Doro Interim Report April June Jérôme Arnaud, President & CEO Magnus Eriksson, CFO August 11 th 2016

Transcription

1 Doro Interim Report April June 2016 Jérôme Arnaud, President & CEO Magnus Eriksson, CFO August 11 th 2016

2 Agenda Company overview - Our market position - Strategic objectives Second quarter Comments on the result - Concluding remarks and Q&A session - Recap of 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. 14% 12% 26% 40 COUNTRIES Global presence Distribution by major operators, consumer retail and specific retail. 23% 24% *Source: GfK, Senior Mobile Market, Panel data, EU3, Jan Dec ** Rolling 12 months July 2015 June % 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 Leader in digital carephone services 25 YEARS OLD #1 WORLD LEADER 120k 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 Number one carephone in Nordic market. The growth of digital arc users in Sweden k CONNECTIONS Alarm Response Centre in Malmö, Kalix and Oslo. Europe s fastest growing social alarm business handling c. 15,000 calls per day. 194 EMPLOYEES Offices in: Sweden, Germany, UK, Netherlands and Norway. 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 Addressing the more fragile users - Telecare solutions - Enable our traditional range with care functionalities Services that enrich lives - Doro applications - Doro devices linked to Alarm responsive centre 6

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

8 International presence Consumer Electronic retailers Specialists channels 8

9 Second quarter 2016

10 Operational highlights Q2 - Continued positive development in sales (11,8%) and order intake (17,9%) for Q2 - Net sales amounted to SEK 473.5m (423.7), decent growth despite: - Sales in Sweden in Doro Care has been held back in Q2, just as in Q1, due to the appeal of a new framework agreement with SKL. So revenues mainly from existing contracts while demand for digital is still high. - Price pressure in the segment of low-end feature phones resulted in a situation where a listing with a major customer was not renewed - Some supply delays related to high end feature phones and smartphones (Doro 8030) - The group gross margin was 36.4 (36,6) percent in Q2 10

11 Operational highlights Q2 cont d - EBIT amounted to SEK 4.2m (29.3), corresponding to an operating margin of 0.9 percent (6.9). - Due to lower share of Doro Care sales - Higher expenses in proportion of sales - We have recruited a VP Sales, Henric Ungh - We are addressing profitability issues with a plan - Streamlining operations - Reducing Operational costs - Trimming our development portfolio - Result includes restructuring costs of SEK 4.9m - The integration of Trygghetssentralen AS proceeds according to plan and will continue during second half of

12 Total sales development SEKm 700 Q2 net sales: +11.8% Appeal of a new framework agreement affects Doro Care /Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q1 2016/Q2 12

13 Order intake SEKm 600 Q2 order intake: +17.9% Order book SEK 227.1m, an increase of 8.5% /Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q1 2016/Q2 13

14 Sales development per region Nordic Continued growth driven by operators despite lower sales in Doro Care USA & Canada The 4G smartphone Doro 825 has been well received and strong demand continues UK Sell through remained strong, while sales were negatively affected by stock cleaning in the channels Brexit effects April June SEKm Change, % Nordic EMEA DACH UK US and Canada Other regions NM Central NM Total Sales Nordic April June % 21% 16% 0% 22% 30% Europe, Middle East and Africa DACH (Germany, Austria, Switzerland, Central Europe) United Kingdom USA and Canada Other regions 14

15 Gross margin development The gross margin decreased by 0.2 pp % Q2 gross margin: -0.2 pp 36,6 36,4 2014/Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q1 2016/Q2 15

16 EBITDA, EBITA, EBIT EBITA for the second quarter decreased to SEK 6.1m (32.0). In the second quarter, EBIT was SEK 4.2m (29.3), which corresponds to an EBIT-margin of 0.9 percent (6.9). The temporarily lower share of new Doro Care contracts impacted EBIT significantly. Restructuring costs amounted to SEK 4.9m. Net financial items in the second quarter were SEK -2.9m (-2.4). Profit after tax or the period amounted to SEK 1.2m (21.1). Income Statement Apr Jun Jan Jun Jan- Dec Doro Group (msek) EBITDA EBITDA margin, % Depr. acc. to plan, excl. dep. of int. assets related to company acq EBITA EBITA margin, % Depr. acc. to plan of int. assets related to company acq EBIT EBIT margin, %

17 Cash flow from current activities SEKm 80,0 60,0 40,0 65,3 Q2 Net debt SEK 198.8m 20,0 0,0-20,0 2014/Q3 2014/Q4 2015/Q1 2015/Q2 2015/Q3 2015/Q4 2016/Q1 2016/Q2 7,0-40,0-60,0 17

18 Concluding remarks

19 Our strategy Keep developing our devices business and controlling its profitability. Grow Doro Care in Nordics first, then in a selection of European countries. - Organic growth, developing average revenue per user - Acquisitions Focus on increased efficiency through: - Streamlining operations - Reducing operational costs - Trimming our development portfolio Keep on developing the brand. 19

20 Growth and profit drivers Short term growth and profit drivers - Sell-through of smartphones - Feature phones sales development - The integration of Trygghetssentralen - Swedish Doro Care administrative situation clearance (SKL) Outlook Recently revised outlook for profit for the group is expected to be somewhat below 2015 while sales can still be expected to be higher than previous year. 20

21 Summary - Continued double digit growth in both sales and order intake. - We continue to have strong presence in key markets. - We are executing on a plan to address profitability. We focus on increased efficiency by streamlining operations and reducing operational costs as well as trimming our development portfolio, - The integration of Trygghetssentralen AS proceeds according to plan and will continue during second half of We continue to actively manage the transformation of our business from feature phones to smartphones with ambition to significantly increase the share of smartphone sales over time. For the first half 2016 smartphone sales represented 21 percent of total phone sales. 21

22 Thank you for your attention Q&A Next report: Q report on October 28, 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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