Dustin Group

Quarterly Report • Jun 30, 2021

Interim report

March 1, 2021 – May 31, 2021

dustingroup.com

1

Interim report March 2021– May 2021

"Strong growth in SMB and continued healthy improvement in profitability"

Third quarter

• Net sales rose 3.8 per cent to SEK 3.394 million (3.271).
• Organic sales growth was 5.1 per cent (1.3), of which SMB accounted for 14.5 per cent (neg: 5.7), LCP negative 2.6 per cent (6.6) and B2C 6.5 per cent (9.7).
• The gross margin amounted to 16.4 per cent (15.1).
• Adjusted EBITA amounted to SEK 158 million (106), corresponding to an adjusted EBITA margin of 4.7 per cent (3.2).

September 2020 – May 2021

• Net sales rose 4.4 per cent to SEK 10,773 million (10,322).
• Organic sales growth was 6.6 per cent (3.8), of which SMB accounted for 9.8 per cent (neg: 1.0), LCP 3.7 per cent (8.5) and B2C 9.1 per cent (neg: 2.5).
• The gross margin amounted to 16.0 per cent (15.6).
• Adjusted EBITA amounted to SEK 530 million (416), corresponding to an adjusted EBITA margin of 4.9 per cent (4.0).
• EBIT totalled SEK 422 million (303), including items affecting comparability of a negative SEK 36 million (neg: 40).
• EBIT totalled SEK 114 million (52), including items affecting comparability of a negative SEK 21 million (neg: 29).
• Profit for the quarter was SEK 79 million (31).
• Earnings per share before dilution totalled SEK 0.89 (0.35).
• Cash flow from operating activities amounted to a negative SEK 93 million (pos: 468).
• Profit for the period amounted to SEK 292 million (209).
• Earnings per share before dilution totalled SEK 3.29 (2.36).
• Cash flow from operating activities amounted to SEK 390 million (848).
• At the end of the period, net debt in relation to adjusted EBITDA over the past 12-month period was 2.1 (2.5), excluding the effects of IFRS 16 Leases. When calculated including these effects, the figure was 2.3 (2.9).

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
All amounts in SEK million, unless otherwise indicated	20/21	19/20	20/21	19/20	12 months	19/20
Net sales	3,393.6	3,270.6	10,772.7	10,321.6	13,646.4	13,195.4
Organic sales growth (%)	5.1	1.3	6.6	3.8	4.5	2.3
Gross margin (%)	16.4	15.1	16.0	15.6	15.8	15.5
Adjusted EBITA	158.2	106.0	530.0	416.0	631.3	517.3
Adjusted EBITA margin (%)	4.7	3.2	4.9	4.0	4.6	3.9
EBIT	113.5	51.8	421.9	302.7	506.4	387.2
Profit for the period	79.3	31.1	291.8	208.8	360.3	277.3
Items affecting comparability*	-20.8	-28.7	-35.5	-39.8	-26.7	-31.0
Earnings per share before dilution (SEK)	0.89	0.35	3.29	2.36	4.06	3.13
Cash flow from operating activities	-92.6	467.6	390.4	847.5	307.4	867.7
Net debt/adjusted EBITDA (multiple) (excl. IFRS 16)	-	-	-	-	2.1	2.6
Net debt/adjusted EBITDA (multiple) (incl. IFRS 16)**	-	-	-	-	2.3	2.7
Return on equity (%)	-	-	-	-	14.1	11.3

Financial key ratios

* Refer to Note 4 Items affecting comparability for more information.

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

Strong growth in SMB and continued healthy improvement in profitability

In the third quarter, we reported robust performance in our online-based core operations and strengthened our market position. Despite the impact of component shortages and long delivery times, we met the demand for hardware by being proactive in our purchases and through close relationships with our suppliers. Our organic sales growth was just over 5 per cent for the quarter following strong development within SMB. Our dynamic pricing model and cost discipline resulted in our adjusted EBITA increasing by 49 per cent to SEK 158 million (106) and the EBITA margin strengthening to 4.7 per cent (3.2). The acquisition of Centralpoint strengthens our position in Benelux and the combination of our operations creates favourable conditions for long-term profitable growth in both the Nordic region and Benelux as well as continued expansion in Europe.

High demand for hardware

The demand for hardware remained high during the quarter, while availability mainly for customer-specific products was negatively impacted by a shortage of components, such as processors and graphic cards, and the resulting long delivery times. As a result of this, the order book for these types of products grew considerably. We benefited from our active approach in purchasing and our strong position in the value chain, which has ensured generally good access to hardware. Together with our dynamic price model, we have been able to strengthen our price leadership in the market. We anticipate continued favourable demand in pace with society increasingly opening up, while the risk of supply chain disruptions remains difficult to assess from a short-term perspective.

Robust sales growth in SMB

Net sales for the third quarter rose 3.8 per cent to SEK 3,394 million (3,271), of which 5.1 per cent was organic. Organic growth in the segments was 14.5 per cent for SMB, negative 2.6 percent for LCP and 6.5 per cent for B2C.

For SMB, we saw continued strong demand for hardware in all customer groups. Activity within new sales of services and project-related installations gradually improved during the quarter as offices increasingly opened up. We also see that the interest in, for example, upgrades of conference rooms, increased significantly in the latter part of the quarter.

In LCP, there was a positive trend in sales to large companies, while sales to the public sector were to a large extent negatively affected by component shortages and long delivery times. B2C displayed a positive trend, mainly due to favourable volumes related to home offices.

Strong earnings performance

The gross margin increased to 16.4 per cent (15.1), which was mainly explained by our ability to deliver hardware, a dynamic pricing model and strong sales of private labels. This development was offset to an extent by the sales mix which, similar to previous quarters, was impacted by a low number of project-related installations and services with a higher margin.

Adjusted EBITA increased 49 per cent to SEK 158 million (106) and the adjusted EBITA margin rose to 4.7 per cent (3.2). The earnings improvement is largely attributable to higher volumes and previously implemented strategic initiatives and cost reductions. This included the closure of small local offices, reductions in the workforce, the automation of our central Nordic warehouse and our ongoing data centre consolidation. EBIT increased to SEK 114 million (52), including items affecting comparability of a negative SEK 21 million (neg: 29), primarily related to integration work within Vincere in the Netherlands.

Acquisition of Centralpoint

During the quarter, we acquired Centralpoint, which is a leading IT reseller in Benelux, with a strong position in relation to large companies and the public sector. Together, we will become the leading IT partner in the region and can continue to deliver on our strategy of combining hardware and software sales with an attractive service offering and complete IT solutions. We see significant value in combining our respective organisations and expanding through our existing online platform. The acquisition was completed and consolidated on June 3 and we are beginning the work to realise the sales and efficiency synergies that we have identified. These are mainly within such areas as purchasing, roll-out of private labels, technical platforms and through knowledge transfer between the operations.

Summary and outlook

I am proud of what we have achieved together in the third quarter and look to the future with confidence. With the acquisition of Centralpoint, we have established ourselves as one of the largest players in Europe. We have addressed the demand for hardware with proactive purchasing and a strong position in the value chain. Profitability improved through higher volumes, combined with a dynamic pricing model and cost discipline. We are well positioned based on the prevailing market trends and with the acquisition of Centralpoint, we have both the size and the expertise to expand our business in our primary segment in the Nordic region and Benelux. We foresee good opportunities to further strengthen our market position going forward, despite a market trend that is difficult to assess from a short-term perspective in terms of availability of hardware.

Nacka, June 2021

Thomas Ekman, President and CEO

Dustin at 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 sales share of about 43 per cent, LCP (Large, Corporate and Public Sector) with a sales share of about 52 per cent and B2C (Business to Consumer) with a sales share of about 5 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

Financial targets

Dustin's Board of Directors has established the following 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

We have integrated sustainability aspects as a natural part of our operations in order to promote sustainable business and to help our customers make more sustainable choices. For us, sustainable business encompasses the entire Group's long-term impact on society and the environment.

New corporate responsibility strategy

Ahead of the 2020/21 financial year, we launched our new corporate responsibility strategy and our commitments for 2030. The strategy consists of three measurable goals, which state that by 2030 Dustin shall have:

• 0 climate impact across the value chain
• a 100 per cent circular offering
• taken 100 actions for social equality

With a focus on the circular economy

This quarter, we are highlighting our work towards the target of a 100-per cent circular offering by 2030. It is becoming increasingly important to ensure sustainable manufacturing and use of IT. This involves sustainable solutions, by which products are used for longer and material is reused in the manufacture of new products. This saves on our shared resources, reduces our waste and makes a positive contribution to a better climate. Using circular offerings, we can build a sustainable future, create new business and cut costs. Accordingly, we have set the target for Dustin to have a 100-per cent circular offering by 2030.

Meeting customer needs

We are transforming the way in which we interact with customers by meeting needs in a more resource-smart manner. By offering increasing numbers of circular solutions, based on hardware, software and service combinations, the customer can focus on the benefits.

customers is – "We keep things moving." Our vision and our customer promise were updated in conjunction with our new profile and brand platform launched on March 2020.

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 pay-out 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.

We take responsibility for ensuring that the hardware in the solutions is utilised to its fullest and ultimately through recycling as stage in the manufacture of new hardware. This reduces the need to extract untouched resources and thereby mining, which has a negative impact on the environment and in many instances, insecure employment.

End-of-life returns

We launched the End-of-life returns service, including re-use and recycling, already in 2014/15 and it is the single most important component in our efforts toward our circularity target. By adding end-of-life returns to our solutions as part of our offering, we are able to increase both the re-use and recycling of electronic products, while at the same time enabling customers to behave sustainably.

Other activities

As part of our responsible manufacturing work, we conduct regular factory audits among our manufacturers. During the third quarter, 6 audits (7) were conducted and a further 9 are scheduled for the fourth quarter. Our established target is to conduct 20 factory audits (31) during the financial year.

We also work continuously to ensure that new suppliers adopt our Supplier Code of Conduct and conduct a risk assessment to evaluate their ability to comply with the Code. At the end of the third quarter, 99.8 per cent of our suppliers* had adopted our Code of Conduct or corresponding requirements and 98.0 per cent had conducted a risk assessment.

* Refers to hardware suppliers with annual purchase volumes exceeding SEK 200,000.

Financial overview

Income statement items and cash flows are compared with the year-earlier periods. Balance-sheet items pertain to the position at the end of the period and are compared with the corresponding year-earlier date. The quarter refers to March 2021-May 2021.

Third quarter

Net sales

Net sales for the quarter increased 3.8 per cent to SEK 3,394 million (3,271). Organic growth was 5.1 per cent (1.3), of which SMB accounted for 14.5 per cent (neg: 5.7), LCP negative 2.6 per cent (6.6) and B2C 6.5 per cent (9.7). Acquisition-related growth was 0.4 percentage points (2.7) and exchange-rate differences had a negative impact of 1.7 percentage points (neg: 0.8).

Gross profit

During the quarter, gross profit increased SEK 64 million to SEK 557 million (493), corresponding to 13.1 per cent. The gross margin increased to 16.4 per cent (15.1), primarily due to a positive product mix in hardware and our dynamic pricing model. Higher volumes and strong sales of private label products made a positive contribution. Furthermore, the sales mix had a negative impact on the gross margin with a continued low share of project-related income with a high margin.

Adjusted EBITA

Adjusted EBITA increased 49 per cent to SEK 158 million (106). The adjusted EBITA margin amounted to 4.7 per cent (3.2). The increase is largely attributable to a higher gross margin and previously implemented strategic initiatives and cost reductions. Adjusted EBITA excluded items affecting comparability of negative SEK 21 million (neg: 29), primarily attributable to integration costs for Vincere in the Netherlands and discontinuation costs for a terminated lease in Nacka Strand. For more information, refer to Note 4 Items affecting comparability. For a comparison of adjusted EBITA and EBIT, see Note 2 Segments.

EBIT

EBIT totalled SEK 114 million (52). EBIT included items affecting comparability amounting to a negative SEK 21 million (neg: 29).

Financial items

Financial expenses amounted to a negative SEK 16 million (neg: 12). During the quarter, expenses mainly pertained to external financing costs of negative SEK 10 million (neg: 10). The financial expenses were also impacted by interest expenses related to leases in a negative amount of SEK 4 million (neg: 4) and the remeasurement of synthetic options by negative SEK 2 million (pos: 2). Financial income amounted to SEK 0.3 million (0.5).

Tax

The tax expense for the quarter was SEK 19 million (neg: 9), corresponding to an effective tax rate of 19.1 per cent (22.9). The lower effective tax is mainly attributable to adjusted tax from the preceding year in Denmark, which resulted in a positive tax effect of SEK 3 million.

Profit for the quarter

Profit for the quarter was SEK 79 million (31). Earnings per share amounted to SEK 0.89 (0.35) before and after dilution (0.35).

Cash flow

Cash flow for the quarter was a negative SEK 167 million (pos: 334).

Cash flow from operating activities amounted to a negative SEK 93 million (pos: 468). Cash flow before changes in working capital was SEK 136 million and changes in working capital was a negative SEK 228 million (pos: 359). An increase in inventory of SEK 33 million (44) during the quarter made a negative contribution to cash flow. The change in current receivables and liabilities was primarily due to a reduction in accounts receivable, which resulted in a positive cash flow effect of SEK 135 million (168), which was offset by reduced accounts payable of SEK 442 million (74).

Cash flow from investing activities amounted to a negative SEK 24 million (neg: 96). The change was mainly due to the earn-out payment of SEK 68 million made in the preceding year. Cash flow from investments in tangible and intangible assets was a negative SEK 24 million (neg: 28), of which a negative SEK 11 million (neg: 10) pertained to investments in the IT platform and a negative SEK 13 million (neg: 18) mainly pertained to investments in IT equipment for service provision and purchases of computers for internal use. For more information, refer to Note 5 Investments.

Cash flow from financing activities amounted to a negative SEK 50 million (neg: 38). Repayment of lease liabilities amounted to negative SEK 39 million (neg: 38) and Dustin's long-term incentive programme generated a negative cash flow effect of SEK 12 million (-).

Significant events in the third quarter Offer for the repurchase of warrants

The Board of Directors resolved to issue an offer to shareholders for the repurchase of all warrants outstanding of the 2018/2020 series at market price. The resolution solely addressed how the redemption of the warrants is to be managed and does not entail a change to the terms of the warrants or the programme.

New share issue

The incentive programme for senior executives introduced at the Annual General Meeting on December 13, 2017 entitles participants, through the use of warrants, to subscribe for new shares in the company during the first half of 2021. During May, a

total of 48,292 shares were newly subscribed through the exercise of warrants received under the incentive programme. Prior to the issue of the new shares, there were 88,647,339 shares and votes in the company. At May 31, 2021, there were a total of 88,695,631 shares and votes in the company.

Extraordinary General Meeting

On May 18, 2021, an Extraordinary General Meeting was held and resolved to authorise the Board of Directors to perform a non-cash issue of 8,254,587 shares, corresponding to approximately 8.5 per cent of shares outstanding in Dustin, to be issued as part of the consideration in the acquisition of Centralpoint Holding B.V. The Extraordinary General Meeting also resolved to authorise the Board of Directors to decide on a new issue of shares with preferential right for shareholders for the purpose of using the issue proceeds for the repayment of credit facilities provided for the acquisition of Centralpoint. By decision with the support of the authorisation, the Board of Directors is entitled to conduct a rights issue with total emission proceeds of approximately SEK 1,200 million.

September 1, 2020 – May 31, 2021 Net sales

Net sales rose 4.4 per cent to SEK 10,773 million (10,322) during the period. Organic growth was 6.6 per cent (3.8), of which SMB accounted for 9.8 per cent (neg: 1.0), LCP 3.7 per cent (8.5) and B2C 9.1 per cent (neg: 2.5). Acquisition-related growth was 0.3 percentage points (4.5) and exchange-rate differences had a negative impact of 2.5 percentage points (pos: 0.2).

Gross profit

During the period, gross profit rose SEK 116 million, corresponding to 7.2 per cent, to SEK 1,725 million (1,609). The gross margin increased to 16.0 per cent (15.6), with higher volumes, higher sales of private label goods and our dynamic pricing model offsetting a reduced share of project-related income with a high margin.

Adjusted EBITA

During the period, adjusted EBITA rose 27 per cent to SEK 530 million (416). The adjusted EBITA margin rose to 4.9 per cent (4.0). The increase is largely attributable to a higher gross margin and previously implemented strategic initiatives and cost reductions. Adjusted EBITA excluded items affecting comparability of negative SEK 36 million (neg: 40), which were primarily attributable during the period to integration costs for Vincere in the Netherlands and restructuring costs related to closure of the Dustin Business Center in Stockholm. For more information, refer to Note 4 Items affecting comparability. For a comparison of adjusted EBITA and EBIT, see Note 2 Segments.

EBIT

EBIT totalled SEK 422 million (303). EBIT included items affecting comparability amounting to a negative SEK 36 million (neg: 40).

Financial items

Financial expenses amounted to negative SEK 45 million (neg: 39), with the expenses for the period primarily pertaining to costs of SEK 32 million (neg: 30) for external financing. The financial expenses were also impacted by interest expenses related to leases in a negative amount of SEK 11 million (neg: 9) and the remeasurement of synthetic options by negative SEK 2 million (pos: 2). Financial income amounted to SEK 0.9 million (1).

Tax

Tax expense for the period was SEK 86 million (56), corresponding to an effective tax rate of 22.8 per cent (21.1). Higher effective tax for the period was mainly attributable to the remeasurement of deferred Dutch taxes, which was partly offset by the positive tax adjustment from the preceding year in Denmark. The total tax effect amounted to negative SEK 2 million.

Profit for the period

Profit for the period amounted to SEK 292 million (209). Earnings per share amounted to SEK 3.29 (2.36) before and after dilution (2.36).

Cash flow

Cash flow for the period was a negative SEK 22 million (pos: 434).

Cash flow from operating activities amounted to SEK 390 million (848). During the period, the effect of changes in working capital was a negative SEK 122 million (pos: 411), with the negative year-on-year change primarily due to higher inventory levels and accounts receivable at the end of the period. For further information regarding working capital, refer to the Net working capital section.

Cash flow from investing activities amounted to a negative SEK 93 million (neg: 296). The change was mainly due to the earn-out payment of SEK 206 million made in the preceding year. During the period, the acquisition of the Danish company Exato A/S generated a negative cash flow effect of SEK 39 million. Investments in tangible and intangible assets amounted to a negative SEK 55 million (neg: 90), of which a negative SEK 28 million (neg: 31) pertained to IT development and a negative SEK 27 million (neg: 59) mainly related to investments in IT equipment for service provision and improvements of leased properties. Investments in cars and the purchase of computers for internal use were also made during the period.

Cash flow from financing activities amounted to a negative SEK 319 million (neg: 117). The change was mainly due to bank loans raised during the year-earlier quarter of SEK 256 million. The period was negatively impacted by a dividend to shareholders of SEK 195 million (neg: 266) and negatively by SEK 12 million attributable to Dustin's long-term incentive programme, LTI 2018, offset by warrants issued under LTI 2021 of SEK 4 million. Repayment of lease liabilities amounted to negative SEK 117 million (neg: 110).

Net working capital

Net working capital amounted to a negative SEK 293 million (neg: 530) at the end of the period. Inventory increased by SEK 71 million from the preceding year, with the higher inventory volume attributable to growth and larger purchases made due to active purchasing work. The lower accounts payable are mainly attributable to the structure of credit periods and the timing of major payments. Dustin exercised the tax credits offered as a result of the pandemic, which increased current liabilities by approximately SEK 135 million.

SEK million	May 31, 2021	May 31, 2020	Aug 31, 2020
Inventories	607.2	536.7	482.9
Accounts receivable	1,354.8	1,234.2	1,256.6
Tax assets and other current receivables Accounts payable	349.6 -1,588.9	326.0 -1,869.7	256.5 -1,543.6
Tax liabilities and other current
liabilities	-1,015.9	-756.7	-874.2
Net working capital	-293.3	-529.5	-421.8

Net debt and cash and cash equivalents

At the end of the period, net debt amounted to SEK 1,903 million (1,986). There was also an unutilised overdraft facility of SEK 100 million (100) and an unutilised credit facility of EUR 5 million (5) in the Dutch operations at the end of the period.

At the end of the period, net debt in relation to adjusted EBITDA in the past 12-month period, excluding the effects of IFRS 16 Leases, was 2.1 (2.5). When calculated including these effects, the net debt ratio would have amounted to 2.3 (2.9). For calculation, see source of alternative performance measures.

SEK million	May 31, 2021	May 31, 2020	Aug 31, 2020
Liabilities to credit
institutions	2,138.5	2,194.7	2,159.0
Lease- and other
financial liabilities	482.4	544.4	511.5
Cash and cash
equivalents	-717.5	-752.9	-730.1
Net debt	1,903.3	1,986.2	1,940.4

Employees

The average number of full-time employees during the period was 1,696, compared with 1,774 in the yearearlier period. The reduction is primarily attributable to restructuring measures, which resulted in a reduction in the workforce.

Events after the balance sheet date

Acquisition of Centralpoint completed on June 3, 2021 All of the final terms for the completion of the acquisition of Centralpoint Holding B.V. were met and the acquisition was finalised on June 3, 2021. In connection with the transfer of ownership, the Board of Dustin resolved, based on the authorisation granted by the Extraordinary General Meeting, to carry out a noncash issue of shares to Rotla B.V. (indirectly). The number of newly issued shares amounted to 8,254,587, which, calculated after the new issue, corresponds to a dilution of approximately 8.5 per cent of the share capital and the voting rights in Dustin. The number of shares in Dustin increased from a total of 88,695,631 to 96,950,218 shares.

The Board will also exercise the authorisation granted by the Extraordinary General Meeting on May 18, 2021, and resolve on a new issue of shares with preferential rights for the shareholders before end of August 2021. Terms and the timetable for the new issue will be made public in connection with the Board's resolution.

Changes in Dustin's group management team

To further strengthen the position in Europe Dustin is making changes in the organisation and group management team, following the acquisition of Centralpoint. There will be four new roles in the group management team from July 1, 2021: COO Nordic, COO Benelux, EVP SMB Benelux and EVP LCP Benelux. Alexandra Fürst, currently EVP IT & Digitalisation, will be COO Nordic; Gijsbert Geerders, currently COO Centralpoint, will be COO Benelux; Morten Jakobi, currently EVP Netherlands, will be EVP SMB Benelux and Luuk Slaats, currently CEO Centralpoint, will be acting EVP LCP Benelux. Luuk Slaats will stay with Dustin for a maximum of 12 months to secure handover and continuity and will continue as CEO for Centralpoint during the transition period.

As a consequence of the new COO Nordic organisation, that will include IT & Digitalisation and Supply Chain, Jenny Ring, today EVP Supply Chain, will leave the group management team. She will continue as responsible for supply chain in the COO Nordic organisation. Another change is that the service offering will be integrated into the segments. This mean that the responsibility for service development and sales in the Nordics is moved to the segments SMB and LCP. In connection with the change Alexandra Drevenlid, today EVP Services & Solutions, has decided to leave the company.

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 0.3 million (0.3) and profit totalled SEK 272 million (157). The change was mainly due to dividends received from Group companies of SEK 260 million (106) and intra-Group interest income of SEK 29 million (33). The net currency position amounted to SEK 24 million (64) and was primarily due to external financing. The Group applies hedge accounting, whereby the net currency position is recognised against equity.

Risks and uncertainties

The corona pandemic is having a long and short-term impact on our business. The company assesses that

the risks have increased regarding disruptions to the supply chain.

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 58-63 of Dustin's 2019/20 Annual 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. At May 31, 2021, the price was SEK 106.40 per share (53.60), representing a total market capitalisation of SEK 9,437 million (4,751). At May 31, 2021, the company had a total of 14,348 shareholders (11,749). The company's three largest shareholders were AxMedia AB (Axel Johnson Gruppen) with 29.8 per cent, AMF Försäkring & Fonder with 12.8 per cent and ODIN Fonder with 8.3 per cent. Dustin's shareholder register with the largest shareholders is presented on the company's website.

2020/21 Annual General Meeting

Dustin's Annual General Meeting (AGM) will be held in Nacka on December 15, 2021. Shareholders who wish to have matters considered should submit a written request to the Board by October 27, 2021 to ensure that the matter is included in the notice convening the AGM. Requests by mail should be addressed to: Dustin Group AB (publ), Attn Sara Edlund, Box 1194, SE-131 27 Nacka Strand or by e-mail to: sara.edlund@dustin.se.

2020/21 Nomination Committee

In accordance with Nomination Committee instructions adopted by the Annual General Meeting, the following individuals were appointed as members of the Nomination Committee based on the ownership structure as of March 31, 2021, taking into consideration the following changes in shareholding following the acquisition of Centralpoint:

• Caroline Berg, Axel Johnson AB/Axmedia, Chairman of the Nomination Committee
• Tomas Risbecker, AMF Försäkring & Fonder
• Jens Browaldh, Altor/Rotla B.V.
• Hans Christian Bratterud, ODIN Fonder
• Mia Brunell Livfors, Chairman of Dustin's Board of Directors (co-opted)

Shareholders wishing to submit proposals to the Nomination Committee can do so by mail to the secretary of the Nomination Committee at the following address: Dustin Group AB (publ), Attn Oliver Kronberg, PO Box 1194, SE-131 27 Nacka Strand, Sweden, or by e-mail to: oliver.kronberg@dustin.se.

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

	Q3	Q3	Change	Q1-Q3	Q1-Q3	Change	Rolling	Full-year	Change
SEK million	20/21	19/20	%	20/21	19/20	%	12 months	19/20	%
Net sales	1,570.6	1,386.6	13.3	4,806.8	4,452.2	8.0	6,072.1	5,717.4	6.2
Segment results	161.0	108.8	48.0	493.1	405.6	21.6	598.1	510.6	17.1
Segment margin (%)	10.2	7.8	-	10.3	9.1	-	9.9	8.9	-

Net sales

Net sales for the quarter increased 13.3 per cent to SEK 1,571 million (1,387) due to the continued strong demand for hardware. Organic growth was 14.5 per cent (neg: 5.7). Acquisition-related growth pertaining to Exato (including customer transfers between segments) accounted for 0.9 percentage points and negative exchange-rate differences accounted for negative 2.2 percentage points.

Sales of hardware in the form of clients and computer peripherals, such as keyboards and webcams, and consumer electronics, such as games consoles, reported a strong performance in combination with private label goods. Sale of project-related services, such as connecting customers and the installation of conference rooms and suchlike remained pending during the quarter. The development has gradually improved with offices increasingly opening up and the interest in, for example, upgrades of conference rooms increased considerably during the latter part of the quarter. Geographically, segment sales were strongest in Norway, Denmark and Sweden.

Growth in software and services was 2.4 per cent, but declined as a percentage of sales to 21.4 per cent (23.7) in the segment during the quarter (see Note 2 Segments).

Segment results

Profit for the segment rose 48.0 per cent to SEK 161 million (109) and the segment margin rose to 10.2 per cent (7.8).

The change was primarily attributable to:

• positive effects from earlier implemented cost reductions and strategic initiatives
• generally higher volumes
• our dynamic pricing model
• strong sales trend in private label goods
• a lower share of project-related income with a high margin had a negative impact

LCP - Large Corporate and Public sector

	Q3	Q3	Change	Q1-Q3	Q1-Q3	Change	Rolling	Full-year	Change
SEK million	20/21	19/20	%	20/21	19/20	%	12 months	19/20	%
Net sales	1,660.0	1,729.4	-4.0	5,460.5	5,398.0	1.2	6,943.5	6,880.9	0.9
Segment results	109.8	102.4	7.2	373.0	320.5	16.4	463.4	410.9	12.8
Segment margin (%)	6.6	5.9	-	6.8	5.9	-	6.7	6.0	-

Net sales

Net sales declined 4.0 per cent to SEK 1,660 million (1,729) for the quarter. Organic growth amounted to negative 2.6 per cent (pos: 6.6) and was mainly attributable to weak sales to the public sector. Negative exchange-rate differences accounted for 1.4 percentage points, while acquisitions (including customer transfers between segments) had no impact.

Sales to the public sector displayed a negative trend due to continued component shortages and long delivery times. This customer category is more steered by specific product models in the procurement agreements and therefore has limited alternatives. The order book has now increased significantly, with expected deliveries in the upcoming quarters. Sales to larger companies developed positively and were impacted to a lesser degree by the market situation. Geographically, segment sales were strongest in Finland and Sweden.

Segment results

Profit for the segment increased to SEK 110 million (102) and the segment margin rose to 6.6 per cent (5.9).

The change was primarily attributable to:

• improved margins in major framework agreements for the public sector as the contracts mature,
• strong sales performance to large companies
• good cost control.

B2C – Business to Consumer

	Q3	Q3	Change	Q1-Q3	Q1-Q3	Change	Rolling	Full-year	Change
SEK million	20/21	19/20	%	20/21	19/20	%	12 months	19/20	%
Net sales	163.0	154.6	5.4	505.4	471.5	7.2	630.8	597.0	5.7
Segment results	14.9	11.9	25.2	40.6	30.2	34.6	47.6	37.1	28.1
Segment margin (%)	9.1	7.7	-	8.0	6.4	-	7.9	6.2	-

Net sales

Net sales rose 5.4 per cent in the quarter to SEK 163 million (155). Organic growth was 6.5 per cent (9.7). Exchange-rate differences accounted for negative 1.1 percentage points.

The positive trend during the quarter was primarily due to continued healthy demand for such computer hardware as monitors, web cameras, cables and accessories for home offices. Geographically, sales in the segment were strongest in Norway and Sweden.

Segment results

Profit for the segment increased to SEK 15 million (12) during the quarter and the segment margin improved to 9.1 per cent (7.7), due to strong demand and a

dynamic pricing model. We have a continued focus on margin over volume in the consumer business.

Central functions

	Q3	Q3	Change	Q1-Q3	Q1-Q3	Change	Rolling	Full-year	Change
SEK million	20/21	19/20	%	20/21	19/20	%	12 months	19/20	%
Cost for central functions	-127.4	-117.0	8.9	-376.8	-340.3	10.7	-477.9	-441.3	8.3
Costs for central functions in relation to net sales (%)	-3.8	-3.6	-	-3.5	-3.3	-	-3.5	-3.3	-

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 third quarter, costs for central functions amounted to 3.8 per cent (3.6) in relation to sales. Costs for central functions amounted to SEK 127 million (117), with the increase mainly related to pandemic-related cost reductions in the comparative period.

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 Segments on page 20, and to Segment information by quarter on page 27.

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

Nacka, June 30 2021

Thomas Ekman, President and CEO In accordance with authorisation by the Board of Directors

Auditors' review report

Auditors' review report for Dustin Group AB, corporate identity number 556703-3062

Introduction

We have reviewed the condensed interim report for Dustin Group AB as at May 31, 2021 and for the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

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

Conclusion

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

Stockholm the day of our electronical signature

Ernst & Young AB

Jennifer Rock-Baley Authorised Public Accountant

Consolidated income statement

		Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	Note	20/21	19/20	20/21	19/20	12 months	19/20
Net sales	2	3,393.6	3,270.6	10,772.7	10,321.6	13,646.4	13,195.4
Cost of goods and services sold		-2,836.5	-2,777.8	-9,047.8	-8,712.4	-11,487.5	-11,152.0
Gross profit		557.1	492.8	1,724.9	1,609.3	2,159.0	2,043.3
Selling and administrative expenses		-419.7	-410.5	-1,261.8	-1,260.5	-1,619.1	-1,617.9
Items affecting comparability	4	-20.8	-28.7	-35.5	-39.8	-26.7	-31.0
Other operating income		3.5	7.1	10.4	11.0	14.0	14.5
Other operating expenses		-6.6	-9.0	-16.1	-17.1	-20.7	-21.8
EBIT	2	113.5	51.8	421.9	302.7	506.4	387.2
Financial income and other similar income
statement items		0.3	0.5	0.9	1.0	1.2	1.3
Financial expenses and other similar income statement items		-15.9	-11.9	-44.9	-39.0	-59.2	-53.3
Profit after financial items		97.9	40.3	377.9	264.7	448.4	335.2
Tax		-18.7	-9.2	-86.1	-55.9	-88.1	-57.9
Profit for the period, attributable in its entirety to
Parent Company shareholders		79.3	31.1	291.8	208.8	360.3	277.3
Other comprehensive income (all items will be transferred to the income statement)
Translation differences		8.9	-29.6	-19.9	-66.6	-48.9	-95.5
Cash-flow hedging		-10.7	33.0	37.1	59.6	73.6	96.0
Tax attributable to cash-flow hedges		2.3	-7.1	-7.9	-12.8	-15.7	-20.6
Other comprehensive income		0.5	-3.7	9.3	-19.7	9.0	-20.0
Comprehensive income for the period is
attributable in its entirety to Parent Company
shareholders		79.7	27.4	301.0	189.1	369.2	257.3
Earnings per share before dilution (SEK)		0.89	0.35	3.29	2.36	4.06	3.13
Earnings per share after dilution (SEK)		0.89	0.35	3.29	2.36	4.06	3.13

Condensed consolidated balance sheet

SEK million	Note	May 31, 2021	May 31, 2020	Aug 31, 2020
ASSETS
Non-current assets
Goodwill		3,737.3	3,743.2	3,706.5
Intangible assets attributable to acquisitions	3	544.7	604.0	579.6
Other intangible assets	5	133.1	145.7	144.3
Tangible assets	5	94.6	102.1	99.3
Right-of-use assets	5	467.4	536.2	502.2
Deferred tax assets		7.9	10.6	9.7
Derivative instruments	6	2.2	0.2	0.2
Other non-current assets		7.7	8.0	8.3
Total non-current assets		4,994.8	5,149.9	5,050.0
Current assets
Inventories		607.2	536.7	482.9
Accounts receivable		1,354.8	1,234.2	1,256.6
Derivative instruments	6	0.1	0.0	-
Tax assets		4.5	81.1	9.5
Other current assets		345.1	244.9	247.0
Cash and cash equivalents		717.5	752.9	730.1
Total current assets		3,029.1	2,849.8	2,726.1
TOTAL ASSETS		8,024.0	7,999.7	7,776.1
EQUITY AND LIABILITIES
Equity
Equity attributable to Parent Company shareholders		2,553.8	2,387.4	2,455.6
Total equity		2,553.8	2,387.4	2,455.6
Non-current liabilities
Deferred tax and other long-term provisions		208.6	207.4	210.0
Liabilities to credit institutions		2,138.5	2,194.7	2,159.0
Non-current lease liabilities Derivative instruments	6	340.6 12.7	393.3 26.1	370.3 25.5
Total non-current liabilities		2,700.4	2,821.5	2,764.8
Current liabilities
Other provisions		9.7	-	31.5
Current lease liabilities		141.8	151.1	141.3
Accounts payable		1,588.9	1,869.7	1,543.6
Tax liabilities		61.8	52.8	46.2
Derivative instruments	6	0.9	1.3	1.7
Other current liabilities		946.4	703.9	791.5
Acquisition-related liabilities	6	20.4	12.1	-
Total current liabilities		2,769.8	2,790.9	2,555.8
TOTAL EQUITY AND LIABILITIES		8,024.0	7,999.7	7,776.1

Condensed consolidated statement of changes in equity

SEK million	May 31, 2021	May 31, 2020	Aug 31, 2020
Opening balance as at September 1	2,455.6	2,460.3	2,460.3
Profit for the period	291.8	208.8	277.3
Other comprehensive income
Translation difference	-19.9	-66.6	-95.5
Cash-flow hedging	37.1	59.6	96.0
Tax attributable to cash-flow hedges	-7.9	-12.8	-20.6
Total other comprehensive income	9.3	-19.7	-20.0
Total comprehensive income	301.0	189.1	257.3
Dividends	-195.0	-265.9	-265.9
Holdings of own warrants	-0.5	-	-
New share issue	0.2	-	-
Repurchase and subscription with the support of warrants	7.5	3.9	3.9
Total transactions with shareholders	-202.8	-262.0	-262.0
Closing equity as per the balance sheet date, attributable to Parent Company shareholders in its entirety	2,553.8	2,387.4	2,455.6

Consolidated statement of cash flow

		Q3	Q3	Q1-Q3	Q1-Q3	Full-year
SEK million	Note	20/21	19/20	20/21	19/20	19/20
Operating activities
EBIT		113.5	51.8	421.9	302.7	387.2
Adjustment for non-cash items		58.8	89.8	196.6	241.5	302.8
Interest received		0.3	0.5	0.9	1.0	1.3
Interest paid		-13.4	-9.2	-40.8	-29.7	-53.4
Income tax paid		-23.5	-24.3	-66.1	-78.4	-90.8
Cash flow from operating activities before changes in working
capital		135.8	108.5	512.5	437.1	547.1
Decrease (+)/increase (-) in inventories		-32.9	-44.2	-125.4	-74.9	-23.6
Decrease (+)/increase (-) in receivables		128.5	220.1	-197.5	206.1	238.3
Decrease (-)/increase (+) in current liabilities		-324.0	183.2	200.7	279.3	105.9
Cash flow from changes in working capital		-228.4	359.1	-122.2	410.5	320.6
Cash flow from operating activities		-92.6	467.6	390.4	847.5	867.7
Investing activities
Acquisition of intangible assets	5	-12.9	-18.4	-32.4	-58.4	-68.5
Acquisition of tangible assets	5	-10.9	-9.5	-22.3	-31.9	-42.8
Acquisition of operations	3	-	-	-38.8	-	-
Divestment of intangible assets		-	-	-	-	4.7
Earn-out paid		-	-67.8	-	-206.0	-209.0
Cash flow from investing activities		-23.8	-95.7	-93.4	-296.3	-315.6
Financing activities
New share issue		0.2	-	0.2	-	-
Cash flow from LTI programme		-12.1	-	-8.0	4.2	4.2
Dividends		-	-	-195.0	-265.9	-265.9
New loans raised		-	-	93.2	316.7	390.1
Repayment of loans		-	-	-92.5	-61.4	-134.4
Paid bank arrangement fees		-	-0.6	-	-1.5	-1.5
Repayment of lease liabilities		-38.6	-37.7	-116.8	-109.4	-148.7
Cash flow from financing activities		-50.4	-38.2	-318.9	-117.3	-156.1
Cash flow for the period		-166.8	333.7	-21.9	434.0	395.9
Cash and cash equivalents at beginning of period		889.8	397.6	730.1	281.3	281.3
Cash flow for the period		-166.8	333.7	-21.9	434.0	395.9
Exchange rate differences in cash and cash equivalents		-5.4	21.6	9.3	37.7	53.0
Cash and cash equivalents at end of period		717.5	752.9	717.5	752.9	730.1

Condensed Parent Company income statement

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	20/21	19/20	20/21	19/20	12 months	19/20
Net sales	0.1	0.1	0.3	0.3	0.4	0.4
Selling and administrative expenses	-2.3	-1.5	-6.0	-4.9	-7.8	-6.7
Other operating expenses	0.0	0.0	0.0	0.0	0.0	0.0
EBIT	-2.2	-1.4	-5.7	-4.6	-7.4	-6.3
Financial income and other similar income-statement items	7.8	45.6	313.1	203.2	361.1	251.2
Financial expenses and other similar income-statement items	-11.7	-7.9	-32.1	-27.6	-41.7	-37.2
Profit/loss after financial items	-6.0	36.3	275.3	171.0	311.9	207.6
Appropriations	-	-	-	-	87.0	87.0
Tax	1.3	-7.8	-3.3	-13.9	-29.9	-40.6
Profit/loss for the period	-4.7	28.5	272.1	157.1	369.0	254.0

Parent Company statement of comprehensive income

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	20/21	19/20	20/21	19/20	12 months	19/20
Profit for the period	-4.7	28.5	272.1	157.1	369.0	254.0
Other comprehensive income	-	-	-	-	-	-
Comprehensive income for the period	-4.7	28.5	272.1	157.1	369.0	254.0

Condensed Parent Company balance sheet

SEK million	May 31, 2021	May 31, 2020	Aug 31, 2020
ASSETS
Non-current assets	1,211.6	1,211.6	1,211.6
Current assets	2,747.5	2,571.8	2,713.6
TOTAL ASSETS	3,959.1	3,783.3	3,925.1
EQUITY AND LIABILITIES
Restricted equity
Share capital	443.5	443.2	443.2
Total restricted equity	443.5	443.2	443.2
Non-restricted equity
Share premium reserve	1,095.2	1,087.3	1,091.3
Retained earnings	-244.7	-288.3	-292.2
Profit for the period	272.1	157.1	254.0
Total non-restricted equity	1,122.6	956.1	1,053.1
Total equity	1,566.1	1,399.4	1,496.4
Untaxed reserves	244.8	182.8	244.8
Non-current liabilities	2,140.7	2,194.7	2,159.0
Current liabilities	7.4	6.4	24.9
TOTAL EQUITY AND LIABILITIES	3,959.1	3,783.3	3,925.1

Note 1 Accounting policies

This report has been prepared by applying 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 2019/20 financial year, except for the new standards described below. 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.

Note 2 Segments

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
All amounts in SEK million, unless otherwise indicated	20/21	19/20	20/21	19/20	12 months	19/20
Net sales
LCP	1,660.0	1,729.4	5,460.5	5,398.0	6,943.5	6,880.9
of which, hardware	1,471.4	1,554.5	4,823.5	4,775.2	6,128.1	6,079.8
of which, software and services	188.6	174.8	637.0	622.7	815.4	801.1
SMB	1,570.6	1,386.6	4,806.8	4,452.2	6,072.1	5,717.4
of which, hardware	1,234.4	1,058.2	3,778.5	3,412.1	4,706.5	4,340.1
of which, software and services	336.2	328.4	1,028.3	1,040.1	1,365.6	1,377.4
B2C	163.0	154.6	505.4	471.5	630.8	597.0
of which, hardware	162.4	154.1	502.8	468.7	627.8	593.7
of which, software and services	0.6	0.5	2.6	2.8	3.0	3.3
Total	3,393.6	3,270.6	10,772.6	10,321.6	13,646.4	13,195.4
of which, hardware	2,868.2	2,766.8	9,104.7	8,656.0	11,462.4	11,013.6
of which, software and services	525.3	503.8	1,667.9	1,665.6	2,184.0	2,181.7
Segment results
LCP	109.8	102.4	373.0	320.5	463.4	410.9
SMB	161.0	108.8	493.1	405.6	598.1	510.6
B2C	14.9	11.9	40.6	30.2	47.6	37.1
Total	285.6	223.0	906.7	756.2	1,109.2	958.6
Central functions	-127.4	-117.0	-376.8	-340.3	-477.9	-441.3
Of which, effects related to IFRS 16	2.9	3.0	7.6	4.7	9.1	6.2
Adjusted EBITA	158.2	106.0	530.0	416.0	631.3	517.3
Segment margin
LCP, segment margin (%)	6.6	5.9	6.8	5.9	6.7	6.0
SMB, segment margin (%)	10.2	7.8	10.3	9.1	9.9	8.9
B2C, segment margin (%)	9.1	7.7	8.0	6.4	7.5	6.2
Segment margin	8.4	6.8	8.4	7.3	8.1	7.3
Costs for central functions, excluding items
affecting comparability in relation to net sales (%)	-3.8	-3.6	-3.5	-3.3	-3.5	-3.3
Reconciliation with profit after financial items
Items affecting comparability	-20.8	-28.7	-35.5	-39.8	-26.7	-31.0
Amortisation and impairment of intangible assets	-23.9	-25.5	-72.5	-73.4	-98.2	-99.1
EBIT, Group Financial income and other similar income	113.5	51.8	421.9	302.7	506.4	387.2
statement items	0.3	0.5	0.9	1.0	1.2	1.3
Financial expenses and other similar income statement items
Profit after financial items, Group	-15.9 97.9	-11.9 40.3	-44.9 377.9	-39.0 264.7	-59.2 448.4	-53.3 335.2

Note 3 Acquisition of businesses during the period

Acquisition of Exato A/S

Dustin acquired all shares in the Danish company Exato A/S during the first quarter. The company specialises in standardised services, including IT security, where more than half of the revenue derives from subscription services, primarily to small and mediumsized businesses. The acquisition contributes to

Dustin's strategy of increasing sales of services and complements Dustin's offering in Denmark. The company reported sales of approximately DKK 30 million during the latest financial year and has approximately 20 employees.

Aggregated effects of preliminary acquisition analyses

SEK million
Fair value of acquired assets and liabilities	Exato A/S	Total
Intangible assets	7.2	7.2
Tangible assets	0.5	0.5
Inventories	0.2	0.2
Accounts receivable and other receivables	6.3	6.3
Cash and cash equivalents	4.4	4.4
Liabilities to credit institutions	-	-
Other current liabilities	9.5	9.5
Total identifiable net assets	9.1	9.1
Goodwill	55.0	55.0
Purchase consideration including estimated contingent earn-out	64.2	64.2
Less:
Cash and cash equivalents	4.4	4.4
Estimated contingent earn-out	21.0	21.0
Net cash outflow	38.8	38.8

Acquisitions are strategically important for complementing Dustin's service offering of advanced products and services. The total acquisition costs are presented in Note 4 Items affecting comparability. Acquired goodwill comprises more advanced services and employee expertise. The fair value of the acquired receivables is expected to be fully settled. The contracted gross amounts essentially correspond to the fair values of the receivables.

Note 4 Items affecting comparability

Items affecting comparability amounted to negative SEK 21 million (neg: 29) for the quarter and mainly pertained to integration costs of negative SEK 18 million (pos: 4.0) relating to Vincere in the Netherlands and termination costs of negative SEK 3 million (-) for a lease in Nacka Strand. Dustin has decided to leave one

of the office premises in Nacka Strand and move the affected business to existing premises at the head office. The move result in annually savings of about SEK 3 million. The operation in Vincere contains several entities and in order to achieve desired synergy there's a requirement to integrate the entities into Dustin.

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	20/21	19/20	20/21	19/20	12 months	19/20
Acquisition and divestment-related expenses	-	-1.2	-1.5	-0.4	-1.5	-0.4
Integration costs	-17.8	-4.0	-18.4	-15.6	-18.7	-15.9
Restructuring reserve	-	-26.9	-12.7	-26.9	-12.7	-26.9
Change in value of acquisition-related liabilities	-	3.3	-	10.9	9.2	20.1
Costs for launch of online sales	-	-	-	-7.9	-	-7.9
Lease termination costs	-2.9	-	-2.9	-	-2.9	-
Total	-20.8	-28.7	-35.5	-39.8	-26.7	-31.0

Note 5 Investments

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SEK million	20/21	19/20	20/21	19/20	12 months	19/20
Capitalised expenditure for IT development (integrated IT platform and other long-term strategic IT systems)	10.7	10.0	27.8	31.3	33.9	37.5
Investments in tangible and intangible assets	18.1	93.9	75.2	328.2	82.5	335.6
Of which, affecting cash flow	6.1	10.0	12.6	44.7	16.8	48.9
Investments in assets related to service provision	25.6	21.0	47.3	43.0	64.5	60.1
Of which, affecting cash flow	7.0	7.9	14.2	14.2	24.9	24.9
Total investments	54.3	125.0	150.3	402.6	180.9	433.2
Of which, affecting cash flow	23.8	27.9	54.7	90.3	75.7	111.3

Dustin's right-of-use assets mainly relate to buildings and IT equipment. During the quarter, new agreements totalling SEK 30 million (95) were added and are mainly attributable to IT equipment for service provision, such as servers and network solutions, and vehicles.

SEK million	May 31, 2021	May 31, 2020	Aug 31, 2020
Buildings	221.1	304.9	270.8
Vehicles	57.0	55.8	58.3
IT equipment for internal use	91.2	106.8	103.9
IT equipment related to service provision	97.3	67.7	68.4
Other items	0.9	1.1	0.8
Right-of-use assets	467.4	536.2	502.2

Note 6 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, 2020.

At May 31, 2021, the fair value of derivative instruments amounted to SEK 11 million (27).

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. If a change in value occurs prior to the preparation of the purchase price allocation and is not the result of events following 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)	May 31, 2021	May 31, 2020	Aug 31, 2020
Opening balance as at September 1	-	244.8	244.8
Remeasurements recognised in profit or loss:
Unrealised revaluation of contingent earn-out recognised under Items affecting comparability	-	-10.9	-20.1
Discount of contingent earn-out recognised under Financial expenses and
other similar income-statement items	-	0.3	0.3
Remeasurements recognised under other comprehensive income:
Unrealised exchange rate differences recognised under Translation differences	-0.6	-5.6	-5.6
Changes recognised via the balance sheet:
Payment of deposit related to contingent earn-out	-	-10.5	-10.5
Payments attributable to previous acquisitions	-	-206.0	-209.0
Acquisitions	21.0	-	-
Closing balance	20.4	12.1	-

Note 7 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 8 Related-party transactions

There were no significant related-party transactions during the current period or comparative period.

Key ratios

All amounts in SEK million, unless otherwise	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
indicated	20/21	19/20	20/21	19/20	12 months	19/20
Income statement
Organic sales growth (%)	5.1	1.3	6.6	3.8	4.5	2.3
Gross margin (%)	16.4	15.1	16.0	15.6	15.8	15.5
EBIT	113.5	51.8	421.9	302.7	506.4	387.2
Adjusted EBITDA (excl. IFRS 16)	168.4	112.8	557.4	442.3	669.3	554.2
Adjusted EBITDA (incl. IFRS 16)	210.3	154.5	683.6	561.4	837.2	715.0
Adjusted EBITA	158.2	106.0	530.0	416.0	631.3	517.3
Adjusted EBITA margin (%)	4.7	3.2	4.9	4.0	4.6	3.9
Return on equity (%)	-	-	-	-	14.1	11.3
Balance sheet
Net working capital	-293.3	-529.5	-293.3	-529.5	-293.3	-421.8
Capital employed	419.6	273.3	419.6	273.3	419.6	338.0
Net debt	1,903.3	1,986.2	1,903.3	1,986.2	1,903.3	1,940.4
Net debt/adjusted EBITDA (multiple)
(excl. IFRS 16)	-	-	-	-	2.1	2.6
Net debt/adjusted EBITDA (multiple) (incl. IFRS 16)	-	-	-	-	2.3	2.7
Maintenance investments	-23.8	-27.9	-54.7	-90.3	-75.7	-111.3
Equity/assets ratio (%)	-	-	-	-	31.8	31.6
Cash flow
Operating cash flow	-41.8	485.7	506.7	882.1	549.4	904.1
Cash flow from operating activities	-92.6	467.6	390.4	847.5	410.5	867.7
Data per share
Earnings per share before dilution (SEK)	0.89	0.35	3.29	2.36	4.06	3.13
Earnings per share after dilution (SEK)	0.89	0.35	3.29	2.36	4.06	3.13
Equity per share before dilution (SEK)	28.79	26.93	28.79	26.93	28.79	27.70
Cash flow from operating activities per share
before dilution (SEK)	-1.05	5.28	4.40	9.56	4.63	9.79
Cash flow from operating activities per share
after dilution (SEK)	-1.04	5.28	4.40	9.56	4.63	9.79
Average number of shares	88,654,163	88,647,339	88,649,639	88,647,339	88,649,059	88,647,339
Average number of shares after dilution	88,795,716	88,647,339	88,649,639	88,647,339	88,649,059	88,647,339
Number of shares issued at end of period	88,695,631	88,647,339	88,695,631	88,647,339	88,695,631	88,647,339

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 28 present how Dustin defines its performance measures and the use of each performance measure. The data presented below are supplementary information from which all alternative performance measures can be derived. The sources of the performance measures Net working capital and Net debt are described on pages 8.

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
Total	20/21	19/20	20/21	19/20	12 months	19/20
Organic growth
Sales growth (%)	3.8	3.2	4.4	8.5	2.2	5.3
Acquired growth (%)	-0.4	-2.7	-0.3	-4.5	-0.3	-3.4
Currency effects in sales growth (%)	1.7	0.8	2.5	-0.2	2.6	0.5
Organic sales growth (%)	5.1	1.3	6.6	3.8	4.5	2.3
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
SMB	20/21	19/20	20/21	19/20	12 months	19/20
Organic growth
Sales growth (%)	13.3	-2.3	8.0	6.5	4.6	3.3
Acquired growth (%)	-0.9	-3.6	-0.4	-7.0	0.2	-4.8
Currency effects in sales growth (%)	2.2	0.2	2.2	-0.5	2.2	0.1
Organic sales growth (%)	14.5	-5.7	9.8	-1.0	6.9	-1.4
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
LCP	20/21	19/20	20/21	19/20	12 months	19/20
Organic growth
Sales growth (%)	-4.0	7.7	1.2	11.4	0.2	7.9
Acquired growth (%)	0.0	-2.4	-0.3	-2.9	-0.6	-2.6
Currency effects in sales growth (%)	1.4	1.3	2.8	0.0	2.9	0.7
Organic sales growth (%)	-2.6	6.6	3.7	8.5	2.5	6.1
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
B2C	20/21	19/20	20/21	19/20	12 months	19/20
Organic growth
Sales growth (%)	5.4	8.2	7.2	-2.7	2.9	-4.6
Currency effects in sales growth (%)	1.1	1.5	1.9	0.2	2.1	0.8
Organic sales growth (%)	6.5	9.7	9.1	-2.5	5.0	-3.9
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
Adjusted EBITA	20/21	19/20	20/21	19/20	12 months	19/20
EBIT	113.5	51.8	421.9	302.7	506.4	387.2
Amortisation and impairment of intangible assets	23.9	25.5	72.5	73.4	98.2	99.1
Items affecting comparability	20.8	28.7	35.5	39.8	26.7	31.0
Adjusted EBITA	158.2	106.0	530.0	416.0	631.3	517.3

	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
Adjusted EBITDA (excl. IFRS 16)	20/21	19/20	20/21	19/20	12 months	19/20
EBIT (excl. IFRS 16)	110.6	48.8	414.3	298.0	497.3	381.0
Depreciation and impairment of tangible assets (excl.
IFRS 16)	13.1	9.8	35.1	31.0	47.1	43.1
Amortisation and impairment of intangible assets	23.9	25.5	72.5	73.4	98.2	99.1
Items affecting comparability	20.8	28.7	35.5	39.8	26.7	31.0
Adjusted EBITDA (excl. IFRS 16)	168.4	112.8	557.4	442.3	669.3	554.2
	Q3	Q3	Q1-Q3	Q1-Q3	Rolling	Full-year
	20/21	19/20	20/21	19/20	12 months	19/20
Adjusted EBITDA (incl. IFRS 16) EBIT	113.5	51.8	421.9	302.7	506.4	387.2
Depreciation and impairment of tangible assets	52.2	48.5	153.6	145.4	205.9	197.7
Amortisation and impairment of intangible assets	23.9	25.5	72.5	73.4	98.2	99.1
Items affecting comparability	20.8	28.7	35.5	39.8	26.7	31.0

Segment information by quarter

	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2
All amounts in SEK million, unless otherwise indicated	20/21	20/21	20/21	19/20	19/20	19/20	19/20	18/19	18/19	18/19
Net sales	3,393.6	3,683.1	3,696.0	2,873.8	3,270.6	3,542.8	3,508.3	3,025.7	3,168.5	3,214.7
Organic sales growth (%)	5.1	6.4	8.0	-2.3	1.3	4.0	6.1	11.2	15.3	7.8
Gross margin (%)	16.4	16.1	15.6	15.1	15.1	15.7	16.0	16.2	16.8	16.3
Adjusted EBITA	158.2	201.3	170.5	101.3	106.0	153.5	156.4	120.1	123.8	153.5
Adjusted EBITA margin (%)	4.7	5.5	4.6	3.5	3.2	4.3	4.5	4.0	3.9	4.8
Net sales per segment:
LCP	1,660.0	1,893.9	1,906.5	1,483.0	1,729.4	1,863.1	1,805.5	1,530.8	1,606.1	1,718.3
SMB	1,570.6	1,614.6	1,621.7	1,265.3	1,386.6	1,510.7	1,554.9	1,353.4	1,419.6	1,346.5
B2C	163.0	174.7	167.7	125.5	154.6	169.0	147.9	141.6	142.8	149.8
Segment results:
LCP	109.8	136.2	127.0	90.4	102.4	118.1	100.1	79.6	79.6	100.9
SMB	161.0	170.3	161.8	105.0	108.8	140.1	156.7	134.7	142.4	146.7
B2C	14.9	15.1	10.6	7.0	11.9	9.2	9.1	7.1	8.8	9.4
Segment margin (%):
LCP	6.6	7.2	6.7	6.1	5.9	6.3	5.5	5.2	5.0	5.9
SMB	10.2	10.6	10.0	8.3	7.8	9.3	10.1	10.0	10.0	10.9
B2C	9.1	8.6	6.3	5.5	7.7	5.4	6.2	5.0	6.2	6.3
Central functions
Central functions	-127.4	-120.4	-129.0	-101.1	-117.0	-113.8	-109.4	-101.3	-107.0	-103.5
Percentage of net sales	-3.8	-3.3	-3.5	-3.5	-3.6	-3.2	-3.1	-3.3	-3.4	-3.2

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.
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.
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.
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.
Launch costs	Launch costs comprise the costs for the launch of online retail in the Netherlands.
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

October 6, 2021 Year-end report, September 1, 2020-August 31, 2021

November 17, 2021 2020/21 Annual Report

December 15, 2021 2020/21 Annual General Meeting

January 12, 2022 Interim report for the first quarter, September 1, 2021 – November 30, 2021

April 12, 2022 Interim report for the second quarter, December 1, 2021 – February 28, 2022

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 0708-67 79 97

Fredrik Sätterström, Head of Investor Relations fredrik.satterstrom@dustin.se 0705-10 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 June 30, 2021