Dustin Capital Markets Day 2019

Dustin hosts a Capital Markets Day today at the Logistics Center in Rosersberg. The focus of today is to provide a detailed review of the company's strategy and market position, as well as to present an update on what the company has achieved so far in the five-year plan presented on the Capital Markets Day two years ago. At the same time, it is communicated that the financial targets are unchanged.

The overall ambition is that Dustin, in line with the company's unchanged financial targets (see below), will continue to drive organic growth of 8 percent over a cycle, supplemented with 3-5 acquisitions per year, and reach an adjusted EBITA margin within the target range of 5-6 percent. Profitability will, over time, primarily be strengthened through an increased proportion of services sales and recurring revenues, as well as continued bolt-on acquisitions of companies niched towards selected areas. Furthermore, the company expects that a continued expansion of private label products, a more balanced mix between customer groups and segments together with previously announced automation of the warehouse will contribute positively.

The company presents an updated approximation for private label products to reach a total annual profit contribution of around SEK 90 million in three years. Dustin also expects its initiatives within managed and cloud-based services to generate recurring revenues of around SEK 1.5 billion in the 2021/22 fiscal year. Furthermore, a picture of Dustin's strong position online and how this develop the overall business is given. In addition, the acquisition strategy together with the company's good financial position and low capital requirements are highlighted.

- We have a favourable position and a clear objective to deliver in accordance with our financial targets and our communicated five-year plan. This is ensured through our investments made for future increased service sales, changed customer needs and a strong and efficient organization, says Thomas Ekman, President and CEO of Dustin.

Financial targets and dividend policy

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.

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

Dividend policy - Dustin’s dividend payout target is 70 per cent of net profit. However, the Company’s financial position, cash flow, acquisition opportunities and future prospects will be taken into consideration.

The Capital Markets Day takes place today, on November 28 at 11.00-15.00 CET, at Dustin's Logistics Center in Rosersberg and includes presentations by President and CEO; Thomas Ekman, CFO & VP Business Support; Johan Karlsson, EVP LCP Nordic; Michael Haagen, EVP SMB Nordic; Rebecca Tallmark, EVP Services & Solutions Nordic; Alexandra Drevenlid and EVP LCP & SMB Netherlands; Henk Makaske. Furthermore, Acting VP Corporate Responsibility, Communication & Brand Stephanie Forsblom will show Dustin's work on sustainability. The program also includes a walking tour at the Logistics Center.

The presentation from the Capital Markets Day will be available from 11:00 CET at: http://www.dustingroup.com/en/reports-and-presentations

For further information, please contact:

Fredrik Sätterström, Head of Investor Relations

fredrik.satterstrom@dustin.se, +46 705 10 10 22

Contact person:

Eva Ernfors, Head of Information

eva.ernfors@dustin.se, +46 70 258 62 94

About Dustin

Dustin is a leading online based IT-partner with operations in the Nordics and the Netherlands. The Company offers IT products with associated services and solutions to companies, the public sector and private individuals with a main focus on small and medium-sized companies. Dustin functions as a bridge between the manufacturers’ wide-ranging offerings and customer requirements. The Company offers some 255,000 products with associated services where Dustin’s employees support customers in finding the appropriate solution.

Dustin has around 1.800 employees. Sales for the 2018/19 financial year amounted to SEK 12.5 billion. More than 90 per cent of Dustin’s income derives from the corporate market. Dustin Group has been listed on Nasdaq Stockholm since 2015 and has its head office in Nacka, Stockholm.