Distit Group

Corporate Research DistIT Group

NOT TO BE DISTRIBUTED IN, OR TAKEN OR TRANSMITTED INTO, THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL.

Company Update IT/Technology Sweden 30 March 2021

The brand builder Reflecting DistIT Group’s new financial targets to reach 8% EBIT on sales of SEK 3.5bn in 2025, we upgrade our sales and earnings estimates over our forecast period ending 2023. Based on revised earnings, we arrive at a new midpoint DCF equity value of SEK 125 per share (changed from SEK 105). At this level the equity would be valued at 13x 2021 EV/EBIT – on par with peers. New market sales and increased share of own brands are key assumptions. Key Data (2021E) Price (SEK) 104.00 A credible EBIT bridge to 2025 targets Reuters DIST.ST At DistIT Group’s CMD (on 25 March), management outlined the key assumptions DIST:SS Bloomberg to achieve sales of SEK 3.5bn and EBIT of at least SEK 280m (“over 8% of sales”) Market cap (SEKm) 1,277 in 2025. Around SEK 400m (or 35%) of the SEK 1.1bn delta in total revenue is Market cap (USDm) 148 expected to be generated from new markets, implying a reasonable 5.5% CAGR Market cap (EURm) 125 to reach 2025 sales of SEK 3.1bn in its existing markets. We have increased our Net debt (SEKm) 144 private label and own brand sales assumptions. These sales will also be the main Net gearing 27% Net debt/EBITDA (x) 0.9 driver in reaching total revenue targets, implying a CAGR of 8.2% in 2020-2025. From increased higher margin sales and resulting operating leverage, we Shares fully dil. (m) 12.3 upgrade our EBIT forecasts by 16%, 10% and 8%, respectively, in 2021-2023. Avg daily turnover (m) 0.0 Free float 60% A strong balance sheet leaves room for its M&A strategy too While not included in our forecasts, CEO Robert Rosenzweig was clear that DistIT remains committed to its M&A strategy and will act as a consolidator in the European distribution industry. DistIT ended last year with 1.1x net debt/EBITDA. Our M&A analyses points to SEK 13 per share in additional value potential.

We set our new midpoint DCF equity value at SEK 125 per share Estimate Revisions (%) Based on our upgraded earnings, we estimate that DistIT Group is now valued at 2021E 2022E 2023E Revenues 3 3 5 10x this year’s EV/EBIT and 8x 2022 forecasts. Using an unchanged WACC of Adj. EBIT 16 10 8 8.6% and steady-state EBIT margins of 4.5%, we arrive at our new midpoint DCF Adj. EPS 18 10 8 equity value of SEK 125 per share. At this level the company would be valued at 13x 2021 EV/EBIT – on par with its peer group median valuation. Share Price (12M) Financials (SEK) Year end: Dec 2019 2020 2021E 2022E 2023E Revenues (m) 2,331 2,358 2,574 2,758 2,952 100 Adj. EBIT 73 88 125 162 202 80 Pre-tax profit (m) 4 69 113 150 192 60 EPS (0.52) 4.57 7.36 9.18 11.6 Adj. EPS 3.59 5.22 7.95 9.73 12.1 40 DPS 0.00 2.00 2.60 3.00 3.80 20 Revenue growth (%) 2.6 1.2 9.2 7.1 7.0 Mar May Jul Aug Oct Dec Mar Adj. EBIT growth (%) (14.6) 20.3 42.0 29.3 24.9 Adj. EPS growth (%) (22.7) 45.4 52.2 22.4 24.7 Absolute (green) / Relative to Sweden (purple). Adj. EBIT margin (%) 3.1 3.7 4.9 5.9 6.9 ROE (%) (1.7) 13.4 19.0 20.6 22.2 ROCE (%) 11.5 13.7 18.0 20.8 23.1 Marketing communication commissioned by: PER (x) 11.6 9.1 13.1 10.7 8.6 Free cash flow yield (%) (6.5) 10.5 4.0 7.4 8.9 DistIT Group Dividend yield (%) 0.0 4.2 2.5 2.9 3.7 P/BV (x) 1.29 1.32 2.51 2.17 1.84

EV/Sales (x) 0.32 0.31 0.55 0.50 0.44 EV/Adj. EBITDA (x) 5.8 6.4 9.2 7.1 5.6 EV/Adj. EBIT (x) 10.1 8.4 11.3 8.5 6.5

Operating cash flow/EV (%) (2.0) 11.0 4.9 8.3 10.3

Net debt/Adj. EBITDA (x) 2.31 1.39 0.94 0.49 0.12 Source for all data on this page: SEB (estimates) and Millistream/Thomson Reuters (prices) research.sebgroup.com/corporate Important. All disclosure information can be found on pages 14 – 16 of this document Company Update Marketing communication commissioned by: DistIT Group 30 March 2021 2

M&A adds to total potential EPS upgrades, midpoint DCF to SEK 125

Valuation and midpoint DCF equity value in summary

Mid-point DCF value (SEK) 125.00 Share price (SEK) 104.00 2021E EV/EBIT, adj. (x) 11.3 2021E adj. PER at current share price (x) 13.1 2020E DPS (2021 payout) 2.00

Valuation potential Low High Mid-point DCF valuation range (SEK) 106.00 144.00 125.00 Equity potential (%) 2 38 20 2021 adj. EV/EBIT at DCF valuation range (x) 11.2 15.0 13.1 2021E adj. PER at DCF valuation range (x) 13.3 18.1 15.7 2020E DPS yield (%) 1.9 1.9 1.9 Total return potential 4 40 22 Source: SEB

Earnings revisions

(SEK) 2021E 2022E 2023E Revenues (m) Old 2,506 2,667 2,807 New 2,574 2,758 2,952 Change (%) 3 3 5 Operating profit (m) Old 108 148 188 New 125 162 202 Change (%) 16 10 8 EPS (adjusted) Old 6.76 8.84 11.19 New 7.95 9.73 12.13 Change (%) 18 10 8 Source: SEB

M&A analyses: what if scenario

What if: estimating acquisition value potential in DistIT Group 2021E

Assumed EV/EBIT multiple on acquisitions (x) 10.0 Cash spent on acquisition (SEKm) 250

Acquired EBIT (SEKm) 25 Acquired EBITDA (SEKm) 33 Financing cost @ 3.5% (SEKm) (9) Increased pre-tax profit (SEKm) 16 Increased net income @ 22% tax rate (SEKm) 13 No of shares (m) 12.3

Increased EPS (SEK) 1.03 Distribution & Retail peer group PER 2022E, median (x) 16.4 Assumed PER post-20% discount to peer group median (x) 13.0 Value increase per share @ peer median PER post-20% discount (SEK) 13.00 Source: SEB

M&A analyses: scenario net debt-to-EBITDA (x)

ND/EBITDA acq. scenario analysis 2021E

Estimated ND (excl. IFRS-16) (SEKm) 108 Estimated EBITDA (SEKm) 154 Estimated ND/EBITDA (x) 0.70

ND (excl. IFRS-16), post-acq (SEKm) 358 EBITDA, post-acq. (SEKm) 187 ND (excl. IFRS-16)/EBITDA, post-acq (x) 1.92 Source: SEB

Corporate Research NOT TO BE DISTRIBUTED IN, OR TAKEN OR TRANSMITTED INTO, THE UNITED STATES, CANADA, JAPAN, AUSTRALIA OR IN ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. Company Update Marketing communication commissioned by: DistIT Group 30 March 2021 3

DistIT Group has a strong balance sheet: net debt-to-EBITDA forecasts (x) 4.50

4.00

3.50

3.00

2.50 2.31

2.00 1.90

1.50 1.38 1.10 0.94 1.00 0.70

0.50

0.00

Q1/17 Q3/17 Q2/18 Q1/19 Q3/19 Q4/19 Q2/20 Q2/17 Q4/17 Q1/18 Q3/18 Q4/18 Q2/19 Q1/20 Q3/20 Q4/20

Q1/21E Q4/21E Q2/21E Q3/21E Net debt/adj. EBITDA (x) Net debt excl. IFRS 16/adj. EBITDA (x)

Source: SEB

12M trailing gross and EBIT margin forecasts (%) 30.0 10.0

27.2

26.0 8.0 24.6 23.4 6.9

22.0 22.0 6.0

4.9 4.5

18.0 3.8 4.0

12Mtrailing gross margins (%) 12Mtrailing Adj. EBIT margins (%)

14.0 2.0

10.0 0.0

Q1/14 Q3/14 Q1/15 Q4/15 Q2/16 Q4/16 Q3/17 Q1/18 Q3/18 Q1/19 Q4/19 Q2/20 Q4/20 Q4/13 Q2/14 Q4/14 Q2/15 Q3/15 Q1/16 Q3/16 Q1/17 Q2/17 Q4/17 Q2/18 Q4/18 Q2/19 Q3/19 Q1/20 Q3/20

2022E 2023E

Q3/21E Q1/21E Q2/21E Q4/21E 12M trailing gross margin (%) 12M trailing adj. EBIT margin (%)

Source: SEB

Financial targets and SEB forecasts

DistIT SEBE DistIT DIST/SEB 6Y to 2025 2020A 2021E 2022E 2023E 2024E 2025E 2025T Diff (%/pp) CAGR (%) Financial targets 2025 vs SEB estimates Net sales (SEKm) 2,358 2,574 2,758 2,952 3,168 3,410 3,500 3 8.2 Gross margin (%) 22.0 23.4 24.0 24.6 24.9 25.2 25.0 (0.2) GP (SEKm) 519 603 663 727 789 859 875 2 11.0 EBIT margin (%) 3.8 4.9 5.9 6.9 7.3 7.8 >8.0 0.2 EBIT (SEKm) 89 125 162 202 232 265 280 6 25.8 Source: SEB, DistIT Group

Accumulated bridge to 2025 targets

Accumulated delta 2020-25 o/w current geo o/w new markets 2025 target bridge (SEKm) Sales, accum. chg 1,142 742 400 GM, chg (pp) 3.0 GP, accum. chg 356 EBIT margin, chg 4.2 EBIT, accum. chg 191 Source: SEB, DistIT Group

12M trailing gross margin forecasts, change, y/y (pp) 12M trailing PL/own brand share and GM forecasts (%) 2.50 38.0 38.0

36.0 36.0 1.4 1.3 1.25 1.1 34.0 33.5 34.0

0.6 0.6 0.6 32.0 32.0 0.1 0.2 0.0 0.1 0.00 30.0 29.5 30.0 (0.0) (0.1) (0.1) (0.2) (0.4) (0.3) (0.5) (0.4) 28.0 28.0 (0.7) (0.6) (0.6) 26.7 (1.25) (1.0) 26.0 26.0 (1.2) (1.2) (1.5) 24.0 23.4 (1.7) (1.7) 24.0 24.0 (2.0) 21.8 22.0 (2.50) (2.3) 22.0 22.0

(2.8) 20.0 20.0 (3.1)

(3.75) 18.0 18.0

Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/14 Q2/14 Q1/15 Q2/15 Q2/16 Q3/16 Q2/17 Q3/17 Q2/18 Q3/18 Q3/19 Q4/19 Q3/20 Q4/20 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q4/13 Q3/14 Q4/14 Q3/15 Q4/15 Q1/16 Q4/16 Q1/17 Q4/17 Q1/18 Q4/18 Q1/19 Q2/19 Q1/20 Q2/20

2022E 2023E 2022E

Q1/21E Q2/21E Q3/21E Q4/21E Q4/21E Q1/21E Q2/21E Q3/21E 12M trailing GM, chg, y/y (pp) 12M trailing PL share (%) 12M trailing GM (%) Source: SEB Source: SEB

12M trailing SG&A-to-sales forecasts (%) EBIT and EBITA margin forecasts (%) 27.5 12.0

25.0 10.0 10.1

9.3 22.5 8.9 8.0 8.1 8.0 7.2 7.6 20.0 6.2 18.6 6.9 18.2 18.2 17.8 6.0 6.3 5.2 17.5 5.9 5.1 4.2 4.1 4.1 4.7 3.8 3.9 4.9 4.0 3.5 15.0 Group Group margins (excl. Alcadon) (%) 3.8 3.7 3.4 3.3 3.1 3.2 2.0 12.5 2.2

0.7

10.0 0.0

Q1/14 Q2/14 Q2/15 Q3/15 Q2/16 Q3/16 Q3/17 Q4/17 Q3/18 Q4/18 Q4/19 Q1/20 Q4/20 2006 2008 2010 2013 2015 2017 2019 Q4/13 Q3/14 Q4/14 Q1/15 Q4/15 Q1/16 Q4/16 Q1/17 Q2/17 Q1/18 Q2/18 Q1/19 Q2/19 Q3/19 Q2/20 Q3/20 2004 2005 2007 2009 2011 2012 2014 2016 2018 2020

2022E 2023E

Q1/21E 2022E Q2/21E Q3/21E Q4/21E 2021E 2023E 12M trailing adj. SG&A/sales (%) EBIT margin (%) Adj. EBITA-margin (%) Source: SEB Source: SEB

Geographical sales forecasts (contributions) (%)

100% 1.1 5.6 5.6 9.4 7.7 9.5 12.4 14.8 90% 16.3 17.4 23.5 10.4 21.5 16.1 8.4 11.9 13.0 10.7 80% 10.9 11.8 11.3 10.9 12.4 10.1 24.2 22.7 70% 22.1 20.4 20.4 11.7 19.8 60% 10.8 19.4 14.8 18.3 11.2 9.6 8.6 8.9 8.8 50% 8.5 8.4 10.2 7.9 40%

30% 59.1

Geographical Geographical sales contributions (%) 55.2 48.6 49.9 49.8 48.2 47.8 45.9 43.4 20% 41.5 41.4

10%

0% 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E

Sweden Finland Denmark Norway Other Europe

Source: SEB

Sales bridge to 2025 and organic sales growth assumptions (SEKm and %)

(SEKm) 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E 2021-25E total Sales growth bridge Total sales 1,781 2,272 2,331 2,358 2,574 2,758 2,952 3,168 3,410 Organic sales growth (SEKm) 3 210 (36) 56 251 183 194 216 242 1,087 Forex sales growth (SEKm) 14 50 29 (30) (35) 0 0 0 0 (35) Acquired sales growth (SEKm) 222 231 66 2 0 0 0 0 0 0

Organic sales growth (%) 0.2 11.8 (1.6) 2.4 10.7 7.1 7.0 7.3 7.7 Source: SEB

Peer group 2022E EV/EBIT (x)

Amazon.com, Inc. 36.7

Softcat Plc 30.0

Verkkokauppa.com Oyj 15.8

Byggmax 13.4

Atea ASA 13.3

Selected peers median 13.3

ALSO Holding AG 13.3

Aaron's Company Inc 10.2

Clas Ohlson 9.0

Dixons Carphone PLC 8.2

DistIT Group 7.7

CECONOMY AG 3.7

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

EV/EBIT 2022E (x)

Source: SEB, FactSet

2021 EPS revisions, -12M (%)

DistIT Group 71.2 Byggmax 65.7 BHG Group 64.2 Verkkokauppa.com Oyj 58.9 Kid ASA 53.0 Bilia 28.8 Softcat Plc 21.1 Axfood 20.2 Atea ASA 14.4 Kesko 14.2 Tokmanni 13.2 Dustin Group AB 13.1 Europris 12.9 ALSO Holding AG 12.8 Amazon.com, Inc. 12.7 ICA Gruppen 11.7 Matas 6 Clas Ohlson 4.8 Best Buy Co., Inc. 4.6 Kamux (4.1) Mekonomen (4.3) CDW Corp. (4.5) Dixons Carphone PLC (25.1) Hennes & Mauritz (33.0) CECONOMY AG (43.2)

(60.0) (40.0) (20.0) 0.0 20.0 40.0 60.0 80.0

2021E EPS rev. -12M (%)

Source: SEB, FactSet

Peer group valuation, share performance and 2021 EPS revisions

CCY Share Mkt cap EV/Sales (x) EV/EBIT (x) Abs. performance (%) 2021E EPS IT/Tech Distribution & Retail price price (EURm) 2021E 2022E 2023E 2021E 2022E 2023E -1M -3M -12M rev. -12M%

Nordic IT/Tech Distrib. & Retail Atea ASA NOK 144.80 1,576 0.39 0.38 0.36 15.2 13.3 12.9 (1.5) 24.4 88.5 14.4 Axfood SEK 206.00 4,234 0.86 0.86 0.85 18.3 18.5 18.6 2.4 8.1 10.6 20.2 BHG Group SEK 139.60 1,655 1.64 1.37 1.11 21.3 17.4 14.3 6.7 (17.9) 165.9 64.2 Bilia SEK 124.40 1,210 0.49 0.49 0.45 10.1 10.4 9.4 9.9 24.0 102.4 28.8 Boozt SEK 177.00 1,109 1.94 1.58 1.35 32.6 24.6 19.0 0.5 (3.0) 378.4 n.a. Boreo Oyj EUR 34.00 88 0.85 0.82 0.80 12.7 11.2 10.4 9.0 18.9 188.1 n.a. Byggmax SEK 70.10 420 0.95 0.89 0.85 15.0 13.4 12.5 33.9 39.8 230.0 65.7 CDON SEK 574.00 337 4.29 4.12 3.62 94.2 46.3 27.8 (29.0) 121.6 n.a. n.a. Clas Ohlson SEK 93.45 580 0.83 0.80 0.76 9.5 9.0 8.6 23.1 21.7 33.5 4.8 Dustin Group AB SEK 88.70 771 0.69 0.66 0.63 16.5 14.3 12.8 6.1 37.9 93.2 13.1 Europris NOK 49.30 791 1.34 1.25 1.09 11.6 10.6 9.1 (4.1) (5.2) 80.5 12.9 Hennes & Mauritz SEK 205.40 33,325 1.77 1.49 1.32 22.2 13.4 11.0 3.2 19.1 58.0 (33.0) ICA Gruppen SEK 424.50 8,370 0.87 0.83 0.80 18.8 18.5 18.5 5.9 3.2 6.8 11.7 Kamux EUR 13.12 525 0.69 0.58 0.48 17.2 14.8 12.6 (14.4) 2.0 123.9 (4.1) Kesko EUR 25.86 10,285 1.19 1.16 1.13 22.6 21.4 20.7 22.9 23.6 110.2 14.2 Kid ASA NOK 94.80 381 1.60 1.51 1.50 10.7 9.7 9.5 (7.5) (3.1) 163.3 53.0 Matas DKK 84.80 433 1.19 1.09 1.04 10.9 9.7 9.4 3.7 0.0 110.4 5.6 Mekonomen SEK 115.60 639 0.93 0.87 0.81 13.2 11.3 10.5 3.7 25.7 166.4 (4.3) Nelly Group SEK 32.00 56 0.29 0.26 0.24 34.3 10.9 7.9 (3.5) (12.2) 136.2 (71.0) Tokmanni EUR 19.78 1,164 1.37 1.31 1.25 15.1 14.2 13.4 9.9 22.6 109.3 13.2 XXL ASA NOK 18.65 465 0.72 0.69 0.66 19.9 21.7 19.8 (4.3) (0.2) 422.6 505.0 Verkkokauppa.com Oyj EUR 9.06 408 0.67 0.63 0.58 17.8 15.8 13.6 (2.8) 21.8 159.6 58.9 Nordic Distribution & Retail, med 0.90 0.86 0.83 16.9 13.8 12.7 3.4 19.0 110.4 13.2

Int'l IT/Tech Distribution & Retail Aaron's Company Inc USD 25.99 754 0.65 0.66 0.68 11.5 10.2 9.9 18.4 54.9 n.a. n.a. ALSO Holding AG CHF 270.00 3,129 0.25 0.24 0.23 14.8 13.3 12.1 9.5 11.3 77.6 12.8 Amazon.com, Inc. USD 3,052.03 1,302,784 3.31 2.81 2.45 51.4 36.7 26.5 (1.3) (3.8) 56.1 12.7 Best Buy Co., Inc. USD 119.26 25,278 0.64 0.63 0.61 12.3 11.8 11.4 18.8 16.3 89.7 4.6 CDW Corp. USD 167.90 20,066 1.41 1.34 1.25 18.4 17.2 15.8 7.0 29.9 66.1 (4.5) CECONOMY AG EUR 4.96 1,783 0.08 0.07 0.07 5.0 3.7 3.0 (4.1) (14.8) 130.8 (43.2) Dixons Carphone PLC GBP 1.42 1,931 0.29 0.29 0.30 10.0 8.2 7.6 11.8 14.8 56.1 (25.1) GameStop Corp. Class A USD 181.00 10,730 2.25 2.27 2.24 n.a. n.a. n.a. 77.9 798.3 4,004.3 n.a. Softcat Plc GBP 17.75 4,128 2.84 2.54 2.32 31.0 30.0 27.5 21.2 32.4 69.4 21.1 Int'l Distribution & Retail, med 0.65 0.66 0.68 13.6 12.6 11.8 10.6 15.6 77.6 4.6

IT/Tech Distribution & Retail, med 0.87 0.86 0.81 15.8 13.4 12.6 4.8 17.6 109.7 12.8

DistIT Group SEK 94.60 114 0.51 0.46 0.40 10.4 7.7 5.9 43.3 110.7 226.2 71.2 Discount/(Premium) to peers, avg (%/pp) 57.8 59.1 60.7 49.1 51.7 57.6 (36.2) (69.3) 28.1 (42.3) Discount/(Premium) to peers, med (%/pp) 41.7 46.8 50.1 34.2 42.1 53.3 (38.6) (93.1) (116.5) (58.4) Source: SEB, FactSet

Selected peers share price performance, -12M (%)

Byggmax 230.0

DistIT Group 226.2

Verkkokauppa.com Oyj 159.6

CECONOMY AG 130.8

Atea ASA 88.5

Selected peers median 83.1

ALSO Holding AG 77.6

Softcat Plc 69.4

Dixons Carphone PLC 56.1

Amazon.com, Inc. 56.1

Clas Ohlson 33.5

0.0 50.0 100.0 150.0 200.0 250.0

Abs. performance (%) -12M

Source: SEB, FactSet

Growth and margin forecasts

Q1/20 Q2/20 Q3/20 Q4/20 Q1/21E Q2/21E Q3/21E Q4/21E 2020 2021E 2022E 2023E Growth & margins (%) Revenue growth (%) 1.7 (5.1) 2.3 4.6 1.0 14.8 9.9 11.0 1.2 9.2 7.1 7.0 Adj. SG&A cost growth (%) (3.9) (10.2) 11.0 1.1 3.1 17.1 5.6 17.9 (1.0) 11.1 4.7 4.7 Adj. EBITA growth (%) 23.7 0.7 (5.1) 37.8 31.6 58.0 54.7 28.6 20.5 37.6 27.4 23.6 Adj. EBIT growth (%) 25.3 (2.5) (9.4) 40.4 38.7 68.4 63.0 29.7 21.0 41.2 29.3 24.9 Pre-tax profit growth (%) 323.1 (191.2) (157.8) 27.9 82.5 169.4 53.5 48.8 1,649.6 63.3 33.3 27.7 Net profit growth (%) 620.0 (142.5) (25.3) 32.1 92.2 290.9 30.9 49.1 47.1 61.1 24.7 26.3 Adj. EPS growth (%) 21.7 (51.2) 1,417.8 38.1 63.3 213.5 32.9 38.6 46.3 51.3 22.4 24.7

Gross margin (%) 20.7 22.1 21.1 23.6 21.7 23.6 21.7 25.8 22.0 23.4 24.0 24.6 GM chg, y/y (pp) (0.8) (1.1) 1.1 1.3 1.0 1.5 0.6 2.2 0.2 1.4 0.6 0.6 Adj. SG&A costs/sales (%) 19.0 19.8 18.5 16.4 19.4 20.2 17.7 17.4 18.2 18.6 18.2 17.8 Adj. SG&A costs/sales, chg, y/y (pp) (1.1) (1.1) 1.4 (0.6) 0.4 0.4 (0.7) 1.0 (0.4) 0.3 (0.4) (0.4)

EBITDA margin (%) 2.8 3.6 4.0 7.8 3.5 4.6 5.1 9.3 4.8 6.0 7.0 7.9 EBITA margin (%) 2.0 2.7 3.2 7.2 2.7 3.8 4.3 8.7 4.1 5.2 6.2 7.2 EBIT margin (%) 1.7 2.3 2.8 6.9 2.3 3.4 3.9 8.4 3.7 4.9 5.9 6.9 Pre-tax profit margin (%) 1.0 1.2 2.6 5.8 1.8 2.9 3.6 7.8 2.9 4.4 5.4 6.5 Net profit margin (%) 0.6 0.6 2.3 5.0 1.2 2.1 2.8 6.7 2.4 3.5 4.1 4.8 Adj. EBITA margin (%) 2.0 2.7 3.0 7.5 2.7 3.8 4.3 8.7 4.1 5.2 6.2 7.2 Adj. EBIT margin (%) 1.7 2.3 2.6 7.2 2.3 3.4 3.9 8.4 3.8 4.9 5.9 6.9 Source: SEB

Financial forecasts - by division

Divisional P&Ls (SEKm) Q1/20 Q2/20 Q3/20 Q4/20 Q1/21E Q2/21E Q3/21E Q4/21E 2020 2021E 2022E 2023E Revenue Aurora 162.5 162.9 168.1 254.2 162.8 173.2 179.9 260.1 747.7 776.1 811.0 843.4 Deltaco 276.2 259.9 281.2 359.3 295.5 285.9 300.9 382.5 1,176.6 1,264.8 1,353.4 1,452.2 Septon 86.9 58.4 62.4 89.0 69.5 75.9 69.9 125.9 296.7 341.2 368.5 403.9 Sominis 43.3 42.6 46.2 50.4 47.8 51.1 59.7 58.5 182.5 217.2 249.8 277.2 Group common (4.0) (18.4) (9.8) (13.0) (5.0) (6.0) (8.0) (6.0) (45.2) (25.0) (25.0) (25.0) Total revenue 564.9 505.4 548.1 739.8 570.7 580.2 602.4 821.0 2,358.2 2,574.3 2,757.6 2,951.7

Gross profit Aurora 36.1 38.0 39.3 75.0 36.2 41.2 43.0 76.3 188.4 196.6 215.9 225.0 Deltaco 56.1 50.7 53.1 93.1 67.7 64.1 63.3 97.7 253.0 292.7 316.6 354.9 Septon 21.0 19.3 16.8 23.3 15.5 26.2 19.3 33.0 80.4 94.1 105.6 118.2 Sominis 4.3 5.6 6.0 6.8 5.1 7.4 8.9 6.4 22.6 27.8 32.6 36.6 Group costs (0.5) (1.7) 0.4 (23.9) (0.5) (2.0) (4.0) (1.5) (25.6) (8.0) (8.0) (8.0) Total gross profits 117.0 111.8 115.6 174.4 124.0 136.9 130.5 211.8 518.8 603.3 662.7 726.8

Adj. EBIT Aurora 1.3 4.5 7.6 23.2 1.2 6.4 10.2 24.1 36.6 42.7 55.7 58.5 Deltaco 11.3 7.6 8.9 27.6 16.1 14.4 14.1 37.2 55.4 81.8 95.5 125.1 Septon 2.0 3.7 0.4 4.5 0.4 3.3 3.6 11.6 10.6 16.9 24.0 29.7 Sominis 1.1 2.8 2.4 3.0 1.6 4.1 4.3 2.4 9.3 12.5 15.3 17.6 Group level (6.3) (6.9) (4.8) (5.1) (6.3) (8.5) (8.6) (4.9) (23.1) (28.4) (28.4) (28.4) Total adj. EBIT 9.4 11.7 14.5 53.2 13.0 19.7 23.6 70.4 88.8 125.4 162.1 202.5

Revenue growth (%) Aurora (17.8) (9.9) (12.3) 2.2 0.2 6.3 7.0 2.4 (8.7) 3.8 4.5 4.0 Deltaco 14.9 9.5 12.3 16.4 7.0 10.0 7.0 6.5 13.5 7.5 7.0 7.3 Septon 2.2 (36.3) 0.9 (21.1) (20.0) 30.0 12.0 41.4 (15.5) 15.0 8.0 9.6 Sominis 23.9 66.1 52.2 10.4 10.5 20.0 29.2 16.1 33.6 19.0 15.0 11.0 Revenue growth (%) 1.7 (5.1) 2.3 4.6 1.0 14.8 9.9 11.0 1.2 9.2 7.1 7.0

Gross margin (%) Aurora 22.2 23.3 23.4 29.5 22.2 23.8 23.9 29.3 25.2 25.3 26.6 26.7 Deltaco 20.3 19.5 18.9 25.9 22.9 22.4 21.0 25.5 21.5 23.1 23.4 24.4 Septon 24.2 33.0 26.9 26.2 22.3 34.5 27.7 26.2 27.1 27.6 28.6 29.3 Sominis 9.9 13.1 12.9 13.5 10.8 14.5 14.9 10.9 12.4 12.8 13.0 13.2 Total gross margin (%) 20.7 22.1 21.1 23.6 21.7 23.6 21.7 25.8 22.0 23.4 24.0 24.6

Adj. EBIT margin (%) Aurora 0.8 2.8 4.5 9.1 0.7 3.7 5.7 9.3 4.9 5.5 6.9 6.9 Deltaco 4.1 2.9 3.2 7.7 5.5 5.0 4.7 9.7 4.7 6.5 7.1 8.6 Septon 2.3 6.3 0.6 5.1 0.6 4.3 5.2 9.2 3.6 4.9 6.5 7.3 Sominis 2.5 6.6 5.2 6.0 3.4 8.1 7.2 4.1 5.1 5.7 6.1 6.4 Total adj. EBIT margin (%) 1.7 2.3 2.6 7.2 2.3 3.4 3.9 8.6 3.8 4.9 5.9 6.9 Source: SEB

Financial forecasts - consolidated

Consolidated P&L (SEKm) Q1/20 Q2/20 Q3/20 Q4/20 Q1/21E Q2/21E Q3/21E Q4/21E 2020 2021E 2022E 2023E

Revenue 564.9 505.4 548.1 739.8 570.7 580.2 602.4 821.0 2,358.2 2,574.3 2,757.6 2,951.7 Cost of goods sold (447.9) (393.6) (432.5) (565.5) (446.7) (443.2) (471.9) (609.2) (1,839.4) (1,971.0) (2,094.9) (2,224.9) Gross profit 117.0 111.8 115.6 174.4 124.0 136.9 130.5 211.8 518.8 603.3 662.7 726.8 SG&A total (excl. D&A) (101.1) (93.5) (93.5) (116.8) (104.0) (110.1) (99.7) (135.4) (404.9) (449.3) (470.6) (493.4) EBITDA 15.9 18.3 22.1 57.6 20.0 26.8 30.7 76.4 113.9 154.0 192.1 233.4 Depr. of fixed assets (0.6) (1.0) (0.9) (0.0) (1.1) (1.5) (1.4) (2.2) (2.5) (6.1) (7.5) (8.5) Depr. of ROU asset (IFRS16) (3.9) (3.5) (3.5) (4.6) (3.9) (3.5) (3.5) (3.0) (15.4) (13.9) (13.9) (13.9) EBITA 11.5 13.8 17.7 53.0 15.1 21.8 25.8 71.2 96.0 134.0 170.7 211.1 Amortization (2.1) (2.1) (2.2) (2.2) (2.1) (2.1) (2.2) (2.2) (8.6) (8.6) (8.6) (8.6) Impairments 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total D&A (6.5) (6.6) (6.6) (6.8) (7.0) (7.1) (7.1) (7.4) (26.5) (28.6) (29.9) (30.9) EBIT 9.4 11.7 15.5 50.8 13.0 19.7 23.6 69.0 87.4 125.4 162.1 202.5 o/w: total NRIs 0.0 0.0 1.0 (2.4) 0.0 0.0 0.0 0.0 (1.4) 0.0 0.0 0.0 Adj. EBIT 9.4 11.7 14.5 53.2 13.0 19.7 23.6 69.0 88.8 125.4 162.1 202.5 Net financials (incl. assoc. income) (3.9) (5.5) (1.4) (7.7) (3.0) (3.0) (2.0) (4.9) (18.5) (12.9) (12.2) (10.9) Pre-tax profit 5.5 6.2 14.1 43.1 10.0 16.7 21.6 64.1 68.9 112.5 150.0 191.5

Minorities (0.7) (0.7) (0.2) (0.3) (0.9) (0.9) (0.3) (2.0) (1.9) (4.1) (5.8) (7.1)

Tax paid on pretax profit (1.2) (2.4) (1.2) (5.0) (2.2) (3.7) (4.8) (6.2) (9.8) (16.9) (31.5) (42.1) Paid tax rate, % 21.8 38.7 8.5 11.6 22.0 22.0 22.0 9.7 14.2 15.0 21.0 22.0 Tax deferred 0.0 0.0 0.0 (1.1) 0.0 0.0 0.0 (1.1) (1.1) (1.1) 0.0 0.0 Full tax rate, % 21.8 38.7 8.5 14.2 22.0 22.0 22.0 11.5 15.8 16.0 21.0 22.0 Reported after tax profit 3.6 3.1 12.7 36.7 6.9 12.1 16.6 54.7 56.1 90.4 112.7 142.3

Total adjustments 2.1 2.1 1.2 4.6 2.1 2.1 2.2 2.2 10.0 8.6 8.6 8.6 Tax effect of adjust. (incl. in taxes) (0.5) (0.8) (0.1) (0.2) (0.5) (0.5) (0.5) 0.0 (1.6) (1.4) (1.8) (1.9) Adjusted profit after tax 5.2 4.4 13.8 41.1 8.6 13.8 18.3 57.0 64.5 97.6 119.5 149.0

Adjustments Cash NRIs 0.0 0.0 1.0 (2.4) 0.0 0.0 0.0 0.0 (1.4) 0.0 0.0 0.0 Non-cash NRIs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total NRIs 0.0 0.0 1.0 (2.4) 0.0 0.0 0.0 0.0 (1.4) 0.0 0.0 0.0

EPS, reported 0.29 0.25 1.03 2.99 0.56 0.99 1.35 4.46 4.57 7.36 9.18 11.59 EPS, adj. 0.43 0.36 1.12 3.35 0.70 1.12 1.49 4.64 5.25 7.95 9.73 12.13

Adj. SG&A costs (excl. NRIs) (107.6) (100.1) (101.1) (121.2) (111.0) (117.2) (106.8) (142.8) (430.0) (477.9) (500.5) (524.3) Adj. EBITDA 15.9 18.3 21.1 60.0 20.0 26.8 30.7 76.4 115.3 154.0 192.1 233.4 Adj. EBITA 11.5 13.8 16.7 55.4 15.1 21.8 25.8 71.2 97.4 134.0 170.7 211.1 Adj. EBIT 9.4 11.7 14.5 53.2 13.0 19.7 23.6 69.0 88.8 125.4 162.1 202.5

No of shares, avg., f. dil, adj. (m) 12.282 12.282 12.282 12.282 12.282 12.282 12.282 12.282 12.282 12.282 12.282 12.282 Source: SEB

Fundamental DCF equity valuation – midpoint DCF valuation (SEKm) Weighted average cost of capital (%) NPV of FCF in explicit forecast period 729 Risk free interest rate 2.5 NPV of continuing value 889 Risk premium 6.5 Value of operation 1,619 Cost of equity 9.0

Net debt 83 After tax cost of debt 2.0 Share issue/buy-back in forecast period - Value of associated companies - WACC 8.6 Value of minority shareholders' equity - Value of marketable assets - Assumptions DCF value of equity 1,535 Number of forecast years 10 DCF value per share (SEK) 125.00 EBIT margin - steady state (%) 4.5 Current share price (SEK) 94.60 EBIT multiple - steady state (x) 9.2 DCF performance potential (%) 32 Continuing value (% of NPV) 54.9

Source: SEB

Overview

DistIT's focus is to increase its share of private label and own brand sales and new Investment considerations concepts, which generates gross margins of some 30-45% (compared with 10-20% on the pure distribution of branded goods). Bolstered by a SEK 45m efficiency programme DistIt's EBIT in 2020 even exceeded previous peak levels (in 2018) and we expect continued margin expansion ahead. Following two years of deleveraging the business, we also reckon the future holds upside from EPS-accretive M&A.

DistIT is a distributor of products within IT, home electronics, networks, AV (audio Company profile visual) and data communication and SDA (small domestic appliances), focused on the B2B and B2C markets within the Nordics and Baltics. The company is a well- established partner in these segments and has created a strong track record of earnings growth: since its start in the early 1990s DistIt has never been loss-making. The company offers a broad assortment within its niches at competitive prices and prioritises quick deliveries and good customer support. Its customers range from home electronics stores, discount stores, specialty retail, FMCG (fast-moving consumer goods), telecom, e-commerce and consultants. Sales CAGR was 11% in 2014-2019, driven by organic growth and acquisitions and EBIT CAGR was 5% in the same period. The DistIT group is divided into four business units - Aurora, Deltaco, Septon and Sominis, the latter two of which were acquired in late 2016 and early 2017 respectively.

Our fundamental equity valuation range is based on a midpoint DCF value +/- 10% Valuation approach relative change to our EBITDA assumptions being the upper- and lower end of the range. Based on current estimates, a steady-state EBIT margin of about 4.5% and a WACC of 8.6% we arrive at a midpoint DCF equity value of SEK 125.

A key risk is that DistIT may lose large contracts, where resellers instead go directly Investment risks to the A-/B-brand instead of using a distributor such as DistIT. Also, the ongoing launch of Amazon in the Nordics might outcompete several of DistIT's customers and in the longer run make DistIT less relevant. In the shorter-term the obvious risk is Covid-19 and how it will impact the overall demand of IT and consumer electronic goods in the Nordic and Baltic markets.

Revenues by region ROCE track record and forecasts (%) 30.0

25.0

20.0 18.9

15.0 13.3

10.0

5.0

0.0

2017 2018 2019 2014 2015 2016 2020

2023E 2022E Sweden: 48% Other Nordic: 42% 2021E ROCE incl. IFRS-16, 7Y avg (2013-2019) ROCE excl. IFRS-16, 3Y f'cast avg (2020-2022E) Other Europe: 10% Americas: 0% ROCE (incl. IFRS-16) ROCE (excl. IFRS-16) Asia: 0% RoW: 0%

Source: SEB Source: SEB

PER - 12 month forward P/BV - 12 month forward

20 300 250 15 200

10 150

(x) (%) 100 5 50 0 0 2013 2016 2019 2022 2013 2016 2019 2022

PER - 12 month forward P/BV - 12 month forward

Source: SEB Source: SEB

EV/Sales - 12 month forward EV/EBITA - 12 month forward

0.7 16 14 0.6 12 0.5 10 0.4

8 (x) (x) 0.3 6 0.2 4 0.1 2 0.0 0 2013 2016 2019 2022 2013 2016 2019 2022

EV/Sales - 12 month forward EV/EBITA - 12 month forward

Source: SEB Source: SEB

Net sales & EBITDA margin EBIT & Operating margin

6,000 8.0 500 8.0 7.0 7.0 5,000 400 6.0 6.0 4,000 5.0 300 5.0

3,000 4.0 4.0

(%) (%) 3.0 200 3.0 2,000 (SEKm) (SEKm) 2.0 2.0 100 1,000 1.0 1.0 0 0.0 0 0.0 2013 2015 2017 2019 2021E 2023E 2013 2015 2017 2019 2021E 2023E Net sales EBITDA margin EBIT Operating margin Source: SEB Source: SEB

Comparison with sector index - 1 year Comparison with Dustin - 1 year 110 110 100 100 90 90 80 80 70 70 60 60 50 50 40 40 30 30 20 20 Mar 20 May 20 Aug 20 Nov 20 Feb 21 Mar 20 May 20 Aug 20 Nov 20 Feb 21 DistIT Group Rel Nordic IT/Technology DistIT Group Rel Dustin Source: SIX Source: SIX

Profit & loss statement - DistIT Group (SEKm) 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E Net Sales 1,021 1,391 1,575 1,542 1,781 2,272 2,331 2,358 2,574 2,758 2,952 Other revenues 0 0 0 0 0 0 0 0 0 0 0 Total revenues 1,021 1,391 1,575 1,542 1,781 2,272 2,331 2,358 2,574 2,758 2,952

Total expenses (986) (1,319) (1,495) (1,479) (1,710) (2,188) (2,256) (2,244) (2,420) (2,566) (2,718) Profit before depreciation 35 72 80 63 70 84 75 114 154 192 233

Depreciation - Fixed assets (4) (3) (3) (3) (3) (4) (7) (3) (6) (7) (8) Depreciation - Other assets 0 0 0 0 0 0 0 0 0 0 0 Amortisation - Goodwill 0 0 0 0 0 0 0 0 0 0 0 Amortisation - Other intangibles (9) (10) (5) (10) (9) (8) (38) (9) (9) (9) (9) Operating profit 23 59 72 51 58 72 16 87 125 162 202

Associated companies 0 0 (0) (0) (1) 0 0 0 0 0 0 Net interest expenses (3) (6) (10) (5) (5) (15) (13) (12) (12) (11) (10) Foreign exchange items 0 0 0 0 0 (2) 2 (6) 0 0 0 Other financial items 0 0 0 0 0 0 0 0 0 0 0 Value changes - Fixed assets 0 0 0 0 0 0 0 0 0 0 0 Value changes - Financial assets 0 0 0 0 0 0 0 0 0 0 0 Value changes - Other assets 0 0 0 0 0 0 0 0 0 0 0 Reported pre-tax profit 20 53 62 46 53 56 4 69 113 150 192

Minority interests (2) (5) (7) (6) (5) (4) (3) (2) (4) (6) (7) Total taxes (5) (13) (6) (11) (12) (12) (7) (11) (18) (31) (42) Reported profit after tax 13 36 49 29 36 40 (6) 56 90 113 142

Discontinued operations 0 0 24 393 0 0 45 0 0 0 0 Extraordinary items 0 0 0 0 0 0 0 0 0 0 0 Net Profit 13 36 74 422 36 40 38 56 90 113 142

Adjustments: Discontinued operations 0 0 (24) (393) 0 0 (45) 0 0 0 0 Interest on convertible debt 0 0 0 0 0 0 0 0 0 0 0 Minority interests (IFRS) 0 0 0 0 0 0 0 0 0 0 0 Value changes 0 0 0 0 0 0 0 0 0 0 0 Goodwill/intangibles amortisations 9 10 5 10 9 8 38 9 9 9 9 Restructuring charges 0 0 0 0 2 14 27 1 0 0 0 Other adjustments 0 0 0 0 0 0 0 0 0 0 0 Tax effect of adjustments (2) (2) (0) (2) (3) (5) (14) (1) (1) (2) (2) Adjusted profit after tax 20 43 54 36 44 57 44 64 98 120 149

Margins, tax & returns Operating margin 2.2 4.2 4.6 3.3 3.3 3.2 0.7 3.7 4.9 5.9 6.9 Pre-tax margin 1.9 3.8 3.9 3.0 3.0 2.5 0.2 2.9 4.4 5.4 6.5 Tax rate 25.6 23.6 9.6 23.5 23.4 21.7 183.1 15.8 16.0 21.0 22.0 ROE 15.5 18.4 23.4 10.5 10.5 11.4 (1.7) 13.4 19.0 20.6 22.2 ROCE 15.4 16.4 15.9 10.0 10.2 13.2 11.5 13.7 18.0 20.8 23.1

Growth rates y-o-y (%) Total revenues n.a. 36.2 13.2 (2.1) 15.5 27.6 2.6 1.2 9.2 7.1 7.0 Operating profit n.m. 159.5 22.2 (28.9) 13.9 23.6 (77.7) 442.9 43.5 29.3 24.9 Pre-tax profit n.m. 168.8 17.4 (26.4) 15.5 5.6 (92.9) 1,649.6 63.3 33.3 27.7 EPS (adjusted) 0.0 95.6 25.7 (33.7) 22.9 29.1 (22.7) 45.4 52.2 22.4 24.7

Cash flow (SEKm) 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E Net profit 13 36 74 422 36 40 38 56 90 113 142 Non-cash adjustments 11 27 (12) (365) 28 19 7 17 25 26 29 Cash flow before work cap 24 63 62 57 63 59 45 73 115 139 171

Ch. in working capital / Other (66) (48) (20) (87) (52) 11 (60) 8 (46) (25) (37) Operating cash flow (42) 15 42 (30) 11 70 (15) 81 69 114 135

Capital expenditures (4) (17) (32) (11) (2) (4) (18) (20) (18) (19) (21) Asset disposals 0 0 0 0 30 0 58 0 0 0 0 L/T financial investments 0 0 0 (30) (1) (5) 2 10 0 0 0 Acquisitions / adjustments (64) (12) (38) 0 (64) (58) (1) 0 (7) (8) (8) Free cash flow (109) (13) (29) (72) (26) 2 26 71 44 87 106

Net loan proceeds 111 48 48 (15) 41 (0) (46) (24) 0 0 0 Dividend paid (13) (13) (18) 130 (34) 0 (12) (0) (25) (32) (37) Share issue 0 0 8 0 0 0 0 0 0 0 0 Other 48 1 (1) (14) 0 (36) (0) (4) 0 0 0 Net change in cash 37 22 8 29 (19) (34) (32) 43 19 55 69

Adjustments C/flow bef chng in work cap 24 63 62 57 63 59 45 73 115 139 171 Adjustments 0 0 0 0 0 0 0 0 0 0 0 Int on conv debt net of tax 0 0 0 0 0 0 0 0 0 0 0 Cash earnings 24 63 62 57 63 59 45 73 115 139 171

Per share information Cash earnings 2.2 5.1 5.05 4.61 5.14 4.8 3.68 5.98 9.37 11.3 13.9 Operating cash flow (3.76) 1.22 3.38 (2.47) 0.93 5.72 (1.2) 6.63 5.62 9.29 11.0 Free cash flow (9.9) (1.09) (2.34) (5.84) (2.1) 0.2 2.13 5.76 3.57 7.1 8.61

Investment cover Capex/sales (%) 0.4 1.2 2.0 0.7 0.1 0.2 0.8 0.9 0.7 0.7 0.7 Capex/depreciation (%) 120 508 1,076 409 54 112 278 804 293 258 244

Source for all data on this page: SEB

Balance sheet - DistIT Group (SEKm) 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E Cash and liquid assets 37 59 66 95 77 43 11 54 73 128 197 Debtors 214 283 314 368 440 434 413 458 503 536 577 Inventories 211 238 294 336 349 488 432 431 485 518 550 Other 17 34 23 32 60 52 49 58 62 66 71 Current assets 479 614 698 833 926 1,016 905 1,001 1,122 1,248 1,395

Interest bearing fixed assets 0 0 0 30 0 0 0 0 0 0 0 Other financial assets 13 9 8 8 9 10 10 6 6 6 6 Capitalized development cost 12 8 5 2 0 0 0 0 0 0 0 Goodwill 35 44 43 36 77 88 90 90 90 90 90 Other intangibles 8 24 52 55 49 47 24 19 17 16 16 Fixed tangible assets 47 46 44 43 42 49 6 6 18 29 42 Other fixed assets 4 4 4 3 6 0 0 0 0 0 0 Fixed assets 119 135 157 178 183 194 172 152 162 173 184

Total assets 598 749 855 1,010 1,109 1,210 1,076 1,153 1,284 1,421 1,579

Creditors 180 226 285 311 337 427 283 337 381 416 445 Other trade financing 27 40 40 38 36 42 49 46 50 54 58 S/T interest bearing debt 88 110 166 162 214 46 20 15 15 15 15 Other 24 33 38 57 70 82 84 95 103 110 118 Current liabilities 319 409 530 568 657 597 451 508 564 610 651

L/T interest bearing debt 91 100 100 90 91 230 184 166 166 166 166 Other long-term liabilities 0 0 0 0 0 0 1 0 0 0 0 Convertible debt 0 0 0 0 0 0 0 0 0 0 0 Pension provisions 0 0 0 0 0 0 0 0 0 0 0 Other provisions 9 10 3 2 2 (0) 27 18 22 27 31 Deferred tax 2 1 1 2 6 9 6 6 7 7 7 Long term liabilities 103 111 103 94 98 239 218 190 195 200 204

Minority interests 7 13 14 8 16 10 12 13 17 22 30

Shareholders' equity 169 216 208 340 338 365 396 442 508 589 694

Total liabilities and equity 598 749 855 1,010 1,109 1,210 1,077 1,153 1,284 1,421 1,579

Net debt (m) 142 152 200 127 228 233 235 160 144 94 29 Working capital (m) 211 257 268 332 407 422 478 469 515 540 577 Capital employed (m) 356 439 488 600 659 651 653 668 742 833 950 Net debt/equity (%) 81 66 90 36 64 62 58 35 27 15 4 Net debt/EBITDA (x) 4.0 2.1 2.5 2.0 3.2 2.4 2.3 1.4 0.9 0.5 0.1 Equity/total assets (%) 30 31 26 34 32 31 38 39 41 43 46 Interest cover 3.5 5.4 6.5 6.5 6.8 4.8 1.2 6.4 9.7 12.6 15.7

Valuation (SEK) 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023E

No of shares, fully dil. (y/e) 11.1 12.3 12.3 12.3 12.3 12.3 12.3 12.3 12.3 12.3 12.3 No of shares, fully dil. avg. 11.1 12.3 12.3 12.3 12.3 12.3 12.3 12.3 12.3 12.3 12.3

Share price, y/e 15.1 26.0 32.6 48.7 41.1 36.4 41.5 47.4 104.0 104.0 104.0 Share price, high 18.5 26.1 33.8 57.3 74.0 48.0 50.0 48.4 104.0 Share price, low 10.8 14.2 24.4 27.4 38.3 33.7 29.9 26.0 47.4 Share price, avg 15.1 21.5 28.2 38.3 55.0 39.0 41.1 37.8 65.3

EPS (reported) 1.19 2.89 4.03 2.34 2.90 3.26 (0.52) 4.57 7.36 9.18 11.6 EPS (adjusted) 1.79 3.51 4.41 2.93 3.60 4.65 3.59 5.22 7.95 9.73 12.1 Cash earnings/share 2.20 5.10 5.05 4.61 5.14 4.80 3.68 5.98 9.37 11.3 13.9 Dividend/share 1.50 1.60 1.60 2.75 0.00 1.00 0.00 2.00 2.60 3.00 3.80

Enterprise value/share 28 38 49 59 60 55 61 60 116 112 106 Book value/share 15.3 17.6 16.9 28 28 30 32 36 41 48 57 Adjusted equity/share 15.3 17.6 16.9 28 28 30 32 36 41 48 57

PER (adjusted) 8.4 7.4 7.4 16.6 11.4 7.8 11.6 9.1 13.1 10.7 8.6 CEM 6.9 5.1 6.5 10.6 8.0 7.6 11.3 7.9 11.1 9.2 7.5 Dividend yield 9.9 6.2 4.9 5.6 0.0 2.7 0.0 4.2 2.5 2.9 3.7 EV/EBITDA 8.8 6.5 7.5 11.5 10.2 7.0 7.3 6.5 9.2 7.1 5.6 EV/EBITA 9.8 6.8 7.8 12.0 10.7 7.2 9.2 7.7 10.6 8.0 6.2 EV/EBIT 13.6 8.0 8.4 14.2 12.3 7.9 10.1 8.4 11.3 8.5 6.5 EV/Sales (x) 0.30 0.34 0.38 0.47 0.41 0.30 0.32 0.31 0.55 0.50 0.44 Price/Book value 0.99 1.48 1.93 1.76 1.49 1.23 1.29 1.32 2.51 2.17 1.84 Price/adjusted equity 0.99 1.48 1.93 1.76 1.49 1.23 1.29 1.32 2.51 2.17 1.84

Free cash flow/Market cap (%) (27.5) (0.6) 2.3 (7.0) 2.0 14.8 (6.5) 10.5 4.0 7.4 8.9 Operating cash flow/EV (%) (13.4) 3.2 6.9 (4.2) 1.6 10.3 (2.0) 11.0 4.9 8.3 10.3 EV/Capital employed (x) 0.9 1.1 1.2 1.2 1.1 1.0 1.1 1.1 1.9 1.6 1.4

Main shareholders Management Company information Name (%) Votes Capital Title Name Contact Athanase Industrial Partners 26.2 26.2 COB Stefan Charette Internet www.distit.se Anders Bladh 14.0 14.0 CEO Robert Rosenzweig Phone number +46 8 555 76 200 Avanza Pension 7.0 7.0 CFO Philip Gunnarsson Foreign owners (total) 2.0 2.0 IR

Source for all data on this page: SEB

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Company specific disclosures and potential conflicts of interest A member of, or an entity associated with, SEB or its affiliates, officers, directors, employees or shareholders of such members (a) is not, and has never been, represented on the board of directors or similar supervisory entity of DistIT Group, (b) has from time to time bought or sold the securities issued by the company or options relating to the company, and (c) SEB does not hold any short / long position exceeding 0.5% of the total issued share capital of DistIT Group as of 28 Feb 2021.

The analyst(s) responsible for this research report (jointly with their closely related persons) hold(s) 0 shares in DistIT Group and do(es) not have holdings in other instruments related to the company.

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