Slides
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Q4 2024/25 October, 2025 dustingroup.com
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Financial Highlights Net sales was 5,056 MSEK (4,988), corresponding to a growth of 1.4% • Organic growth was 3.6%, of which SMB -6.3% and LCP 7.0% • Adjusted for retroactive net accounting, SMB growth was -2.2% • Signs of market stabilisation in the Nordics Gross profit was 642 MSEK (644) • Gross margin amounted to 12.7% (12.9), affected by mix effects • Positive margin development in the Nordics, but challenging competitive landscape and price pressure burdens development in the Benelux Adjusted EBITA was 83 MSEK (28) • Adjusted EBITA margin was 1.6% (0.6) Cash flow from operating activities was -73 MSEK (-355) Leverage was 4.3x in the past 12-month period (4.0x FY 23/24) Operational Highlights Earlier announced efficiency measures fully implemented Strategic focus to drive long-term profitability improvement Updated sustainability targets approved by SBTi Modest organic growth and continued focus on profitability Net sales and adjusted EBITA margin 4,988 5,056 0.6% 1.6% 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Q4 2023/24 Q4 2024/25 Adjusted EBITA margin MSEK Net sales Adjusted EBITA margin 2
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Organic growth driven by underlying structural trends in the market 3 Changed sales recovery pattern between segments • Normally, SMB both drops and recovers earlier in an economic cycle compared to LCP. Organic growth within LCP driven by underlying structural trends in the market and no clear indications yet of any economic recovery. – Current LCP organic growth primarily driven by transition to Windows 11, as a result of discontinued support for Windows 10 – Slower adoption of this trend among SMBs – Replacement of an aging installed base of business computers is also a visible trend among LCPs – The expected trend of an increased interest in computers optimised for AI is not yet visible Economic growth Recession Economic growth Normal SMB Current LCP Normal LCP Sales recovery patterns - ILLUSTRATIVE Q4 2025
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552 24/25 Q423/24 Q4 517 -6.3% SG&A Total SG&A Q4 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 -225 (-10%) Average FTE’s Adapting number of FTE’s to market situation • Average number of FTE’s reduced by 10% over the past year • Average number of FTE’s reduced by 13% 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 4 Efficiency measures reducing cost level • Earlier announced efficiency measures with annual savings of nearly 200 MSEK completed • Currency fluctuations explain 1.7 percent of the decrease in SG&A • Comparable quarter affected by exceptional items 2,197 Q1 FY 24/25 Q2 FY 24/25 Q3 FY 24/25 2.115 2,391 -305 (-13%) -1.7% FX 526 Q4 FY 24/25 2.045
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Net sales decline in SMB of 7.9% y/y • Organic growth of -6.3% • Adjusted for retroactive reclassification of net revenue recognition of software revenue, organic growth was -2.2% Segment result was 34 MSEK (9) • Segment margin increased to 2.9% (0.7) Continued tentative sales development • Signs of stabilization in the Nordics, but market development remain affected by the uncertain geopolitical climate • Share of software and services sales decreased to 10.4% (15.2), due to retroactive net recognition of software revenue Improved segment margin • Improved gross margin both year-on-year and quarter-on- quarter • Efficiency measures contributed to a lower cost base and had a positive impact on the segment margin • Non-recurring costs of 13 MSEK in the comparison quarter had a positive comparative impact SMB – Signs of stabilisation from a low level Net sales and segment margin 1,278 1,178 0.7% 2.9% 0% 2% 4% 6% 8% 10% 0 500 1 000 1 500 2 000 Q4 2023/24 Q4 2024/25 Segment margin MSEK Net sales Segment margin MSEK Q4 2024/25 Q4 2023/24 Organic growth Q4 y/y growth Net sales 1,178 1,278 -6.3% -7.9% Segment result 34 9 – 260.1% Segment margin 2.9% 0.7% – – 5
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Net sales growth in LCP of 4.6% y/y • Organic growth was 7.0% Segment result was 80 MSEK (53) • Segment margin increased to 2.1% (1.4) Growth in the Nordics but challenging in the Netherlands • Increased demand in the Nordics, mainly driven by upgrades to Windows 11 • New agreements secured in Belgium • Challenging in the Netherlands with intense competition and price pressure in specific framework agreements Higher segment margin albeit gross margin pressure • Gross margin decreased mainly due to increased competition and price pressure in specific framework agreements in the Netherlands • Completed efficiency measures contributed to a lower cost base and a positive impact on the segment margin • Improved profitability in takeback and private label products had a positive margin impact • Non-recurring costs of 21 MSEK in the comparison quarter had a positive comparative impact LCP – Growth driven by positive structural market drivers Net sales and segment margin MSEK Q4 2024/25 Q4 2023/24 Organic growth Q4 y/y growth Net sales 3,878 3,709 7.0% 4.6% Segment result 80 53 – 49.3% Segment margin 2.1% 1.4% – – 3,709 3,878 1.4% 2.1% 0% 2% 4% 6% 8% 0 1 000 2 000 3 000 4 000 5 000 Q4 2023/24 Q4 2024/25 Segment margin MSEK Net sales Segment margin 6
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Cash flow burdened by temporary changes in working capital • Cash flow from operating activities, before changes in working capital, increased mainly due to higher EBIT and lower taxes paid • Negative cash flow from changes in working capital, mainly due to continued high inventory and late invoicing of larger contracts at the end of the quarter (seasonal effect). However, the deterioration was less than in the comparable quarter • Cash flow from financing activities impacted by repayment of loans following the rights issue Reduced level of capex in the quarter • Total investments decreased to 52 MSEK (84), of which 36 MSEK (52) affecting cash flow • Capex related to IT development decreased to 34 MSEK (42), and affecting cash flow. • Investments in tangible assets stable at 15 MSEK (19), of which 2 MSEK (9) affecting cash flow • Investments in assets related to service provision, mainly related to data center capacity, was 4 MSEK (23), not affecting cash flow Cash flow from operations improved but burdened by changes in net working capital Changes in Cash Flow Y/Y 7 MSEK Q4 2024/25 Q4 2023/24 Q4 y/y change Cash flow from operating activities before changes in working capital 115 23 92 Changes in working capital -188 -379 191 Cash flow from operating activities -73 -355 282 Cash flow from investing activities -36 -51 15 Cash flow from financing activities -1,061 -64 -997 Cash flow for the period -1,170 -470 -700
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Net working capital impacted by inventory and late invoicing • Net working capital increased to 477 MSEK (175), due to higher inventory and invoicing of larger contracts at quarter-end • Inventory increased by 260 MSEK to 1,086 MSEK (826) year-on- year, mainly due to customer-specific inventory • Accounts payable increased slightly compared to last year, impacted by timing and volume in larger specific customer deals • Accounts receivable increased by 284 MSEK, impacted by invoicing of larger contracts in Benelux at the end of the quarter • Other payables and receivables had a net impact of -206 MSEK compared to the corresponding quarter last year, mainly related to goods received but not invoiced by suppliers • Long-term target level for net working capital of around -100 MSEK Net working capital temporary higher Net working capital -1.8% -0.5% -2.4% -2.6% -0.7% 0.5% -0.2% 1.3% -600 -400 -200 0 200 400 600 NWC Average LTM NWC as % of LTM sales 8 MSEK
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Sharpened strategic focus with a clear plan to increase profitability 9 High pace of change for strengthened efficiency • 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 nearly 200 MSEK annually, are now completed and involved 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) • Creating a harmonised European B2B-customer offering across sales channels, to realise economies of scale • Long term process improvements and increased automation following the implementation of the common IT platform in Benelux
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Updated sustainability targets and SBTi approved climate targets 10 Updated climate targets approved by SBTi • In 2024 Dustin joined Science Based Targets initiative (SBTi), an international framework for companies that adopt science-based climate targets in line with the Paris agreement • The climate targets for 2029/30 as well as for 2049/50 have now been updated, and both the targets and their associated action plan have been approved by the SBTi Targets 2029/30 Climate Reduce Scope 1 and 2 emissions by 50% (base year 2023/24) Reduce CO2e intensity* in Scope 3 by 51.6% Circularity Increase revenue per kilo of new raw material used by 20% (base year 2023/24) Social impact Implement 100 social impact initiatives across our value chain (base year 2019/20) Climate target 2049/50 Reach net zero emissions * CO2e intensity = CO2e/value added (EBITDA + personnel expenses)
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11 Organic net sales growth of 3.6% • Net sales growth of 1.4% • Signs of market stabilisation in the Nordics Gross margin at 12.7% (12.9) • Stable margin development in the Nordics • Positive margin development in the Nordics, but competition and price pressure burdens development in the Benelux Adjusted EBITA margin of 1.6% (0.6) • Improvement primarily driven by completed efficiency measures Earlier announced efficiency measures fully implemented Strategic focus to drive long-term profitability improvement Updated sustainability targets approved by SBTi Summary of the fourth quarter 2024/25 11
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Corporate presentation
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280,000 hardware and software products… Hardware ~87% Hardware: Software: Services: Software and Services ~13% Refers to the financial year 2024/25 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 2024/25 …across the Nordics and Benelux… Finland ~9% Netherlands ~38% Sweden ~25% Denmark ~7% Norway ~15% 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 ~6% Refers to the financial year 2024/25 Refers to the Nordics in the financial year 2024/25 * Refers to pro forma including Centralpoint 13 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 2025 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 European expansion 14
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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 15
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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 16
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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 17
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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 18
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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 19
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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 20
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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 21 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 22
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Thank you