Distribution : 18th Annual Barrington Research Virtual Spring Investment Conference Presentation

NASDAQ: DSGR

18th Annual Barrington Research Virtual Spring Investment Conference

May 16, 2024

Disclaimers

Cautionary Note Regarding Forward-Looking Statements

This presentation contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties. Terms such as "aim," "anticipate," "believe," "contemplates," "continues," "could," "ensure," "estimate," "expect," "forecasts," "if," "intend," "likely," "may," "might," "objective," "outlook," "plan," "positioned," "potential," "predict," "probable," "project," "shall," "should," "strategy," "will," "would," and variations of them and other words and terms of similar meaning and expression (and the negatives of such words and terms) are intended to identify forward-looking statements. Forward-looking statements can also be identified by the fact that they do not relate strictly to historical or current facts. Such forward-looking statements are based on current expectations and involve inherent risks, uncertainties and assumptions, including factors that could delay, divert or change any of them, and could cause actual outcomes to differ materially from current expectations. Distribution Solutions Group ("DSG") can give no assurance that any goal or plan set forth in forward-looking statements can be achieved and DSG cautions readers not to place undue reliance on such statements, which speak only as of the date made. DSG undertakes no obligation to release publicly any revisions to forward-looking statements as a result of new information, future events or otherwise. Actual results may differ materially from those projected as a result of certain risks and uncertainties. Certain risks associated with DSG's business are also discussed from time to time in the reports DSG files with the SEC, including DSG's Annual Report on Form 10-K, DSG's Quarterly Reports on Form 10-Q and DSG's Current Reports on Form 8-K, which should be reviewed carefully. In addition, the following factors, among others, could cause actual outcomes and results to differ materially from those discussed in the forward-looking statements: (i) unanticipated difficulties, expenditures or any problems arising in connection with or after the combination of the businesses of Lawson Products, TestEquity and Gexpro Services (the "merger"), which may result in DSG not operating as effectively and efficiently as expected; (ii) the risk that stockholder litigation in connection with the merger or any other acquisition or business combination completed by DSG or any of its subsidiaries results in significant costs of defense, indemnification and liability; and (iii) the risks that DSG may encounter difficulties integrating the business of DSG with the business of other companies that DSG has acquired or may acquire or has otherwise combined with or may otherwise combine with, that DSG may not achieve the anticipated synergies contemplated with respect to any such business or transactions and that certain assumptions with respect to such business or transactions could prove to be inaccurate.

Non-GAAP Financial Measures, SEC Regulation G GAAP Reconciliations

Some of the financial information and data contained in this presentation, such as Adjusted Revenue, Pre-Acquisition Revenue and Adjusted EBITDA, have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company believes that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to DSG's financial condition and results of operations. DSG does not consider non-GAAP measures an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is they may exclude significant expense and income items that are required by GAAP to be recognized in our consolidated financial statements. In addition, they reflect the exercise of management's judgment about which expense and income items are excluded or included in determining these non- GAAP financial measures. Non-GAAP financial measures should not be relied upon, in whole or part, in evaluating the financial condition, results of operations or future prospects of DSG. A reconciliation of the non-GAAP financial measures to the nearest comparable GAAP financial measures is contained in the appendix.

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Leading Specialty Industrial Distribution Platform

MRO Focus		OEM Focus		Industrial Technologies Focus
Leading vendor managed	Leading global supply chain services and		Leading supplier of electronic and specialty
inventory provider of C-parts	C-parts provider to OEM		production supplies and T&M equipment
to the MRO market	and aftermarket applications		across OEM and MRO markets
~31% of Sales1	~23% of Sales1		~46% of Sales1

TTM	$1.73Bn1	~9%1	$170M+		Fly-by	40+	180k	500k+
Financial		Operating
Adjusted Revenue	Adjusted EBITDA % Adj. Free Cash Flow2		Countries Served	Customers	Unique SKU's
Highlights		Stats

1. TTM as of March 2024. Adjusted Revenue and Adjusted EBITDA results are presented on an Adjusted (Non-GAAP) and continuing operations basis. Information inclusive of Other Acquisition results prior to the acquisition date. See appendix for reconciliations of all GAAP to Non-GAAP measures.

(2) Defined as Reg G EBITDA less Reg G cash items, less capex, plus/minus change in inventory, accounts receivable & accounts payable divided by Reg G EBITDA.

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Hydraulics

R&D Lab

Environmental Oscilloscopes Electrical

ChambersAnalyzers

Cross-Company Collaboration

The Power of Three

Main Assembly

			Comprehensive product solutions
		supported by robust suite of value-added
			services
	Fasteners		VMI Management		Manufacturing & Assembly
			Labeling & Printing		Slitting & Die Cutting
			Packaging & Kitting		Value Engineering
Chemicals			Chemical Management 	Calibration & Repair

Fabrications

Electrical

Hardware

Electronics Assembly		Maintenance Shop

Solder	Cases &	Benches &	Safety	Cutting &	Shop
Wire	Tools	Workstations	Abrasives	Supplies

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Note: Illustrative Aerospace Production Plant

DSG Delivers a Unique & Attractive Specialty Distribution Platform



Strong, Sticky Role in the Value Chain

Customer-Embedded

Via value-added,best-in-class

services

>92% Revenue Retention1

Providing long-term stability

				
Significant Customer,		Attractive, Accretive		Dual Pronged
Supplier & End Market		Returns on
		Growth Strategy
Diversity		Incremental Capital

Serve 10+ Industries	200+ bps Adjusted EBITDA % 	~4.7% Two-Year Organic Sales
Catering to 180,000+ customers up	8.0%2 pre-merger (2021) to	Growth4
and down the value chain	~10.0% TTM as of March 31, 2024	In end markets with strong tailwinds

7,000+ Suppliers	~37% Current RONWC3	5 Strategic Acquisitions5
None >6% of Purchases	Targeting 50+% with margin expansion	Completed in 2022; Post-acquisition
	and increased NWC efficiency	multiple reduction from 7.7x to 6.3x

1. Revenue decrease from lost customers over the trailing twelve-month period over revenue at the beginning of the same period.
2. Inclusive of Lawson Products results Pre-April 1, 2022 Merger Date.
3. RONWC calculated as Adjusted EBITDA divided by current trade Net Working Capital (Accounts Receivable plus Inventory less Accounts Payable).
4. Adjusted Revenue results are presented on an Adjusted (Non-GAAP) and continuing operations basis. Information inclusive of Other Acquisition results prior to the acquisition date.
5. Includes 2 acquisitions completed in Q1 2022 post merger announcement but pre-close. Includes acquisitions with at least 1 year of ownership within DSG (excludes Hisco & Emergent

Safety Supply).	5

DSG Serves a Broad & Diverse Set of End Markets

Spotlight: Revenue and End Market Diversification

>180,000 customers

in a robust set of end markets

• Sticky customer relationships
• Diverse demand drivers
• World class global supply chain capabilities across the platform
• Servicing the full life cycle of customers within various end markets

A&D Industry - example of how DSG serves

customers up and down the value chain within

various end markets:

R&D - TE | OEM - GS/TE/Hisco | MRO - Lawson/Hisco

Aerospace &
Defense	Renewable Energy
10%	8%

Auto &

Transportation

13%Energy / Power

6%

Technology

4%

Electronic Assembly

20%Government &

Military

4%

Other

Industrial(1)20%

15%

Note: Consolidated revenue percentages by customer end markets for DSG companies based on FY 2023.

(1) Comprised of Industrial, Manufacturing, Construction, Equipment Rental and Consumer Products.

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Value Creation Themes

Spotlight: Embedded Growth Opportunities

Leverage Platform Across Customer Base

Unique total customer value proposition

+

Monetize distinct capabilities across the platform

+

Collaborative selling across customer base

+

Expand digital capabilities across the platform

Strong Secular Tailwinds

Onshoring /	Infrastructure
Nearshoring	(CHIPS Act)

Tech /	Renewables
Digitalization (IoT)

...and increasing supply chain complexity across many sectors

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MRO Focus: Overview

Business Unit Snapshot

MRO Focus	31% of Total Revenue

OEM Focus

Products		Fasteners
		Chemicals
		Cutting tools

• Hydraulics
• Other broad offerings and C-Parts
• Safety

Industrial Technologies Focus

Services		Managed inventory		Product
		Industrial vending		recommendations
	 Self-service inventory		Application advice

management

MRO - Lawson Products

Value to		"One-stop shop"
Customer		Deep product knowledge
		Reducing supply chain
		costs

• Purchasing leverage / private label offering with consistent delivery

• History: 72+ years in business (Founded 1952)
• Office HQ: Chicago, IL
• TTM 3/31 Revenue: $526M
• Focus: Vendor managed inventory approach providing high-touch, MRO

End Markets		Manufacturing		Construction
		Automotive		Equipment rental
		Government / Military		Other industrial-related
				sectors
Geography		United States
		Canada

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OEM Focus: Overview

Business Unit Snapshot

MRO Focus

OEM Focus	23% of Total Revenue

Industrial Technologies Focus

OEM - Gexpro Services

• History: 28+ years in business (carved out of Rexel in '20)
• Office HQ: Irving, Texas
• TTM 3/31 Revenue: $403M
• Focus: Global supply chain solutions and manufacturing services

Comprehensive Supply Chain Solutions

Vendor Managed	Kitting &	Aftermarket /	Technology
Inventory (VMI)	Assembly
Installation

Diverse End Markets

Renewables	Technology	Aerospace &
		Defense

Industrial Power

Consumer & Industrial

Transportation

Serving Customers in 40 Countries and 6 Continents

USA	Denmark	Turkey
Canada	Hungary	China
Mexico	Germany	Brazil
	…and Many Others

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Industrial Technologies Focus: Overview

Business Unit Snapshot

MRO Focus

OEM Focus

Industrial Technologies Focus 46% of Total Revenue

TestEquity

• History: 53+ years in business (Founded 1971)
• Office HQ: North Richland Hills, Texas

 TTM 3/31 Adj. Revenue: $799M

• Focus: T&M equipment and electronic production supplies serving OEM customers

Hisco (Acquisition)

• History: 54+ years in business (Founded 1970)

 Office HQ: Houston, Texas

• Focus: Specialty (adhesives, chemicals, electronic) industrial supplies distribution & manufacturing

Products		Electronic Production		Environmental Test
		Supplies		Chambers
		Test & Measurement		Chemicals & Adhesives
		Instrumentation		Labels and Printing
Services		VMI		Asset Management
		Calibration		Rentals
		Chemical Management
Value to		Highly technical		Omni-channel availability
Customer		for customer
	knowledge
			Private label & branded
		"Total Lifecycle Support"
		offerings
		T&M offering
			VMI & value-add mfg
End Markets		Aerospace & Defense		Technology
		Automotive		OEM
		EDU		Medical
Geography		United States		UK
		Canada		Western Europe

 Mexico & Central America

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