Dustin Group

Quarterly Report • Apr 6, 2022

Interim report

December 1, 2021 – February 28, 2022

dustingroup.com

1

Interim report December 2021 – February 2022

"Strong underlying growth – negative margin impact from mix effects"

Second quarter

• Net sales rose 79.5 per cent to SEK 6,612 million (3,683), primarily as a result of the acquisition of Centralpoint.
• Organic sales growth was 12.2 per cent (6.4), of which SMB accounted for 10.1 per cent (8.3), LCP 17.2 per cent (4.9) and B2C negative 22.4 per cent (pos: 5.5).
• Sales growth for comparable units (pro forma) was 13.5 per cent.
• The gross margin amounted to 13.7 per cent (16.1).

September 2021-February 2022

• Net sales rose 74.3 per cent to SEK 12,859 million (7,379), primarily as a result of the acquisition of Centralpoint.
• Organic sales growth was 11.6 per cent (7.2), of which SMB accounted for 11.1 per cent (7.7), LCP 15.0 per cent (6.5) and B2C negative 19.9 per cent (pos: 10.4).
• The gross margin amounted to 14.0 per cent (15.8).
• Adjusted EBITA amounted to SEK 576 million (372), corresponding to an adjusted EBITA margin of 4.5 per cent (5.0).
• EBIT totalled SEK 471 million (308), including items affecting comparability of a negative SEK 20 million (neg: 15).
• Adjusted EBITA amounted to SEK 275 million (201), corresponding to an adjusted EBITA margin of 4.2 per cent (5.5).
• EBIT totalled SEK 220 million (177), including items affecting comparability of a negative SEK 13 million (neg: 1).
• Profit for the quarter was SEK 144 million (122).
• Earnings per share before dilution totalled SEK 1.27 (1.34).
• Cash flow from operating activities amounted to SEK 388 million (218).
• Profit for the period amounted to SEK 310 million (213).
• Earnings per share before dilution totalled SEK 2.74 (2.33).
• Cash flow from operating activities amounted to SEK 757 million (483).
• At the end of the period, net debt in relation to adjusted EBITDA during the past 12-month period, including the 12-month earnings effect of Centralpoint, but excluding the effects of IFRS 16 Leases, was 3.3.

							Proforma
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year	Q2
All amounts in SEK million, unless otherwise indicated	21/22	20/21	21/22	20/21	12 months	20/21	20/211
Net sales	6,612.3	3,683.1	12,859.4	7,379.1	21,357.9	15,877.6	5,825.3
Organic sales growth (%)	12.2	6.4	11.6	7.2	32.3	9.6	-
Gross margin (%)	13.7	16.1	14.0	15.8	14.6	15.6	14.7
Adjusted EBITA	275.2	201.3	575.7	371.8	962.5	758.6	314.9
Adjusted EBITA margin (%)	4.2	5.5	4.5	5.0	4.5	4.8	5.4
EBIT	220.1	176.7	471.2	308.4	739.0	576.2	256.0
Profit for the period	144.1	122.4	310.1	212.5	454.6	357.0	164.0
Items affecting comparability	-12.8	-0.8	-19.9	-14.8	-78.6	-73.4	-17.9
Earnings per share before dilution (SEK)*	1.27	1.34	2.74	2.33	4.36	3.82	-
Cash flow from operating activities Net debt/adjusted EBITDA (multiple)	388.1	217.7	757.1	483.0	-	168.6	-
(excl. IFRS 16) Net debt/adjusted EBITDA (multiple)	-	-	-	-	3.6	4.6	3.31
(incl. IFRS 16)**	-	-	-	-	3.5	4.3	3.21
Return on equity (%)	-	-	-	-	9.4	7.6	-

Financial key ratios

* Key ratios have been restated in comparative periods to consider the terms and conditions of the new share issue carried out in August 2021.

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

¹ To facilitate comparisons after the acquisition, financial information is presented as if Centralpoint were consolidated as of September 1, 2020. Net debt/EBITDA was calculated for the most recent 12-month period, including the 12-month earnings effect for Centralpoint. For information regarding the pro forma structure and source, see page 28.

Strong underlying growth – negative margin impact from mix effects

We report organic sales growth of just over 12 per cent for the second quarter, despite an uncertain market situation impacted by significant spread of corona and Russia's invasion of Ukraine, resulting in disruption to supply chains. With our size and our active work in purchasing, combined with large inbound deliveries of hardware, we have been able to address continued strong demand among our customers. Adjusted EBITA increased by nearly 37 per cent, while the margins were impacted by a changed sales mix with a higher share of sales in LCP and a temporarily larger share of software and computer hardware with a low margin. If we look ahead, we foresee favourable conditions for long-term profitable growth in both the Nordic region and Benelux, as well as further expansion in Europe, despite a market trend that is difficult to forecast from a short-term perspective.

Market characterised by continued high demand

Demand remained high during the quarter, while availability mainly for customer-specific products continued to be affected by long delivery times. The market has been characterised by continuous supply disruptions and therefore more unpredictable inbound deliveries. We anticipate continued healthy growth through favourable demand, despite an apparent risk of disruptions in the supply chains due to increased spread of corona and subsequent lockdowns in parts of China and the effects of the war in Ukraine.

Our model enables strong growth

We reported organic growth of 12.2 per cent, of which 10.1 per cent for SMB, 17.2 percent for LCP and negative 22.4 per cent for B2C. Growth for the quarter was driven by strong sales of hardware and software in combination with large inbound deliveries of computer hardware ordered earlier. We benefited from our active approach in purchasing and our strong position in the value chain, which has ensured generally good availability and the possibility of a certain amount of inventory accumulation. Net sales increased to SEK 6,612 million (3,683), corresponding to reported growth of 80 per cent.

For SMB, we saw continued high demand for hardware in all customer groups, where sales to the slightly larger companies in the segment displayed the highest growth. Within LCP, sales to large companies and the public sector performed strongly and benefited from large inbound deliveries of products ordered earlier. Sales of software increased strongly, growing more than four-fold compared with the corresponding quarter in the preceding year, partly as a result of major roll-outs. B2C recorded a negative sales trend as a direct result of fewer campaigns.

Sales mix impacts margin

The gross margin declined to 13.7 per cent (16.1). The change is mainly attributable to an altered customer mix, with a higher share of sales within LCP related to the acquisition of Centralpoint, together with high organic growth in the segment. This, in combination with a temporarily changed product mix, with a strong increase in the share of software and computer

hardware with a low margin, had an adverse impact on development.

Adjusted EBITA increased to SEK 275 million (201), while the adjusted EBITA margin declined to 4.2 per cent (5.5). The earnings improvement was mainly attributable to the acquisition of Centralpoint, combined with increased volumes. The lower margin was mainly related to a lower gross margin in combination with temporarily higher costs of approximately SEK 15 million, due to extensive absence in conjunction with significant spread of corona during the quarter. EBIT increased to SEK 220 million (177), including items affecting comparability of negative SEK 13 million (neg: 1), primarily related to the integration of Vincere and Centralpoint in the Netherlands and Danish company Exato.

Moving towards one Dustin

During the quarter, we completed the integration of Danish company Exato and continued our effort to integrate and harmonise our operations in Benelux. As part of this, we will undertake reprofiling of the operations in Centralpoint and the companies in Vincere Group, which will all operate under the Dustin brand at the end of the financial year. This will further strengthen our position and make us more visible in our markets.

Strong cash flow and reduced working capital

Cash flow from operating activities increased to SEK 388 million (218) during the quarter, driven by an improved operating profit and lower tied-up working capital. We place high value on maintaining a low level of tied-up capital by having the right agreements with our suppliers and a high rate of turnover in our warehouses.

Summary and outlook

We report strong organic growth for the second quarter, while the margins were negatively affected by a temporarily changed sales mix. With our combined operations in the Nordic region and Benelux, we have established ourselves as one of the largest players in Europe. We are well-positioned to address the strong underlying market trends, such as increased online retail, mobility, cloud services and cyber security. Our strong growth demonstrates that we have our customers' confidence and that they regard us as a partner who can meet high demands on availability and service. With our low level of tied-up capital, we are able to combine high growth with strong cash flows. This, together with our unique customer offering, gives us good opportunities for continued expansion and strengthened margins, despite a market trend that is difficult to assess from a short-term perspective.

Nacka, April 2022

Thomas Ekman, President and CEO

Dustin at a glance

Dustin is a leading online IT partner serving the Nordic region and Benelux. We help our customers to stay at the forefront by providing them with the right IT solution at the right time and at the right price. With our high-level IT expertise, broad offering and pragmatic attitude, we act as a strategic IT partner primarily for small and medium-sized businesses, but also for largesized businesses, the public sector and consumers.

Focus on business customers

We have a total of three business segments: SMB (Small and Medium-sized Businesses) with a pro forma sales share (including Centralpoint) of about 34 per cent for the 2020/21 financial year, LCP (Large, Corporate and Public Sector) with a pro forma sales share of about 63 per cent and B2C (Business to Consumer) with a pro forma sales share of about 3 per cent. 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."

Financial targets

Dustin's Board of Directors has established the following long-term financial targets.

Growth

Dustin's target is to achieve average annual organic growth of 8 per cent over a business cycle. In addition to this, Dustin intends to expand through acquisitions.

Margin

Dustin's target is to increase the adjusted EBITA margin over time, and to achieve an adjusted EBITA margin of between 5 and 6 per cent in the medium term.

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 goals

The sustainability strategy focuses on three areas: climate, circularity and social equality. We have linked the goals to our strategy, which state that by 2030 Dustin shall:

• 1. have 0 climate impact throughout the value chain
• 1. be 100 per cent circular
• 1. have conducted 100 activities to promote social equality throughout the value chain.

Code of Conduct and audits

During the period, we had a strong focus on integrating the operations in Benelux into Dustin's way of working. In sustainability and social responsibility, a key aspect is to implement our Code of Conduct for Suppliers for purchasing in all of our markets.

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 the year, no (5) factory audits were conducted due to lockdown after increased spread of corona in areas of China. Our established target is to conduct 20 factory audits during the financial year.

Our offering for end-of-life returns of hardware

During the first quarter, we started our operations for end-of-life returns of used IT equipment in Växjö. In the second quarter, activity picked up with higher volumes. The investment of approximately SEK 6 million is,

Capital structure

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

Dividend policy

Dustin's dividend payout target is 70 per cent of net profit for the year. However, the Company's financial position, cash flow, acquisition opportunities and future prospects should be taken into consideration.

together with the corresponding facility in Benelux, a key part of how we will achieve 100-per cent circularity by 2030. The facility processes used IT equipment for re-use and recycling, which makes a positive contribution to our and our customers' corporate responsibility efforts and circularity, as well as our profitability.

In conjunction with starting our own end-of-life returns operations, we have also begun to sell the returned equipment through selected partners. As part of this processing, we ensure that all data is erased and the equipment is anonymised before changing owner. At the same time, we assume responsibility for the environmental and social aspects in conjunction with the sale of the equipment, so that this occurs without a negative impact on people and environment.

Circular key ratio

Our circular share in relation to our net sales for the period amounted to 19.7 per cent, compared with 18.3 per cent for full-year 2020/21. The calculation of the value of returned computers, telephones, tablets and other equipment is made in relation to the average of the sales value in each product category. The value is then more representative for each returned product.

	Q1 - Q2 21/22		Full-year 20/21
Circularity	Number	MSEK	Number	MSEK
End-of-life returns	57,312	365	90,100	353
Software and consulting services	–	1,261	–	2,113
Refurbished products	–	5	–	–

* Data excludes Centralpoint and the value of end-of-life returns that go directly to recycling. In conjunction with the reporting of the fourth quarter, the scope of reporting will be extended and all of Dustin will be included, also encompassing Centralpoint, and the value of returns that go directly to recycling.

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 2021–February 2022.

Second quarter

Net sales

Net sales increased 79.5 per cent during the quarter to SEK 6,612 million (3,683). Organic growth was 12.2 per cent (6.4), of which SMB accounted for 10.1 per cent (8.3), LCP 17.2 per cent (4.9) and B2C for negative 22.4 per cent (pos: 5.5). Acquisition-related growth was 65.2 percentage points (0.4) and exchange-rate differences had a positive impact of 2.1 percentage points (neg: 2.8).

Gross profit

During the quarter, gross profit increased SEK 312 million to SEK 904 million (591), corresponding to 52.8 per cent. The gross margin declined to 13.7 per cent (16.1), primarily due to a changed sales mix with a higher share of revenue within the LCP segment after the acquisition of Centralpoint, combined with a temporarily higher share of software and computer hardware with a low margin.

Adjusted EBITA

Adjusted EBITA amounted to SEK 275 million (201). The adjusted EBITA margin amounted to 4.2 per cent (5.5). The margin decline was primarily attributable to a lower gross margin and increased costs related to high absence in conjunction with a significant spread of corona during the quarter. Adjusted EBITA excludes items affecting comparability of a negative SEK 13 million (neg: 1) pertaining 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 220 million (177). EBIT included items affecting comparability amounting to a negative SEK 13 million (neg: 1).

Financial items

Financial expenses amounted to SEK 34 million (neg: 14). The increase was attributable to higher interest expenses due to increased loans. External financing expenses amounted to SEK 29 million (neg: 10). Financial expenses were also impacted by interest expenses related to leases in an amount of SEK 5 million (neg: 4). Financial income amounted to SEK 0.2 million (0.3).

Tax

The tax expense for the quarter was SEK 43 million (neg: 40), corresponding to an effective tax rate of 22.8 per cent (24.8). The higher effective tax in the preceding period was mainly attributable to the remeasurement of deferred Dutch taxes.

Profit for the quarter

Profit for the quarter was SEK 144 million (122). Earnings per share amounted to SEK 1.27 (1.34) before and after dilution.

Proforma

To facilitate comparisons after the acquisition of Centralpoint, which was implemented in June 2021, financial information is presented in this section as if Centralpoint were consolidated on 1 September 2020. Net sales increased 13.5 per cent during the quarter to SEK 6,612 million (5,825). Gross profit increased SEK 46 million to SEK 904 million (858), corresponding to 5.3 per cent. The gross margin amounted to 13.7 per cent (14.7), where the decline is mainly attributable to a changed sales mix, with a higher proportion of sales within the LCP segment and a generally high share of software and computer hardware with a low margin. Adjusted EBITA declined 12.6 per cent to SEK 275 million (315), as a result of a lower gross margin and increased costs related to high absence in conjunction with a significant spread of corona during the quarter. EBIT totalled SEK 220 million (256).

Cash flow

Cash flow for the quarter was SEK 15 million (neg: 32).

Cash flow from operating activities amounted to SEK 388 million (218). Cash flow before changes in working capital was SEK 278 million (207) and changes in working capital amounted to SEK 110 million (10). An increase in inventory of SEK 94 million (68) made a negative contribution to cash flow. A decrease in accounts receivable of SEK 185 million (136) resulted in a positive cash flow effect, which was offset by reduced current liabilities of SEK 131 million (neg: 50).

Cash flow from investing activities amounted to a negative SEK 75 million (neg: 18). During the quarter, earn-outs of negative SEK 21 million (-) were paid that were attributable to acquisitions completed earlier. Investments in tangible and intangible assets amounted to a negative SEK 54 million (neg: 18), of which the IT platform amounted to a negative SEK 40 million (neg: 9) and the remaining negative SEK 14 million (neg: 9) was related to investments in IT equipment for internal use and improvements of leased properties. Of the quarter's total investments, projectrelated investments amounted to negative SEK 29 million (-). For more information, refer to Note 4 Investments.

Cash flow from financing activities amounted to negative SEK 298 million (neg: 231). The quarter was impacted by a dividend to shareholders of SEK 250 million (neg: 195) and the repayment of lease liabilities of negative SEK 52 million (neg: 40). During the quarter, the payment of warrants issued relating to Dustin's long-term incentive programme (LTI) had a positive impact of SEK 4 million (4).

Significant events in the second quarter Introduction of long-term incentive programme At the Annual General Meeting on December 15, 2021, it was resolved to adopt a long-term incentive programme in the form of not more than 1,329,710 warrants which, after the three-year vesting period, will confer entitlement to the subscription of one share, as

well as the issuance of not more than 373,252 synthetic options which, after the three-year vesting period, will confer entitlement to a cash payment.

September 1, 2021 – February 28, 2022 Net sales

Net sales rose 74.3 per cent to SEK 12,859 million (7,379) during the period. Organic growth was 11.6 per cent (7.2), of which SMB accounted for 11.1 per cent (7.7), LCP 15.0 per cent (6.5) and B2C negative 19.9 per cent (pos: 10.4). Acquired growth was 61.6 percentage points (0.3) and exchange-rate differences had a positive impact of 1.0 percentage points (neg: 2.9).

Gross profit

During the period, gross profit rose SEK 630 million, corresponding to 54.0 per cent, to SEK 1,798 million (1,168). The gross margin declined to 14.0 per cent (15.8), primarily due to a changed sales mix with a higher share of revenue within the LCP segment after the acquisition of Centralpoint, combined with a temporarily higher share of software and computer hardware with a low margin.

Adjusted EBITA

During the period, adjusted EBITA rose 54.8 per cent to SEK 576 million (372). The adjusted EBITA margin declined to 4.5 per cent (5.0). The margin decline was primarily attributable to a lower gross margin and increased costs related to high absence in conjunction with a significant spread of corona during the second quarter. Adjusted EBITA excluded items affecting comparability of negative SEK 20 million (neg: 15), 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 471 million (308). EBIT included items affecting comparability amounting to a negative SEK 20 million (neg: 15).

Financial items

Financial expenses amounted to SEK 67 million (neg: 29). The increase was attributable to higher interest expenses due to increased loans. External financing expenses for the period amounted to SEK 57 million (neg: 21), of which negative SEK 2 million (-) pertained to the impairment of accumulated borrowing expenses attributable to earlier financing. Financial expenses were also impacted by interest expenses related to leases of SEK 9 million (neg: 8). Financial income amounted to SEK 0.4 million (0.5).

Tax

Tax expense for the period was SEK 95 million (67), corresponding to an effective tax rate of 23.4 per cent (24.1).

Profit for the period

Profit for the period amounted to SEK 310 million (213). Earnings per share amounted to SEK 2.74 (2.33) before and after dilution.

Cash flow

Cash flow for the period was SEK 309 million (145).

Cash flow from operating activities amounted to SEK 757 million (483). The period's effect from changes in working capital was SEK 196 million (106). The positive change compared with the preceding period was mainly attributable to a higher level of accounts payable that was offset by increased inventory and accounts receivable, due to an increased business volume. For further information regarding working capital, refer to the Net working capital section.

Cash flow from investing activities amounted to a negative SEK 115 million (neg: 70). During the period, earn-outs of a negative SEK 21 million (neg: 39) were paid that were attributable to acquisitions completed earlier. Investments in tangible and intangible assets amounted to a negative SEK 94 million (neg: 31), of which the IT platform amounted to a negative SEK 59 million (neg: 17) and the remaining negative SEK 35 million (neg: 14) comprised investments in the facility in Växjö that manages the end-of-life returns business, IT equipment for internal use and improvements of leased properties. During the period, the total project related investments is amounted to negative SEK 47 million (-). For more information, refer to Note 4 Investments.

Cash flow from financing activities amounted to a negative SEK 333 million (neg: 268). The period was negatively impacted by a dividend to shareholders of SEK 250 million (neg: 195) and the repayment of lease liabilities of negative SEK 99 million (neg: 78). The period was positively impacted in an amount of SEK 4 million (4) pertaining to the payment of warrants issued relating to Dustin's long-term incentive programme (LTI).

Net working capital

Net working capital amounted to a negative SEK 433 million (neg: 549) at the end of the period. Inventory increased by SEK 685 million, with Centralpoint accounting for SEK 476 million. The higher inventory volume was mainly attributable to a higher percentage of private label products in conjunction with the launch in Benelux. The increase in accounts receivable pertains mainly to Centralpoint at SEK 995 million, as well as an increase in the business volume. The higher accounts payable were mainly attributable to Centralpoint, in an amount of SEK 1,441 million, and increased purchasing volumes.

	Feb 28,	Feb 28,	Aug 31,
SEK million	2022	2021	2021
Inventories	1,258.6	574.0	1,015.7
Accounts receivable	2,840.4	1,489.3	2,455.8
Tax assets and other
current receivables	589.0	337.2	565.2
Accounts payable	-3,784.0	-2,030.7	-3,147.4
Tax liabilities and
other current
liabilities	-1,337.2	-918.4	-1,145.7
Net working capital	-433.1	-548.7	-256.4

Net debt and cash and cash equivalents

At the end of the period, net debt amounted to SEK 4,170 million (1,735). The change was attributable to increased liabilities to credit institutions due to the acquisition of Centralpoint. 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 during the past 12-month period, including the 12-month earnings effect of Centralpoint, but excluding the effects of IFRS 16 Leases, was 3.3. For calculation, see source of alternative performance measures.

SEK million	Feb 28, 2022	Feb 28, 2021	Aug 31, 2021
Liabilities to credit institutions	4,727.0	2,127.1	4,481.4
Lease- and other financial liabilities	583.6	497.5	577.0
Cash and cash equivalents	-1,140.2	-889.8	-847.4
Net debt	4,170.4	1,734.8	4,211.1

Employees

The average number of full-time employees during the period was 2,405, compared with 1,696 in the yearearlier period. The increase was primarily attributable to Centralpoint.

Events after the balance sheet date Merger of subsidiary

During the quarter, the Danish company Exato A/S merged with Dustin A/S. The merger is a step in further integration of the businesses into the shared IT platform. After the merger, the company will operate under the Dustin brand.

Customer dispute

Dustin has been served with a lawsuit by the Dutch municipality of Hof van Twente relating to damages resulting from a cyber attack against the municipality in 2020. The municipality is claiming damages of EUR 4 million. Dustin intends to contest the claim and is of the view that the claim essentially lacks any basis.

Amendment of applied accounting policy

In the light of the IASB IC's draft response to an industry inquiry and the consequent change in industry practice, Dustin will from the third quarter change its current assessment regarding the recognition of income from the resale of software licenses. This entails that income streams from software licenses will

be recognised net instead of gross. For more information, refer to Note 1 Accounting policies.

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.

During the period, net sales amounted to SEK 0.2 million (0.2) and the loss for the period totalled SEK 138 million (profit: 277). The change was mainly attributable to a net currency position amounting to negative SEK 192 million (pos: 34), increased costs for external financing of negative 56 million (neg: 20) and dividends were received from Group companies in the preceding year (260). Intra-Group interest income increased to SEK 82 million (10). The Group applies hedge accounting, whereby the net currency position is recognised against equity.

Risks and uncertainties

The coronavirus pandemic continues to affect our operation and the risk of disruptions to production and supply chains are continuing. Russia's invasion of Ukraine has increased uncertainty for the global economy, involving such aspects as disruptions to supply and logistics chains and increased volatility in the energy market, together with a higher inflation rate. As a consequence of this, there is a risk of increased freight costs and further disruptions to the supply chain. However, Dustin is not directly exposed to effects caused by the invasion.

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 62-67 of Dustin's 2020/21 Annual and Corporate Responsibility 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, 2022, the price was SEK 81.60 per share (83.60), representing a total market capitalisation of SEK 9,230 million (7,411). On February 28, 2022, the company had a total of 14,731 shareholders (13,627). The Company's three largest shareholders were AxMedia AB (Axel Johnson Gruppen) with 27.3 per cent, AMF Pension & Fonder with 13.8 per cent and ODIN Fonder with 7.1 per cent.

Dustin's shareholder register containing the largest shareholders is presented on the company's website.

Review of business segment

Dustin operates through three business segments: SMB (Small and Medium-sized Businesses), LCP (Large Corporate and Public sector) and B2C (Business to Consumer). Within the SMB and LCP segments, customers are served through both the online platform and relationship selling. In the B2C segment, customers are served through the online platform.

SMB - Small and Medium-sized Businesses

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change	Rolling	Full-year	Change
SEK million	21/22	20/21	%	21/22	20/21	%	12 months	20/21	%
Net sales	1,940.7	1,614.6	20.2	3,865.8	3,236.2	19.5	7,166.4	6,536.8	9.6
Segment results	214.1	170.3	25.7	444.1	332.1	33.7	775.2	663.2	16.9
Segment margin (%)	11.0	10.6	-	11.5	10.3	-	10.8	10.1	-

Net sales

Net sales for the quarter increased 20.2 per cent to SEK 1,941 million (1,615) due to the continued healthy demand for hardware, combined with large inbound deliveries. Organic growth was 10.1 per cent (8.3). Acquisition-related growth (including customer transfers between segments) accounted for 8.6 percentage points, of which acquisitions accounted for 18.2 percentage points and customer transfers negative 9.5 percentage points. Exchange-rate differences accounted for 1.4 percentage points.

The operations were characterised by continued favourable development of hardware sales for all customer groups, whereby the slightly larger companies in the segment displayed the strongest growth. The trend for contractual recurring service sales was solid. Geographically, growth was strongest in Norway and the Netherlands.

Software and services as a percentage of sales declined to 19.3 per cent (21.6) in the second quarter (see Note 2 Net sales and segment reporting), primarily as a result of the acquisition of Centralpoint. Sequentially, compared with the first quarter, the proportion of software and services increased from 17.6 per cent.

Segment results

Profit for the segment rose 25.7 per cent to SEK 214 million (170). The segment margin improved to 11.0 per cent (10.6) compared with the year-earlier quarter.

The margin change was primarily attributable to:

• generally higher volumes
• healthy sales trend in private label products
• reclassification of segment costs to central functions and customer transfers to LCP in conjunction with the integration of Vincere had a net impact on the margin of negative 0.3 percentage points
• high volumes of basic hardware with a low margin had a negative impact on the margin
• temporarily higher costs due to a high level of absence related to the significant spread of corona during the quarter

LCP - Large Corporate and Public sector

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change	Rolling	Full-year	Change
SEK million	21/22	20/21	%	21/22	20/21	%	12 months	20/21	%
Net sales	4,532.7	1,893.9	139.3	8,715.1	3,800.5	129.3	13,615.1	8,700.4	56.5
Segment results	298.2	136.2	118.9	591.1	263.3	124.5	930.8	603.0	54.4
Segment margin (%)	6.6	7.2	-	6.8	6.9	-	6.8	6.9	-

Net sales

Net sales increased 139.3 per cent to SEK 4,533 million (1,894) for the quarter. Organic growth amounted to 17.2 per cent (4.9) and was mainly attributable to a strong sales trend to larger companies and the public sector. Acquisition-related growth (including customer transfers between segments) accounted for 119.4 percentage points, of which acquisitions accounted for 111.3 percentage points and customer transfers 8.1 percentage points. Exchange-rate differences accounted for 2.7 percentage points.

Sales to large companies and the public sector were strong during the quarter and activity increased considerably compared with the preceding year. Sales of software increased strongly, growing more than four-fold compared with the corresponding quarter in the preceding year. Geographically, sales were strongest in Sweden, followed by Norway and Finland.

Segment results

Profit for the segment increased to SEK 298 million (136), while the segment margin declined to 6.6 per cent (7.2) compared with the year-earlier quarter.

The margin change was primarily attributable to:

• a sharp increase in the sales of software, mainly due to new roll-outs, with a low margin
• large inbound deliveries and high volumes of basic hardware with a low margin
• temporarily higher costs related to a high level of absence in conjunction with the significant spread of corona during the quarter
• customer transfers from SMB in conjunction with the integration of Vincere, and reclassification of segment costs to central functions had a positive impact of nearly 0.7 percentage points.

B2C – Business to Consumer

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change	Rolling	Full-year	Change
SEK million	21/22	20/21	%	21/22	20/21	%	12 months	20/21	%
Net sales	138.9	174.7	-20.5	278.4	342.4	-18.7	576.4	640.4	-10.0
Segment results	13.4	15.1	-11.4	28.8	25.7	12.0	55.1	52.0	5.9
Segment margin (%)	9.6	8.6	-	10.4	7.5	-	9.6	8.1	-

Net sales

Net sales for the quarter declined 20.5 per cent to SEK 139 million (175). Organic growth was negative 22.4 per cent (pos: 5.5). Positive exchange-rate differences accounted for 1.9 percentage points.

The sales trend during the quarter was primarily attributable to fewer price campaigns toward consumers from suppliers, mainly due to hardware shortages.

Segment results

Profit for the segment for the quarter decreased to SEK 13 million (15) and the segment margin increased to 9.6 per cent (8.6), due to the continued focus on margin ahead of volume in the consumer business.

Central functions

	Q2	Q2	Change	Q1-Q2	Q1-Q2	Change	Rolling	Full-year	Change
SEK million	21/22	20/21	%	21/22	20/21	%	12 months	20/21	%
Cost for central functions	-250.4	-120.4	108.0	-488.3	-249.4	95.8	-798.7	-559.7	42.7
Costs for central functions in relation to net sales (%)	-3.8	-3.3	-	-3.8	-3.4	-	-3.7	-3.5	-

Central functions

Dustin's central functions hold the key to efficient delivery of the Group's offerings in all markets, the generation of economies of scale and the simplification of the integration of acquired operations. In the second quarter, costs for central functions amounted to 3.8 per cent (3.3) in relation to sales. Costs for central functions amounted to SEK 250 million (120), with the increase mainly related to the acquisition of Centralpoint (approximately SEK 67 million), the integration of Vincere (approximately SEK 25 million), and increased business volumes, projects and IT (approximately SEK 35 million).

A positive earnings effect from IFRS 16 of SEK 3 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 page 20-21, and to Segment information by quarter on page 26.

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, April 6, 2022

Mia Brunell Livfors Chairman of the board

Stina Andersson Gregor Bieler

Gunnel Duveblad Johan Fant

Tomas Franzén Morten Strand

Dolph Westerbos

Thomas Ekman President and CEO

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

13 | Second quarter 2021/22 | Dustin Group

Consolidated income statement

		Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	Note	21/22	20/21	21/22	20/21	12 months	20/21
Net sales	2	6,612.3	3,683.1	12,859.4	7,379.1	21,357.9	15,877.6
Cost of goods and services sold		-5,708.8	-3,092.0	-11,061.6	-6,211.3	-18,245.0	-13,394.7
Gross profit		903.5	591.2	1,797.8	1,167.8	3,112.9	2,482.9
Selling and administrative expenses		-664.7	-412.3	-1,296.2	-842.0	-2,279.3	-1,825.2
Items affecting comparability	3	-12.8	-0.8	-19.9	-14.8	-78.6	-73.4
Other operating income		5.1	3.4	8.2	6.9	15.4	14.1
Other operating expenses		-11.0	-4.8	-18.7	-9.5	-31.4	-22.2
EBIT	2	220.1	176.7	471.2	308.4	739.0	576.2
Financial income and other similar income statement items Financial expenses and other similar income statement items		0.2 -33.7	0.3 -14.1	0.4 -66.8	0.5 -29.0	1.1 -146.1	1.2 -108.3
Profit after financial items		186.6	162.8	404.9	279.9	594.1	469.2
Tax		-42.5	-40.4	-94.7	-67.4	-139.4	-112.2
Profit for the period, attributable in its entirety to Parent Company shareholders		144.1	122.4	310.1	212.5	454.6	357.0
Other comprehensive income (all items will be transferred to the income statement)
Translation differences		257.9	-3.9	303.1	-28.8	336.1	4.2
Cash-flow hedging		-198.2	21.5	-280.2	47.8	-314.7	13.4
Tax attributable to cash-flow hedges		40.8	-4.6	57.7	-10.2	65.1	-2.9
Other comprehensive income		100.6	13.0	80.5	8.8	86.6	14.8
Comprehensive income for the period is attributable in its entirety to Parent Company shareholders		244.7	135.4	390.7	221.3	541.2	371.8
Earnings per share before dilution (SEK)		1.27	1.34	2.74	2.33	4.36	3.82
Earnings per share after dilution (SEK)		1.27	1.34	2.74	2.33	4.35	3.82

* Key ratios have been restated in comparative periods to consider the terms and conditions of the new share issue carried out in August 2021.

14 | Second quarter 2021/22 | Dustin Group

Condensed consolidated balance sheet

SEK million	Note	Feb 28, 2022	Feb 28, 2021	Aug 31, 2021
ASSETS
Non-current assets
Goodwill		8,070.7	3,724.1	7,752.7
Intangible assets attributable to acquisitions		723.0	555.4	752.8
Other intangible assets	4	243.6	136.3	172.3
Tangible assets	4	141.1	95.1	172.9
Right-of-use assets	4	565.0	486.0	552.8
Deferred tax assets		5.6	7.7	4.6
Derivative instruments	5	26.9	0.1	1.0
Other non-current assets		9.0	7.5	7.3
Total non-current assets		9,784.8	5,012.3	9,416.4
Current assets
Inventories		1,258.6	574.0	1,015.7
Accounts receivable		2,840.4	1,489.3	2,455.8
Derivative instruments	5	2.9	-	16.8
Tax assets		20.8	6.7	7.8
Other current assets		568.2	330.4	557.4
Cash and cash equivalents		1,140.2	889.8	847.4
Total current assets		5,831.2	3,290.2	4,900.8
TOTAL ASSETS		15,616.0	8,302.5	14,317.2
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent Company shareholders		4,825.5	2,485.9	4,676.4
Total equity		4,825.5	2,485.9	4,676.4
Non-current liabilities
Deferred tax and other long-term provisions		239.6	209.5	248.6
Liabilities to credit institutions		4,719.6	2,127.1	4,481.4
Non-current lease liabilities		407.9	356.8	404.9
Derivative instruments	5	72.7	12.5	14.6
Total non-current liabilities		5,439.8	2,705.8	5,149.4
Current liabilities
Liabilities to credit institutions		7.4	-	-
Other provisions		1.0	28.9	3.4
Current lease liabilities		175.6	140.7	172.1
Accounts payable		3,784.0	2,030.7	3,147.4
Tax liabilities		67.0	69.2	73.3
Derivative instruments	5	48.0	0.4	7.2
Other current liabilities		1,267.8	820.5	1,067.5
Acquisition-related liabilities	5	-	20.4	20.5
Total current liabilities		5,350.7	3,110.8	4,491.4
TOTAL EQUITY AND LIABILITIES		15,616.0	8,302.5	14,317.2

Condensed consolidated statement of changes in equity

SEK million	Feb 28, 2022	Feb 28, 2021	Aug 31, 2021
Balance as of September 1	4,676.4	2,455.6	2,455.6
Profit for the period	310.1	212.5	357.0
Other comprehensive income
Translation difference	303.1	-28.8	4.2
Cash-flow hedging	-280.2	47.8	13.4
Tax attributable to cash-flow hedges	57.7	-10.2	-2.9
Total other comprehensive income	80.5	8.8	14.8
Total comprehensive income	390.7	221.3	371.8
Dividends	-250.0	-195.0	-195.0
Holding of own warrants	-1.7	-	-0.5
New share issue	7.2	-	2,069.3
Issue costs	-1.4	-	-18.0
Repurchase and subscription with the support of warrants	4.3	4.1	-6.8
Total transactions with shareholders	-241.6	-190.9	1,849.0
Closing equity as per the balance sheet date, attributable to Parent Company shareholders in its entirety	4,825.5	2,485.9	4,676.4

Consolidated statement of cash flow

	Q2	Q2	Q1-Q2	Q1-Q2	Full-year
Note SEK million	21/22	20/21	21/22	20/21	20/21
Operating activities
EBIT	220.1	176.7	471.2	308.4	576.2
Adjustment for non-cash items	119.3	62.9	224.1	137.8	314.4
Interest received	0.2	0.3	0.4	0.5	1.2
Interest paid	-32.0	-13.2	-62.6	-27.4	-77.3
Income tax paid	-29.4	-19.3	-72.4	-42.6	-101.0
Cash flow from operating activities before changes in working capital	278.2	207.4	560.7	376.8	713.6
Decrease (+)/increase (-) in inventories	-93.7	-67.6	-211.4	-92.5	-270.3
Decrease (+)/increase (-) in receivables	334.5	127.3	-274.8	-326.0	-640.9
Decrease (-)/increase (+) in current liabilities	-130.9	-49.5	682.6	524.7	366.1
Cash flow from changes in working capital	109.9	10.3	196.4	106.2	-545.0
Cash flow from operating activities	388.1	217.7	757.1	483.0	168.6
Investing activities
Acquisition of intangible assets 4	-43.9	-10.6	-69.2	-19.5	-49.8
Acquisition of tangible assets 4	-10.3	-7.3	-24.7	-11.4	-35.2
Acquisition of operations 5	-20.7	-	-20.7	-38.8	-3,080.5
Cash flow from investing activities	-74.8	-17.9	-114.5	-69.7	-3,165.5
Financing activities
New share issue	-	-	5.8	-	1 187.1
Cash flow from LTI programme	4.3	4.1	4.3	4.1	-7.3
Dividends	-250.0	-195.0	-250.0	-195.0	-195.0
New loans raised	-	66.3	4,466.4	93.2	3,629.9
Repayment of loans	-	-66.5	-4,445.1	-92.5	-1,321.8
Paid borrowing expenses	-0.1	-	-15.8	-	-25.5
Repayment of lease liabilities	-52.2	-40.2	-98.9	-78.2	-162.3
Cash flow from financing activities	-298.0	-231.3	-333.3	-268.4	3,105.0
Cash flow for the period	15.3	-31.5	309.3	144.9	108.1
Cash and cash equivalents at beginning of period	1,144.3	918.6	847.4	730.1	730.1
Cash flow for the period Exchange-rate differences in cash and cash equivalents	15.3 -19.4	-31.5 2.8	309.3 -16.5	144.9 14.8	108.1 9.1
Cash and cash equivalents at end of period	1,140.2	889.8	1,140.2	889.8	847.4

Condensed Parent Company income statement

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	21/22	20/21	21/22	20/21	12 months	20/21
Net sales	0.1	0.1	0.2	0.2	0.4	0.4
Selling and administrative expenses	-4.1	-1.8	-7.7	-3.7	-14.2	-10.2
Other operating expenses	0.0	0.0	0.0	0.0	-0.1	-0.1
EBIT	-4.0	-1.7	-7.5	-3.5	-13.9	-9.9
Financial income and other similar income-statement items	40.0	275.7	82.0	305.2	90.4	313.6
Financial expenses and other similar income-statement items	-198.0	-10.2	-248.2	-20.4	-324.9	-97.1
Profit/loss after financial items	-161.9	263.7	-173.7	281.4	-248.4	206.7
Appropriations	-	-	-	-	141.4	141.4
Tax	33.4	-0.8	36.1	-4.6	27.3	-13.4
Profit/loss for the period	-128.6	262.9	-137.6	276.8	-79.7	334.7

Parent Company statement of comprehensive income

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	21/22	20/21	21/22	20/21	12 months	20/21
Profit for the period	-128.6	262.9	-137.6	276.8	-79.7	334.7
Other comprehensive income	-	-	-	-	-	-
Comprehensive income for the period	-128.6	262.9	-137.6	276.8	-79.7	334.7

Condensed Parent Company balance sheet

SEK million	Feb 28, 2022	Feb 28, 2021	Aug 31, 2021
ASSETS
Non-current assets	1,211.6	1,211.6	1,211.6
Current assets	7,067.9	2,759.6	7,204.2
TOTAL ASSETS	8,279.4	3,971.1	8,415.8
EQUITY AND LIABILITIES
Restricted equity
Share capital	565.6	443.2	565.1
Total restricted equity	565.6	443.2	565.1
Non-restricted equity
Share premium reserve	3,023.6	1,091.3	3,014.0
Retained earnings	-148.5	-229.1	-233.2
Profit for the period	-137.6	276.8	334.7
Total non-restricted equity	2,737.5	1,139.0	3,115.5
Total equity	3,303.1	1,582.2	3,680.6
Untaxed reserves	243.5	244.8	243.5
Non-current liabilities	4,712.3	2,127.7	4,482.0
Current liabilities	20.6	16.4	9.7
TOTAL EQUITY AND LIABILITIES	8,279.4	3,971.1	8,415.8

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 2020/21 financial year. 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.

Revenue recognition in accordance with IFRS 15 In November 2021, the IASB Interpretation Committee (IC) published a draft response to an industry inquiry regarding whether companies should recognise income from the resale of standardised software licenses as an agent or principal under IFRS 15.

In light of this and changed industry practice, Dustin intends from the third quarter to change its current assessment regarding the accounting policy for the recognition of income from the trading of software licenses. This entails that income streams from software licenses will be recognised net instead of gross. The effects in the income statement will be that net sales and costs of goods sold will decrease, while the gross margin and adjusted EBITA will increase. Gross profit, EBIT and earnings before/after tax will remain unchanged.

Note 2 Net sales and segment reporting

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
All amounts in SEK million, Note unless otherwise indicated	21/22	20/21	21/22	20/21	12 months	20/21
Net sales
LCP	4,532.7	1,893.9	8,715.1	3,800.5	13,615.1	8,700.4
of which, hardware	3,462.8	1,644.4	6,833.0	3,352.1	10,949.8	7,468.8
of which, software and services	1,069.9	249.6	1,882.1	448.4	2,665.3	1,231.6
SMB	1,940.7	1,614.6	3,865.8	3,236.2	7,166.4	6,536.8
of which, hardware	1,565.3	1,265.4	3,150.9	2,544.1	5,726.5	5,119.7
of which, software and services	375.4	349.2	715.0	692.1	1,439.8	1,417.0
B2C	138.9	174.7	278.4	342.4	576.4	640.4
of which, hardware	138.7	173.7	277.6	340.4	574.8	637.5
of which, software and services	0.2	1.0	0.7	2.0	1.6	2.9
Total	6,612.3	3,683.1	12,859.4	7,379.1	21,357.8	15,877.6
of which, hardware	5,166.8	3,083.5	10,261.5	6,236.5	17,251.1	13,226.1
of which, software and services	1,445.5	599.7	2,597.8	1,142.6	4,106.7	2,651.5
Segment results
LCP	298.2	136.2	591.1	263.3	930.8	603.0
SMB	214.1	170.3	444.1	332.1	775.2	663.2
B2C	13.4	15.1	28.8	25.7	55.1	52.0
Total	525.6	321.7	1,064.0	621.1	1,761.2	1,318.3
Central functions	-250.4	-120.4	-488.3	-249.4	-798.7	-559.7
Of which, effects related to IFRS 16	3.4	2.5	6.6	4.7	12.6	10.7
Adjusted EBITA	275.2	201.3	575.7	371.8	962.5	758.6
Segment margin
LCP, segment margin (%)	6.6	7.2	6.8	6.9	6.8	6.9
SMB, segment margin (%)	11.0	10.6	11.5	10.3	10.8	10.1
B2C, segment margin (%)	9.6	8.6	10.4	7.5	9.6	8.1
Segment margin	7.9	8.7	8.3	8.4	8.2	8.3
Costs for central functions, excluding items
affecting comparability in relation to net sales (%)	-3.8	-3.3	-3.8	-3.4	-3.7	-3.5
Reconciliation with profit after financial items
Items affecting comparability 3	-12.8	-0.8	-19.9	-14.8	-78.6	-73.4
Amortisation and impairment of intangible assets	-42.3	-23.8	-84.6	-48.6	-144.9	-108.9
EBIT, Group	220.1	176.7	471.2	308.4	739.0	576.2
Financial income and other similar income
statement items Financial expenses and other similar income	0.2	0.3	0.4	0.5	1.1	1.2
statement items	-33.7	-14.1	-66.8	-29.0	-146.1	-108.3
Profit after financial items, Group	186.6	162.8	404.9	279.9	594.1	469.2

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

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
By geographic area	21/22	20/21	21/22	20/21	12 months	20/21
Sweden	1,704.6	1,440.1	3,326.4	2,896.2	6,003.6	5,573.3
Finland	628.1	554.5	1,242.5	1,094.3	2,367.2	2,219.0
Denmark	887.9	831.7	1,728.7	1,656.6	3,090.0	3,017.9
The Netherlands	2,419.1	227.5	4,581.9	464.1	6,535.7	2,417.9
Norway	757.0	629.3	1,568.7	1,268.0	2,796.7	2,496.0
Belgium	215.6	-	411.2	-	564.8	153.5
Total	6,612.3	3,683.1	12,859.4	7,379.1	21,357.9	15,877.6

Note 3 Items affecting comparability

Items affecting comparability amounted to negative SEK 13 million (neg: 0.8) during the quarter and pertained mainly to integration costs attributable to the Netherlands and Finland. The Netherlands

comprises several units and to achieve the desired level of synergies, the units must be integrated with Dustin.

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	21/22	20/21	21/22	20/21	12 months	20/21
Acquisition and divestment-related expenses	-	-0.3	-	-1.5	-24.1	-25.7
Integration costs	-12.8	-0.5	-19.0	-0.5	-50.6	-32.1
Restructuring reserve	-	-	-	-12.7	-	-12.7
Lease termination costs	-	-	-	-	-2.9	-2.9
Recruitment costs of senior executives	-	-	-0.9	-	-0.9	-
Total	-12.8	-0.8	-19.9	-14.7	-78.6	-73.4

Note 4 Investments

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SEK million	21/22	20/21	21/22	20/21	12 months	20/21
Capitalised expenditure for IT development (integrated IT platform and other long-term strategic IT systems)	40.4	9.1	59.0	17.1	84.8	42.9
Of which, project related investments	20.1	-	25.3	-	32.5	7.2
Investments in tangible and intangible assets	40.0	23.6	85.8	57.1	128.3	99.6
Of which, project related investments	9.3	-	21.6	-	23.6	2.0
Of which, affecting cash flow	8.6	4.0	20.8	6.6	32.7	18.5
Investments in assets related to service provision	9.3	10.0	26.1	21.8	66.6	62.3
Of which, project related investments	-	-	-	-	-	-
Of which, affecting cash flow	5.2	4.8	14.0	7.2	30.4	23.6
Total investments	89.6	42.7	170.9	96.0	279.7	204.8
Of which, project related investments	29.4	-	46.9	-	56.1	9.2
Of which, affecting cash flow	54.1	17.9	93.8	30.9	148.0	85.0

Dustin's right-of-use assets mainly relate to buildings and IT equipment. During the quarter, new agreements totalling SEK 49 million (28) 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 and extended leases in Denmark and Sweden.

	Feb 28,	Feb 28,	Aug 31,
SEK million	2022	2021	2021
Buildings	280.1	243.8	279.8
Vehicles	93.3	56.2	93.4
IT equipment for internal use	77.7	99.6	86.0
IT equipment related to service provision	113.3	85.4	92.8
Other items	0.6	1.1	0.7
Right-of-use assets	565.0	486.0	552.8

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, 2021.

At February 28, 2022, the fair value of derivative instruments amounted to negative SEK 91 million (pos: 13).

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, 2022	Feb 28, 2021	Aug 31, 2021
Opening balance	20.5	-	-
Remeasurements recognised under other comprehensive income:
Unrealised exchange rate differences recognised under Translation differences	0.2	-0.6	-0.5
Changes recognised via the balance sheet:
Payment of deposit related to contingent earn-out	-	-	-
Payments attributable to previous acquisitions	-20.7	-	-
Acquisitions	-	21.0	21.0
Closing balance	-	20.4	20.5

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.

Key ratios

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
All amounts in SEK million, unless otherwise indicated	21/22	20/21	21/22	20/21	12 months	20/21
Income statement
Organic sales growth (%)	12.2	6.4	11.6	7.2	32.3	9.6
Gross margin (%)	13.7	16.1	14.0	15.8	14.6	15.6
EBIT	220.1	176.7	471.2	308.4	739.0	576.2
Adjusted EBITDA (excl. IFRS 16)	284.8	209.7	595.6	389.0	1,002.2	795.7
Adjusted EBITDA (incl. IFRS 16)	336.1	252.7	694.7	473.2	1,192.2	970.8
Adjusted EBITA	275.2	201.3	575.7	371.8	962.5	758.6
Adjusted EBITA margin (%)	4.2	5.5	4.5	5.0	4.5	4.8
Return on equity (%)	-	-	-	-	9.4	7.6
Balance sheet
Net working capital	-433.1	-548.7	-433.1	-548.7	-433.1	-256.4
Capital employed	558.1	184.0	558.1	184.0	558.1	654.5
Net debt	4,170.4	1,734.8	4,170.4	1,734.8	4,170.4	4,211.1
Net debt/adjusted EBITDA (multiple)
(excl. IFRS 16) Net debt/adjusted EBITDA (multiple)	-	-	-	-	3.6	4.6
(incl. IFRS 16)	-	-	-	-	3.5	4.3
Maintenance investments	-54.1	-17.9	-93.8	-30.9	-147.9	-85.0
Equity/assets ratio (%)	-	-	-	-	30.9	32.7
Cash flow
Operating cash flow	391.9	245.2	797.2	548.6	-	340.7
Cash flow from operating activities	388.1	217.7	757.1	483.0	-	168.6
Data per share
Earnings per share before dilution (SEK)	1.27	1.34	2.74	2.33	4.36	3.82
Earnings per share after dilution (SEK)	1.27	1.34	2.74	2.33	4.35	3.82
Equity per share before dilution (SEK)	42.66	28.04	42.66	28.04	42.66	41.38
Cash flow from operating activities per
share before dilution (SEK) Cash flow from operating activities per	3.43	2.38	6.69	5.29	4.25	1.80
share after dilution (SEK)	3.43	2.38	6.68	5.29	4.24	1.80
Average number of shares	113,118,776	88,647,339	113,118,776	88,647,339	104,271,447	90,742,103
Average number of shares after dilution	113,316,148	91,306,759	113,372,874		91,306,759 104,423,459	93,455,077
Number of shares issued at end of period	113,118,776	88,647,339	113,118,776	88,647,339		113,118,776 113,023,003

* Key ratios have been restated in comparative periods to consider the terms and conditions of the new share issue carried out in August 2021.

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 27 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	21/22	20/21	21/22	20/21	12 months	20/21
Organic growth
Sales growth (%)	79.5	4.0	74.3	4.7	59.6	20.3
Acquired growth (%)	-65.2	-0.4	-61.6	-0.3	-28.7	-12.9
Currency effects in sales growth (%)	-2.1	2.8	-1.0	2.9	1.3	2.1
Organic sales growth (%)	12.2	6.4	11.6	7.2	32.3	9.6
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
SMB	21/22	20/21	21/22	20/21	12 months	20/21
Organic growth
Sales growth (%)	20.2	6.9	19.5	5.6	23.9	14.3
Acquired growth (%)	-8.6	-0.9	-7.8	-0.1	1.4	-4.7
Currency effects in sales growth (%)	-1.4	2.3	-0.6	2.3	1.1	1.9
Organic sales growth (%)	10.1	8.3	11.1	7.7	26.4	11.6
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
LCP	21/22	20/21	21/22	20/21	12 months	20/21
Organic growth
Sales growth (%)	139.3	1.7	129.3	3.6	95.0	26.4
Acquired growth (%)	-119.4	0.0	-113.0	-0.5	-56.1	-20.8
Currency effects in sales growth (%)	-2.7	3.2	-1.4	3.4	1.6	2.4
Organic sales growth (%)	17.2	4.9	15.0	6.5	40.5	8.0
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
B2C	21/22	20/21	21/22	20/21	12 months	20/21
Organic growth
Sales growth (%)	-20.5	3.3	-18.7	8.0	-6.6	7.3
Currency effects in sales growth (%)	-1.9	2.1	-1.2	2.3	0.8	1.5
Organic sales growth (%)	-22.4	5.5	-19.9	10.4	-5.8	8.8
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
Adjusted EBITA	21/22	20/21	21/22	20/21	12 months	20/21
EBIT	220.1	176.7	471.2	308.4	739.0	576.2
Amortisation and impairment of intangible assets	42.3	23.8	84.6	48.6	144.9	108.9
Items affecting comparability	12.8	0.8	19.9	14.8	78.6	73.4
Adjusted EBITA	275.2	201.3	575.7	371.8	962.5	758.6

Source of alternative performance measures - cont'd.

	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
Adjusted EBITDA (excl. IFRS 16)	21/22	20/21	21/22	20/21	12 months	20/21
EBIT (excl. IFRS 16)	216.7	174.1	464.6	303.6	726.4	565.5
Depreciation and impairment of tangible assets (excl. IFRS 16)	13.0	11.0	26.5	22.0	52.3	47.8
Amortisation and impairment of intangible assets	42.3	23.8	84.6	48.6	144.9	108.9
Items affecting comparability	12.8	0.8	19.9	14.8	78.6	73.4
Adjusted EBITDA (excl. IFRS 16)	284.8	209.7	595.6	389.0	1,002.2	795.7
	Q2	Q2	Q1-Q2	Q1-Q2	Rolling	Full-year
Adjusted EBITDA (incl. IFRS 16)	21/22	20/21	21/22	20/21	12 months	20/21
EBIT	220.1	176.7	471.2	308.4	739.0	576.2
Depreciation and impairment of tangible assets	60.9	51.5	119.0	101.5	229.7	212.2
Amortisation and impairment of intangible assets	42.3	23.8	84.6	48.6	144.9	108.9
Items affecting comparability	12.8	0.8	19.9	14.8	78.6	73.4
Adjusted EBITDA (incl. IFRS 16)	336.1	252.7	694.7	473.2	1,192.2	970.8

Segment information by quarter

	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
All amounts in SEK million, unless otherwise indicated	21/22	21/22	20/21	20/21	20/21	20/21	19/20	19/20	19/20	19/20
Net sales	6,612.3	6,247.1	5,105.0	3,393.6	3,683.1	3,696.0	2,873.8	3,270.6 3,542.8		3,508.3
Organic sales growth (%)	12.2	11.0	20.5	5.1	6.4	8.0	-2.3	1.3	4.0	6.1
Gross margin (%)	13.7	14.3	14.8	16.4	16.1	15.6	15.1	15.1	15.7	16.0
Adjusted EBITA	275.2	300.5	228.6	158.2	201.3	170.5	101.3	106.0	153.5	156.4
Adjusted EBITA margin (%)	4.2	4.8	4.5	4.7	5.5	4.6	3.5	3.2	4.3	4.5
Net sales per segment:
LCP	4,532.7	4,182.5	3,239.9	1,660.0	1,893.9	1,906.5	1,483.0	1,729.4	1,863.1	1,805.5
SMB	1,940.7	1,925.1	1,730.0	1,570.6	1,614.6	1,621.7	1,265.3	1,386.6	1,510.7	1,554.9
B2C	138.9	139.5	135.1	163.0	174.7	167.7	125.5	154.6	169.0	147.9
B2C	13.4	15.5	11.4	14.9	15.1	10.6	7.0	11.9	9.2	9.1
										5.5
										10.1
B2C	9.6	11.1	8.5	9.1	8.6	6.3	5.5	7.7	5.4	6.2
Segment results: LCP SMB Segment margin (%): LCP SMB Central functions Central functions Percentage of net sales	298.2 214.1 6.6 11.0 -250.4 -3.8	292.9 230.1 7.0 12.0 -237.9 -3.8	230.0 170.1 7.1 9.8 -182.9 -3.6	109.8 161.0 6.6 10.2 -127.4 -3.8	136.2 170.3 7.2 10.6 -120.4 -3.3	127.0 161.8 6.7 10.0 -129.0 -3.5	90.4 105.0 6.1 8.3 -101.1 -3.5	102.4 108.8 5.9 7.8 -117.0 -3.6	118.1 140.1 6.3 9.3 -113.8 -3.2	100.1 156.7 -109.4 -3.1

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 EBITDA (excl. IFRS 16	EBIT according to the income statement before items affecting comparability and amortisation/depreciation and impairment of intangible and tangible assets and excluding the effects of recognition of IFRS 16.	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.
Net debt, excl. IFRS 16	Non-current and current interest-bearing liabilities, excluding acquisition-related liabilities and lease liabilities, less cash and cash equivalents at the end of the period.	This performance measure shows Dustin's total interest bearing liabilities excluding lease liabilities, less cash and cash equivalents.
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.
Proforma	Financial information included in pro forma is collected from the acquired company's accounting system for the relevant period. An average rate is used in the conversion to SEK. The applied accounting principles conform to IFRS.	To facilitate comparisons of financial information after acquisitions with a material impact.
Project related investments	Non-recurring investments, such as investments in cloud-based business development systems, establishment of operations for end-of-life returns 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.
Currency effects	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.
B2C	Pertains to all sales to consumers.
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.
LTM	Last twelve months, also known as rolling 12 months. Refers to going back 12 months regardless of financial year.
SMB	Pertains to all sales to small and medium-sized businesses.

Financial calendar

July 5, 2022 Interim report for the third quarter, March 1, 2022 – May 31, 2022

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

November 17, 2022 2021/22 Annual Report

December 15, 2022 2021/22 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. CEST on April 6, 2022.