<a id="bm-comp-e906857a-24d8-4531-a5e7-251254250d23" name="bm-comp-e906857a-24d8-4531-a5e7-251254250d23" class="BMCustomAnchor"></a><table><tr><td bm-component-id="e906857a-24d8-4531-a5e7-251254250d23" style="vertical-align: top; width:100.000000%;"><ul><li>Minor estimate changes in absolute terms</li><li>Restructuring likely to carry full effect in H2'25e</li><li>'25e-'26e EV/EBIT of 18x-9x</li></ul></td></tr></table><a id="bm-comp-553545ed-ad2a-4736-96e9-a91ccf8015a3" name="bm-comp-553545ed-ad2a-4736-96e9-a91ccf8015a3" class="BMCustomAnchor"></a><table><tr><td bm-component-id="553545ed-ad2a-4736-96e9-a91ccf8015a3" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Solid performance despite cyberattack</h3><p>While Q3 remained challenging due to unfavourable market conditions for consumer electronics, DistIT performed relatively well given that it was also subject to a cyberattack. Adjusting for FX and the cyberattack, DistIT's group EBIT was ~8m better than we expected, thanks to the strong cost control. While the company is continuing to release working capital, mostly due to its SKU rationalisation, we believe that there is some more potential for additional working capital release. In the near term, it is likely that organic growth will be held back by efforts to improve cash flow, but we see potential for a return to growth once the cash flow situation improves.</p><h3 class="bm-h3">Estimate changes</h3><p style="text-align:left;">We cut sales by 6% for '24e, '25e and '26e on the back of the report, which is due more shedding of external brands than we had previously anticipated. However, we slightly raise our '25e-'26e EBIT estimates due to solid cost control. EFUEL appears to have finally gained momentum, and we expect a meaningful return to growth in Q4'24 thanks to the release of Easee's new facility charger. This should help offset the incremental sales decline in Aurdel due to the shedding of external brands, a restructuring effort that should last until H2'25. Based on present circumstances, we expect a return to positive organic growth in '25e, and therefore also a recovery in the company's profitability.</p><h3 class="bm-h3">Implied valuation</h3><p>Based on our revised estimates, the company is trading at a '25e-'26e EV/EBIT of 18x-9x.</p></td></tr></table>