Slides
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Q3 2024/25 July, 2025 dustingroup.com
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Today´s agenda • The third quarter 2024/25 • Strengthened financial position through an oversubscribed rights issue • Sharpened strategic focus with a clear plan to increase profitability • Q&A
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Financial Highlights Net sales was 5,089 (5,455) MSEK, corresponding to a decline of 6.7% • Organic growth was -2.9%, of which SMB -2.6% and LCP -3.0% • Cautious development, but signs of market stabilisation in the Nordics Gross profit was 680 (821) MSEK • Gross margin amounted to 13.4% (15.0%) • Stable margin development in the Nordics, but high share of new agreements and price pressure burdens development in the Benelux Adjusted EBITA was 72 (130) MSEK • Adjusted EBITA margin was 1.4% (2.4%) Cash flow from operating activities was -139 (454) MSEK Leverage was 4.3x in the past 12-month period (4.0x FY 23/24) Rights issue completed, raising net proceeds of approximately 1,240 MSEK Earlier announced efficiency measures near completion Strategic assessment conducted to drive long-term profitability improvement Strengthened financial position and continued focus on improving profitability Net sales and adjusted EBITA margin 5,485 5,089 2.4% 1.4% 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Q3 2023/24 Q3 2024/25 Adjusted EBITA margin MSEK Net sales Adjusted EBITA margin 3
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Gross margin decline mainly due to price pressure and new contracts in LCP Benelux 4 Gross margin volatility • Q3 gross margin was 13.4 per cent (15.0), where the decline was primarily explained by the development in LCP Benelux – Stable development for LCP in the Nordics – Increased competition and price pressure in specific multi-supplier framework agreements and a higher share of sales in new public sector agreements in LCP Benelux compresses margin development – Stable gross margin development within SMB following continued price discipline Q3 23/24 LCP Nordics LCP Benelux SMB Q3 24/25 Group gross margin Q3 year-on-year 15.0% +0.2% -1.8% 0.0% 13.4%
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634 24/25 Q323/24 Q3 546 -11% SG&A Total SG&A Q3 Average FTE’s per quarter 1.800 1.600 1.500 1.700 2.200 1.900 2.000 2.100 2.300 2.400 2.500 Q4 FY 23/24 Q1 FY 22/23 Q2 FY 22/23 Q3 FY 22/23 Q4 FY 22/23 Q1 FY 23/24 Q2 FY 23/24 Q3 FY 23/24 2,495 2,422 2,350 2,317 2,285 2,271 2.270 2,263 -156 (-7%) Average FTE’s Adapting number of FTE’s to market situation • Average number of FTE’s reduced by 7% over the past year • Average number of FTE’s reduced by 12% over the past two years • In addition, significantly reduced number of consultants and temporary staff Efficiency measures partly compensating for slow market and currency effects 5 Efficiency measures reducing cost level • Earlier announced efficiency measures with annual savings of 150-200 MSEK nearing completion • Currency fluctuations explain approximately 3 percent of the decrease in SG&A 2,197 Q1 FY 24/25 Q2 FY 24/25 Q3 FY 24/25 2.115 2,391 -276 (-12%) -3% FX 563
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Net sales decline in SMB of 5.3% y/y • Organic growth of -2.6% Segment result was 37 (37) MSEK • Segment margin increased to 2.7% (2.5%) Continued tentative sales development • Signs of some stabilisation, but market development remain tentative due to the ongoing economic uncertainty • Slight increase in demand among larger SMB companies, mainly in the Nordic region • The share of software and services sales increased to 13.8% (12.2%) Slightly improved segment margin • Stable gross margin year-on-year and a clear quarter-on- quarter improvement • Efficiency measures contributed to a lower cost base and had a positive impact on the segment margin SMB – Signs of stabilisation from a low level Net sales and segment margin 1,474 1,396 2.5% 2.7% 0% 2% 4% 6% 8% 10% 0 500 1 000 1 500 2 000 2 500 Q3 2023/24 Q3 2024/25 Segment margin MSEK Net sales Segment margin MSEK Q3 2024/25 Q3 2023/24 Organic growth Q3 y/y growth Net sales 1,396 1,474 -2.6% -5.3% Segment result 37 37 – 1.5% Segment margin 2.7% 2.5% – – 6
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Net sales growth in LCP of -7.2% y/y • Organic growth was -3.0% Segment result was 63 (130) MSEK • Segment margin decreased to 1.7% (3.3%) Stabilisation in the Nordics but challenges in the Netherlands • Economic uncertainty continue to affect market development • Challenging in the Netherlands, specific framework agreements subject to increased price pressure • Positive progress in Sweden and Finland mainly driven by defense investments, alongside new agreements secured in Belgium Segment margin impacted by lower gross margin • Gross margin decreased mainly due to price pressure in specific multi-supplier framework agreements, primarily in the Netherlands • High share of sales within new framework agreements with initially lower margin • Higher volumes and improved profitability in takeback and private label products had a positive margin impact LCP – Lower volumes and price pressure within multi-supplier framework agreements Net sales and segment margin MSEK Q3 2024/25 Q3 2023/24 Organic growth Q3 y/y growth Net sales 3,693 3,981 -3.0% -7.2% Segment result 63 130 – -51.1% Segment margin 1.7% 3.3% – – 3,981 3,693 3.3% 1.7% 0% 2% 4% 6% 8% 0 1 000 2 000 3 000 4 000 5 000 Q3 2023/24 Q3 2024/25 Segment margin MSEK Net sales Segment margin 7
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Cash flow burdened by temporary changes in working capital • Cash flow from operating activities, before changes in working capital, decreased mainly due to lower EBIT • Negative cash flow from changes in working capital, mainly due to higher inventory and delayed payment flows linked to public holidays • Cash flow from financing activities impacted by the completed rights issue Reduced level of capex in the quarter • Total investments decreased to 69 (141) MSEK, of which 47 (65) MSEK affecting cash flow • Capex related to IT development decreased to 37 (45) MSEK, and affecting cash flow. • Investments in tangible and intangible assets lower at 28 (78) MSEK, of which 10 (20) MSEK affecting cash flow • Investments in assets related to service provision, mainly related to data center capacity, was 4 (18) MSEK, not affecting cash flow Cash flow burdened by changes in net working capital Changes in Cash Flow Y/Y 8 MSEK Q3 2024/25 Q3 2023/24 Q3 y/y change Cash flow from operating activities before changes in working capital 27 81 -54 Changes in working capital -167 373 -540 Cash flow from operating activities -139 454 -593 Cash flow from investing activities -47 -65 18 Cash flow from financing activities 1,194 -49 1,243 Cash flow for the period 1,008 340 668
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Net working capital impacted by holiday-related payment flows • Net working capital increased to 261 MSEK (-205), due to higher inventory and delayed payment flows linked to public holidays • Inventory increased by 173 MSEK to 1,098 MSEK (925) year-on- year, mainly due to lower quarter-end activity than planned • Accounts payable decreased by 535 MSEK compared to last year, impacted by timing and volume in larger specific customer deals in the comparable quarter • Accounts receivable decreased by 176 MSEK, which is less than payables, with receivables impacted by delayed payment flows due to public holidays at quarter-end • Other payables and receivables had a net impact of -67 MSEK, compared to the corresponding quarter last year • Long-term target level for net working capital of around -100 MSEK Net working capital temporary higher Net working capital -1.0% -0.8% -1.7% -3.3% -1.1% 0.6% -0.5% 0,9% -600 -400 -200 0 200 400 600 NWC Average LTM NWC as % of LTM sales 9 MSEK
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CONFIDENTIAL +82 -1,240 3,215 2,057 6.0x 4.3x Q2 24/25 Changes in working capital and currency effects Net proceeds rights issue May 2025 Post rights issue Q3 24/25 Net debt Rights issue Net debt / adj. EBITDA Supportive conditions for intensified focus on our strategic plan • Raised net proceeds of approximately 1,240 MSEK in successfully completed rights issue, ensuring a solid capital structure and a strengthened balance sheet • The net proceeds from the rights issue will be used to reduce net debt • Established financial stability to support a high pace of change according to our plan to improve profitability over time • The leverage decreased from 6.0x net debt/adjusted EBITDA* as of Q2 24/25 to 4.3x post rights issue, still affected by challenges in the earlier quarters • We continue to work towards a leverage within our financial target range of 2.0-3.0x through improved profitability and thereby strengthened operating cash flow Strengthened financial position through oversubscribed rights issue Change in leverage from Q2 24/25 to Q3 24/25 post rights issue 10
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Sharpened strategic focus with a clear plan to increase profitability 11 High pace of change for increased profitability • Implemented a new organisation, structured around the offering, the sales channels, delivery and support functions, enabling a higher pace of execution of the company's strategy (Q2 24/25) • Efficiency measures, with full impact of SEK 150–200 million annually, are now nearing completion and involve more than 200 positions and a reduced number of offices (Q4 24/25) • Continue transformation with strategic focus towards the business customers and our standardised service offering, phasing out our consumer market proposition (first half-year 25/26) • Strengthen and develop our B2B-customer offering across sales channels, both online and through relationship-based sales • Long term process improvements and increased automation following the implementation of the common IT platform in Benelux
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12 Organic net sales growth of -2.9% • Net sales growth of -6.7% • Cautious development, but signs of market stabilisation in the Nordics Gross margin at 13.4% (15.0%) • Stable margin development in the Nordics • High share of new agreements and price pressure burdens development in the Netherlands Adjusted EBITA margin of 1.4% (2.4%) • Decline due to lower gross margin Rights issue completed, raising net proceeds of approximately 1,240 MSEK Earlier announced efficiency measures near completion Strategic assessment conducted to drive long-term profitability improvement Summary of the third quarter 2024/25 12
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Corporate presentation
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280,000 hardware and software products… Hardware ~82% Hardware: Software: Services: Software and Services ~18% Refers to the financial year 2023/24 Clients Servers OS SaaS Cloud solutionsFinancing Net sales…primarily sold online… Online ~60% Dustin (B2B) Dustin Home (B2C) Offline ~40% Refers to the financial year 2023/24 …across the Nordics and Benelux… Finland ~9% Netherlands ~41% Sweden ~25% Denmark ~9% Norway ~13% Dustin at a glance …to B2B customers Adjusted EBITA and margin, R12** 0,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% 7,0% 8,0% 0 100 200 300 400 500 600 700 800 900 1 000 SEK million ** R12 refers to 12 month rolling * Refers to pro forma including Centralpoint Belgium ~4% Refers to the financial year 2023/24 Refers to the Nordics in the financial year 2023/24 * Refers to pro forma including Centralpoint 14 0,000 5,000 10,000 15,000 20,000 25,000 SEK million ~ 2 million orders annually SMB LCP B2C Full assortment Large roll-outs, volume services, takeback IT products SEK 10,000 SEK 15,000 SEK 2,000 Customers Offering Avg. order 98% 2% % net sales
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List 5 Rows 0 2 4 6 8 10 12 14 16 18 20 22 24 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Net sales (BnSEK) Founders phase - mail order sales of B2B hardware and development of online platform Nordic expansion and additional services 1984 – 2006 2007 – 2014 IPO and Strategy for continued growth 2015 - 2020 European expansion 2021 Long and strong history of profitable growth 15
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List 5 Rows LCP (Large Corporate and Public) ~10,000 A large number of suppliers… needs an aggregator with a strong brand to interact with… a large number of customers. Dustin – the aggregator and destination Dustin products Distributors SMB (Small and Medium Sized Businesses) ~100,000 B2C (Business to Consumer) ~200,000 Hardware, software & services active customers active customers active customers 6 Dustin services + 3.500 16
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Multi-channel approach to drive growth and margins Three tiered sales model Medium AdvancedBasic Customer needs Online ~60% of net sales Offline ~40% of net sales @ @ @ @ Server Stand-alone services and solutions Advanced products Basic products Cloud solutions MPS1) Financing Higher gross margin Product portfolio Medium AdvancedBasic Customer needs SaaS Consultative sales Outbound sales Online sales 17
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We are well positioned to cater for both SMB and LCP customers HighLow Degree of value added service Low Cost efficiency Komplett Verkkokauppa Bol.com Elkjøp Atea Advania Crayon TietoEvry Bechtle Accenture Atos Amazon CoolBlue Cloud giants E.g., AWS Google Small IT infrastructure and service companies High Comments Starting from hardware box moving to adding services as customer expectations move to want more around HW Low cost / efficient backbone and origin IT focused with high competence and high touch where needed European and standardised but local presence 18
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One IT Platform enables cost synergies One IT Platform One Dynamics ERP & CRM One Web Experience Portals & Open Web One Service Management ConnectWise & Service Management One Data Platform Business Intelligence & Data Innovation Our future platform is: Geographically scalable Aligning our ways of working Leveraging from standard processes Digitalising our customer journey Catering for efficiency and automation We will be able to: Be more efficient in many of our core processes Increase our level of automation Reduce integration time of acquired companies Quicker implement new functions thanks to one development process Communicate internally and externally as One Dustin 19
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Medium-term financial targets EPS Growth >10% 3-year average annual growth rate Leverage 2.0-3.0 Net debt/EBITDA CO2 emission 25% reduction in C02e/MSEK Net Sales in the coming 3-year period. Towards the unchanged 2030 commitment of being fully climate neutral* Dividend Policy >70% Dividend policy pay out of net profit depending on the financial position Unchanged Unchanged *Describing one of Dustin’s three 2030 commitments – the others are Fully Circular and Social Equality Supporting targets for EPS growth Organic net sales growth SMB: 8% 3-year avg LCP: 5% 3-year avg Segment margin SMB >6.5% FY25/26 LCP >4.5% FY25/26 20
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Committed to long-term sustainable growth PotentialTrends Today Climate reduction increasingly important in procurement Demand for circular products and solutions Responsibility and transparency in supply chain management Launch of in-house takeback Advantage in tenders Sustainability linked loan connected to two KPIs: CO 2e per shipment and number of takebacks. Discount of -2,5 bps on margin if the two KPIs are reached Full value chain approach, including Scope 3 Compliant with TCFD External integrated reporting, same level for sustainability as financial auditing Sell refurbished products online Use data to help customers make sustainable choices Offer circular options that add clear customer value LCP customer expectations driving change within SMB Given our position and size in our market we can have a positive impact in the entire value chain Sustainability is becoming an integral part of buying IT Strong ambitions with tangible steps towards the 2030 commitments Making sustainable IT easy for our customers and contributing to margin development 21
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100% 1 311 642 t CO2e, 56 CO2e/MSEK Net Sales Scope 1 Our cars and facilities ~0,04% Scope 2 Purchased energy ~0,05% Scope 3 Travel, leased assets & downstream transportation ~0,2% Upstream transportation ~1% Product ~79% User phase ~20% 61 56 46 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28 FY28/29 FY29/30 CO2e/MSEK Net Sales 25% reduction in CO2e/ MSEK Net Sales until FY25/26 Our main levers – share of total improvement Carbon neutral in own operations. ~5% Promoting solutions and products with lower negative environmental impact to actively support customers reduction. ~20% Expanding services such as managed services and takeback. ~25% Partnering with stakeholders towards climate action. ~10% Co-operate with committed vendors to reduce CO 2e. ~25% Residual - Certified off-setting. ~15% Our path to decrease our CO2 impact 22 54
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List 5 Rows Our mission, vision, guiding direction and promise To provide the right IT solution, to the right customer and user. At the right time. At the right price. Mission To help our customers stay in the forefront Enabling the circularity movement We keep things moving Vision Guiding direction Promise 23
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Thank you