Thank you very much. Good morning, everyone, and welcome to Doro's fourth quarter presentation and full-year report. I hope you are all safe and healthy. The agenda for today, as usual, we'll go through some key highlights for the fourth quarter, give you some more insight to the fourth quarter and our two business areas and overall financials, and end with some concluding remarks and a Q&A session. We can jump to the slide with key highlights in the quarter. Overall, it was a good quarter in many aspects, even though a challenging quarter, and also a good year in a challenging environment during 2020. Looking into the quarter, we had a good profitability adjusting for restructuring costs in the quarter. Operating margin was 9.6%, which is a strong improvement compared to the fourth quarter 2019 and also the other quarters in 2020. COVID still impacted our business in many different aspects. We have continued to deliver high quality and high service levels to our customers and our seniors in both Doro Care and Doro Phones. Of course, sales, especially in Doro Phones, which I will come back to in more detail later on, was impacted by a second COVID-19 wave that hit Europe during especially the second half of the fourth quarter. In Doro Care, we saw double-digit growth in the quarter, and I would say a return to organic growth adjusted for currency effects. We can move on to next slide. This is something that we actually announced this week, so after the end of the fourth quarter, but something that I still would like to highlight because it is, from our perspective, an extremely important initiative that has been initiated by Doro, and it's the Commission on Loneliness that, as I said, was launched this week here in Sweden. With the ambition to make Sweden less lonely, which is a large challenge for especially many seniors, that has been further highlighted during the COVID pandemic in 2020. Our strive is to increase the awareness, the effects of loneliness, and to propose solutions with aim to improve wellbeing for seniors. You will, during the year, see a lot more from the Commission of Loneliness, where we have gathered, I would say, an extremely strong board, both from very seasoned political experts, I would say professors being experts in loneliness and the effect of loneliness on people, and also some of the most distinguished members of the senior community in Sweden. We can move two slides ahead, going to the fourth quarter and specifically business area Doro Care. During the quarter, we acquired Connexus Careline or the assets from Connexus Careline, which was our third acquisition in 2020, and actually the third acquisition just in the second half of 2020. The acquisition of Connexus Careline further expanded our reach and strength in the U.K. market. Actually, after the end of the period, we also announced that we acquired FirstCall 24/7 from Trent and Dove Housing, which also extended our reach in the U.K. market. This was the third acquisition in the U.K. market the last six months for Doro. From a market perspective, fourth quarter, just as the majority of the other quarters in 2020, was a slow market because procurement, they have been postponed as, again, I think, and with emphasized strength again, our health and social care commissioners, they are focused on handling the effects of the pandemic, and in many countries where I think in our markets, preparing for vaccination. That means that the tender activity has been slower than what we would see in a non-pandemic year in the quarter. As I highlighted before, growth in Doro Care was double-digit, and I would especially highlight that the organic growth was close to 5% adjusting for currency effects, which is a good return to organic growth in the business area. We also signed framework agreement with SKL Kommentus, so the regional procurement agency in Sweden, for alarm handling services. Hopefully we'll start to see some activity from that framework agreement here during the first half of 2021. Moving on to next slide, and highlighting some financials in the fourth quarter for business area Doro Care. Sales increased with close to 11% in the quarter compared to the same period last year, but also compared to previous quarters in 2020. As I mentioned in the previous slide, especially we managed to have an organic growth of close to 5%, adjusting for FX. Both sales of services and sales of products increased in the quarter compared to fourth quarter 2019, also compared to the third quarter in 2020. Maybe on financials and sales, for full year sales was SEK 524 million, which was an increase for the full year of 10%. Financials. Gross margin amounted to 39.5%, which is down from 42.8% in the fourth quarter 2019, also a bit below previous quarters in 2020. Including in that figure, also in the figure for operating profit that I will come back to, we have had increased costs for COVID-19 related areas to ensure that we keep our high quality and high service levels, also some non-recurring costs. Adjusting for those, the gross margin, I'll say, was equal to the same quarter in 2019. If we look at operating profit, which amounted to SEK 6.9 million in the quarter, but again, impacted roughly SEK 5 million in COVID and non-recurring costs. Excluding for those, the operating margin was close to 8%, and operating profit then close to SEK 12 million in the quarter. The total number of subscriptions in the quarter was 372,000 in Sweden, Norway, and the U.K., which is an increase from 312,000 in the fourth quarter of 2019. You can go to the next slide. Some market highlights for Doro Care. As we mentioned with the Nordics, we saw a slight decline in sales in the Nordics, - 3.3%. This was mainly due to, one, a slow market development, as we mentioned, with procurements being postponed, primarily as a result of COVID-19, and also some lost sales in Norway. As we discussed in previous quarters, a few contracts that we've lost, but also, and due to COVID, some postponed roll-outs of new contracts and products that we were supposed to deliver in Q4, but due to the pandemic have been postponed. As I mentioned in an earlier slide, we hope to see that, especially in Sweden, the tender activity will start to increase, now as the temporary SKL framework agreement has been signed during the fourth quarter. In U.K. and Ireland, we had a sales increase of a little bit more than 10%. We did see some higher tender activity in the quarter, primarily from the previously delayed opportunities that were published in the fourth quarter, and we are waiting to see the results from those tender activities here during the first half of 2021. As I mentioned before, we acquired Connexus Careline early in Q4, adding 28,000 connections in the U.K. Also after the end of Q4, we announced the acquisition of FirstCall 24/7. Which was a smaller acquisition, adding approximately 1,500 connection and, say, roughly SEK 5 million in revenue on a yearly basis. If we move on then to next slide, and business highlights for business area Doro Phones. Sales in especially Doro Phones have been negatively impacted by COVID-19. I think just as we saw in especially Q2 2020, many of our main, or I would say the majority or almost all of our main markets were partly or in full lockdown during the quarter, and especially during the second half of the quarter. In line with our strategy, we have continued to execute on the restructuring program, and we have exited less profitable markets like North America. South Europe, that was really phased out in the quarter. We did see a very strong operating margin of 11.7% in Business Area Doro Phones. This is mainly due to a good and very healthy gross margin. We'll come back to a little bit more on the details on that. Also the saving initiatives and the restructuring program that we've initiated during the year. What we also saw in the quarter, and I think that's a situation that continued here in the early start of 2021, is supply chain challenges that we, and I would say very many other companies, especially in the electronics industry, are facing at the moment. It's a situation with both component shortages, making it difficult to find certain important components for electronic products, and also shipping constraints, and as a result, higher shipping costs in our inbound logistics, which impacted our margin negatively. If we go to the next slide and we look more specifically on sales and financials for Business Area Doro Phones. Sales decreased in the quarter with 28.9%, where, of course, the majority of the decrease is an effect of COVID-19 and lockdown in our main markets. Also part of the decrease is due to the strategic decisions that we have implemented during the year in phasing out less profitable markets. If we would adjust for market phase out, the decline in the quarter compared to the fourth quarter in 2019 was approximately 20%. Then I think also important to remember that the fourth quarter of 2019 was a very good quarter for Doro Phones, with a number of new product launches and some pent-up demand in our deliveries to customers. If we look at the fourth quarter of 2020, despite the COVID-19 challenges, sales is higher than the other quarters in 2020. Looking at the gross margins, as I said, a very good gross margin increase in the quarter, especially compared to same period last year, but also compared to the other quarters in 2020. The main result or the main positive effect on gross margin is that we are starting to see the weakening dollar against the euro, which helps us from a gross margin perspective. This resulted in, or in combination with the good cost control, as we said, and the saving initiatives that we initiated, we managed to deliver an EBIT of SEK 40.4 million in the quarter, and as we said before, that resulted in operating margin of 11.7%, which is a very good level for Doro Phones. For the full year, operating profit amounted to SEK 72 million. I think again, given a COVID-19 year and all the effects that have had on our key markets in Doro Phones, that is a very good achievement from Business Area Doro Phones in delivering that operating profit and operating margin for both the quarter and the full year. Moving on to next slide and some market specifics for Doro Phones. If we look at the Nordics, sales declined with approximately 28% in the quarter. Mainly due to, one, lower activity due to COVID-19, we did see some markets in the Nordics being in lockdown in the quarter. Especially in the Nordics, fourth quarter of 2019 was a very strong quarter. From that perspective, it's a tough comparable. We maintain a very strong market position, I would say a dominant market position in the Nordics. We continue to have a very good listing frequency. To our listing portfolio, we added the new products 731X and 780X in the quarter. In West and South Europe and Africa, also those markets, sales were strongly affected by the lockdowns. We did see increase of online sales in the quarter, and I would say especially in our main market in the region being France, we performed extremely strong given the market condition, and we see that we are increasing our market share and performing better than the market despite COVID-19 situation. U.K. and Ireland, a decline of close to 10%. Also, we see a positive effect in online sales in U.K. market, and also, of course, the market being heavily affected by COVID-19. We did see some sort of additional sales in the quarter as some of our customers filled up their inventories prior to Brexit happening at the year-end. North America, as you can see, and as we discussed, the clear sales decline in North America as we've taken a strategic decision to phase out the North American market. Also, a weak performance in Central Europe, one, due to COVID. Also, I think if we look at our different markets, this is the market where we are not performing as we would like in the fourth quarter, and this will be sort of a key focus area going forward, making sure that we think we'll get back in gaining market share also in Central European region. Next slide. A short update on the restructuring program that we initiated last year, and that we've continued to work with a high pace on during also the fourth quarter. In total in 2020, we have implemented SEK 82 million of savings or annualized savings. We expect to implement the rest of the savings of SEK 30 million-SEK 50 million during this year with full effect at the end of 2020. There are certain transformation activities that we planned for late of 2020 that for different reasons have been slightly delayed, and that we see we will get implemented here during, I would say Q2, Q3, and getting the full effect towards more the second half of 2021. We are still confident that we will reach the target that we set in decreasing our cost base by SEK 110 million-SEK 130 million. Also, when it comes to restructuring costs in the full year for 2020, our operating profit is sort of burdened by SEK 50 million in restructuring costs, of which approximately SEK 8 million amounts to the fourth quarter of 2020. Also here we communicated that restructuring costs in total for our transformation program should amount to SEK 20 million-SEK 30 million, and that's also a level that we feel confident that we will keep to deliver the full savings that we discussed. Okay, next slide. Looking at the total group in the fourth quarter. Net sales in the quarter was SEK 490 million, a decrease with close to or slightly above 20% compared to the fourth quarter of 2019. As we mentioned before, then we should remember that we've seen both COVID and currency-related effects in the fourth quarter of 2020 compared to the fourth quarter of 2019. The full-year sales level was SEK 1,689,000,000. From sort of overall group perspective, of course, there is still an uncertainty from a COVID and pandemic situation, how this will affect us now in the current and coming quarters because the market uncertainty is still out there. Gross margin increased to 34.3%, which is a good level both compared to 2019 and previous quarters in 2020. Also excluding restructuring costs, we managed to deliver a good operating margin of 9.6%, which is again, a clear improvement from 2019 and also clear improvement from previous quarters in 2020. I think especially looking at, and as we said before, with several reasons, the sales decline and managing to both ensure that we keep gross margin at a good level and that we protect our costs, make sure that we have the right cost level and then delivering a good operating profit I think is a good achievement in the quarter and for the full year. Looking at EBIT or operating profit, as we said, that amounted to SEK 46.9 million, excluding restructuring costs of SEK 9.2 million in total in the quarter. In the year, the full year EBIT excluding restructuring costs was SEK 101.6 million. You can take the next slide. Cash flow. I would say also in the fourth quarter, we had a continued good cash flow, and for the full year, a very solid cash flow of SEK 180 million. In fourth quarter, specifically, free cash flow amounted to SEK 27.9 million, which was lower than the fourth quarter in 2019, which is mainly due to a negative change in working capital, and then primarily from increased inventory levels compared to previous year. Net cash in the quarter was SEK 12 million compared to a net debt at the end of the fourth quarter in 2019 of SEK 84 million. Next slide. Also something that we have announced after the end of the period, and actually hot off the press as of last night, when we announced that Doro intends to separately list business area Doro Care. We at Doro, we have two great businesses with one thing in common, the seniors. The business models, our customers, and our offerings differs between the two business areas. Technology-enabled care, that's a market where we see both great opportunities and interesting prospects now and in the future. Over the last couple of years, we've managed to grow business area Doro Care large enough to be able to stand on its own, and we firmly believe that the separation will create the best foundation for Doro Care to fulfill its strategy and ambition of becoming a European market leader in technology-enabled care. For Doro Phones, which is, you could say, already the market leader in senior mobile phones, we also firmly believe that the separation will create better opportunities for business area Doro Phones to further strengthen its market position and to drive new innovation that business area Doro Care has done very successfully in the past. The preparation for separate listing of business area Doro Care will be initiated now with the aim to propose a stock exchange listing to a shareholders meeting during the year. We can move ahead two slides to concluding remarks. We look at Q4 positive. I am happy, and it's positive the double-digit growth in Doro Care, and also adjusted for currency effects, that we are back to organic growth in the quarter. It's also very positive that despite COVID-19 and all challenges that brings to us, we have managed to deliver very high quality of service in both our business areas. A testament to the excellent work that we have performed in our market in service delivery was achieved here during Q1, where we received an award for service excellence during the pandemic in the U.K. We have strengthened our position and expanded our geographical presence in the U.K. market through the acquisitions of Connexus Careline in the quarter, and as we said, the acquisition here during Q1. Also we delivered a good EBIT and a solid operating margin in the quarter. The challenges in the quarter, even though we see that we had a better quarter from a sales perspective in Doro Care, there's still a slower market due to postponed procurements, and our ambitions in sales growth in Care is even higher set than what we achieved in the fourth quarter. Of course, as I say, business area Doro Phones is negatively affected by the second wave of the pandemic, and that we have experienced challenges in our supply chain with both component shortages and high freight costs. Looking ahead and our priorities going forward is, of course, that we will expand and strengthen our offering in Doro Care and continue to drive organic growth. It's to finalize our restructuring program, reducing operating costs, and maintaining good cost control for the future. We will, as I just said, prepare for a separate listing of business area Doro Care. Of course, we will continue to deliver what we do best, which is safety and independence for seniors. Thank you very much for listening to the fourth quarter for Doro. I will now hand over to the listeners if there's any questions that you would like to ask. Thank you. Our first question comes from the line of Viktor Westman from Redeye. Please go ahead. Good morning, gentlemen, and thank you for taking my question. Congrats on the solid quarter. I have a question, of course, about the spin-off intention. Will you streamline the offering in any way in any of these two businesses, you think? Or will there be some new growth initiatives in Doro Phones, for instance? What can you do there? Can you just discuss this a bit more? First of all, morning, Viktor. Thank you for the question. It is a very relevant question, and maybe to some extent a little bit premature. Of course, and as I said, what we want to achieve with the separate listing of Doro Care and the separation of the two is enable and create the best foundation for both companies to achieve their full potential. In that, I think as you say, what we will do is to look at the respective business. Of course, I think we have a solid strategy, but that will of course be reviewed in the light of becoming a separate company. In that sort of strategic review and setting the ambitions for both respective companies, I'm confident that yes, we will look at how can we optimize our portfolio, and how can we find new solutions that are relevant for the customers and end users that we serve in our respective businesses. Okay, great. Follow- up also on when you're doing M&A in U.K., for instance, are there any specific risks or challenges that we should be aware of here? I think that sometimes people say if you just buy the customer base and there's no issue at all, but then we see in reality, there is actually a lot of issues. Are there any risks here, and how do you think about that, and how do you tackle that? Again, good question, Viktor. I think there are from certain different perspectives. I would say it's in M&As in general. One of the aspects is from a customer perspective where you acquire and take over new customers. I think from that perspective, since we are a very trusted supplier in technology-enabled care, that it has in the cases we've been a part of so far seen as positive from the customers that Doro becomes an owner and the supplier of their services to their seniors. Secondly, there are operational risks in terms of actually transferring connections, making sure that that comes into our systems, to our processes. Everything we just integrate into companies. Thirdly, also from an employee perspective, taking over employees. You have a culture aspect, et cetera. I think on both the operational and culture aspects, we do have solid operations in place where and of course, we have learned to become more and more efficient in integrating businesses both from operational and cultural perspective. Yeah. Just the last one then coming back to my first question. Do you think that you have under-prioritized phones in some way during the past years? Not intentionally, of course. If you look back, can you see there are some things? I understand your question, Viktor. I wouldn't say that we have to go that far to say that we have underprioritized phones. I think we've looked at what do we think is best for Doro and what's best for the respective business areas. I do firmly believe going forward that Doro Phones will have a better opportunity in doing what's best for Doro Phones to achieve their ambitions and their targets by being a standalone company. Okay. Thank you so much, Carl-Johan. Thank you very much, Viktor. Thank you. I remind you that if you would like to ask a question, please press zero one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero two to cancel. There will now be a brief pause while questions are being registered. There are no further questions, so I'll hand back to the speakers. Thank you very much for listening in. As I said before, in many aspects, I believe it was a good quarter for Doro with double-digit growth in Care, back to organic growth in Care. Despite navigating challenges from COVID-19, we've managed to continue to deliver very high quality, very high service levels, and also to deliver a strong operating profit. Thank you all very much, and have a great day.
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