Dustin Group

Quarterly Report • Mar 29, 2023

Interim report

December 1, 2022 – February 28, 2023

dustingroup.com

Interim report December 2022 – February 2023

"Improved inventory levels and strengthened margin from the first quarter"

Second quarter

• Net sales rose 2.2 per cent to SEK 6,272 million (6,137).
• Organic sales growth was -2.4 per cent (10.6), of which SMB accounted for -10.0 per cent (7.0) and LCP 1.1 per cent (15.7).
• The gross margin amounted to 14.6 per cent (14.7).
• Adjusted EBITA amounted to SEK 212 million (275), corresponding to an adjusted EBITA margin of 3.4 per cent (4.5). In the first quarter of 2022/23, the adjusted EBITA margin amounted to 3.0 per cent.

September 2022- February 2023

• Net sales rose 7.9 per cent to SEK 12,908 million (11,963).
• Organic sales growth was 3.0 per cent (9.4), of which SMB accounted for -8.9 per cent (7.7) and LCP 8.7 per cent (12.4).
• The gross margin amounted to 14.0 per cent (15.0).
• Adjusted EBITA amounted to SEK 412 million (576), corresponding to an adjusted EBITA margin of 3.2 per cent (4.8).

• EBIT totalled SEK 294 million (471), including items affecting comparability of SEK -28 million (-20).

• EBIT totalled SEK 157 million (220), including items affecting comparability of SEK -9 million (-13).

• Profit for the quarter was SEK 81 million (144).
• Earnings per share before dilution totalled SEK 0.72 (1.27).
• Cash flow from operating activities amounted to SEK 250 million (388).
• Inventory amounted to SEK 1,220 million (1,259). In the first quarter of 2022/23, inventory amounted to SEK 1,610 million.
• Profit for the period amounted to SEK 148 million (310).
• Earnings per share before dilution totalled SEK 1.30 (2.74).
• Cash flow from operating activities amounted to SEK 165 million (757).
• At the end of the period, net debt in relation to adjusted EBITDA over the past 12-month period was 4.4 (3.2).

Financial key ratios

	Q2	Q2	Q1-Q2	Q1-Q2	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*	6,271.6	6,137.2	12,907.5	11,963.3	24,545.1	23,600.9
Organic sales growth (%)*	-2.4	10.6	3.0	9.4	-1.3	11.4
Gross margin (%)*	14.6	14.7	14.0	15.0	14.1	14.7
Adjusted EBITA	211.9	275.2	412.5	575.7	815.4	978.7
Adjusted EBITA margin (%)*	3.4	4.5	3.2	4.8	3.3	4.1
EBIT	156.9	220.1	294.4	471.2	581.2	758.0
Profit for the period	81.2	144.1	147.5	310.1	315,0	477.7
Items affecting comparability	-9.1	-12.8	-27.9	-19.9	-58.1	-50.1
Earnings per share before dilution (SEK)	0.72	1.27	1.30	2.74	2.78	4.22
Cash flow from operating activities	249.8	388.1	165.1	757.1	-7.7	584.3
Net debt/adjusted EBITDA (multiple)**	-	-	-	-	4.4	3.7
Return on equity (%)	-	-	-	-	5.9	9.4

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

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

Improved inventory levels and strengthened margin from the first quarter

The second quarter of the financial year continued to be characterised by a cautious trend among small and mid-sized companies in the SMB segment, while demand remained favourable within the public sector and large companies. An improved product mix within LCP, in combination with the expiry of the agreement with SKI in Denmark, supported a sequential margin improvement. Reduced tied-up capital in inventory enabled lower net working capital and lower net debt during the quarter. It is encouraging to present clear progress for the quarter that is in line with the scenario presented during the capital markets update in February.

New financial targets and segment reporting

In February, Dustin held a capital market update and presented updated financial targets and segment reporting. The targets create enhanced transparency, an intensified growth and cost focus, and shareholder value, and reflect what Dustin as a company is today. The target for growth in earnings per share of at least 10 per cent replaces the company's earlier financial targets for organic annual growth of at least 8 per cent over a business cycle and an adjusted EBITA margin of 5-6 per cent. The goal for our capital structure and our dividend policy remains unchanged. The goal of a 25 per cent reduction of CO2e/MSEK net sales for the next three-year period supports the unchanged ambitious goal of being fully climate-neutral by 2030. As part of the adaptation to the development of the business and the updated financial targets, a change to segment reporting was also implemented, with two clear segments – SMB and LCP – with the former B2C segment now incorporated into the SMB segment.

Subdued organic growth

The second quarter continued to be dominated by general economic uncertainty and a cautious trend among some of our customer groups. The availability of hardware was good and continued demand among our large customers laid the foundation for positive growth, despite a cautious attitude among small and medium-sized companies. Net sales rose 2.2 per cent to SEK 6,272 million (6,137). Organic growth was -2.4 per cent, of which -10.0 per cent for SMB and 1.1 per cent for LCP. After a weak start, demand stabilized within the SMB segment, but remained cautious among small and mid-sized companies, while large companies in the segment, together with consumer sales, displayed positive growth during the quarter as a whole. Development in LCP was generally strong, both among large companies and to the public sector, but was clearly impacted negatively by the expiry of the major 50.40 framework agreement with SKI in Denmark during the first quarter. A high level of activity and strong influx of new customers in several of our markets have offset this to a certain extent, despite a generally more selective and margin-focused attitude to new customers and agreements.

Sequentially improved margins

The gross margin amounted to 14.6 per cent (14.7) for the quarter, which is a distinct improvement compared with 13.5 per cent in the first quarter. The improvement is mainly attributable to developments in the LCP segment, where the product mix was improved through a larger share of more advanced hardware, combined with the phase-out of the major Danish framework agreement with its low margin. The gross margin within SMB weakened during the quarter as a direct result of a higher proportion of campaign goods and a shift to more basic alternatives in the product offering. Adjusted EBITA amounted to SEK 212 million (275) and the adjusted EBITA margin was 3.4 per cent (4.5), which clearly indicates an improvement compared with 3.0 per cent in the first quarter. EBIT amounted to SEK 157 million (220), including items affecting comparability of SEK -9 million (-13), primarily related to the integration of Vincere and Centralpoint.

Net working capital, cash flow and net debt

Net working capital improved to SEK 229 million in the second quarter compared with SEK 336 million a quarter earlier. The inventory declined to SEK 1,220 million compared with SEK 1,610 million in the first quarter, mainly as a result of reduced customerspecific inventory. I am proud of what we have achieved and this strong improvement means that we are ahead of our target of an inventory value of SEK 1,100 million at the end of the financial year. Cash flow from operating activities amounted to SEK 250 million (388) during the quarter, and improved sequentially compared with SEK -85 million in the first quarter. Net debt decreased to SEK 4,607 million at the end of the quarter, compared with SEK 4,759 million in the first quarter. As a result of lower profit, net debt in relation to adjusted EBITDA increased to 4.4 times (4.3 at the end of the first quarter). The current leverage level is assessed as being temporary and is expected to fall in the next few quarters.

Summary and outlook

In recent quarters, market development has been characterised by general economic uncertainty and a cautious trend in some of our customer segments. The performance was more or less in line with expectations, and in historical terms reflected the pattern in our business. We are demonstrating progress towards a target scenario presented at the capital market update and have seen some stabilisation within SMB, which makes us cautiously optimistic ahead of upcoming quarters. We are on the right path in a turbulent time and it is with complete confidence that I hand over the leadership to Johan Karlsson as the new CEO of Dustin from April 3. Johan has extensive experience and solid knowledge of Dustin and the market in which we operate. Dustin is well equipped to address the shortterm turbulence in the market and is well placed to meet the strong underlying market trends. I want to take this opportunity to extend my warm thanks to all employees, customers, shareholders and other stakeholders for your confidence and a fantastic time at Dustin and at the same time, I wish Johan the best of luck on the continued journey ahead.

Nacka, March 2023,

Thomas Ekman, 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 30 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 second quarter of 2022/23, 2 factory audits (0) 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 a 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. Our circular share increased to 34.7 per cent during the second quarter, mainly as a result of increased product take-back.

	Q2 22/23		Full-year 21/22
Circularity metrics	Number	SEK M	Number	SEK M
Net sales*	-	6,272	-	23,601
Take-back	155,000	957	423,000	2,324
Software, service and consulting services	-	1,221	-	3,572
Circular share		34.7%		25.0%

* Changed application of accounting policies from Q3 2021/22. For more information, see Note 1.

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 December 2022 – February 2023.

Second quarter Net sales

Net sales increased 2.2 per cent during the quarter to SEK 6,272 million (6,137). Organic growth was -2.4 per cent (10.6), of which SMB -10.0 per cent (7.0) and LCP 1.1 per cent (15.7). Acquisition-related growth was 0.0 percentage points (65.2) and exchange-rate differences had an impact of 4.6 percentage points (2.1). For more information, see source of alternative performance measures.

Gross profit

During the quarter, gross profit amounted to SEK 914 million (904). The gross margin declined to 14.6 per cent (14.7), primarily due to a changed sales mix with a higher share of revenue within the LCP segment. An improved product mix within LCP, with an increased share of more advanced hardware and a lower share of standard hardware, as well as the phase-out of the contract with SKI in Denmark with a low margin, yielded a positive effect. Lower sales volumes combined with an increased share of sales of campaign goods and a shift towards more basic alternatives in the product offering in the SMB segment had a negative impact.

Adjusted EBITA

Adjusted EBITA amounted to SEK 212 million (275), corresponding to an adjusted EBITA margin of 3.4 per cent (4.5). This margin decline was primarily attributable to a lower gross margin, lower volumes in SMB and a generally higher inflation-driven cost level. Adjusted EBITA excludes items affecting comparability of SEK -9 million (-13), mainly pertaining to integration costs for the Netherlands. 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 157 million (220). EBIT included items affecting comparability of SEK -9 million (-13).

Financial items

Financial expenses amounted to SEK -53 million (-34). External financing expenses amounted to SEK -51 million (-29), 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 (-5). Financial income amounted to SEK 4 million (0), mainly pertaining to the deposit rate of interest.

Tax

The tax expense for the quarter was SEK -26 million (-43), corresponding to an effective tax rate of 24.2 per cent (22.8). The higher effective tax was mainly attributable to higher corporate tax in the Netherlands.

Profit for the quarter

Profit for the quarter was SEK 81 million (144). Earnings per share amounted to SEK 0.72 (1.27) before and after dilution.

Cash flow

Cash flow for the quarter was SEK -19 million (15).

Cash flow from operating activities amounted to SEK 250 million (388). Cash flow before changes in working capital was SEK 122 million (278) and changes in working capital amounted to SEK 128 million (110). Inventory decreased by SEK -401 million (94) as a result of proactive sourcing efforts. In addition, cash flow was positively impacted by reduced accounts receivable of SEK -133 million (-185), which was offset by lower accounts payable of SEK -428 million (71) due to lower purchase volumes.

Cash flow from investing activities amounted to SEK -64 million (-75) and relates to investments tangible and intangible assets. Investments in the IT platform amounted to SEK -52 million (-40) and the remaining SEK -11 million (-14) comprised the investments in new business systems, in the facility in Växjö, which houses our product take-back business, and IT equipment for internal use. Of the period's total investments, project-related investments amounted to SEK -34 million (-29). The change compared with the second quarter the preceding year was 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 -205 million (-298). The quarter was mainly attributable to a change in short-term financing of SEK -152 million. The preceding period was negatively impacted by a dividend of SEK -250 million. The quarter was also impacted by the repayment of lease liabilities of SEK -45 million (-52).

Employees

The average number of full-time employees was 2,422 compared with 2,405 in the year-earlier quarter.

Significant events in the second quarter New president and CEO of Dustin

Johan Karlsson was appointed new President and CEO of Dustin. He has been CFO of Dustin since 2009 and will assume his new role on April 3, 2023.

Dustin presents updated financial targets and segment reporting

In conjunction with the capital market update in February, Dustin's updated financial targets were presented and the changed segment reporting

adopted by the Board of Directors. The updated targets create enhanced transparency, an intensified growth and cost focus, and shareholder value, and reflect the new segment division and the company that Dustin is today. The financial targets can be found on page 5.

Issue and repurchase of shares

The Annual General Meeting on December 15, 2022 resolved to adopt the share-based incentive programme proposed by the Board. With the support of the authorisation from the Annual General Meeting, on February 17, 2023, the Board of Directors resolved on a directed issue and the immediate repurchase of 825,000 Class C shares. The purpose of the issue and repurchase is to secure the future supply of ordinary shares to participants of the incentive programme.

September 1, 2022 – February 28, 2023 Net sales

Net sales rose 7.9 per cent to SEK 12,908 million (11,963) during the period. Organic growth was 3.0 per cent (9.4), of which SMB -8.9 per cent (7.7) and LCP 8.7 per cent (12.4). Acquired growth was 0.0 percentage points (-61.6) and exchange-rate differences had an impact of 4.9 percentage points (1.0).

Gross profit

Gross profit for the period amounted to SEK 1,807 million (1,798). The gross margin declined to 14.0 per cent (15.0), primarily due to a changed sales mix with a higher share of revenue within the LCP segment, combined with a higher share of software and computer hardware with a low margin.

Adjusted EBITA

Adjusted EBITA amounted to SEK 412 million (576), corresponding to an adjusted EBITA margin of 3.2 per cent (4.8). This margin decline was primarily attributable to a lower gross margin, lower volumes in SMB and a generally higher, inflation-driven cost level. Adjusted EBITA excluded items affecting comparability of SEK -28 million (-20), 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 294 million (471). EBIT included items affecting comparability amounting to SEK -28 million (-20).

Financial items

Financial expenses amounted to SEK -102 million (-67). The increase was attributable to higher interest expenses due to a rise in interest rates. The period's external financing expenses amounted to SEK -93 million (-57). Financial expenses were also impacted by interest expenses related to leases of SEK -8 million (-9). Financial income amounted to SEK 4 million (0), mainly pertaining to the deposit rate of interest.

Tax

The tax expense for the period was SEK -49 million (-95), corresponding to an effective tax rate of 24.9 per cent (23.4). The higher effective tax is mainly attributable to non-deductible expenses and higher corporate tax in the Netherlands.

Profit for the period

Profit for the period amounted to SEK 148 million (310). Earnings per share amounted to SEK 1.30 (2.74) before and after dilution.

Cash flow

Cash flow for the period was SEK 199 million (309).

Cash flow from operating activities amounted to SEK 165 million (757). Cash flow before changes in working capital was SEK 272 million (561) and changes in working capital amounted to SEK -107 million (196). The negative change compared with the preceding period pertains mainly to the reduced level of accounts payable combined with increased accounts receivable, which was offset by reduced inventory. For further information regarding working capital, refer to the Net working capital section.

Cash flow from investing activities amounted to SEK -115 million (-115). Cash flow from investments in tangible and intangible assets amounted to SEK -115 million (-94). Investments in the IT platform amounted to SEK -92 million (-59) and the remaining SEK -23 million (-35) comprised the investments in the facility in Växjö, which houses our product take-back business, 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 -47 million (-47). For more information, refer to Note 4 Investments.

Cash flow from financing activities amounted to SEK 148 million (-333). The period was mainly attributable to short-term financing of SEK 248 million (-). The period was also impacted by the repayment of lease liabilities of SEK -92 million (-98). The first half of the preceding year was negatively impacted by a dividend of SEK -250 million.

Net working capital

Net working capital amounted to SEK 229 million (-433) at the end of the period. The change is largely attributable to increased accounts receivable due to higher delivery volumes and reduced accounts payable mainly due to planned lower purchase volumes. Of total inventory of SEK 1,220 million (1,259), customerspecific inventory comprised SEK 681 million (814). The corresponding figure at the end of the first quarter was total inventory of SEK 1,610 million, of which SEK 1,019 million was customer specific.

SEK million	Feb 28, 2023	Feb 28, 2022	Aug 31, 2022
Inventories	1,219.9	1,258.6	1,340.2
Accounts receivable	3,077.7	2,840.4	3,165.7
Tax assets and other current receivables Accounts payable Tax liabilities and	662.0 -3,428.0	589.0 -3,784.0	691.5 -3,790.5
other current liabilities	-1,303.0	-1,337.2	-1,327.0
Net working capital	228.5	-433.1	79.9

Net debt and cash and cash equivalents

At the end of the period, net debt amounted to SEK 4,607 million (4,170), which is a decrease of SEK 152 million from SEK 4,759 million in the first quarter. The change compared to the second quarter last year relates mainly to currency effects and expanded financing of SEK 250 million (-) for the earlier increase in customer-specific inventory. In pace with the decline in customer-specific inventory, the expanded financing decreased from SEK 400 million in the first quarter. 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 4.4 (3.2). The increase relates mainly to higher liabilities to credit institutions combined with reduced EBITDA. For calculation, see source of alternative performance measures.

SEK million	Feb 28, 2023	Feb 28, 2022	Aug 31, 2022
Liabilities to credit institutions	5,079.9	4,727.0	4,741.8
Lease liabilities and other financial
liabilities Cash and cash	477.2	583.6	533.6
equivalents	-950.5	-1,140.2	-766.8
Net debt	4,606.6	4,170.4	4,508.6

Events after the balance sheet date

Change in Dustin's group management team Martin Lindecrantz, EVP HR & Sustainability, announced that he will leave the company.

Change in Dustin's group management team – group wide LCP organisation to increase scalability and knowledge sharing

A common group organisation for Large Corporate and Public (LCP) is created to increase the pace of knowledge sharing and scalability within the segment. This means that LCP Nordic and LCP Benelux is merged into one organisation under the lead of Michael Haagen Petersen, today EVP LCP Nordic. In connection with the change, Angelo Bul, EVP LCP Benelux, will leave the group management team on March 30.

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 258 million (-138). The change was mainly due to dividends received from Group companies of SEK 299 million (-) and intra-Group interest income of SEK 109 million (82). Financial expenses amounted to SEK -162 million (-248). Interest expenses amounted to SEK -91 million (-56), attributable to higher interest expenses due to higher interest rates. The net currency position was SEK -71 million (-192), 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 February 28, 2023, the price was SEK 35.52 per share (81.60), representing a total market capitalisation of SEK 3,933 million (9,230). At February 28, 2023, the company had a total of 14,435 shareholders (14,731). The Company's three largest shareholders were Axel Johnson Gruppen with 28.7 per cent, AMF Tjänstepension & Fonder with 9.1 per cent and Kempen Capital Management with 7.8 per cent.

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

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change	Rolling	Full-year	Change
SEK million	22/23	21/22	%	22/23	21/22		% 12 months	21/22	%
Net sales*1	1,821.5	1,995.6	-8.7	3,730.8	3,987.8	-6.4	7,343.1	7,600.1	-3.4
Segment results 1	80.3	134.7	-40.4	184.6	276.3	-33.2	369.9	461.6	-19.9
Segment margin (%)*1	4.4	6.7	-	4.9	6.9	-	5.0	6.1	-

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

1 Restated in accordance with segment update from Q2 2022/23.

Net sales

Net sales for the quarter declined 8.7 per cent to SEK 1,822 million (1,996). Organic growth was -10.0 per cent (7.0). Acquisition-related growth, related in its entirety to customer transfers, accounted for -1.9 percentage points. Exchange-rate differences accounted for 3.2 percentage points.

The second quarter continued to be dominated by general economic uncertainty and, accordingly, a cautious purchasing trend. After a weak start, demand stabilised, but remained hesitant, particularly among the small and mid-sized companies, while the large companies in the segment, together with consumer sales, displayed positive growth during the quarter as a whole. Geographically, the sales trend in Denmark and Norway was positive.

Software and services as a percentage of sales declined to 11.3 per cent (14.6) in the second quarter (see Note 2 Net sales and segment reporting), primarily as a result of the software mix, related effects of IFRS 15 and customer transfers between segments. The sales trend in contracted recurring services remained strong.

Segment results

Profit for the segment declined 40.4 per cent to SEK 80 million (135) and the segment margin declined to 4.4 per cent (6.7).

The margin change was primarily attributable to:

• lower sales volumes and, accordingly, a cost base that is temporarily too high, had a negative impact
• higher volumes of campaign goods and a shift to more basic alternatives with low margins
• generally higher inflation-driven cost level had a negative effect
• positive sales trend within contracted recurring services had a positive impact

LCP - Large Corporate and Public sector

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change	Rolling	Full-year	Change
SEK million	22/23	21/22	%	22/23	21/22	%	12 months	21/22	%
Net sales*	4,450.0	4,141.6	7.4	9,176.6	7,975.5	15.1	17,201.9	16,000.8	7.5
Segment results1	172.5	172.3	0.1	314.4	362.7	-13.3	581.6	629.9	-7.7
Segment margin (%)*1	3.9	4.2	-	3.4	4.5	-	3.4	3.9	-

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

1 Restated in accordance with segment update from Q2 2022/23.

Net sales

Net sales increased 7.4 per cent to SEK 4,450 million (4,142) for the quarter. Organic growth was 1.1 per cent (15.7). Acquisition-related growth, related in its entirety to customer transfers, accounted for 1.1 percentage points. Exchange-rate differences accounted for 5.2 percentage points.

The availability of hardware was good, which, in combination with continued healthy demand among our large customers, laid the foundation for favourable growth. Growth was strong, both among large companies and to the public sector, but overall was clearly impacted by the expiry of the major 50.40 framework agreement with SKI in Denmark during the first quarter. A high level of activity and strong influx of new customers in Benelux have offset this to a certain extent, despite a generally more selective and marginfocused attitude to new customers and agreements. Geographically, sales growth was strongest in the Netherlands, Finland and Belgium.

Segment results

Profit for the segment increased 0.1 per cent to SEK 173 million (172), while the segment margin declined to 3.9 per cent (4.2).

The margin change was primarily attributable to:

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

Central functions

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change	Rolling	Full-year	Change
SEK million	22/23	21/22	%	22/23	21/22	%	12 months	21/22	%
Cost for central functions 1	-40.8	-31.7	28.7	-86.6	-63.3	36.7	-136.1	-112.9	20.6
Costs for central functions in relation to
net sales (%)*1	-0.7	-0.5	-	-0.7	-0.5	-	-0.6	-0.5	-

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

1 Restated in accordance with segment update from Q2 2022/23.

Central functions

In the second quarter, costs for central functions amounted to 0.7 per cent (0.5) in relation to sales. Costs for central functions amounted to SEK 41 million (32), with the increase mainly related to a generally higher inflation-driven cost level, currency effects, 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 4 million (3) is included in the costs for central functions for the quarter. For additional financial data on the segments, refer to Note 2 Net sales and segment reporting on pages 18-19, and to Segment information by quarter on page 24.

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, March 29, 2023

Mia Brunell Livfors Chairman of the board

Stina Andersson Gunnel Duveblad

Johan Fant Tomas Franzén

Morten Strand Dolph Westerbos

Thomas Ekman CEO and member of the board

This report has not been reviewed by the company's auditors.

Consolidated income statement

		Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	Note	22/23	21/22	22/23	21/22	12 months	21/22
Net sales*	2	6,271.6	6,137.2	12,907.5	11,963.3	24,545.1	23,600.9
Cost of goods and services sold*		-5,357.7	-5,233.7	-11,100.9	-10,165.5	-21,078.7	-20,143.3
Gross profit		913.9	903.5	1,806.6	1,797.8	3,466.4	3,457.6
Selling and administrative expenses		-745.5	-664.7	-1,483.0	-1,296.2	-2,815.2	-2,628.3
Items affecting comparability	3	-9.1	-12.8	-27.9	-19.9	-58.1	-50.1
Other operating income		9.8	5.1	24.8	8.2	37.1	20.5
Other operating expenses		-12.3	-11.0	-26.0	-18.7	-49.0	-41.7
EBIT	2	156.9	220.1	294.4	471.2	581.2	758.0
Financial income and other similar income statement items		3.5	0.2	3.9	0.4	4.7	1.2
Financial expenses and other similar income statement items		-53.3	-33.7	-102.0	-66.8	-165.0	-129.8
Profit after financial items		107.1	186.6	196.3	404.9	420.9	629.5
Tax		-25.9	-42.5	-48.9	-94.7	-105.9	-151.8
Profit for the period, attributable in its entirety to Parent Company shareholders		81.2	144.1	147.5	310.1	315.0	477.7
Earnings per share before dilution (SEK)		0.72	1.27	1.30	2.74	2.78	4.22
Earnings per share after dilution (SEK)		0.72	1.27	1.30	2.74	2.78	4.22

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

Consolidated statement of comprehensive income

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Profit for the period	81.2	144.1	147.5	310.1	315.0	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	61.4	-25.2	56.8	-87.0	170.9	27.0
Result from hedge of net investments in foreign operations	-45.4	-173.0	-132.6	-193.2	-165.0	-225.6
Translation reserve	25.2	257.9	149.7	303.1	177.0	330.4
Tax attributable to components in other comprehensive income	-3.3	40.8	15.6	57.7	-1.2	40.9
Other comprehensive income	37.9	100.6	89.5	80.5	181.7	172.7
Comprehensive income for the period is attributable in its entirety to Parent
Company shareholders	119.1	244.7	237.0	390.7	496.7	650.4

Condensed consolidated balance sheet

SEK million	Note	Feb 28, 2023	Feb 28, 2022	Aug 31, 2022
ASSETS
Non-current assets
Goodwill		8,256.3	8,070.7	8,097.0
Intangible assets attributable to acquisitions		636.0	723.0	674.9
Other intangible assets	4	355.4	243.6	290.7
Tangible assets	4	116.4	141.1	130.0
Right-of-use assets	4	462.0	565.0	512.5
Deferred tax assets		15.6	5.6	14.5
Derivative instruments	5	253.3	26.9	156.0
Other non-current assets		10.2	9.0	9.5
Total non-current assets		10,105.3	9,784.8	9,885.0
Current assets
Inventories		1,219.9	1,258.6	1,340.2
Accounts receivable		3,077.7	2,840.4	3,165.7
Derivative instruments	5	0.1	2.9	5.7
Tax assets		26.3	20.8	15.7
Other receivables		635.7	568.2	675.8
Cash and cash equivalents		950.5	1,140.2	766.8
Total current assets		5,910.2	5,831.2	5,969.9
TOTAL ASSETS		16,015.4	15,616.0	15,854.9
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent Company shareholders		5,322.1	4,825.5	5,085.0
Total equity		5,322.1	4,825.5	5,085.0
Non-current liabilities
Deferred tax and other long-term provisions		235.6	239.6	242.0
Liabilities to credit institutions		4,824.2	4,719.6	4,734.4
Non-current lease liabilities		319.4	407.9	361.7
Derivative instruments	5	115.6	72.7	92.6
Total non-current liabilities		5,494.7	5,439.8	5,430.6
Current liabilities
Liabilities to credit institutions		255.7	7.4	7.4
Other provisions		0.8	1.0	0.8
Current lease liabilities		157.9	175.6	171.9
Accounts payable		3,428.0	3,784.0	3,790.5
Tax liabilities		83.3	67.0	120.0
Derivative instruments	5	58.0	48.0	46.1
Other current liabilities		1,215.0	1,267.8	1,202.5
Total current liabilities		5,198.6	5,350.7	5,339.2
TOTAL EQUITY AND LIABILITIES		16,015.4	15,616.0	15,854.9

Condensed consolidated statement of changes in equity

SEK million	Feb 28, 2023	Feb 28, 2022	Aug 31, 2022
Balance as at September 1	5,085.0	4,676.4	4,676.4
Profit for the period	147.5	310.1	477.7
Other comprehensive income
Translation difference	149.7	303.1	330.4
Cash-flow hedging	-75.8	-280.2	-198.6
Tax attributable to components in other comprehensive income	15.6	57.7	40.9
Total other comprehensive income	89.5	80.5	172.7
Total comprehensive income	237.0	390.7	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	0.3	-	-
Repurchase of own shares	-4.1	-	-
Total transactions with shareholders	0.1	-241.6	-241.8
Closing equity as per the balance sheet date, attributable to Parent Company shareholders in its entirety	5,322.1	4,825.5	5,085.0

Consolidated statement of cash flow

		Q2	Q2	Q1-Q2	Q1-Q2	Full-year
SEK million	Note	22/23	21/22	22/23	21/22	21/22
Operating activities
EBIT		156.9	220.1	294.4	471.2	758.0
Adjustment for non-cash items		73.4	119.3	172.4	224.1	419.5
Interest received		3.5	0.2	3.9	0.4	1.2
Interest paid		-51.8	-32.0	-99.4	-62.6	-126.4
Income tax paid		-59.9	-29.4	-98.9	-72.4	-96.1
Cash flow from operating activities before changes
in working capital		122.1	278.2	272.4	560.7	956.2
Decrease (+)/increase (-) in inventories		401.2	-93.7	150.5	-211.4	-289.2
Decrease (+)/increase (-) in receivables		159.1	334.5	147.5	-274.8	-686.1
Decrease (-)/increase (+) in current liabilities		-432.6	-130.9	-405.2	682.6	603.4
Cash flow from changes in working capital		127.7	109.9	-107.3	196.4	-371.9
Cash flow from operating activities		249.8	388.1	165.1	757.1	584.3
Investing activities
Acquisition of intangible assets	4	-55.9	-43.9	-99.8	-69.2	-152.4
Acquisition of tangible assets	4	-7.8	-10.3	-14.8	-24.7	-38.5
Contingent earn-out paid	5	-	-20.7	-	-20.7	-20.7
Cash flow from investing activities		-63.7	-74.8	-114.6	-114.5	-211.6
Financing activities
New share issue		3.9	-	3.9	5.8	5.8
Repurchase of own shares		-4.1	-	-4.1	-	-
Cash flow from LTI programme		-	4.3	-	4.3	2.4
Dividends		-	-250.0	-	-250.0	-250.0
New loans raised		150.0	-	550.0	4,466.4	4,466.4
Repayment of loans		-301.9	-	-301.9	-4,445.1	-4,452.4
Paid borrowing expenses		-8.0	-0.1	-8.0	-15.8	-16.8
Repayment of lease liabilities		-44.9	-52.2	-91.9	-98.9	-190.0
Cash flow from financing activities		-205.1	-298.0	148.0	-333.3	-434.6
Cash flow for the period		-19.1	15.3	198.6	309.3	-61.9
Cash and cash equivalents at beginning of period		972.0	1,144.3	766.8	847.4	847.4
Cash flow for the period		-19.1	15.3	198.6	309.3	-61.9
Exchange-rate differences in cash and cash equivalents		-2.4	-19.4	-14.8	-16.5	-18.6
Cash and cash equivalents at end of period		950.6	1,140.2	950.6	1 140.2	766.8

Condensed Parent Company income statement

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Net sales	3.7	0.1	3.7	0.2	17.1	13.5
Cost of goods and services sold	-2.6	0.0	-2.6	0.0	-11.9	-9.3
Gross profit	1.1	0.1	1.1	0.2	5.2	4.2
Selling and administrative expenses	-2.0	-4.1	-3.8	-7.7	-13.2	-17.1
Other operating expenses	-	-	-	-	0.0	0.0
EBIT	-0.9	-4.0	-2.6	-7.5	-8.0	-12.9
Financial income and other similar Income statement items Financial expenses and other similar income statement items	359.6 -52.4	40.0 -198.0	411.2 -161.9	82.0 -248.2	592.4 -232.8	263.2 -319.0
Profit/loss after financial items	306.3	-161.9	246.7	-173.7	351.6	-68.7
Appropriations	-	-	-	-	120.6	120.6
Tax	-1.4	33.4	10.9	36.1	-16.2	9.0
Profit/loss for the period	304.9	-128.6	257.6	-137.6	456.1	60.8

Parent Company statement of comprehensive income

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Profit for the period	304.9	-128.6	257.6	-137.6	456.1	60.8
Other comprehensive income	-	-	-	-	-	-
Comprehensive income for the period	304.9	-128.6	257.6	-137.6	456.1	60.8

Condensed Parent Company balance sheet

SEK million	Feb 28, 2023	Feb 28, 2022	Aug 31, 2022
ASSETS
Non-current assets	1,211.6	1,211.6	1,211.6
Current assets	7,855.9	7,067.9	7,236.9
TOTAL ASSETS	9,067.4	8,279.4	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	3,023.6	3,023.6	3,023.6
Retained earnings	-92.0	-148.5	-148.5
Profit for the period	257.6	-137.6	60.8
Total non-restricted equity	3,189.2	2,737.5	2,936.0
Total equity	3,758.9	3,303.1	3,501.5
Untaxed reserves	192.9	243.5	192.9
Non-current liabilities	4,823.2	4,712.3	4,733.6
Current liabilities	292.4	20.6	20.5
TOTAL EQUITY AND LIABILITIES	9,067.4	8,279.4	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

During the second quarter of the 2022/2023 financial year, the long-term share-based programme was 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.

Accounting policies for certain software licenses

In May 2022, the IFRS Interpretations Committee (IFRS IC) published the agenda decision that clarified the recognition of income on some resale of software licenses for standardised software as an agent or as a principal in accordance with IFRS 15.

In light of the above, in the third quarter of the 2021/22 financial year Dustin amended its application of accounting policies for recognising income from resale of some software licenses. This entails that sales from software licences are recognised net instead of gross. The change had the following effects as described in the tables below.

	Restated	Not restated	Restated	Not restated	Restated	Not restated
	Q2	Q2	Q1-Q2	Q1-Q2	Full-year	Full-year
SEK million	21/22	21/22	21/22	21/22	21/22	21/22
Net sales	6,137.2	6,612.3	11,963.3	12,859.4	23,600.9	25,178.6
Cost of goods and services sold	-5,233.7	-5,708.8	-10,165.5	-11,061.6	-20,143.3	-21,721.0
Gross profit	903.5	903.5	1,797.8	1,797.8	3,457.6	3,457.6
Gross margin (%)	14.7	13.7	15.0	14.0	14.7	13.7
Adjusted EBITA	275.2	275.2	575.7	575.7	978.7	978.7
Adjusted EBITA margin (%)	4.5	4.2	4.8	4.5	4.1	3.9

Note 2 Net sales and segment reporting

All amounts in SEK million,	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
unless otherwise indicated Note	22/23	21/22	22/23	21/22	12 months	21/22
Net sales
LCP*	4,450.0	4,141.6	9,176.6	7,975.5	17,201.9	16,000.8
of which, hardware	3,412.1	3,462.8	7,230.6	6,833.0	13,993.6	13,596.0
of which, software and services*	1,037.9	678.9	1,946.0	1,142.5	3,208.3	2,404.8
SMB*1	1,821.5	1,995.6	3,730.8	3,987.8	7,343.1	7,600.1
of which, hardware	1,622.1	1,704.0	3,310.9	3,428.5	6,473.1	6,590.7
of which, software and services*	199.4	291.6	420.0	559.3	870.0	1,009.3
Total	6,271.6	6,137.2	12,907.5	11,963.3	24,545.1	23,600.9
of which, hardware	5,034.2	5,166.8	10,541.5	10,261.5	20,466.7	20,186.8
of which, software and services*	1,237.4	970.4	2,366.0	1,701.7	4,078.4	3,414.1
Segment results
LCP1	172.5	172.3	314.4	362.7	581.6	629.9
SMB1	80.3	134.7	184.6	276.3	369.9	461.6
Total1	252.7	306.9	499.0	639.0	951.5	1 091.5
Central functions	-40.8	-31.7	-86.6	-63.3	-136.1	-112.9
Of which, effects related to IFRS 16	3.5	3.4	6.9	6.6	13.8	13.5
Adjusted EBITA	211.9	275.2	412.5	575.7	815.4	978.7
Segment margin
LCP, segment margin (%)*1	3.9	4.2	3.4	4.5	3.4	3.9
SMB, segment margin (%)*1	4.4	6.7	4.9	6.9	5.0	6.1
Segment margin*1	4.0	5.0	3.9	5.3	3.9	4.6
Costs for central functions, excluding
Items affecting comparability in relation
to net sales (%)*1	-0.7	-0.5	-0.7	-0.5	-0.6	-0.5
Reconciliation with profit after financial items
Items affecting comparability 3	-9.1	-12.8	-27.9	-19.9	-58.1	-50.1
Amortisation and impairment of
intangible assets	-45.9	-42.3	-90.2	-84.6	-176.1	-170.5
EBIT, Group	156.9	220.1	294.4	471.2	581.2	758.0
Financial income and other similar
income statement items	3.5	0.2	3.9	0.4	4.7	1.2
Financial expenses and other similar income statement items	-53.3	-33.7	-102.0	-66.8	-165.0	-129.8
Profit after financial items, Group	107.1	186.6	196.3	404.8	420.9	629.5

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

1 Restated in accordance with segment update from Q2 2022/23.

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

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
By geographic area	22/23	21/22	22/23	21/22	12 months	21/22
Sweden*	1,488.1	1,512.1	3,036.2	3,008.3	5,840.6	5,812.7
Finland*	625.3	578.1	1,171.3	1,168.9	2,299.2	2,296.8
Denmark*	579.1	841.4	1,343.5	1,644.0	3,147.6	3,448.2
The Netherlands*	2,592.2	2,265.1	5,342.6	4,236.4	9,342.8	8,236.6
Norway*	758.4	724.9	1,578.7	1,494.5	3,069.6	2,985.4
Belgium	228.5	215.6	435.2	411.2	845.3	821.3
Total*	6,271.6	6,137.2	12,907.5	11,963.3	24,545.1	23,600.9

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

Note 3 Items affecting comparability

Items affecting comparability amounted to SEK -9 million (-13) for the quarter and related mainly to integration costs attributable to the Netherlands. 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 -3 million (-).

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	22/23	21/22	22/23	21/22	12 months	21/22
Integration costs	-6.5	-12.8	-25.4	-19.0	-42.8	-36.4
Settlement of dispute	-	-	-	-	-12.8	-12.8
Recruitment costs of senior executives	-2.6	-	-2.6	-0.9	-2.6	-0.9
Total	-9.1	-12.8	-27.9	-19.9	-58.1	-50.1

Note 4 Investments

	Q2	Q2	Q1-Q2	Q1-Q2	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)	52.6	40.4	92.1	59.0	167.8	134.8
Of which, affecting cash flow	52.6	40.4	92.1	59.0	167.8	134.8
Of which, project related investments	34.1	20.1	46.9	25.3	77.1	55.5
Investments in tangible and intangible assets	14.6	40.0	31.4	85.8	61.2	115.6
Of which, affecting cash flow	10.4	8.6	21.4	20.8	31.2	30.5
Of which, project related investments	-	9.3	0.1	21.6	2.1	23.6
Investments in assets related to service provision	11.6	9.3	18.3	26.1	45.9	53.8
Of which, affecting cash flow	0.7	5.2	1.1	14.0	12.6	25.6
Total investments	78.8	89.6	141.7	170.9	274.9	304.1
Of which, affecting cash flow	63.7	54.1	114.6	93.8	211.6	190.9
Of which, project related investments	34.1	29.4	47.0	46.9	79.2	79.1

Dustin's right-of-use assets mainly relate to buildings and IT equipment. During the quarter, new agreements totalling SEK 18 million (49) were added and are mainly

attributable to IT equipment for service provision, such as servers and network solutions. The increase was also attributable to vehicles.

SEK million	Feb 28, 2023	Feb 28, 2022	Aug 31, 2022
Buildings	235.6	280.1	257.3
Vehicles	79.0	93.3	87.6
IT equipment for internal use	50.0	77.7	65.1
IT equipment related to service provision	96.4	113.3	101.6
Other items	1.1	0.6	0.8
Right-of-use assets	462.0	565.0	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 February 28, 2023, the fair value of derivative instruments amounted to SEK 80 million (-91). The increase was related to currency movements.

Acquisition-related liabilities

Acquisition-related liabilities pertain to contingent earn-outs. Measurement is carried out on a continuous basis at fair value through profit or loss. However, if a change in value occurs before the purchase price allocation has been determined, and is not the result of events after the acquisition date, measurement is carried out via the balance sheet.

Acquisition related assets and liabilities

Change in acquisition-related liabilities measured at fair value based on inputs that are not based on observable market data (Level 3)	Feb 28, 2023	Feb 28, 2022	Aug 31, 2022
Opening balance as at September 1	-	20,5	20,5
Remeasurements recognised under other comprehensive income:
Unrealised exchange rate differences recognised under
Translation differences	-	0,2	0,2
Changes recognised via the balance sheet:
Payments attributable to previous acquisitions	-	-20,7	-20,7
Closing balance	-	-	-

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,	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
unless otherwise indicated	22/23	21/22	22/23	21/22	12 months	21/22
Income statement
Organic sales growth (%)*	-2.4	10.6	3.0	9.4	-8.3	11.4
Gross margin (%)*	14.6	14.7	14.0	15.0	14.1	14.7
EBIT	156.9	220.1	294.4	471.2	581.2	758.0
Adjusted EBITDA	268.6	336.1	527.3	694.7	1,048.0	1,215.4
Adjusted EBITA	211.9	275.2	412.5	575.7	815.4	978.7
Adjusted EBITA margin (%)*	3.4	4.5	3.2	4.8	3.3	4.1
Return on equity	-	-	-	-	5.9	9.4
Balance sheet
Net working capital	228.5	-433.1	228.5	-433.1	228.5	79.9
Capital employed	1,441.6	558.1	1,441.6	558.1	1,441.6	1,193.0
Net debt	4,606.6	4,170.4	4,606.6	4,170.4	4,606.6	4,508.6
Net debt/adjusted EBITDA (multiple)	-	-	-	-	4.4	3.7
Maintenance investments	-63.7	-54.1	-114.6	-93.8	-211.7	-190.9
Equity/assets ratio (%)	-	-	-	-	33.2	32.1
Cash flow
Operating cash flow	332.5	391.9	305.4	797.2	160.8	652.6
Cash flow from operating activities	249.8	388.1	165.1	757.1	-7.7	584.3
Data per aktie
Earnings per share before dilution (SEK)	0.72	1.27	1.30	2.74	2.78	4.22
Earnings per share after dilution (SEK)	0.72	1.27	1.30	2.74	2.78	4.22
Equity per share before dilution (SEK)	47.05	42.66	47.05	42.66	47.05	44.95
Cash flow from operating activities per share
before dilution (SEK)	2.21	3.43	1.46	6.69	-0.07	5.17
Cash flow from operating activities per share
after dilution (SEK)	2.21	3.43	1.46	6.68	-0.07	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	113,316,148	113,118,776	113,372,874	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	113,145,899	113,118,776

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

** 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 25 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 8.

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
Total	22/23	21/22	22/23	21/22	12 months	21/22
Organic growth
Sales growth (%)*	2.2	77.9	7.9	72.0	22.5	57.0
Acquired growth (%)	-	-65.2	-	-61.6	-10.2	-43.9
Currency effects in sales growth (%)	-4.6	-2.1	-4.9	-1.0	-4.1	-1.8
Organic sales growth (%)*	-2.4	10.6	3.0	9.4	8.3	11.4
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SMB	22/23	21/22	22/23	21/22	12 months	21/22
Organic growth
Sales growth (%)*1	-8.7	16.8	-6.4	16.0	-1.4	10.2
Acquired growth (%)	1.9	-8.2	1.0	-7.8	1.2	-1.1
Currency effects in sales growth (%)	-3.2	-1.6	-3.5	-0.6	-2.7	-1.2
Organic sales growth (%)*1	-10.0	7.0	-8.9	7.7	-2.8	7.9
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
LCP	22/23	21/22	22/23	21/22	12 months	21/22
Organic growth
Sales growth (%)*	7.4	137.8	15.1	126.7	36.6	96.7
Acquired growth (%)	-1.1	-119.4	-0.6	-113.0	-17.9	-78.5
Currency effects in sales growth (%)	-5.2	-2.7	-5.7	-1.4	-4.9	-2.3
Organic sales growth (%)*	1.1	15.7	8.7	12.4	13.8	15.9

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

1 Restated in accordance with segment update from Q2 2022/23.

Source of alternative performance measures - cont'd.

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
Adjusted EBITA	22/23	21/22	22/23	21/22	12 months	21/22
EBIT	156.9	220.1	294.4	471.2	581.2	758.0
Amortisation and impairment of intangible assets	45.9	42.3	90.2	84.6	176.1	170.5
Items affecting comparability	9.1	12.8	27.9	19.9	58.1	50.1
Adjusted EBITA	211.9	275.2	412.5	575.7	815.4	978.7
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
Adjusted EBITDA	22/23	21/22	22/23	21/22	12 months	21/22
EBIT	156.9	220.1	294.4	471.2	581.2	758.0
Depreciation and impairment of tangible assets
Amortisation and impairment of intangible assets	56.7 45.9	60.9 42.3	114.8 90.2	119.0 84.6	232.6 176.1	236.8 170.5
Items affecting comparability	9.1	12.8	27.9	19.9	58.1	50.1

Segment information by quarter

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

* Changed application of accounting principle from Q3 2021/22. For more information, see Note 1.

1 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.
Central functions	Includes all non-allocated central expenses, including amortisation and depreciation, 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

June 27, 2023 Interim report for the third quarter March 1, 2023 – May 31, 2023

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

For more information, please contact:

Johan Karlsson, CFO johan.karlsson@dustin.se +46 (0)708 67 79 97

Fredrik Sätterström, Head of Investor Relations fredrik.satterstrom@dustin.se +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 March 29, 2023.