Doro Interim Report January March Jérôme Arnaud, President & CEO Magnus Eriksson, CFO May 3 rd 2016

Transcription

1 Doro Interim Report January March 2016 Jérôme Arnaud, President & CEO Magnus Eriksson, CFO May 3 rd 2016

2 Agenda Company overview - Our market position - Strategic objectives First quarter Comments to the results Concluding remarks and Q&A session - Including recap on our strategy

3 Company overview

4 Doro Consumer - Leader of Senior Mobile Market #1 MARKET LEADER 65+ Market Leader with 60% Market Share* Strong and reliable brand. Focused on seniors. Addressing their specific needs. Sales share by region R12** Nordic EMEA DACH UK US Other 1% 42 YEARS OLD Swedish public company Created in Listed on the Stockholm Nasdaq OMX. 15% 10% 25% 40 COUNTRIES Global presence Distribution by major operators, consumer retail and specific retail. 24% 25% *Source: GfK,, Senior Mobile Market, Panel data, EU3, Jan-Dec ** Rolling 12 months April March % Compound annual growth rate over five years. 4

5 2012 Q Q Q Q Q Q Q Q Q Q Q Q Q4 Doro Care - CareTech becomes Doro Care 25 YEARS OLD #1 WORLD LEADER 100k CAREPHONES Founded in Kalix, Sweden. A history of innovation in carephone design including CareIP, the world s first digital carephone. World leader in digital carephone solutions. Offers a complete digital alarm chain; carephones, communication and response services. Digital alarms sold since Number one carephone in Nordic market. The growth of digital arc users in sweden k CONNECTIONS Alarm Response Centre in Malmö. Europe s fastest growing social alarm business handling circa calls per day. 145 EMPLOYEES Offices in: Sweden, Germany, UK, Netherlands and Oslo. 5

6 Our strategic objectives Leader in traditional areas - Complete product range - Adapted corded/cordless range Bridging the digital divide Easy to use Smart devices Services that enrich lives - Doro applications - Doro devices linked to Alarm responsive centre Addressing the more fragile users - Telecare solutions - Enable our traditional range with care functionalities 6

7 Network operators Americas Middle East and Asia Pacific Europe Africa 7

8 International presence Consumer Electronic retailers Specialists channels 8

9 First quarter 2016

10 Operational high-lights Q1 - Net sales amounted to SEK 413.0m (337.7), an increase of 22.3%. - Sales in USA and Canada reaches SEK 53.9m, an increase of 550% - EBIT amounted to of SEK 9.3m (-22.5), corresponding to an operating margin of 2.3 percent (-6.7). - Announcements at MWC: - Doro Connect & Care (an app) - Doro 8030 and Doro 8031 (4G smartphones) - Launching the app Doro Connect and Care is a first step towards a full telecare service for senior users - Acquisition of Trygghetssentralen 10

11 Total sales development SEKm 700 Q1 net sales: +22.3% Q1 always seasonally weak - Q1 last year stock purchases ahead of price increase - Appeal of a new framework agreement affects Doro Care /Q2 2014/Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q

12 Order intake SEKm 600 Q1 order intake: +10,9% Order book SEK 246.2m, an increase of 75.5% /Q2 2014/Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q1 12

13 Sales development per region January March SEKm Change, % Nordic EMEA January March % 15% 13% 22% DACH UK US and Canada Other regions NM Central NM Total Sales % 21% Nordic Europe, Middle East and Africa DACH (Germany, Austria, Switzerland) United Kingdom USA and Canada Other regions 13

14 Regional sales development Seasonality effects: first quarter of the year is normally the weakest in terms of sales. Nordic - Major stock purchases in Q1 last year due to announced price increases. - Doro Care temporary held back due to an appeal of a new framework agreement with SKL. DACH - Doro Liberto 825 was listed with T Mobile in Germany. - Doro 8031 launched in all retail channels in Germany. - In Czech region a full new distribution set up. - Numerous new partnerships with national retailers. - Two 3G devises got listed with T Mobile in Croatia. EMEA - Major stock purchases in Q1 last year due to announced price increases. UK - Feature and smartphone volumes growing across all key partners. - Marketing campaign supporting smartphone sales. - Doro 8030 launched in O2 stores nationwide. USA and Canada - Doro 825 launched with Bell in Canada and Consumer Cellular in USA - Continued good sales expected in coming quarters. SEKm ,1-2,3 Q1 sales growth contribution y/y 14,2 8,1 45,6 6,7 7,1 75,3 14

15 Gross margin development % 45 Q1 gross margin: -1.9 pp ,3 34,4 The gross margin decreased by 1.9 pp mainly as an effect of regional sales variations /Q2 2014/Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q1 15

16 EBITDA, EBITA, EBIT EBITA for the first quarter increased to SEK 11.7m (-20.2). Q negatively affected by a nonrecurring currency loss Amortization of intangible assets generated in conjunction with company acquisitions, amounted to SEK -2.4m (-2.3), resulting in an EBIT of SEK 9.3m (-22.5). Net financial items amounted to SEK -1.3m (-5.5). Profit after tax for the period amounted to SEK 5.8m (-21.7). Income Statement Jan Mar Jan Dec Doro Group (msek) EBITDA EBITDA margin, % Depr. acc. to plan, excl. depreciation of intangible assets related to company acquisitions EBITA EBITA margin, % Depr. acc. to plan of int. assets related to company acq EBIT EBIT margin, %

17 Cash flow from current activities msek 75,0 Q1 Net debt SEK 162.2m 50,0 25,0 0,0 First quarter is traditionally a build-up -25,0 period for working capital, which explains the negative cash flow. -50,0-44,6 2014/Q2 2014/Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q1-32,0 17

18 Concluding remarks

19 Our strategy Keep developing our devices business and controlling its profitability Grow Doro Care (B2B Services business) in Nordics first, then in a selection of European countries - Organic growth, developing average revenue per user - Acquisitions Develop B2C services using Doro Care infrastructure and Doro B2C marketing know-how and channels - This development will require investments in 2016 and 2017 Keep on developing the brand 19

20 Summary Net sales in Q1 increased 22.3% to SEK 413.0m (337.7) - Proves the strength in our position as the global niche leader in simple to use mobile and digital care solutions serving the elderly target group - Doro Care - 82,100 subscribers - Trygghetssentralen improves our Nordic platform key to further international rollout - Launching the app Doro Connect and Care is a first step towards a full telecare service for senior users - subscription service later this year - Two new 4G smartphones launched at MWC 20

21 Growth and profit drivers Outlook Short term growth and profit drivers - Sell-thru of smartphones - Feature phones sales development - The integration of Trygghetssentralen - Launch of our B2C service - Swedish Doro Care administrative situation clearance Outlook 2016 reiterated sales and profit for the group are expected to increase. 21

22 Thank you for your attention Q&A Next report: Q report on Augusti 11, 2016

23 Disclaimer FORWARD-LOOKING STATEMENTS - This presentation contains forward-looking statements with words such as believes, anticipates, outlook, confident, meeting and expects about expected revenues and earnings, anticipated demand, internal estimates and liquidity. These forward-looking statements involve a number of unknown risks, uncertainties and other factors that could cause actual results to differ materially. Unknown risks, uncertainties and other factors are discussed in the Risk section of the Annual Report 2014 and in the Interim Report. CONSOLIDATED FINANCIAL RESULTS - Doro provides financial information adjusted for items such as currency effects and one-off cost items solely as supplemental financial information to help investors and the financial community make meaningful comparisons of Doro s operating results from one financial period to another. These adjustments might not be in accordance with IFRS. 23

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