Corporate Research Adj. EBIT 73 88 109 164 223 DistIT ...

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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.

Results Analysis IT/Technology Sweden 19 August 2021

Charging its strategic plan to 2025 DistIT Group has announced the acquisition of Efuel, a Swedish market leader (30% share) within the electrical vehicle (EV) charging segment. Integrating the value chain implies higher margins. Being also one of DistIT’s largest customers, we view the risk/reward of the transaction as more attractive. After incorporating guidance for Efuel P&Ls (“70-100% annual growth”), we raise our 2022-23 estimates. Our new mid-point equity value is SEK 180.

A strategic acquisition to capture structural growth in the EV charging market We argue that the proposed acquisition of Efuel makes strategic sense; integrating forward in the value chain implies higher margins. In addition to cost synergies, Efuel brings a new client base (EV charging installation partners) for DistIT to establish new auxiliary revenue streams ahead. According to market estimates, the European EV charging segment is expected to grow by 70-100% per annum to reach 42% penetration by 2030 (2.5m EVs in Sweden alone). DistIT guides for similar growth for Efuel with EBIT margins exceeding 10%. We lift 2022-23E EBIT by 5-14% and raise our mid-point DCF-based equity value to SEK 180 (125).

Q2 EBIT came in below our forecasts, but a seasonally small period DistIT reported higher-than-expected Q2 sales (9.5% organic growth, despite impacts from the Covid-19 pandemic), while EBIT of SEK 5m compares to our SEK 10.5m estimate. DistIT will pay an EV of SEK 195m for Efuel, of which SEK 140m is in new shares, which corresponds to 2021E EV/sales of 1.6x and an EV/EBIT of 16x.

M&A kickstarts plan to reach 2025 targets; mid-point DCF up to SEK 180 At our new mid-point DCF-based equity value, DistIT would be valued at 15x next year’s EV/EBIT estimates and on a par with its median peer valuation. We expect Efuel to add over SEK 225m of sales in 2022 and close to SEK 1.2bn in 2025, implying we think the 2025 sales target of “SEK 3.5bn” is in sight in 2023.

Key Data (2021E)

Price (SEK)ReutersBloomberg

Market cap (SEKm)Market cap (USDm)Market cap (EURm)Net debt (SEKm)Net gearingNet debt/EBITDA (x) 3.0

Shares fully dil. (m)Avg daily turnover (m)Free float

DIST.STDIST:SS

1,345154

109.50

60%

132398

79%

12.30.0

Share Price (12M)

Absolute (green) / Relative to Sweden (purple).

30

50

70

90

110

Aug Oct Dec Jan Apr Jun Aug

Financials (SEK)

Source for all data on this page: SEB (estimates) and Millistream/Thomson Reuters (prices)

Year end: Dec 2019 2020 2021E 2022E 2023ERevenues (m) 2,331 2,358 2,539 2,923 3,284Adj. EBIT 73 88 109 164 223Pre-tax profit (m) 4 69 87 134 194EPS (0.52) 4.56 5.95 8.52 12.3Adj. EPS 3.59 5.22 6.28 8.83 12.7DPS 0.00 2.00 2.10 2.80 4.10

Revenue growth (%) 2.6 1.2 7.7 15.1 12.3Adj. EBIT growth (%) (14.6) 20.3 23.0 50.7 36.1Adj. EPS growth (%) (22.7) 45.3 20.4 40.6 43.3

Adj. EBIT margin (%) 3.1 3.7 4.3 5.6 6.8ROE (%) (1.7) 13.4 15.7 19.7 24.1ROCE (%) 11.5 14.1 13.4 16.3 20.2

PER (x) 11.6 9.1 17.4 12.4 8.7Free cash flow yield (%) (6.5) 10.5 (1.3) 7.3 5.7Dividend yield (%) 0.0 4.2 1.9 2.6 3.7P/BV (x) 1.29 1.32 2.74 2.36 1.96

EV/Sales (x) 0.32 0.31 0.69 0.57 0.50EV/Adj. EBITDA (x) 5.8 6.4 13.3 8.9 6.5EV/Adj. EBIT (x) 10.1 8.4 16.0 10.2 7.3Operating cash flow/EV (%) (2.0) 11.0 0.0 7.1 6.1Net debt/EBITDA (x) 3.15 1.40 3.04 1.74 1.15

Estimate Revisions (%)

2021E 2022E 2023ERevenues 2 9 15Adj. EBIT (10) 5 14Adj. EPS (17) (5) 6

Marketing communication commissioned by: DistIT Group

Results Analysis Marketing communication commissioned by: DistIT Group 19 August 2021 2

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.

Integrating forward Estimates up, mid-point to SEK 180 Mid-point valuation summary

Mid-point DCF value (SEK) 180.00 Share price (SEK) 109.50 2022E EV/EBIT, adj. (x) 10.2 2022E adj. PER at current share price (x) 12.4 2021E DPS (2022 payout) 2.10

Valuation potential Low High Mid-point DCF valuation range (SEK) 153.00 207.00 180.00 Equity potential (%) 40 89 64 2022 adj. EV/EBIT at DCF valuation range (x) 13.3 17.3 15.3 2021E adj. PER at DCF valuation range (x) 17.3 23.4 20.4 2020E DPS yield (%) 1.9 1.9 1.9 Total return potential 42 91 66 Source: SEB

EBIT forecasts versus group 2025 targets (SEKm)

Source: SEB, DistIT Group

DistIT financial targets 2025

DistIT SEBE DistIT DIST/SEB 5Y to 2025 6Y to 2025 Financial targets 2025 vs SEB estimates 2020A 2021E 2022E 2023E 2024E 2025E 2025T Diff(%/pp) CAGR (%) CAGR (%) Net sales (SEKm) 2,358 2,539 2,923 3,284 3,781 4,497 3,500 22 8.4 8.2 Gross margin (%) 22.0 22.9 23.8 24.8 25.4 26.3 25.0 1.3 GP (SEKm) 519 581 696 815 961 1,183 875 26 10.8 11.0 EBIT margin (%) 3.8 4.3 5.6 6.8 7.6 8.5 >8.0 0.5 EBIT (SEKm) 89 109 164 223 285 381 280 27 26.7 25.8 Source: SEB, DistIT Group

Sales bridge

(SEKm) 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E Total sales 1,781 2,272 2,331 2,358 2,539 2,923 3,284 3,781 4,497 Organic sales growth (SEKm) 3 210 (36) 56 169 233 361 497 716 Forex sales growth (SEKm) 14 50 29 (30) (28) 0 0 0 0 Acquired sales growth (SEKm) 222 231 66 2 40 151 0 0 0 Organic sales growth (%) 0.2 11.8 (1.6) 2.4 7.2 9.2 12.3 15.1 18.9 Organic sales (SEKm) 1,545 1,755 1,719 1,775 1,944 2,177 2,538 3,035 3,751 Source: SEB, DistIT

86 73

89 92 109

164

223

285

381

280

0

50

100

150

200

250

300

350

400

450

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

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Q3/1

6

Q4/1

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Q1/1

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Q2/1

7

Q3/1

7

Q4/1

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Q1/1

8

Q2/1

8

Q3/1

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Q4/1

8

Q1/1

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Q2/1

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9

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Q2/2

1

Q3/2

1E

Q4/2

1E

2022

E

2023

E

2024

E

2025

E

12M trailing group adj. EBIT 2025 Target EBIT



We expect EV charging exposure to accelerate group organic growth

Source: SEB, DistIT

Divisional forecasts including Efuel P&Ls

(SEKm) 2020 2021E 2022E 2023E 2024E 2025E Revenue Aurora Deltaco 1,924.3 1,964.7 2,102.2 2,229.7 2,379.0 2,554.9 Septon 296.7 317.5 342.9 375.8 408.2 440.0 Sominis 182.5 219.0 254.0 282.0 309.9 337.5 Efuel 0.0 40.0 226.8 399.2 686.6 1,167.2 Group common (45.2) (2.0) (2.5) (2.5) (2.5) (2.5) Total revenue 2,358.2 2,539.1 2,923.4 3,284.1 3,781.2 4,497.1

Gross profit Aurora Deltaco 441.4 460.0 505.9 555.9 598.7 649.6 Septon 80.4 81.5 91.8 103.0 113.1 124.2 Sominis 22.6 29.1 34.3 38.6 41.2 47.3 Efuel 0.0 12.0 66.9 120.2 210.7 364.9 Group costs (25.6) (2.0) (2.5) (2.5) (2.5) (2.5) Total gross profits 518.8 580.6 696.4 815.2 961.3 1,183.5

Adj. EBIT Aurora Deltaco 92.0 111.8 141.0 173.6 194.9 217.7 Septon 10.6 3.8 7.7 11.7 12.9 15.7 Sominis 9.3 11.3 13.3 15.4 15.7 19.4 Efuel 0.0 4.2 24.7 45.1 85.0 151.2 Group level (23.1) (22.5) (23.0) (23.0) (23.0) (23.0) Total adj. EBIT 88.8 108.6 163.7 222.8 285.5 381.0 Source: SEB, DistIT

Efuel acquisition details

Acquisition details (SEKm) Cash 45.0 New shares (1.626286m @ SEK 86.09 p. sh.) 140.0 New share incentive program to Efuel FTEs 10.0 EV paid 195.0 Earn-out (at annual EBIT of SEK 70m) 140.0 EV incl. earn-out 335.0

P&L 2021E (SEKm) Sales 120.0 EBIT 12.0 Margin (%) 10.0

Valuation - excl. earn-out (x) EV/Sales (x) 1.63 EV/EBIT (x) 16.3 Source: SEB, DistIT Group

0.2

11.8

(1.6)

2.4

7.2 9.2

12.3

15.1

18.9

(10.0)

(5.0)

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

(200)

(100)

0

100

200

300

400

500

600

700

800

2017

2018

2019

2020

2021

E

2022

E

2023

E

2024

E

2025

E

Growth, y/y (%

)

Grow

th, y

/y (S

EKm

)

Organic sales growth (SEKm) Forex sales growth (SEKm) Acquired sales growth (SEKm) Organic sales growth (%)



Peer group valuation and share price performance

EV/Sales (x) EV/EBIT (x) 3Y sales EBIT marg Abs. performance (%) Distribution peers 2021E 2022E 2021E 2022E CAGR (%) 2022E (%) 1M 3M 12M

ALSO Holding AG 0.28 0.27 16.7 15.1 4.5 1.8 8.5 13.9 19.9 Amazon.com, Inc. 3.52 2.97 55.1 39.1 17.5 7.6 (10.4) (1.0) (3.4) Atea ASA 0.47 0.45 18.2 15.0 5.2 3.0 (2.0) 6.0 54.1 Boreo Oyj 2.13 1.90 30.3 23.7 8.0 8.0 88.0 141.1 585.8 CECONOMY AG 0.14 0.14 12.6 7.5 2.0 1.9 3.8 (13.5) 10.2 Dustin Group AB 0.66 0.47 15.0 10.4 21.2 4.6 (0.8) (5.0) 76.5 Softcat Plc 3.04 2.95 32.2 34.3 10.2 8.6 13.0 17.4 55.0 Verkkokauppa.com Oyj 0.65 0.60 16.1 14.4 7.8 4.2 (0.1) 0.0 74.6

Peer group, avg 1.36 1.22 24.5 19.9 9.6 5.0 12.5 19.9 109.1 Peer group, med 0.66 0.54 17.5 15.1 7.9 4.4 1.9 3.0 54.5

DistIT Group 0.69 0.57 16.0 10.2 13.7 5.6 18.5 32.6 155.8 Source: SEB, FactSet

Peer group EV/EBIT estimates (x)

Source: SEB, FactSet

Peer group share price performance, -12M (%)

Source: SEB, FactSet

7.5

8.6

9.5

10.2

12.0

14.4

14.4

15.0

15.1

34.3

39.1

75.7

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0

CECONOMY AG

Dixons Carphone PLC

Clas Ohlson

DistIT Group

Byggmax

Verkkokauppa.com Oyj

Selected peers median

Atea ASA

ALSO Holding AG

Softcat Plc

Amazon.com, Inc.

CDON

EV/EBIT 2022E (x)

(3.4)

(1.6)

10.2

19.9

41.4

47.7

54.1

55.0

62.0

74.6

155.8

(20.0) 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 180.0

Amazon.com, Inc.

Clas Ohlson

CECONOMY AG

ALSO Holding AG

Byggmax

Selected peers median

Atea ASA

Softcat Plc

Dixons Carphone PLC

Verkkokauppa.com Oyj

DistIT Group

Abs. performance (%) -12M



Capitalisation and valuation

Capitalization (SEKm) 2019 2020 2021E 2022E 2023E No of shares (m) 12.3 12.3 12.3 12.3 12.3 Share price (SEK) 109.50 109.50 109.50 109.50 109.50 Market cap 1,345 1,345 1,345 1,345 1,345 Net debt/(cash), as reported 235 160 398 328 288 EV, as reported 1,580 1,504 1,743 1,673 1,633 Net debt/(cash) excl. IFRS16 debt 193 127 362 290 247 EV excl. IFRS16 debt 1,538 1,472 1,707 1,635 1,592 Valuation (x) EV/Sales 0.68 0.64 0.69 0.57 0.50 EV/Sales (excl. IFRS16) 0.66 0.62 0.67 0.56 0.48 EV/EBITA, adj. 19.5 15.4 15.3 9.9 7.2 EV/EBITA, adj. (excl. IFRS16) 19.0 15.1 15.0 9.7 7.0 Source: SEB, DistIT

Mid-point DCF equity valuation summary

Source: SEB

Mid-point DCF equity valuation scenario, growth and margins (SEK)

Source: SEB

Earnings revision

(SEK) 2021E 2022E 2023E Revenues (m) Old 2,477 2,673 2,859 New 2,539 2,923 3,284 Change (%) 2 9 15 Operating profit (m) Old 120 156 195 New 109 164 223 Change (%) (10) 5 14 EPS (adjusted)* Old 7.55 9.33 11.90 New 6.28 8.83 12.66 Change (%) (17) (5) 6 Source: SEB. We have not yet included the new shares, but instead assumed debt financing of the acquisition and which burdens the financial net. The EGM is on 3 September

DCF valuation (SEKm) Weighted average cost of capital (%)

NPV of FCF in explicit forecast period 1,002 Risk free interest rate 2.5

NPV of continuing value 1,571 Risk premium 6.5

Value of operation 2,574 Cost of equity 9.0

Net debt 362 After tax cost of debt 2.0

Share issue/buy-back in forecast period -

Value of associated companies - WACC 8.0

Value of minority shareholders' equity -

Value of marketable assets - Assumptions

DCF value of equity 2,211 Number of forecast years 10

DCF value per share (SEK) 180.00 EBIT margin - steady state (%) 4.6

Current share price (SEK) 109.50 EBIT multiple - steady state (x) 10.1

DCF performance potential (%) 64 Continuing value (% of NPV) 61.1

-2% -1% 0 +1% +2%

-2% 89.70 127.90 166.00 204.20 242.40

Abs. change in -1% 92.30 132.60 172.90 213.10 253.40

sales growth - 0 95.10 137.60 180.00 222.50 265.00

all years +1% 97.90 142.70 187.60 232.40 277.20

+2% 100.90 148.20 195.40 242.70 290.00

Absolute change in EBITDA margin - all years



Financial forecasts

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

Revenue 564.9 505.4 548.1 739.8 549.6 545.3 598.9 845.4 2,358.2 2,539.1 2,923.4 3,284.1 Cost of goods sold (447.9) (393.6) (432.2) (565.7) (429.0) (430.9) (474.1) (624.6) (1,839.4) (1,958.6) (2,227.0) (2,468.9) Gross profit 117.0 111.8 115.9 174.1 120.6 114.5 124.7 220.8 518.8 580.6 696.4 815.2 SG&A total (excl. D&A) (101.1) (93.5) (93.8) (116.5) (102.6) (104.4) (99.1) (143.5) (404.9) (449.6) (507.4) (564.5) EBITDA 15.9 18.3 22.1 57.6 18.0 10.1 25.6 77.2 113.9 131.0 189.0 250.7 Depr. of fixed assets (0.6) (1.0) (0.9) (0.0) (0.6) (1.1) (0.7) (1.5) (2.5) (3.9) (7.3) (9.9) Depr. of ROU asset (IFRS16) (3.9) (3.5) (3.5) (4.6) (3.5) (3.5) (3.5) (3.0) (15.4) (13.5) (13.1) (13.1) EBITA 11.5 13.8 17.7 53.0 13.9 5.5 21.4 72.7 96.0 113.5 168.6 227.7 Amortization (2.1) (2.1) (2.2) (2.2) (0.5) (0.5) (1.5) (2.4) (8.6) (4.9) (4.9) (4.9) 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) (4.6) (5.1) (5.7) (6.9) (26.5) (22.3) (25.2) (27.8) EBIT 9.4 11.7 15.5 50.8 13.4 5.0 19.9 70.3 87.4 108.6 163.7 222.8 o/w: total NRIs 0.0 0.0 1.0 (2.4) 0.9 0.0 0.0 (0.9) (1.4) 0.0 0.0 0.0 Adj. EBIT 9.4 11.7 14.5 53.2 12.5 5.0 19.9 71.2 88.8 108.6 163.7 222.8 Net financials (incl. assoc. income) (3.9) (5.5) (1.4) (7.8) (0.5) (6.9) (2.0) (12.1) (18.6) (21.5) (29.6) (28.5) Pre-tax profit 5.5 6.2 14.1 43.0 12.9 (1.9) 17.9 58.2 68.8 87.2 134.1 194.4

Minorities (0.7) (0.7) (0.2) (0.3) 0.7 (0.2) 0.0 0.2 (1.9) 0.7 0.0 0.0

Tax paid on pretax profit (1.2) (2.4) (1.2) (5.0) (1.5) (1.0) 9.4 (21.8) (9.8) (14.8) (29.5) (42.8) Paid tax rate, % 21.8 38.7 8.5 11.5 11.6 (52.6) (52.6) 37.4 14.2 17.0 22.0 22.0 Tax deferred 0.0 0.0 0.0 (1.2) 0.0 0.0 0.0 0.0 (1.2) 0.0 0.0 0.0 Full tax rate, % 21.8 38.7 8.5 14.2 11.6 (52.6) (52.6) 37.4 15.8 17.0 22.0 22.0 Reported after tax profit 3.6 3.1 12.7 36.6 12.1 (3.1) 27.4 36.7 56.0 73.0 104.6 151.6

Total adjustments 2.1 2.1 1.2 4.6 (0.4) 0.5 1.5 3.3 10.0 4.9 4.9 4.9 Tax effect of adjustments (included in taxes) (0.5) (0.8) (0.1) (0.2) 0.0 0.3 0.8 (1.9) (1.6) (0.8) (1.1) (1.1) Adjusted profit after tax 5.2 4.4 13.8 41.0 11.7 (2.3) 29.7 38.0 64.5 77.1 108.4 155.4

Adjustments Cash NRIs 0.0 0.0 1.0 (2.4) 0.9 0.0 0.0 (0.9) (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) 0.9 0.0 0.0 (0.9) (1.4) 0.0 0.0 0.0

EPS, reported 0.29 0.25 1.03 2.98 0.99 (0.25) 2.23 2.98 4.56 5.95 8.52 12.34 EPS, adj. 0.43 0.36 1.12 3.34 0.96 (0.19) 2.42 3.10 5.25 6.28 8.83 12.66

Adj. SG&A costs (excl. NRIs) (107.6) (100.1) (101.4) (120.9) (108.1) (109.5) (104.8) (149.6) (430.0) (471.9) (532.7) (592.4) Adj. EBITDA 15.9 18.3 21.1 60.0 17.1 10.1 25.6 78.1 115.3 131.0 189.0 250.7 Adj. EBITA 11.5 13.8 16.7 55.4 13.0 5.5 21.4 73.6 97.4 113.5 168.6 227.7 Adj. EBIT 9.4 11.7 14.5 53.2 12.5 5.0 19.9 71.2 88.8 108.6 163.7 222.8

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

Growth & margins (%) Revenue growth (%) 1.7 (5.1) 2.3 4.6 (2.7) 7.9 9.3 14.3 1.2 7.7 15.1 12.3 Adj. SG&A cost growth (%) (3.9) (10.2) 11.2 0.9 0.5 9.3 3.3 23.7 (1.0) 9.7 12.9 11.2 Adj. EBITA growth (%) 23.7 0.7 (5.1) 37.8 13.0 (60.1) 28.4 32.9 20.5 16.6 48.5 35.0 Adj. EBIT growth (%) 25.3 (2.5) (9.4) 40.4 33.0 (57.3) 37.5 33.8 21.0 22.3 50.7 36.1 Pre-tax profit growth (%) 323.1 (191.2) (157.8) 27.7 134.5 (130.6) 27.2 35.3 1,648.2 26.6 53.9 44.9 Net profit growth (%) 620.0 (142.5) (25.3) 31.9 236.1 (200.0) 115.6 0.1 47.0 30.3 43.2 44.9 Adj. EPS growth (%) 21.7 (51.2) 1,417.8 37.9 124.1 (153.3) 115.0 (7.3) 46.2 19.6 40.6 43.3

Gross margin (%) 20.7 22.1 21.1 23.5 21.9 21.0 20.8 26.1 22.0 22.9 23.8 24.8 GM chg, y/y (pp) (0.8) (1.1) 1.1 1.2 1.2 (1.1) (0.3) 2.6 0.2 0.9 1.0 1.0 Adj. SG&A costs/sales (%) 19.0 19.8 18.5 16.3 19.7 20.1 17.5 17.7 18.2 18.6 18.2 18.0 Adj. SG&A costs/sales, chg, y/y (pp) (1.1) (1.1) 1.5 (0.6) 0.6 0.3 (1.0) 1.4 (0.4) 0.4 (0.4) (0.2)

EBITDA margin (%) 2.8 3.6 4.0 7.8 3.3 1.9 4.3 9.1 4.8 5.2 6.5 7.6 EBITA margin (%) 2.0 2.7 3.2 7.2 2.5 1.0 3.6 8.6 4.1 4.5 5.8 6.9 EBIT margin (%) 1.7 2.3 2.8 6.9 2.4 0.9 3.3 8.3 3.7 4.3 5.6 6.8 Pre-tax profit margin (%) 1.0 1.2 2.6 5.8 2.3 (0.3) 3.0 6.9 2.9 3.4 4.6 5.9 Net profit margin (%) 0.6 0.6 2.3 5.0 2.2 (0.6) 4.6 4.3 2.4 2.9 3.6 4.6 Adj. EBITA margin (%) 2.0 2.7 3.0 7.5 2.4 1.0 3.6 8.7 4.1 4.5 5.8 6.9 Adj. EBIT margin (%) 1.7 2.3 2.6 7.2 2.3 0.9 3.3 8.4 3.8 4.3 5.6 6.8 Source: SEB, DistIT



Interim financial statement - by division

Divisional P&Ls (SEKm) Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21E Q4/21E 2020 2021E 2022E 2023E Revenue Aurora Deltaco 438.7 422.8 449.3 613.5 428.1 414.7 471.3 650.6 1,924.3 1,964.7 2,102.2 2,229.7 Septon 86.9 58.4 62.4 89.0 67.8 81.6 66.1 102.0 296.7 317.5 342.9 375.8 Sominis 43.3 42.6 46.2 50.4 53.7 50.6 55.9 58.8 182.5 219.0 254.0 282.0 Efuel 0.0 0.0 0.0 0.0 0.0 0.0 6.0 34.0 0.0 40.0 226.8 399.2 Group common (4.0) (18.4) (9.8) (13.0) 0.0 (1.5) (0.5) (0.0) (45.2) (2.0) (2.5) (2.5) Total revenue 564.9 505.4 548.1 739.8 549.6 545.3 598.9 845.4 2,358.2 2,539.1 2,923.4 3,284.1

Gross profit Aurora Deltaco 92.1 88.6 92.5 168.1 99.5 90.0 98.4 172.1 441.4 460.0 505.9 555.9 Septon 21.0 19.3 16.8 23.3 14.3 19.0 17.7 30.5 80.4 81.5 91.8 103.0 Sominis 4.3 5.6 6.0 6.8 6.7 5.4 7.4 9.6 22.6 29.1 34.3 38.6 Efuel 0.0 0.0 0.0 0.0 0.0 0.0 1.7 10.3 0.0 12.0 66.9 120.2 Group costs (0.5) (1.7) 0.7 (24.1) 0.0 0.1 (0.5) (1.6) (25.6) (2.0) (2.5) (2.5) Total gross profits 117.0 111.8 115.9 174.1 120.6 114.5 124.7 220.8 518.8 580.6 696.4 815.2

Adj. EBIT Aurora Deltaco 12.6 12.1 16.5 50.8 19.1 7.8 20.8 64.1 92.0 111.8 141.0 173.6 Septon 2.0 3.7 0.4 4.5 (3.2) 1.8 2.1 3.1 10.6 3.8 7.7 11.7 Sominis 1.1 2.8 2.4 3.0 2.2 1.3 2.9 5.0 9.3 11.3 13.3 15.4 Efuel 0.0 0.0 0.0 0.0 0.0 0.0 0.4 3.8 0.0 4.2 24.7 45.1 Group level (6.3) (6.9) (4.8) (5.1) (5.6) (5.9) (6.3) (4.7) (23.1) (22.5) (23.0) (23.0) Total adj. EBIT 9.4 11.7 14.5 53.2 12.5 5.0 19.9 71.2 88.8 108.6 163.7 222.8

Revenue growth (%) Aurora Deltaco 0.1 1.1 1.6 10.1 (2.4) (1.9) 4.9 6.1 3.7 2.1 7.0 6.1 Septon 2.2 (36.3) 0.9 (21.1) (22.0) 39.6 6.0 14.6 (15.5) 7.0 8.0 9.6 Sominis 23.9 66.1 52.2 10.4 24.0 18.7 21.0 16.8 33.6 20.0 16.0 11.0 Efuel 467.0 76.0 Revenue growth (%) 1.7 (5.1) 2.3 4.6 (2.7) 7.9 9.3 14.3 1.2 7.7 15.1 12.3

Gross margin (%) Aurora Deltaco 21.0 21.0 20.6 27.4 23.3 21.7 20.9 26.4 22.9 23.4 24.1 24.9 Septon 24.2 33.0 26.9 26.2 21.2 23.3 26.7 29.9 27.1 25.7 26.8 27.4 Sominis 9.9 13.1 12.9 13.5 12.5 10.6 13.2 16.4 12.4 13.3 13.5 13.7 Efuel 29.0 30.2 30.0 29.5 30.1 Total gross margin (%) 20.7 22.1 21.1 23.5 21.9 21.0 20.8 26.1 22.0 22.9 23.8 24.8

Adj. EBIT margin (%) Aurora Deltaco 2.9 2.9 3.7 8.3 4.5 1.9 4.4 9.8 4.8 5.7 6.7 7.8 Septon 2.3 6.3 0.6 5.1 (4.7) 2.2 3.2 3.0 3.6 1.2 2.2 3.1 Sominis 2.5 6.6 5.2 6.0 4.1 2.5 5.2 8.5 5.1 5.2 5.2 5.5 Efuel 7.0 11.1 10.5 10.9 11.3 Total adj. EBIT margin (%) 1.7 2.3 2.6 7.2 2.3 0.9 3.3 8.4 3.8 4.3 5.6 6.8 Source: SEB, DistIT

Main forecast assumptions

(%) Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21E Q4/21E 2020 2021E 2022E 2023E Revenue growth, y/y (%) FX 0.4 (1.0) (2.1) (2.4) (2.5) (1.6) (0.6) (0.1) (1.3) (1.2) 0.0 0.0 Structure 0.4 0.0 0.0 0.0 0.0 0.0 1.1 4.6 0.1 1.7 6.0 0.0 Organic 0.9 (4.1) 4.4 7.1 (0.2) 9.5 8.8 9.7 2.4 7.2 9.2 12.3 Total revenue growth 1.7 (5.1) 2.3 4.6 (2.7) 7.9 9.3 14.3 1.2 7.7 15.1 12.3

Gross margin bridge (pp) Price/mix (1.0) (2.8) (1.7) (1.6) (2.8) (2.5) (1.8) 0.1 (2.4) (1.1) (2.2) (2.6) PL share 1.2 1.3 2.2 1.7 2.2 (0.4) 0.7 1.6 2.5 0.9 3.0 3.6 US dollar impact (0.9) 0.5 0.6 1.0 1.8 1.9 0.8 0.7 0.2 1.0 0.2 0.0 Other (0.0) (0.1) 0.1 0.1 0.1 (0.1) (0.0) 0.1 0.0 0.0 0.0 0.1 Gross margin, change, y/y (pp) (0.8) (1.1) 1.1 1.2 1.2 (1.1) (0.3) 2.6 0.2 0.9 1.0 1.0 Gross margin (%) 20.7 22.1 21.1 23.5 21.9 21.0 20.8 26.1 22.0 22.9 23.8 24.8

PL sales forecasts (SEKm) A-brand sales (SEKm) 430 369 406 524 406 403 436 571 1,729 1,816 1,918 1,997 Private label sales (SEKm) 135 136 142 216 143 143 163 275 629 724 1,006 1,287 Group net sales (SEKm) 565 505 548 740 550 545 599 845 2,358 2,539 2,923 3,284

A-brand sales growth, y/y (%) 0.2 (13.0) (0.7) (6.7) (5.5) 9.2 7.3 9.0 (5.2) 5.0 5.6 4.1 PL sales growth, y/y (%) 6.9 25.7 11.8 48.3 6.3 4.5 15.0 27.1 24.1 15.0 39.0 28.0 Group net sales growth, y/y (%) 1.7 (5.1) 2.3 4.6 (2.7) 7.9 9.3 14.3 1.2 7.7 15.1 12.3 Source: SEB, DistIT



Q2 deviations of reported from expected results

Q2/21E Deviation vs. SEB Deviation vs. Cons. Q2/20 Q1/21 P&Ls (IFRS-16) Actual SEB Cons Abs Rel (%) Abs Rel (%) Actual y/y (%) Actual q/q (%) Consolidated (SEKm) Revenue 545.3 535.4 n.a. 9.9 1.8 n.a. n.a. 505.4 7.9 549.6 (0.8) Cost of goods sold (430.9) (419.2) n.a. (11.7) 2.8 n.a. n.a. (393.6) 9.5 (429.0) 0.4 Gross profits 114.5 116.3 n.a. (1.8) (1.5) n.a. n.a. 111.8 2.4 120.6 (5.1) SG&A (excl. D&A) (104.4) (100.1) n.a. (4.3) 4.3 n.a. n.a. (93.5) 11.6 (102.6) 1.7 EBITDA 10.1 16.2 n.a. (6.1) (37.6) n.a. n.a. 18.3 (44.8) 18.0 (43.9) Depr. (incl IFRS16 leases) (4.6) (4.1) n.a. (0.5) 12.2 n.a. n.a. (4.5) 2.2 (4.1) 12.2 EBITA 5.5 12.1 n.a. (6.6) (54.5) n.a. n.a. 13.8 (60.1) 13.9 (60.4) EBITA, adj. 5.5 12.1 n.a. (6.6) (54.5) n.a. n.a. 13.8 (60.1) 13.0 (57.7) Amort. (0.5) (1.5) n.a. 1.0 (66.7) n.a. n.a. (2.1) (76.2) (0.5) 0.0 Impairments 0.0 0.0 n.a. 0.0 n.a. n.a. n.a. 0.0 n.a. 0.0 n.a. EBIT 5.0 10.6 n.a. (5.6) (52.8) n.a. n.a. 11.7 (57.3) 13.4 (62.7) o/w NRIs, total 0.0 0.0 0.0 0.0 n.a. 0 n.a. 0.0 n.a. 0.9 n.a. Adj. EBIT 5.0 10.6 n.a. (5.6) (52.8) n.a. n.a. 11.7 (57.3) 12.5 (60.0) Net financials (excl. assoc.) (6.9) (4.0) n.a. (2.9) 72.5 n.a. n.a. (5.5) 25.5 (0.5) 1,280.0 Pre-tax profit (1.9) 6.6 n.a. (8.5) (128.8) n.a. n.a. 6.2 (130.6) 12.9 (114.7) Total taxes (1.0) (0.8) n.a. (0.2) 30.5 n.a. n.a. (2.4) (58.3) (1.5) (33.3) Minority interests (0.2) 0.0 0.0 (0.2) n.a. (0) n.a. (0.7) (71.4) 0.7 (128.6) After tax profit, reported (3.1) 5.8 n.a. (8.9) (153.2) n.a. n.a. 3.1 (200.0) 12.1 (125.6) Total adjustments to ATP 0.5 1.5 0.5 (1.0) (66.7) 0 0.0 2.1 (76.2) (0.4) (225.0) Tax effect of adjustments 0.3 (0.2) 0.3 0.4 (250.9) 0 0.0 (0.8) (132.4) 0.0 465.8 Adjustments, net of tax effect 0.8 1.3 0.8 (0.6) (42.4) 0 0.0 1.3 (40.7) (0.4) (315.9) Adjusted after tax profit (2.3) 7.2 0.8 (9.5) (132.7) (3) (406.2) 4.4 (153.3) 11.7 (119.9) EPS, reported (0.25) 0.47 n.a. (0.73) (153.2) n.a. n.a. 0.25 200.0 0.99 (125.6) EPS, adj (0.19) 0.58 0.06 (0.77) (132.7) (0.25) (406.2) 0.36 (153.3) 0.96 (119.9) No of shares, f. dil (m) 12.282 12.282 12.282 0.000 0.0 0.000 0.0 12.282 0.0 12.282 0.0

Growth & margins (%) Revenue growth, y/y 7.9 5.9 n.a. n.a. 2.0 n.a. n.a. (5.1) 13.0 (2.7) 10.6 Organic growth, y/y 9.5 7.7 n.a. n.a. 1.9 n.a. n.a. (4.1) 13.6 (0.2) 9.8 Adj. SG&A excl. D&A, y/y 11.6 7.0 n.a. n.a. 4.6 n.a. n.a. (10.2) 21.8 0.5 11.1 Adj. EBIT growth, y/y (57.3) (9.5) n.a. n.a. (47.8) n.a. n.a. 56.0 (113.3) (60.0) 2.7

Gross margin 21.0 21.7 n.a. n.a. (0.7) n.a. n.a. 22.1 (1.1) 21.9 (1.0) Adj. SG&A excl. D&A/Sales 19.1 18.7 n.a. n.a. 0.4 n.a. n.a. 18.5 0.6 18.8 0.3 Adj. EBITA margin 1.0 2.3 n.a. n.a. (1.2) n.a. n.a. 2.7 (1.7) 2.4 (1.4) Adj. EBIT margin 0.9 2.0 n.a. n.a. (1.1) n.a. n.a. 2.3 (1.4) 2.3 (1.4) PTP margin (0.3) 1.2 n.a. n.a. (1.6) n.a. n.a. 1.2 (1.6) 2.3 (2.7) Tax rate (52.6) 11.6 n.a. n.a. (64.3) n.a. n.a. 38.7 (91.3) 11.6 (64.3)

Revenue by division Aurora Deltaco 414.7 438.0 n.a. (23.4) (5.3) n.a. n.a. 422.8 (1.9) 428.1 (3.1) Septon 81.6 46.7 n.a. 34.8 74.6 n.a. n.a. 58.4 39.6 67.8 20.3 Sominis 50.6 50.7 n.a. (0.1) (0.3) n.a. n.a. 42.6 18.7 53.7 (5.9) Group common (1.5) 0.0 n.a. (1.5) n.a. n.a. n.a. (18.4) (92.1) 0.0 n.a. Total revenue 545.3 535.4 n.a. 9.9 1.8 n.a. n.a. 505.4 7.9 549.6 (0.8)

Adj. EBIT by division Aurora Deltaco 7.8 15.3 n.a. (7.5) (49.0) n.a. n.a. 12.1 (35.5) 19.1 (59.2) Septon 1.8 (1.5) n.a. 3.3 (220.8) n.a. n.a. 3.7 (51.4) (3.2) (156.3) Sominis 1.3 2.0 n.a. (0.8) (37.6) n.a. n.a. 2.8 (55.4) 2.2 (43.2) Group common (5.9) (5.2) n.a. (0.6) 12.3 n.a. n.a. (6.9) (15.2) (5.6) 4.5 Total EBIT, adj. 5.0 10.6 n.a. (5.6) (52.8) n.a. n.a. 11.7 (57.3) 12.5 (60.0)

Adj. EBIT margin by division (%) Aurora Deltaco 1.9 3.5 n.a. n.a. (1.6) n.a. n.a. 2.9 (1.0) 4.5 (2.6) Septon 2.2 (3.2) n.a. n.a. 5.4 n.a. n.a. 6.3 (4.1) (4.7) 6.9 Sominis 2.5 4.0 n.a. n.a. (1.5) n.a. n.a. 6.6 (4.1) 4.1 (1.6) Total adj. EBIT margin (%) 0.9 2.0 n.a. n.a. (1.1) n.a. n.a. 2.3 (1.4) 2.3 (1.4)

KPIs Own & PL brands sales 142.5 174.6 n.a. (32.1) (18.4) n.a. n.a. 136.4 4.5 143.2 (0.5) A-brands sales 402.8 360.8 n.a. 42.0 11.6 n.a. n.a. 369.0 9.2 406.4 (0.9) Group net sales 545.3 535.4 n.a. 9.9 1.8 n.a. n.a. 505.4 7.9 549.6 (0.8) Own brands share of sales (%) 26.1 32.6 n.a. n.a. (6.5) n.a. n.a. 27.0 (0.9) 26.1 0.1

Inventory, EOP 560.3 498.3 n.a. 62.0 12.4 n.a. n.a. 361.4 55.0 493.5 13.5 Inventory/sales (%) 23.5 21.0 n.a. n.a. 2.5 n.a. n.a. 15.6 7.9 21.1 2.5 Source: SEB, DistIT Group, FactSet



Overview Investment case

DistIT's focus is to increase its share of private label and own brand sales and new concepts, which generates gross margins of some 30-45% (compared with 10-20% on the pure distribution of branded goods). The acquisition of Efuel in August 2021 - a leading player within the electrical vehicle (EV) charging segment (30% share in Sweden) - will significantly add to P&Ls (growth of 70%-100% p.a. and at 0ver 10% EBIT margins) and to the group's 2025 targets of SEK 3.5bn in sales and EBIT of >8% (SEK 280m).

Company profile

DistIT is a distributor of products within IT, home electronics, networks, AV (audio 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.

Valuation approach

Our fundamental equity valuation range is based on a midpoint DCF value +/- 10% 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% we arrive at a midpoint DCF equity value of SEK 180.

Target price risks A key risk is that DistIT may lose large contracts, where resellers instead go directly

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 Private label share of sales and gross margins (%)

Source: SEB Source: SEB

Sweden: 48% Other Nordic: 40%Other Europe: 12% Americas: 0%Asia: 0% RoW: 0%

21.8

26.7

28.5

34.4

21.8 22.0

22.9

23.8

18.0

20.0

22.0

24.0

26.0

28.0

30.0

32.0

34.0

36.0

38.0

18.0

20.0

22.0

24.0

26.0

28.0

30.0

32.0

34.0

36.0

38.0

Q4/

13

Q1/

14

Q2/

14

Q3/

14

Q4/

14

Q1/

15

Q2/

15

Q3/

15

Q4/

15

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

Q3/

19

Q4/

19

Q1/

20

Q2/

20

Q3/

20

Q4/

20

Q1/

21

Q2/

21

Q3/

21E

Q4/

21E

2022

E

12M trailing PL share (%) 12M trailing GM (%)



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


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


Net sales & EBITDA margin EBIT & Operating margin


Comparison with sector index - 1 year Comparison with Dustin - 1 year

Source: SIX Source: SIX

0.0

2.0

4.0

6.0

8.0

10.0

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2013 2015 2017 2019 2021E 2023E

(%)

(SE

Km

)

Net sales EBITDA margin

0

50

100

150

200

250

300

2013 2016 2019 2022

(%)

P/BV - 12 month forward

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

0

100

200

300

400

500

2013 2015 2017 2019 2021E 2023E(%

)

(SE

Km

)

EBIT Operating margin

0

5

10

15

20

2013 2016 2019 2022

(x)

PER - 12 month forward

0

2

4

6

8

10

12

14

16

2013 2016 2019 2022

(x)

EV/EBITA - 12 month forward

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2013 2016 2019 2022

(x)

EV/Sales - 12 month forward

30

40

50

60

70

80

90

100

110

Aug 20 Oct 20 Jan 21 May 21 Jul 21

DistIT Group Rel Nordic IT/Technology

30

40

50

60

70

80

90

100

110

Aug 20 Oct 20 Jan 21 May 21 Jul 21

DistIT Group Rel Dustin



Profit & loss statement - DistIT Group(SEKm) 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023ENet Sales 1,021 1,391 1,575 1,542 1,781 2,272 2,331 2,358 2,539 2,923 3,284Other revenues 0 0 0 0 0 0 0 0 0 0 0Total revenues 1,021 1,391 1,575 1,542 1,781 2,272 2,331 2,358 2,539 2,923 3,284

Total expenses (961) (1,267) (1,495) (1,479) (1,710) (2,188) (2,256) (2,244) (2,408) (2,734) (3,033)Profit before depreciation 60 124 80 63 70 84 75 114 131 189 251

Depreciation - Fixed assets (4) (3) (3) (3) (3) (4) (7) (3) (4) (7) (10)Depreciation - Other assets 0 0 0 0 0 0 0 0 0 0 0Depreciation of right-of-use assets 0 0 0 0 0 0 (14) (15) (14) (13) (13)Amortisation - Goodwill 0 0 0 0 0 0 0 0 0 0 0Amortisation - Other intangibles (9) (10) (5) (10) (9) (8) (38) (9) (5) (5) (5)Operating profit 48 111 72 51 58 72 16 87 109 164 223

Associated companies 0 0 (0) (0) (1) 0 0 0 0 0 0Net interest expenses (3) (6) (10) (5) (5) (15) (13) (11) (20) (29) (27)Foreign exchange items 0 0 0 0 0 (2) 2 (7) 0 0 0Other financial items 0 0 0 0 0 0 0 0 0 0 0Value changes - Fixed assets 0 0 0 0 0 0 0 0 0 0 0Value changes - Financial assets 0 0 0 0 0 0 0 0 0 0 0Value changes - Other assets 0 0 0 0 0 0 0 0 0 0 0Reported pre-tax profit 45 105 62 46 53 56 4 69 87 134 194

Minority interests (2) (5) (7) (6) (5) (4) (3) (2) 1 0 0Total taxes (5) (13) (6) (11) (12) (12) (7) (11) (15) (30) (43)Reported profit after tax 38 88 49 29 36 40 (6) 56 73 105 152

Discontinued operations 0 0 24 393 0 0 45 0 0 0 0Extraordinary items 0 0 0 0 0 0 0 0 0 0 0Net Profit 38 88 74 422 36 40 38 56 73 105 152

Adjustments:Discontinued operations 0 0 (24) (393) 0 0 (45) 0 0 0 0Interest on convertible debt 0 0 0 0 0 0 0 0 0 0 0Minority interests (IFRS) 0 0 0 0 0 0 0 0 0 0 0Value changes 0 0 0 0 0 0 0 0 0 0 0Goodwill/intangibles amortisations 9 10 5 10 9 8 38 9 5 5 5Restructuring charges 0 0 0 0 2 14 27 1 0 0 0Other adjustments 0 0 0 0 0 0 0 0 0 0 0Tax effect of adjustments (1) (1) (0) (2) (3) (5) (14) (1) (1) (1) (1)Adjusted profit after tax 46 96 54 36 44 57 44 64 77 108 155

Margins, tax & returnsOperating margin 4.7 8.0 4.6 3.3 3.3 3.2 0.7 3.7 4.3 5.6 6.8Pre-tax margin 4.4 7.6 3.9 3.0 3.0 2.5 0.2 2.9 3.4 4.6 5.9Tax rate 11.3 11.9 9.6 23.5 23.4 21.7 183.1 15.8 17.0 22.0 22.0ROE 45.2 45.5 23.4 10.5 10.5 11.4 (1.7) 13.4 15.7 19.7 24.1ROCE 29.6 29.5 15.9 10.0 10.2 13.2 11.5 14.1 13.4 16.3 20.2

Growth rates y-o-y (%)Total revenues n.a. 36.2 13.2 (2.1) 15.5 27.6 2.6 1.2 7.7 15.1 12.3Operating profit n.m. 132.2 (35.2) (28.9) 13.9 23.6 (77.7) 442.9 24.3 50.7 36.1Pre-tax profit n.m. 134.5 (40.8) (26.4) 15.5 5.6 (92.9) 1,648.2 26.6 53.9 44.9EPS (adjusted) 0.0 87.6 (43.8) (33.7) 22.9 29.1 (22.7) 45.3 20.4 40.6 43.3

Cash flow(SEKm) 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023ENet profit 38 88 74 422 36 40 38 56 73 105 152Non-cash adjustments (14) (25) (12) (365) 28 19 7 17 12 15 18Cash flow before work cap 24 63 62 57 63 59 45 73 85 120 169

Ch. in working capital / Other (66) (48) (20) (87) (52) 11 (60) 8 (84) (1) (69)Operating cash flow (42) 15 42 (30) 11 70 (15) 81 0 118 100

Capital expenditures (4) (17) (32) (11) (2) (4) (18) (20) (18) (20) (23)Asset disposals 0 0 0 0 30 0 58 0 0 0 0L/T financial investments 0 0 0 (30) (1) (5) 2 10 1 0 0Acquisitions / adjustments (64) (12) (38) 0 (64) (58) (1) 0 (195) 0 0Free cash flow (109) (13) (29) (72) (26) 2 26 71 (211) 98 77

Net loan proceeds 111 48 48 (15) 41 (0) (46) (24) 259 0 0Dividend paid (13) (13) (18) 130 (34) 0 (12) (0) (25) (26) (34)Share issue 0 0 8 0 0 0 0 0 0 0 0Other 48 1 (1) (14) 0 (36) (0) (4) 0 0 (0)Net change in cash 37 22 8 29 (19) (34) (32) 43 24 72 43

AdjustmentsC/flow bef chng in work cap 24 63 62 57 63 59 45 73 85 120 169Adjustments 0 0 0 0 0 0 0 0 0 0 0Int on conv debt net of tax 0 0 0 0 0 0 0 0 0 0 0Cash earnings 24 63 62 57 63 59 45 73 85 120 169

Per share informationCash earnings 2.2 5.1 5.05 4.61 5.14 4.8 3.68 5.98 6.88 9.75 13.8Operating cash flow (3.76) 1.22 3.38 (2.47) 0.93 5.72 (1.2) 6.63 0.02 9.64 8.16Free cash flow (9.9) (1.09) (2.34) (5.84) (2.1) 0.2 2.13 5.76 (17.2) 7.97 6.29

Investment coverCapex/sales (%) 0.4 1.2 2.0 0.7 0.1 0.2 0.8 0.9 0.7 0.7 0.7Capex/depreciation (%) 120 508 1,076 409 54 112 278 804 453 281 233

Source for all data on this page: SEB



Balance sheet - DistIT Group(SEKm) 2013 2014 2015 2016 2017 2018 2019 2020 2021E 2022E 2023ECash and liquid assets 37 59 66 95 77 43 11 54 78 150 193Debtors 214 283 314 368 440 434 413 458 487 569 642Inventories 211 238 294 336 349 488 432 431 540 549 612Other 17 34 23 32 60 52 49 58 61 70 79Current assets 479 614 698 833 926 1,016 905 1,001 1,165 1,337 1,525

Interest bearing fixed assets 0 0 0 30 0 0 0 0 0 0 0Other financial assets 13 9 8 8 9 10 10 6 5 5 5Capitalized development cost 12 8 5 2 0 0 0 0 0 0 0Goodwill 35 44 43 36 77 88 90 90 247 247 247Other intangibles 8 24 52 55 49 47 24 19 33 29 24Right-of-use lease assets 0 0 0 0 0 0 41 32 31 31 30Fixed tangible assets 47 46 44 43 42 49 6 6 19 33 46Other fixed assets 4 4 4 3 6 0 0 0 0 0 0Fixed assets 119 135 157 178 183 194 172 152 336 344 352

Total assets 598 749 855 1,010 1,109 1,210 1,076 1,153 1,501 1,681 1,877

Creditors 180 226 285 311 337 427 283 337 365 441 495Other trade financing 27 40 40 38 36 42 49 46 49 57 65S/T lease liabilities 0 0 0 0 0 0 15 15 15 15 15S/T interest bearing debt 88 110 166 162 214 46 20 15 0 0 0Other 24 33 38 57 70 82 84 95 102 117 131Current liabilities 319 409 530 568 657 597 451 508 531 630 706

L/T interest bearing debt 91 100 100 90 91 230 184 166 440 440 440L/T lease liabilities 0 0 0 0 0 0 27 17 20 23 25Other long-term liabilities 0 0 0 0 0 0 1 0 0 0 0Convertible debt 0 0 0 0 0 0 0 0 0 0 0Pension provisions 0 0 0 0 0 0 0 0 0 0 0Other provisions 9 10 3 2 2 (0) 0 1 1 1 1Deferred tax 2 1 1 2 6 9 6 6 6 6 6Long term liabilities 103 111 103 94 98 239 218 190 467 470 472

Minority interests 7 13 14 8 16 10 12 13 12 12 12

Shareholders' equity 169 216 208 340 338 365 396 442 491 570 687

Total liabilities and equity 598 749 855 1,010 1,109 1,210 1,077 1,153 1,501 1,681 1,877

Net debt (m) 142 152 200 127 228 233 235 160 398 328 288Working capital (m) 211 257 268 332 407 422 478 469 571 573 642Capital employed (m) 356 439 488 600 659 651 653 668 978 1,060 1,179Net debt/equity (%) 81 66 90 36 64 62 58 35 79 56 41Net debt/EBITDA (x) 2.4 1.2 2.5 2.0 3.2 2.4 2.3 1.4 3.0 1.7 1.1Equity/total assets (%) 30 31 26 34 32 31 38 39 33 35 37Interest cover 6.8 9.7 6.5 6.5 6.8 4.8 1.2 6.0 5.1 5.4 7.3

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 12.3No 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 47.4 109.5 109.5 109.5Share price, high 18.5 26.1 33.8 57.3 74.0 48.0 50.0 48.4 115.5Share price, low 10.8 14.2 24.4 27.4 38.3 33.7 29.9 26.0 46.5Share price, avg 15.1 21.5 28.2 38.3 55.0 39.0 41.1 37.8 79.4

EPS (reported) 3.46 7.14 4.03 2.34 2.90 3.26 (0.52) 4.56 5.95 8.52 12.3EPS (adjusted) 4.18 7.85 4.41 2.93 3.60 4.65 3.59 5.22 6.28 8.83 12.7Cash earnings/share 2.20 5.10 5.05 4.61 5.14 4.80 3.68 5.98 6.88 9.75 13.8Dividend/share 1.50 1.60 1.60 2.75 0.00 1.00 0.00 2.00 2.10 2.80 4.10

Enterprise value/share 28 38 49 59 60 55 61 60 142 136 133Book value/share 15.3 17.6 16.9 28 28 30 32 36 40 46 56Adjusted equity/share 15.3 17.6 16.9 28 28 30 32 36 40 46 56

PER (adjusted) 3.6 3.3 7.4 16.6 11.4 7.8 11.6 9.1 17.4 12.4 8.7CEM 6.9 5.1 6.5 10.6 8.0 7.6 11.3 7.9 15.9 11.2 7.9Dividend yield 9.9 6.2 4.9 5.6 0.0 2.7 0.0 4.2 1.9 2.6 3.7

EV/EBITDA 5.1 3.8 7.5 11.5 10.2 7.0 7.3 6.5 13.3 8.9 6.5EV/EBITA 5.4 3.9 7.8 12.0 10.7 7.2 9.2 7.7 15.3 9.9 7.2EV/EBIT 6.5 4.2 8.4 14.2 12.3 7.9 10.1 8.4 16.0 10.2 7.3EV/Sales (x) 0.30 0.34 0.38 0.47 0.41 0.30 0.32 0.31 0.69 0.57 0.50Price/Book value 0.99 1.48 1.93 1.76 1.49 1.23 1.29 1.32 2.74 2.36 1.96Price/adjusted equity 0.99 1.48 1.93 1.76 1.49 1.23 1.29 1.32 2.74 2.36 1.96

Free cash flow/Market cap (%) (27.5) (0.6) 2.3 (7.0) 2.0 14.8 (6.5) 10.5 (1.3) 7.3 5.7Operating cash flow/EV (%) (13.4) 3.2 6.9 (4.2) 1.6 10.3 (2.0) 11.0 0.0 7.1 6.1EV/Capital employed (x) 0.9 1.1 1.2 1.2 1.1 1.0 1.1 1.1 1.8 1.6 1.4

Main shareholders Management Company informationName (%) Votes Capital Title Name ContactAthanase Industrial Partners 26.2 26.2 COB Stefan Charette Internet www.distit.seAnders Bladh 14.0 14.0 CEO Robert Rosenzweig Phone number +46 8 555 76 200Humle Fonder 5.7 5.7 CFO Philip GunnarssonForeign owners (total) 3.0 3.0 IR

Source for all data on this page: SEB



About this publication This report is a marketing communication commissioned by DistIT Group and prepared by Skandinaviska Enskilda Banken AB (publ). It does not constitute investment research; as such, it has not been prepared in accordance with the legal requirements to promote the independence of investment research, nor is it subject to any prohibition on dealing ahead of the dissemination of investment research.

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Methodology Final consideration as to any valuations, projections and forecasts contained in this report are based on a number of assumptions and estimates and are subject to contingencies and uncertainties, and their inclusion in this report should not be regarded as a representation or warranty by or on behalf of the Group or any person or entity within the Group that they or their underlying assumptions and estimates will be met or realized. Different assumptions could result in materially different results. Past performance is not a reliable indicator of future performance. Foreign currency rates of exchange may adversely affect the value, price or income of any security or related investment mentioned in this report. In addition, investors in securities, such as ADRs, whose values are influenced by the currency of the underlying security, effectively assume currency risk.

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 31 Jul 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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Corporate Research Adj. EBIT 73 88 109 164 223 DistIT ...

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