin of 3.1 per cent (4.4). This margin decline was primarily attributable to a slightly lower gross margin, lower volumes primarily in SMB and a generally higher, inflation-driven cost level. Adjusted EBITA excluded items affecting comparability of SEK -53 million (-39), primarily related to integration costs. For more information, refer to Note 3 Items affecting comparability. For a comparison of adjusted EBITA and EBIT, see Note 2 Net sales and segment reporting.

EBIT

EBIT totalled SEK 391 million (611). EBIT included items affecting comparability amounting to SEK -53 million (-39).

Financial items

Financial expenses amounted to SEK -164 million (-96). The period's external financing expenses amounted to SEK -151 million (-83). The increase was attributable to higher interest expenses due to a rise in interest rates. Financial expenses were also impacted by interest expenses related to leases of SEK -12 million (-13). Financial income amounted to SEK 5 million (1), mainly pertaining to the deposit rate of interest.

Tax

The tax expense for the period was SEK -61 million (-121), corresponding to an effective tax rate of 26.3 per cent (23.4). The higher effective tax is mainly attributable to geographic mix effects in profit generation, non-deductible expenses and higher corporate tax in the Netherlands.

Profit for the period

Profit for the period amounted to SEK 171 million (395). Earnings per share amounted to SEK 1.51 (3.49) before and after dilution.

Cash flow

Cash flow for the period was SEK 522 million (-70).

Cash flow from operating activities amounted to SEK 596 million (480). Cash flow before changes in working capital was SEK 414 million (744) and changes in working capital amounted to SEK 182 million (-264). The positive change compared with the preceding period pertained mainly to reduced inventory levels combined with decreased accounts receivable, which was offset by reduced accounts payable. For further

information regarding working capital, refer to the Net working capital section.

Cash flow from investing activities amounted to SEK - 172 million (-166) and related to investments in tangible and intangible assets. Investments in the IT platform amounted to SEK -137 million (-100) and the remaining SEK -36 million (-46) comprised IT equipment for internal use, new business systems and improvements to rented property. Of the period's total investments, project-related investments amounted to SEK -68 million (-49). The change compared with the preceding year was also due to earn-out payments of SEK -21 million. For more information, refer to Note 4 Investments.

Cash flow from financing activities amounted to SEK 98 million (-384). The period was mainly attributable to short-term financing of SEK 246 million (-). The period was also impacted by the repayment of lease liabilities of SEK -140 million (-145). The preceding period was negatively impacted by a dividend of SEK -250 million.

Net working capital

Net working capital amounted to SEK -22 million (4) at period end, compared to SEK 228 million at the end of the previous quarter. Inventory decreased SEK 439 million, primarily as a result of lower levels of customer-specific inventory. Of total inventory of SEK 1,031 million (1,470), customer-specific inventory comprised SEK 533 million (967). The corresponding figure at the end of the second quarter was total inventory of SEK 1,220 million, of which SEK 681 million was customer-specific. Accounts receivable increased due to a higher share of sales at the end of the period compared with last year.

	May 31,	May 31,	Aug 31,
SEK million	2023	2022	2022
Inventories	1,031.1	1,469.7	1,340.2
Accounts receivable	3,186.9	2,838.7	3,165.7
Tax assets and other
current receivables	612.6	621.4	691.5
Accounts payable	-3,504.4	-3,655.2	-3,790.5
Tax liabilities and
other current liabilities	-1,348.2	-1,270.4	-1,327.0
Net working capital	-22.0	4.2	79.9

Net debt and cash and cash equivalents

At the end of the period, net debt amounted to SEK 4,613 million (4,450). The change relates mainly to currency effects and expanded financing of SEK 250 million (-) offset by increased cash and cash equivalents. At the end of the period, there was an unutilised overdraft facility of SEK 100 million (100).

At the end of the period, net debt in relation to adjusted EBITDA over the past 12-month period was 4.5 (3.7). The increase was attributable to increased liabilities to credit institutions, primarily due to currency effects, combined with slightly lower EBITDA. For calculation, see source of alternative performance measures.

SEK million	May 31, 2023	May 31, 2022	Aug 31, 2022
Liabilities to credit institutions	5,325.1	4,660.7	4,741.8
Lease liabilities and other financial
liabilities	516.5	550.7	533.6
Cash and cash equivalents	-1,228.9	-761.8	-766.8
Net debt	4,612.7	4,449.6	4,508.6

Events after the balance sheet date New CFO at Dustin

Julia Lagerqvist was appointed new CFO and member of the group management team at Dustin. She will assume the position in December 2023.

Dustin extends existing credit facility

The sustainability-linked credit facility agreement for a total of approximately SEK 5 billion has during June been extended until October 2025 with the existing banking consortium. Limitations were agreed between the parties in connection with the extension of the credit facility agreement. This means that dividends to shareholders are precluded if the debt/equity ratio, measured as net debt/adjusted EBITDA, exceeds 3.5 times. Borrowing costs related to the extension are capitalised during the next quarter, otherwise no significant effects on the financial statements.

In accordance with IAS 1, the credit facility is reported as short-term as of 31 May 2023 since the renegotiated agreement was signed after the balance sheet date. There has been no breach of the bank agreement and the loan is to be assessed as long-term from that aspect. During the fourth quarter, the loan will be reported as long-term.

Parent Company

Dustin Group AB (Corp. Reg. No. 556703-3062), which is domiciled in Nacka, Sweden, only conducts holding operations. Furthermore, external financing is gathered in the Parent Company.

Profit for the period amounted to SEK 94 million (-85). The change was mainly due to dividends received from Group companies of SEK 299 million (-) and intra-Group interest income of SEK 167 million (122). External financing expenses amounted to SEK -148 million (-81), attributable to higher interest expenses due to higher interest rates. The net currency position was SEK -275 million (-136), which was largely attributable to external financing.

Risks and uncertainties

Dustin's risks and uncertainties have increased due to greater economic uncertainty, such as in the form of a protracted recession with lower demand and higher costs. This intensified uncertainty is due to Russia's war of aggression against Ukraine, disruption to logistics chains, increased volatility in the energy and finance markets, and high inflationary pressure.

Dustin has a structured and Group-wide process to identify, classify, manage and monitor a number of strategic, operative and external risks.

• The strategic risks are normally identified in conjunction with risk discussions linked to a strategic initiative. These risks include acquisition and integration projects and the preparation of profitable and attractive customer offerings.
• Operational risks arise in the business and are identified mainly through process reviews. These risks include the ability to attract and retain customers.
• External risks consist of risks that are outside the direct control of the Group. These risks include regulatory changes or changed market conditions.

For a detailed description of the risks that are expected to be particularly significant for the future development of the Group, refer to pages 64-69 of Dustin's 2021/22 Annual and Sustainability Report.

The share

The Parent Company's share has been listed on Nasdaq Stockholm since February 13, 2015, and is included in the Mid Cap index. On May 31, 2023, the price was SEK 28.12 per share (76.45), representing a total market capitalisation of SEK 3,204 million (8,648). As of May 31, 2023, the company had a total of 14,800 shareholders (14,645). The Company's three largest shareholders were Axel Johnson Gruppen with 28.7 per cent, AMF Tjänstepension & Fonder with 8.6 per cent and Kempen Capital Management with 8.1 per cent.

2022/2023 Annual General Meeting

Dustin's Annual General Meeting (AGM) will be held in Stockholm on December 12, 2023. Shareholders who wish to have matters considered should submit a written request to the Board by October 24, 2023 to ensure that the matter is included in the notice convening the AGM. Requests should be addressed to Dustin Group AB, Att: Charlotte Törnberg, Box 1194, SE-131 27 Nacka Strand or by e-mail to: charlotte.tornberg@dustin.com.

2022/2023 Nomination Committee

In accordance with Nomination Committee instructions adopted by the Annual General Meeting, the following individuals were appointed as members of the Nomination Committee based on the ownership structure as of March 31, 2023.

• Marie Ehrling, Axel Johnson AB, Chairman of the Nomination Committee
• Sophie Larsén, AMF Pension & Fonder
• Jonas Backman, Protector Forsikring Asa
• Mia Brunell Livfors, Chairman of Dustin's Board of Directors (co-opted)

Shareholders wishing to submit proposals to the Nomination Committee can do so by mail at the following address: Dustin Group AB, Att. Charlotte Törnberg, Box 1194, SE-131 27 Nacka Strand or by email to: charlotte.tornberg@dustin.com.

Review of business segment

Dustin operates through two business segments: SMB (Small and Medium-sized Businesses) and LCP (Large Corporate and Public sector). The former B2C (Business to Consumer) business segment, with a sales share of about 2 per cent, has been included in SMB since the second quarter of 2022/23.

SMB - Small and Medium-sized Businesses

	Q3	Q3	Change	Q1-Q3	Q1-Q3	Change	Rolling	Full-year	Change
SEK million	22/23	21/22	%	22/23	21/22	%	12 months	21/22	%
Net sales1	1,653.8	1,973.6	-16.2	5,384.6	5,961.4	-9.7	7,023.3	7,600.1	-7.6
Segment results1	64.6	108.8	-40.6	249.2	385.1	-35.3	325.8	461.6	-29.4
Segment margin (%)1	3.9	5.5	-	4.6	6.5	-	4.6	6.1	-

1 The comparative figures are restated in accordance with segment update from Q2 2022/23.

Net sales

Net sales for the quarter declined 16.2 per cent to SEK 1,654 million (1,974). Organic growth was -17.4 per cent (8.7). Acquisition-related growth, related in its entirety to customer transfers, accounted for -1.4 percentage points. Exchange-rate differences accounted for 2.6 percentage points.

The market was dominated by general economic uncertainty and a continued cautious purchasing trend. The quarter's sales trend was initially satisfactory, but was clearly impacted by concerns in conjunction with the bank crisis in the USA. Demand stabilised in the latter part of the quarter but remained hesitant in all customer groups in the B2B segment, while consumer sales stabilised in line with the yearearlier quarter. The best geographic development was noted in Finland and Denmark in terms of sales.

Software and services as a percentage of sales amounted to 11.6 per cent (12.5) in the third quarter (see Note 2 Net sales and segment reporting), primarily as a result of the software mix and customer transfers between segments. The sales trend in contracted recurring services in the Nordics remained good.

Segment results

The gross margin was strong during the quarter, both compared with the preceding quarter and with the year-earlier quarter, and was positively affected by price discipline and an improved product mix. Profit for the segment declined 40.6 per cent to SEK 65 million

(109) and the margin declined to 3.9 per cent (5.5), primarily as a result of lower volumes and cost inflation.

Summary of the quarter

• general economic uncertainty and cautious purchasing trend
• price discipline in a price-conscious market had a positive impact on gross margin, and to some extent, a negative impact on volume
• gross margin was positively impacted by an improved product mix with a lower share of sales of computers, which was to some extent offset by high volumes of campaign goods
• lower volumes and a cost base that is temporarily too high combined with a generally higher, inflation-driven cost level had a negative impact on the segment margin

LCP - Large Corporate and Public sector

	Q3	Q3	Change	Q1-Q3	Q1-Q3	Change	Rolling	Full-year	Change
SEK million	22/23	21/22	%	22/23	21/22	%	12 months	21/22	%
Net sales1	3,928.2	3,920.7	0.2	13,104.8	11,896.1	10.2	17,209.5	16,000.8	7.6
Segment results1	140.6	119.3	17.9	455.0	482.0	-5.6	602.9	629.9	-4.3
Segment margin (%)1	3.6	3.0	-	3.5	4.1	-	3.5	3.9	-

1 The comparative figures are restated in accordance with segment update from Q2 2022/23.

Net sales

Net sales increased 0.2 per cent to SEK 3,928 million (3,921) for the quarter. Organic growth was -5.5 per cent (26.1). Acquisition-related growth, related in its entirety to customer transfers, accounted for 0.8 percentage points. Exchange-rate differences accounted for 4.8 percentage points.

The availability of hardware has largely normalised, which, in combination with continued healthy demand from the public sector, laid the foundation for a satisfactory sales trend, compared with a very strong comparative quarter in the preceding year. Adjusted for the major 50.40 framework agreement with SKI in Denmark, which expired during the first quarter, growth remained strong in the public sector, while sales to large companies were in line with the year-earlier quarter. Adjusted for the Danish agreement, growth in the quarter was equivalent to 8 per cent for the segment. A high level of activity in Benelux drove developments in the segment and offset the weaker Nordic market. The sales trend was strongest in the Netherlands and Belgium.

Segment results

The gross margin strengthened during the quarter, both compared with the preceding quarter and with the year-earlier quarter, due to price discipline in transaction sales and an improved product mix following generally weak computer sales. Profit for the segment increased 17.9 per cent to SEK 141 million (119), while the segment margin increased to 3.6 per cent (3.0).

Corporate functions

Summary of the quarter

• the availability of hardware has normalised and had a positive impact on sales, but was offset by a generally more selective and margin-focused attitude to new customers and agreements
• an improved product mix with an increased share of more advanced hardware and a lower share of standard hardware had a positive impact on margins
• a healthy sales trend in private label products, primarily in Benelux, had a positive impact on margins
• the 50.40 framework agreement with SKI in Denmark, which expired during the first quarter, had a positive impact on the margin trend, but was to some extent offset by a generally higher, inflation-driven cost level

	Q3	Q3	Change	Q1-Q3	Q1-Q3	Change	Rolling	Full-year	Change
SEK million	22/23	21/22	%	22/23	21/22	%	12 months	21/22	%
Cost for corporate
functions1	-36.0	-26.6	35.2	-122.6	-90.0	36.2	-145.5	-112.9	28.9
Costs for corporate
functions in relation to
net sales (%)1	-0.6	-0.5	-	-0.7	-0.5	-	-0.6	-0.5	-

1 The comparative figures are restated in accordance with segment update from Q2 2022/23.

Corporate functions

In the third quarter, costs for corporate functions amounted to 0.6 per cent (0.5) in relation to sales. Costs for corporate functions amounted to SEK 36 million (27), with the increase compared with the corresponding quarter in the preceding year mainly related to a generally higher inflation-driven cost level, index-linked rents and higher electricity costs. A

positive earnings effect from IFRS 16, which arises when operating expenses are replaced by depreciation, of SEK 3 million (3) is included in the costs for corporate functions for the quarter. For additional financial data on the segments, refer to Note 2 Net sales and segment reporting on pages 19-20, and to Segment information by quarter on page 25.

The undersigned certify that this interim report gives a true and fair presentation of the Parent Company's and the Group's operations, financial position and profits and describes the material risks and uncertainties facing the Parent Company and the companies in the Group.

Nacka, June 27, 2023

Johan Karlsson, President and CEO In accordance with authorisation by the Board of Directors

Auditors' review report

Dustin Group AB (publ), corporate identity number 556703-3062

Introduction

We have reviewed the condensed interim report for Dustin Group AB as at May 31, 2023 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Stockholm the day of our electronic signature

Ernst & Young AB

Åsa Lundvall Authorized Public Accountant

Consolidated income statement

		Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	Note	22/23	21/22	22/23	21/22	12 months	21/22
Net sales	2	5,582.0	5,894.2	18,489.4	17,857.5	24,232.8	23,600.9
Cost of goods and services sold		-4,725.1	-5,052.4	-15,826.0	-15,217.8	-20,751.4	-20,143.3
Gross profit		856.8	841.8	2,663.4	2,639.6	3,481.4	3,457.6
Selling and administrative expenses		-726.8	-678.4	-2,209.8	-1,974.5	-2,863.6	-2,628.3
Items affecting comparability	3	-25.3	-18.7	-53.3	-38.6	-64.8	-50.1
Other operating income		6.6	6.5	31.4	14.7	37.3	20.5
Other operating income		-14.4	-11.3	-40.5	-30.0	-52.2	-41.7
EBIT	2	96.9	140.0	391.3	611.2	538.2	758.0
Financial income and other similar income statement items Financial expenses and other similar income		0.6	0.3	4.5	0.7	5.0	1.2
statement items		-62.1	-29.4	-164.0	-96.1	-197.7	-129.8
Profit after financial items		35.4	110.9	231.8	515.8	345.4	629.5
Tax		-12.0	-26.2	-60.9	-120.9	-91.7	-151.8
Profit for the period, attributable in its entirety to Parent Company shareholders		23.4	84.7	170.9	394.9	253.7	477.7
Earnings per share before dilution (SEK)		0.21	0.75	1.51	3.49	2.24	4.22
Earnings per share after dilution (SEK)		0.21	0.75	1.51	3.49	2.24	4.22

Consolidated statement of comprehensive income

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Profit for the period	23.4	84.7	170.9	394.9	253.7	477.7
Other comprehensive income:
Items that will be transferred to the income
statement
The result of the remeasurement of derivatives
is recognised in equity	-148.3	78.5	-91.5	-8.5	-55.9	27.0
Result from hedge of net investments in foreign
operations	-236.6	42.2	-369.2	-151.0	-443.8	-225.6
Translation reserve	342.8	-80.7	492.5	222.4	600.5	330.4
Tax attributable to components in other
comprehensive income	79.3	-24.9	94.9	32.9	103.0	40.9
Other comprehensive income	37.2	15.2	126.7	95.7	203.7	172.7
Comprehensive income for the period is
attributable in its entirety to Parent Company
shareholders	60.6	99.9	297.6	490.6	457.4	650.4

Condensed consolidated balance sheet

SEK million	Note	May 31, 2023	May 31, 2022	Aug 31, 2022
ASSETS
Non-current assets
Goodwill		8,623.0	7,986.7	8,097.0
Intangible assets attributable to acquisitions		628.8	693.8	674.9
Other intangible assets	4	395.0	269.5	290.7
Tangible assets	4	117.6	133.2	130.0
Right-of-use assets	4	500.2	530.7	512.5
Deferred tax assets		6.5	5.4	14.5
Derivative instruments	5	216.0	88.3	156.0
Other non-current assets		11.6	9.0	9.5
Total non-current assets		10,498.8	9,716.7	9,885.0
Current assets
Inventories		1,031.1	1,469.7	1,340.2
Accounts receivable		3,186.9	2,838.7	3,165.7
Derivative instruments	5	-	2.5	5.7
Tax assets		45.3	16.2	15.7
Other receivables		567.3	605.2	675.8
Cash and cash equivalents		1,228.9	761.8	766.8
Total current assets		6,059.4	5,694.1	5,969.9
TOTAL ASSETS		16,558.1	15,410.7	15,854.9
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent Company shareholders		5,383.7	4,925.4	5,085.0
Total equity		5,383.7	4,925.4	5,085.0
Non-current liabilities
Deferred tax and other long-term provisions		200.1	247.6	242.0
Liabilities to credit institutions*		-	4,657.1	4,734.4
Non-current lease liabilities		347.0	379.4	361.7
Derivative instruments	5	203.2	67.8	92.6
Total non-current liabilities		750,2	5,351.8	5,430.6
Current liabilities
Liabilities to credit institutions*		5 325,1	3.6	7.4
Other provisions		0.7	1.0	0.8
Current lease liabilities		169.5	171.3	171.9
Accounts payable		3,504.4	3,655.2	3,790.5
Tax liabilities		60.0	78.7	120.0
Derivative instruments	5	81.3	35.5	46.1
Other current liabilities		1,283.2	1,188.2	1,202.5
Total current liabilities		10 424,2	5,133.6	5,339.2
TOTAL EQUITY AND LIABILITIES		16,558.1	15,410.7	15,854.9

^* In accordance with IAS 1, the credit facility is reported as short-term as of 31 May 2023 since the renegotiated agreement was signed after the balance sheet date. There has been no breach of the bank agreement and the loan is to be assessed as longterm from that aspect. During the fourth quarter, the loan will be reported as long-term.

Condensed consolidated statement of changes in equity

	May 31,	May 31,	Aug 31,
SEK million	2023	2022	2022
Balance as at September 1	5,085.0	4,676.4	4,676.4
Profit for the period	170.9	394.9	477.7
Profit for the period
Translation difference	492.5	222.4	330.4
Cash-flow hedging	-460.7	-159.5	-198.6
Tax attributable to components in other comprehensive income	94.9	32.9	40.9
Total other comprehensive income	126.7	95.7	172.7
Total comprehensive income	297.6	490.6	650.4
Dividends	-	-250.0	-250.0
Holding of own warrants	-	-1.7	-1.9
New share issue	3.9	7.2	7.2
Issue costs	-	-1.4	-1.4
Repurchase and subscription with the support of warrants	-	4.3	4.3
Share-based incentive program	1.2	-	-
Repurchase of own shares	-4.1	-	-
Total transactions with shareholders	1.0	-241.6	-241.8
Closing equity as per the balance sheet date, attributable to Parent Company shareholders in its entirety	5,383.7	4,925.4	5,085.0

Consolidated statement of cash flow

		Q3	Q3	Q1-Q3	Q1-Q3	Full-year
SEK million	Note	22/23	21/22	22/23	21/22	21/22
Operating activities
EBIT		96.9	140.0	391.3	611.2	758.0
Adjustment for non-cash items		115.9	97.2	288.4	321.3	419.5
Interest received		0.6	0.3	4.5	0.7	1.2
Interest paid		-60.3	-28.9	-159.7	-91.6	-126.4
Income tax paid		-11.4	-25.1	-110.4	-97.5	-96.1
Cash flow from operating activities before changes in working capital
		141.7	183.5	414.1	744.2	956.2
Decrease (+)/increase (-) in inventories		221.7	-218.3	372.1	-429.7	-289.2
Decrease (+)/increase (-) in receivables		57.2	-76.2	204.7	-351.0	-686.1
Decrease (-)/increase (+) in current liabilities		10.6	-166.2	-394.7	516.5	603.4
Cash flow from changes in working capital		289.4	-460.7	182.1	-264.3	-371.9
Cash flow from operating activities		431.1	-277.2	596.2	479.9	584.3
Investing activities
Acquisition of intangible assets	4	-49.2	-45.7	-149.0	-114.8	-152.4
Acquisition of tangible assets	4	-8.4	-6.1	-23.2	-30.8	-38.5
Contingent earn-out paid	5	-	-	-	-20.7	-20.7
Cash flow from investing activities		-57.6	-51.8	-172.2	-166.3	-211.6
Financing activities
New share issue		-	-	3.9	5.8	5.8
Repurchase of own shares		-	-	-4.1	-	-
Cash flow from LTI programme		-	-	-	4.3	2.4
Dividends		-	-	-	-250.0	-250.0
New loans raised		-	-	550.0	4,466.4	4,466.4
Repayment of loans		-1.9	-3.6	-303.8	-4,448.7	-4,452.4
Paid borrowing expenses		-	-1.0	-8.0	-16.8	-16.8
Repayment of lease liabilities		-48.1	-45.8	-140.0	-144.7	-190.0
Cash flow from financing activities		-50.0	-50.5	98.0	-383.8	-434.6
Cash flow for the period		323.4	-379.5	522.0	-70.2	-61.9
Cash and cash equivalents at beginning of period		950.6	1,140.2	766.8	847.4	847.4
Cash flow for the period		323.4	-379.5	522.0	-70.2	-61.9
Exchange-rate differences in cash and cash equivalents		-45.1	1.0	-59.9	-15.4	-18.6
Cash and cash equivalents at end of period		1,228.9	761.8	1,228.9	761.8	766.8

Condensed Parent Company income statement

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Net sales	3.7	0.1	7.4	0.3	20.7	13.5
Cost of goods and services sold	-2.6	0.0	-5.2	0.0	-14.4	-9.3
Gross profit	1.1	0.1	2.3	0.3	6.2	4.2
Selling and administrative expenses	-2.6	-5.0	-6.4	-12.7	-10.8	-17.1
Other operating expenses	-	-	-	-	0.0	0.0
EBIT	-1.5	-4.9	-4.1	-12.4	-4.5	-12.9
Financial income and other similar income-statement items	57.1	40.2	468.3	122.2	609.3	263.2
Financial expenses and other similar income-statement items	-261.5	31.5	-423.4	-216.7	-525.8	-319.0
Profit/loss after financial items	-205.9	66.8	40.8	-106.9	78.9	-68.7
Appropriations	-	-	-	-	120.6	120.6
Tax	42.4	-13.8	53.3	22.3	40.1	9.0
Profit/loss for the period	-163.5	53.0	94.1	-84.6	239.6	60.8

Parent Company statement of comprehensive income

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Profit for the period	-163.5	53.0	94.1	-84.6	239.6	60.8
Other comprehensive income	-	-	-	-	-	-
Comprehensive income for the period	-163.5	53.0	94.1	-84.6	239.6	60.8

Condensed Parent Company balance sheet

	May 31,	May 31,	Aug 31,
SEK million	2023	2022	2022
ASSETS
Non-current assets	1,211.6	1,211.6	1,211.6
Current assets	7,951.3	7,058.8	7,236.9
TOTAL ASSETS	9,162.9	8,270.4	8,448.5
EQUITY AND LIABILITIES
Restricted equity
Share capital	569.7	565.6	565.6
Total restricted equity	569.7	565.6	565.6
Non-restricted equity
Share premium reserve	3,023.4	3,023.6	3,023.6
Retained earnings	-91.8	-148.5	-148.5
Profit for the period	94.1	-84.6	60.8
Total non-restricted equity	3,025.7	2,790.5	2,936.0
Total equity	3,595.5	3,356.1	3,501.5
Untaxed reserves	192.9	243.5	192.9
Non-current liabilities	5,070.0	4,649.7	4,733.6
Current liabilities	304.5	21.1	20.5
TOTAL EQUITY AND LIABILITIES	9,162.9	8,270.4	8,448.5

Note 1 Accounting policies

Dustin applies International Financial Reporting Standards (IFRS) as adopted by the EU. This report has been prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting policies are consistent with those presented in the Group's Annual Report for the 2021/22 financial year, unless otherwise stated. The Parent Company applies the Swedish Annual Accounts Act, and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting for Legal Entities.

This report has been prepared in SEK million, unless otherwise stated. Rounding-off differences may occur in this report.

Share-based remuneration

Since the second quarter of the 2022/2023 financial year, the long-term share-based programme has been recognised in accordance with IFRS 2. Personnel costs for shares relating to the programme are calculated on each accounting date based on an assessment of the probability of the performance targets being achieved. The costs are calculated based on the number of shares that Dustin expects to need to settle at the end of the vesting period. When shares are allotted, social security contributions must be paid in some countries to the value of the employee's benefit. This value is based on fair value on each accounting date and recognised as a provision for social security contributions.

Note 2 Net sales and segment reporting

All amounts in SEK million,	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
unless otherwise indicated Note	22/23	21/22	22/23	21/22	12 months	21/22
Net sales
LCP of which, hardware	3,928.2 3,111.0	3,920.7 3,328.9	13,104.8 10,341.7	11,896.1 10,161.9	17,209.5 13,775.8	16,000.8 13,596.0
of which, software and services	817.2	591.8	2,763.2	1,734.2	3,433.8	2,404.8
SMB1 of which, hardware	1,653.8 1,461.2	1,973.6 1,726.1	5,384.6 4,772.1	5,961.4 5,154.6	7,023.3 6,208.2	7,600.1 6,590.7
of which, software and services	192.6	247.4	612.5	806.7	815.1	1,009.3
Total	5,582.0	5,894.2	18,489.4	17,857.5	24,232.8	23,600.9
of which, hardware	4,572.2	5,055.0	15,113.7	15,316.5	19,983.9	20,186.8
of which, software and services	1,009.7	839.2	3,375.7	2,540.9	4,248.9	3,414.1
Segment results
LCP1	140.6	119.3	455.0	482.0	602.9	629.9
SMB1	64.6	108.8	249.2	385.1	325.8	461.6
Total1	205.2	228.0	704.3	867.1	928.7	1,091.5
Central functions1	-36.0	-26.6	-122.6	-90.0	-145.5	-112.9
Of which, effects related to IFRS 16	3.1	3.4	10.0	10.0	13.5	13.5
Adjusted EBITA	169.2	201.4	581.7	777.1	783.3	978.7
Segment margin
LCP, segment margin (%)1	3.6	3.0	3.5	4.1	3.5	3.9
SMB, segment margin (%)1	3.9	5.5	4.6	6.5	4.6	6.1
Segment margin1	3.7	3.9	3.8	4.9	3.8	4.6
Costs for central functions, excluding
Items affecting comparability in relation to net sales (%)*1
	-0.6	-0.5	-0.7	-0.5	-0.6	-0.5
Reconciliation with profit after financial items
Items affecting comparability 3	-25.3	-18.7	-53.3	-38.6	-64.8	-50.1
Amortisation and impairment of
intangible assets	-47.0	-42.7	-137.1	-127.3	-180.3	-170.5
EBIT, Group	96.9	140.0	391.3	611.2	538.2	758.0
Financial income and other similar income statement items	0.6	0.3	4.5	0.7	5.0	1.2
Financial expenses and other similar
income statement items	-62.1	-29.4	-164.0	-96.1	-197.7	-129.8
Profit after financial items, Group	35.4	110.9	231.8	515.8	345.4	629.5

1 The comparative figures are restated in accordance with segment update from Q2 2022/23.

Note 2 Net sales and segment reporting - cont'd.

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
By geographic area	22/23	21/22	22/23	21/22	12 months	21/22
Sweden	1,337.3	1,505.2	4,373.5	4,513.5	5,672.7	5,812.7
Finland	580.0	596.1	1,751.4	1,765.1	2,283.1	2,296.8
Denmark	475.9	883.3	1,819.4	2,527.3	2,740.2	3,448.2
The Netherlands	2,304.5	1,955.9	7,647.1	6,192.3	9,691.4	8,236.6
Norway	663.0	734.4	2,241.7	2,228.8	2,998.2	2,985.4
Belgium	221.2	219.3	656.4	630.5	847.2	821.3
Total	5,582.0	5,894.2	18,489.4	17,857.5	24,232.8	23,600.9

Note 3 Items affecting comparability

Items affecting comparability amounted to SEK -25 million (-19) for the quarter and related mainly to integration costs attributable to the Netherlands for staff reductions. The Netherlands comprises several units and to achieve the desired level of synergies, the units must be integrated with Dustin. The recruitment of senior executives amounted to SEK -1 million (-).

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Integration costs	-24.2	-15.0	-49.6	-34.0	-52.0	-36.4
Settlement of dispute	-	-3.7	-	-3.7	-9.1	-12.8
Recruitment costs of senior executives	-1.1	-	-3.7	-0.9	-3.7	-0.9
Total	-25.3	-18.7	-53.3	-38.6	-64.8	-50.1

Note 4 Investments

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Capitalised expenditure for IT development (integrated IT platform and other long-term
strategic IT systems)	44.5	41.3	136.6	100.3	171.1	134.8
Of which, affecting cash flow	44.5	41.3	136.6	100.3	171.1	134.8
Of which, project related investments	21.4	16.3	68.3	41.6	82.2	55.5
Investments in tangible and intangible assets	52.4	9.6	83.8	95.4	104.0	115.6
Of which, affecting cash flow	12.9	5.0	34.3	25.8	39.0	30.5
Of which, project related investments	16.3	1.3	16.4	22.9	17.1	23.6
Investments in assets related to service provision	23.3	16.6	41.6	42.7	52.6	53.8
Of which, affecting cash flow	0.3	5.4	1.3	19.5	7.4	25.6
Total investments	120.3	67.5	262.0	238.4	327.7	304.1
Of which, affecting cash flow	57.6	51.8	172.2	145.6	217.5	190.9
Of which, project related investments	37.7	17.7	84.7	64.6	99.2	79.1

Dustin's right-of-use assets mainly relate to buildings and IT equipment. During the quarter, new agreements totalling SEK 63 million (17) were added and mainly

pertain to new office premises, IT equipment for service provision, such as servers and network solutions as well as new cars.

SEK million	May 31, 2023	May 31, 2022	Aug 31, 2022
Buildings	251.8	262.7	257.3
Vehicles	102.6	89.5	87.6
IT equipment for internal use	44.7	69.3	65.1
IT equipment related to service provision	100.1	108.3	101.6
Other items	1.0	0.9	0.8
Right-of-use assets	500.2	530.7	512.5

Note 5 Financial instruments

Financial instruments measured at fair value consist of derivative instruments and acquisition and divestmentrelated assets and liabilities. As regards other financial items, these essentially match fair value and book value.

Derivative instruments

Derivative instruments measured at fair value consist of interest-rate derivatives and currency futures. Derivative instruments have been structured as hedges for variable interest on external bank loans. Currency futures pertain to hedging for USD purchases from

China and hedging investment of foreign subsidiaries. The Group applies hedge accounting for derivatives and currency futures, and the fair value measurement is Level 2, according to the definition in IFRS 13. The measurement level remains unchanged compared with August 31, 2022. At May 31, 2023, the fair value of derivative instruments amounted to SEK -68 million (13). The change was mainly related to currency movements and interest rates.

Note 6 Seasonal variations

Dustin is impacted by seasonal variations. Each quarter is comparable between years. Sales volumes are normally higher in November and December, and lower during the summer months when sales and marketing activities are less intense. Similar seasonal variations occur in all geographical markets.

Note 7 Related-party transactions

There were no significant related-party transactions during the current period or comparative period and any minor transactions were conducted on market terms.

Key ratios

All amounts in SEK million, unless otherwise indicated	Q3 22/23	Q3 21/22	Q1-Q3 22/23	Q1-Q3 21/22	Rolling 12 months	Full-year 21/22
Income statement
Organic sales growth (%)*	-9.4	19.7	-1.1	13.5	2.4	11.4
Gross margin (%)*	15.3	14.3	14.4	14.8	14.4	14.7
EBIT	96.9	140.0	391.3	611.2	538.2	758.0
Adjusted EBITDA	228.4	260.7	755.6	955.4	1,015.7	1,215.4
Adjusted EBITA	169.2	201.4	581.7	777.1	783.3	978.7
Adjusted EBITA margin (%)*	3.0	3.4	3.1	4.4	3.2	4.1
Return on equity	-	-	-	-	4.7	9.4
Balance sheet
Net working capital	-22.0	4.2	-22.0	4.2	-22.0	79.9
Capital employed	1,224.9	1,040.2	1,224.9	1,040.2	1,224.9	1,193.0
Net debt	4,612.7	4,449.6	4,612.7	4,449.6	4,612.7	4,508.6
Net debt/adjusted EBITDA (multiple)	-	-	-	-	4.5	3.7
Maintenance investments	-57.6	-51.8	-172.2	-145.6	-217.5	-190.9
Equity/assets ratio (%)	-	-	-	-	32.5	32.1
Cash flow
Operating cash flow	460.1	-251.7	765.6	545.6	872.6	652.6
Cash flow from operating activities	431.1	-277.2	596.2	479.9	700.6	584.3
Data per share
Earnings per share before dilution
(SEK) Earnings per share after dilution	0.21	0.75	1.51	3.49	2.24	4.22
(SEK)	0.21	0.75	1.51	3.49	2.24	4.22
Equity per share before dilution (SEK)	47.59	43.54	47.59	43.54	47.59	44.95
Cash flow from operating activities
per share before dilution (SEK)	3.81	-2.45	5.27	4.24	6.19	5.17
Cash flow from operating activities per share after dilution (SEK)	3.81	-2.45	5.27	4.24	6.19	5.17
Average number of shares*	113,118,776	113,118,776	113,118,776	113,118,776	113,118,776	113,118,776
Average number of shares after
dilution*	113,118,776	113,118,776	113,118,776	113,118,776	113,118,776	113,118,776
Number of shares issued at end of period	113,943,776	113,118,776	113,943,776	113,118,776	113,353,844	113,118,776

* The average number of shares is the weighted number of shares outstanding during the period after repurchase of own shares

Source of alternative performance measures

Dustin applies financial measures that are not defined under IFRS. Dustin believes that these financial measures provide the reader of the report with valuable information, and constitute a complement when assessing Dustin's performance. The performance measures that Dustin has chosen to present are relevant in relation to its operations and the Company's financial targets for growth, margins and capital structure and in terms of Dustin's dividend policy. The alternative performance measures are not

always comparable with those applied by other companies since these may have calculated in a different way. Definitions on page 26 present how Dustin defines its performance measures and the purpose of each key ratio. The data presented below are supplementary information from which all alternative performance measures can be derived. The sources of the key ratios and Net debt are described on page 7-8.

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
Total	22/23	21/22	22/23	21/22	12 months	21/22
Organic growth
Sales growth (%)	-5.3	83.4	3.5	75.6	6.7	57.0
Acquired growth (%)	-	-61.5	-	-60.7	-	-43.9
Currency effects in sales growth (%)	-4.1	-2.2	-4.7	-1.4	-4.3	-1.8
Organic sales growth (%)	-9.4	19.7	-1.1	13.5	2.4	11.4
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SMB	22/23	21/22	22/23	21/22	12 months	21/22
Organic growth
Sales growth (%)1	-16.2	18.7	-9.7	16.9	-9.4	10.2
Acquired growth (%)1	1.4	-8.4	1.2	-7.4	5.2	-1.1
Currency effects in sales growth (%)1	-2.6	-1.6	-3.2	-0.9	-3.0	-1.2
Organic sales growth (%)1	-17.4	8.7	-11.7	8.6	-7.2	7.9
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
LCP	22/23	21/22	22/23	21/22	12 months	21/22
Organic growth
Sales growth (%)1	0.2	152.9	10.2	134.7	15.0	96.7
Acquired growth (%)	-0.8	-119.3	-0.7	-114.4	-3.0	-78.5
Currency effects in sales growth (%)1	-4.8	-2.9	-5.4	-1.9	-5.0	-2.3
Organic sales growth (%)1	-5.5	30.7	4.0	18.4	7.0	15.9

1 The comparative figures are restated in accordance with segment update from Q2 2022/23.

Source of alternative performance measures - cont'd.

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
Adjusted EBITA	22/23	21/22	22/23	21/22	12 months	21/22
EBIT	96.9	140.0	391.3	611.2	538.2	758.0
Amortisation and impairment
of intangible assets	47.0	42.7	137.1	127.3	180.3	170.5
Items affecting comparability	25.3	18.7	53.3	38.6	64.8	50.1
Adjusted EBITA	169.2	201.4	581.7	777.1	783.3	978.7
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
	22/23	21/22	22/23	21/22	12 months	21/22
Adjusted EBITDA EBIT	96.9	140.0	391.3	611.2	538.2	758.0
Depreciation and impairment
of tangible assets	22.8	23.6	69.3	71.0	92.7	94.4
Amortisation and impairment
of right-of-use assets	36.3	35.8	104.6	107.3	139.7	142.4
Amortisation and impairment
of intangible assets	47.0	42.7	137.1	127.3	180.3	170.5
Items affecting comparability	25.3	18.7	53.3	38.6	64.8	50.1

Segment information by quarter

All amounts in SEK million,	Q3	Q2	Q1	Q4	Q3	Q2	Q1
unless otherwise indicated	22/23	22/23	22/23	21/22	21/22	21/22	21/22
Net sales	5,582.0	6,271.6	6,635.9	5,743.4	5,894.2	6,137.2	5,826.1
Organic sales growth (%)	-9.4	-2.4	8.5	15.0	19.7	10.6	8.2
Gross margin (%)	15.3	14.6	13.5	14.2	14.3	14.7	15.4
Adjusted EBITA	169.2	211.9	200.6	201.6	201.4	275.2	300.5
Adjusted EBITA margin (%)	3.0	3.4	3.0	3.5	3.4	4.5	5.2
Net sales per segment:
LCP	3,928.2	4,450.0	4,726.6	4,104.7	3,920.7	4,141.6	3,833.9
SMB1	1,653.8	1,821.5	1,909.3	1,638.7	1,973.6	1,995.6	1,992.2
Segment results:
LCP1	140.6	172.5	142.0	147.9	119.3	172.3	190.5
SMB1	64.6	80.3	104.4	76.6	108.8	134.7	141.6
Segment margin (%):
LCP1	3.6	3.9	3.0	3.6	3.0	4.2	5.0
SMB1	3.9	4.4	5.5	4.7	5.5	6.7	7.1
Corporate functions
Corporate functions1	-36.0	-40.8	-45.7	-22.9	-26.6	-31.7	-31.6
Percentage of net sales1	-0.6	-0.7	-0.7	-0.4	-0.5	-0.5	-0.5

1 The comparative figures are restated in accordance with segment update from Q2 2022/23.

Definitions

IFRS measures:	Definition/Calculation
Earnings per share	Net profit/loss in SEK in relation to average number of shares, according to IAS 33.

Alternative performance
measures:	Definition/Calculation	Usage
Return on equity	Net profit for the year in relation to equity at the end of the period.	Dustin believes that this performance measure shows how profitable the Company is for its shareholders.
Gross margin	Gross profit in relation to net sales.	Used to measure product and service profitability.
Circularity	Circular share of net sales, where a sales equivalent for returned hardware, together with software and services, are set in relation to net sales for the period.	Shows Dustin's circularity in relation to net sales.
Equity per share	Equity at the end of the period in relation to the number of shares at the end of the period.	Shows Dustin's equity per share.
Acquired growth	Net sales for the relevant period attributable to acquired and divested companies as well as internal customer transfers in conjunction with integration, in relation to net sales for the comparative period.	Acquired growth is eliminated in the calculation of organic growth.
Adjusted EBITA	EBIT according to the income statement before items affecting comparability and amortisation and impairment of intangible assets.	Dustin believes that this performance measure shows the underlying earnings capacity and facilitates comparisons between quarters.
Adjusted EBITDA	EBIT according to the income statement before items affecting comparability and amortisation/depreciation and impairment of intangible and tangible assets.	Dustin believes that this performance measure shows the underlying earnings capacity and facilitates comparisons between periods.
Adjusted EBITA margin	Adjusted EBITA in relation to net sales.	This performance measure is used to measure the profitability level of the operations.
Items affecting comparability	Items affecting comparability relate to material income and expense items recognised separately due to the significance of their nature and amounts.	Dustin believes that separate recognition of items affecting comparability increases comparability of EBIT over time.
Cash flow from operating activities	Cash flow from operating activities, after changes in working capital.	Used to show the amount of cash flow generated from operating activities.

Cash flow from operating activities per share	Cash flow from operating activities as a percentage of the average number of shares outstanding.	Used to show the amount of cash flow generated from operating activities per share.
Net working capital	Total current assets less cash and cash equivalents and current non-interest-bearing liabilities at the end of the period.	This performance measure shows Dustin's efficiency and capital tied up.
Net debt	Non-current and current interest-bearing liabilities, excluding acquisition-related liabilities, less cash and cash equivalents at the end of the period.	This performance measure shows Dustin's total interest bearing liabilities less cash and cash equivalents.
Net debt/EBITDA	Net debt in relation to EBITDA.	This performance measure shows the Company's ability to pay its debt.
Organic growth	Growth in net sales for the relevant period adjusted for acquired and divested growth, customer transfers between segments, and currency effects.	Provides a measure of the growth achieved by Dustin in its own right.
Sales growth	Net sales for the relevant period in relation to net sales for the comparative period.	Used to show the development of net sales.
Operating cash flow	Adjusted EBITDA less maintenance investments plus cash flow from changes in working capital.	Used to show the amount of cash flow generated from operating activities and available for payments in connection with dividends, interest and tax.
Project related investments	Investments in cloud-based business development systems and major changes to lease commitments.	To facilitate comparisons and the development of investments.
EBIT	EBIT is a measurement of the company's earnings before income tax and financial items.	This measure shows Dustin's profitability from operations.
Equity/assets ratio	Equity at the end of the period in relation to total assets at the end of the period.	Dustin believes that this measure provides an accurate view of the company's long-term solvency.
Segment results	The segment's operating profit excluding amortisation/depreciation and items affecting comparability.	Dustin believes that this performance measure shows the earnings capacity of the segment.
Capital employed	Working capital plus total assets, excluding goodwill and other intangible assets attributable to acquisitions, and interest bearing receivables pertaining to finance leasing, at the end of the period.	Capital employed measures utilisation of capital and efficiency.
Maintenance investments	Investments required to maintain current operations excluding financial leasing.	Used to calculate operating cash flow.

The difference between net sales in SEK for the comparative period and net sales in local currencies for the comparative period converted to SEK using the average exchange rate for the relevant period.

Currency effects are eliminated in the calculation of organic growth.

Glossary

Word/Term	Definition/Calculation
B2B	Pertains to sales to companies and organisations, divided into LCP and SMB according to the definition below.
Corporate functions	Costs for corporate functions comprise shared costs for accounting, HR, legal and management, including depreciation/amortisation, and excluding items affecting comparability.
Integration costs	Integration costs comprise costs for integrating acquired companies into the Dustin platform. The Dustin platform is defined as integration of e-commerce into the IT platform combined with organisational integration.
Clients	Umbrella term for the product categories computers, mobile phones, and tablets.
Contractual recurring sales	Recurring sales of services, such as subscriptions, that are likely to have a duration of several years.
LCP	Pertains to all sales to large corporate and public sector. As a general rule, this segment is defined as companies and organisations with more than 500 employees or public sector operations.
LTI	Long-term incentive programme that encompasses Group Management and other key individuals at Dustin.
SMB	Pertains to all sales to small and medium-sized businesses. Former segment B2C has been incorporated into the segment.

Financial calendar

October 11, 2023 Year-end report, September 1, 2022 – August 31, 2023

November 17, 2023 2022/23 Annual Report

December 12, 2023 2022/23 Annual General Meeting

January 10, 2024 Interim report for the first quarter September 1, 2023 – November 30, 2023

April 10, 2024 Interim report for the second quarter December 1, 2023 – February 28, 2024

July 2, 2024 Interim report for the third quarter March 1, 2024 – May 31, 2024

October 11, 2024 Year-end report, September 1, 2023 – August 31, 2024

November 17, 2024 2023/24 Annual Report

December 12, 2024 2023/24 Annual General Meeting

For more information, please contact:

Johan Ryrberg, CFO johan.ryrberg@dustin.com +46 (0)701 45 06 04

Fredrik Sätterström, Head of Investor Relations fredrik.satterstrom@dustin.com +46 (0)705 10 10 22

This information is information that Dustin Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication at 8:00 a.m. CET on June 27, 2023.