Thank you very much for the introduction, good morning and welcome everyone to today's presentation of Doro's first quarter results. With me today, I also have our CFO, Linda Nilsson. We can move on to next slide, please. An agenda. In today's session, we will start by giving you some key highlights, followed by results and business update from the first quarter. We will end the webcast with concluding remarks, including a question and answer session as mentioned. You can ask questions both via phone, but also through the online chat on the web. You can move two slides ahead and into key highlights in the quarter. During the quarter, we improved both gross margin and operating margin compared to the same quarter last year. A good achievement given the continued challenges that we have faced from the pandemic, even in the first quarter of this year. We have continued to strengthen our product offering, especially in Doro Care, in line with our ambition to have a market-leading portfolio with the launch of Doro 450, the new and stylish mobile social alarm, as well as continued improvements in our software platform to support new products and features. In February, we communicated our ambition to separately list business area Doro Care in order to give both businesses the best foundation and setting to reach its full potential. Can move two slides ahead and move into the first quarter 2021 and give you some further insights to the first three months of the year for both business areas and the group. Starting with business area Doro Care and business highlights. For business area Doro Care, the pandemic has continued to be a factor in the quarter, both in terms of securing high quality and safe service delivery, which we have managed in a continued excellent way, but as well in new business opportunities being delayed. We have in the quarter seen a positive trend with some increased activity in especially Sweden with a new temporary frame agreement signed in late of 2020. We do believe we will see an increased activity in some other markets in the quarters to come. To continue to drive organic growth and sales effectiveness is a key priority and area to further strengthen in the quarters to come. As I mentioned previously in key highlights, we have taken important steps to further strengthen our product portfolio with the release of Doro 450 and also our new releases for our software platforms. We continued to strengthen our role in the U.K. market in the quarter with the acquisition of Firstcall 247. Especially towards the second half of the quarter, we have started to see increasing challenges in supply chain, especially when it comes to component availability, and this is something I will come back to a little bit later, and a key focus area to ensure that we minimize the effects of the global supply chain challenges and that we can secure the demand that we see from our customers. Next slide. Speaking a little bit more about the sales and financials in the first quarter for Doro Care. Sales in the quarter for Doro Care increased with 6% to SEK 138 million. Organically sales growth adjusted for currency effects was 0.4%, which shows some organic growth but is still an unsatisfactory level even in a pandemic-impacted market. The main challenge during the quarter was related to decreased product sales in especially U.K., as we did see services increase with close to 8% in the quarter. Gross margin in the business area improved to 41.5%, which is an improvement over last year as well as the fourth quarter. We have implemented efficiency measures in the quarter with alarm monitoring platform consolidation in the U.K. on the back of our acquisitions. We will continue to drive service delivery excellence to continue to strive for improved gross margins going forward. Operating profit equals SEK 7.7 million, with an operating margin in line with last year. The total number of subscribers in the quarter equaled 371,000, which is an increase from the same period last year, but a slight decrease from the fourth quarter as a few lost tenders last year wore off in late last year and beginning this quarter. With a few contract wins, especially in Sweden, but also in the U.K., we are expecting an increase as these contracts are being implemented throughout the year. Next slide, please. Looking into a little bit more regional highlights for business area care. The Nordic region accounted for 49% of the business area in the quarter, with a total sales of SEK 67 million. We suffered from a few lost contracts last year, as well as a slower market in Norway due to the pandemic, which resulted in a total sales decrease of 3.7% in the quarter in the region. As I mentioned previously, we did see higher activity in the Swedish market on the back of the new temporary frame agreement from now called Adda, previously SKL Kommentus, which resulted in a number of new contract wins in Sweden in the quarter that will be implemented in the coming months. In the United Kingdom, sales increased by 15% and accounted for 45% of the total revenue for Doro Care. Despite the overall double-digit growth in the region, we are not satisfied as product sales were slow in the quarter and continue to be impacted by the pandemic. With a few contract wins and signs of increased activity during the year, we will focus to further increase our organic growth and market position. In our export business, sales were slow in the beginning of the quarter, picked up in the second half in the quarter and especially March, we see some interesting opportunities ahead. If we go to next slide, leave business area Doro Care for a while and move into business area Doro Phones. In business area Doro Phones, we have strengthened our already market-leading position in France and in the Nordics during the quarter. This is despite continued challenges from the pandemic, we managed to maintain solid sales figures in the quarter for Nordics and France, especially. Our challenges in Germany have continued in the quarter, and we have, as a result, initiated the final major element of our restructuring program that we announced last year to ensure we improve our market position as well as our cost structure in the region. Profitability for Doro Phones continued to be strong in the quarter. Gross margin benefited from positive currency effects as well as more favorable sales mix, especially from a geographical perspective. Good cost control with effects from our restructuring program further supported a solid profitability in the quarter for Doro Phones. Next slide, please. Looking into sales and financials for business area Doro Phones. Sales in Doro Phones equal SEK 199 million, which is a clear decrease from last year. The decrease is especially an effect of strategic decisions to focus the business on our core markets, as well as continued negative effects from the pandemic, as even in the first quarter, a majority of our markets and regions have been in severe restrictions or lockdowns due to the pandemic. Positively is that we've seen strength in market position in some markets and increased sales of smartphones as well as increased sales in online channel. The gross margin increased to a very strong level of 35.1% in the quarter, which as mentioned, is driven by favorable exchange rates and positive geographical mix effects. Supported by the strong gross margin as well as good cost control, the operating profit equals SEK 12.7 million, which is a 28% increase over the same period last year, despite the challenging market environment and lower sales number. Next slide, please. To give you some highlights on sales per market for business area Doro Care. I think as we mentioned, in the Nordics, as well as West and South Europe and Africa, sales declined slightly in the quarter as we experienced continued restrictions and lockdowns in certain markets in those two regions. Positively, in our two largest countries in the region, Sweden and France, we performed strongly and manifested our market-leading position. In these markets, we also saw an increased sales of smartphones. In U.K. and Ireland, we maintained our market position despite the very challenging quarter from a sales perspective. Sales decreased with 48% as we experienced continued significant restrictions and lockdowns in the quarter, as well as we did see some effects early in the quarter from Brexit, where a number of customers increased their stock levels ahead of Brexit at year-end. As restrictions have eased the last two, three weeks, we have seen a good initial improvement in sell-out, which gives us positive signs and hope that this will continue and the recovery in the U.K. market. Our Central Eastern Europe market declined with 36%, especially we continue to perform below expectations in Germany, which is our largest market in the region. As a result of the, I would say, slow performance in the region and then especially Germany in the last quarters, we have initiated restructuring of the organization in the region to ensure that we improve our development and increase our market share. As you can see, North America, of course, was significantly lower in the region compared to last year as we took the strategic decision last year to focus on our core markets, and as a result, North America is one of the markets that we have exited during 2020. We can take the next slide, please. They give you an update on the restructuring program that we communicated and initiated summertime last year. We continue to deliver on our restructuring program to ensure a more competitive cost base and long-term profitability. To date, we have implemented SEK 96 million of the communicated and committed savings of SEK 110 million-SEK 130 million. We continue to be confident that we will reach our target during the year. In the quarter, as I mentioned before, we have initiated the final significant part of the program when we start the restructure of our DACH region in Doro Phones to ensure that we both regain our market position and improve our cost structure in the region. Since we initiate the restructuring program, we have taken restructuring costs of SEK 15 million, all of those costs in 2020. We expect that we will not exceed the communicated SEK 30 million in total restructuring costs. We continue to be confident on the restructuring program that we initiated last year, and that we will reach the figures that we communicated when we initiated the program. Next slide, please. We go over to look at the numbers for the total group from a sales and profitability perspective. Net sales in the quarter was SEK 337 million, which adjusted for currency effects is a decrease of 16%. The pandemic effects that continued in the quarter impact our business, especially in phones, but as well strategic market phase outs such as North America, which are the two main reasons for the lower sales number. We see signs of increased activity as restrictions are removed, but the market is still uncertain from a COVID-19 perspective for our business, as well as the supply chain challenges that we are facing in both our business areas. The gross margin as well as the operating margin increased in the quarter despite the lower sales level. Supported by good sales mix, efficiency improvements, a favorable FX effect, as well as good cost control contributed to the good margin improvement. In summary, this resulted in an EBITDA of SEK 47.9 million and EBIT of SEK 18.4 million, excluding the initial project costs for the separation and listing of Doro Care. Both the EBITDA and EBIT levels are an improvement from the same period last year. Moving into the next slide, and cash flow for the first quarter. Our free cash flow in the quarter was SEK –47.6 million, which is a result of especially a negative change in working capital. The negative change in working capital is explained mainly as we have returned to standard payment terms with the majority of our suppliers after receiving what we call pandemic reliefs, and longer payment terms, during part of last year. Our financial position remains very strong and solid, with a net debt of SEK 32 million, which is equaling a net debt to EBITDA ratio of 0.15. This is an improvement in net debt level from SEK 130 million the same period last year. We can move forward two slides into concluding remarks before we start with the Q&A session. The first quarter positives. In the quarter, we have announced that we intend to separately list business area Doro Care, to ensure that we give the best foundations for both businesses to reach their full potential and their ambitions. The work with the separate listing and to separately list the business area Doro Care during the year is proceeding as planned, and we continue to be committed to that. We have seen some positive development and increased activity in some of our core markets, and our expectation is that activities will continue to increase in certain markets during the year. In some of our core markets, we have seen that also in the first quarter that we have strengthened our market position. We have continued to build a strong offer and released new products and features during the quarter. We delivered good margins and solid profitability in the quarter despite the challenging sales environment. The challenges in the quarter continues to be sales growth at the level that is not satisfactory. With continued impact from the pandemic that had burdened the quarter. Where we are focusing heavily to ensure that we improve and drive further growth in the quarters to come. Challenges in the supply chain have continued and increased in the quarter. We experienced both increased lead times and freight costs, and to a larger and larger extent during the quarter, component shortages in the market. Which is something I think both we and the general electronics industry is expecting to increase for, and I think especially the component situation, for the months and maybe quarters to come. Of course, from a focus ahead perspective and priorities is for us in the near term to ensure that we minimize the effects from the global supply chain challenges so we can ensure that we can support the demand from our customers. We will continue to strengthen sales and our offering in Doro Care in order to accelerate growth. Continue to prepare for the separate listing of business area Doro Care during the year. Of course, continue to excel in delivering increased safety and independence for seniors. Can move to the next slide. With that, thank you very much for your attention and listening in to Doro's first quarter webcast. Later today, we will hold our annual general meeting, and the documentation from that event can be found on our corporate website afterwards. We will announce our second quarter results on July 16th. I then would like to open up for a question and answer session, and as said, you can ask questions both via phone and through the web on the online chat. Thank you. Ladies and gentlemen, if you do wish to ask a phone question, please press zero one on your telephone keypad now. That is zero one to register for a question. There will be a brief pause while telephone questions are being registered. We have a question from the line of Viktor Westman from Redeye. Please go ahead. Good morning. Thank you for taking my question. I was wondering if you can discuss the subscriptions in Doro Care, those are lower compared to Q4, I noticed. Are the one contracts in Q1, are those not included in the figure of 371,000? Morning, Viktor. Thank you for your question. As you said it, in sort of the 371,000, there is a timing effect in sort of phase out and phase in of contracts. What we experienced in the first quarter, and as we've discussed in the quarters in 2020, we did have an unsatisfactory performance in certain markets in contract wins last year, where we actually lost a few contracts, with decreasing subscription as a result. We've seen those effects in Q1 as it's sort of taken longer time to phase out those contracts. The contract wins, because we do have one, especially in Sweden, we've had a good quarter in contract wins and won a number of new contracts, and as a result, subscribers have not yet been implemented in the first quarter. You're right, we have not seen sort of the positive effect from the contract wins during the first quarter. Okay, good. I wonder if you can say something more about the challenge in the global component shortage. I noticed you have actions to take to mitigate those issues. Can you say anything about your plans here? I think overall it is as you mentioned, it is a general industry problem. I think every similar company I speak to and everything I can read in the press, there are a lot of companies sort of facing the same challenges as we are. What we are doing, and I think from that perspective, which is positive maybe compared to some other companies, we have a long and good presence in Asia, and we have long and good contacts with our partners in Asia and sort of component suppliers. We are working intensely ensuring that we sort of identify and secure components so we can meet demand. Also, as you say, it's important for us to be extremely close to our customers to understand the demand so we can try to sort of have the right balance from supply and demand, and ensuring that we get the components we need to meet the requests from our customers. I think the situation will continue for a number of months. It will be a continued work to ensure that we continuously work with getting the right component in the right time. Okay. Just a last question on Germany, because the German market has been challenging for quite some time. Not only maybe the few quarters, but even longer than that, I would argue. Are there any new issues here that are not pandemic related, or are there any other problems that have risen, or what's the status? Yeah. No, good question, Viktor. I would say it's one, of course, Germany has been a market that's been significantly impacted by the pandemic. We see German retail, which is a large and important market for us, have been significantly impacted. With that said, I do not think that we have focused enough in doing what we can from a sales perspective and ensuring that we keep and we demand the market position that we deserve, looking at our products and our portfolio and looking at what we achieved in the other markets. That's why we've taken this decision to ensure we restructure market. We will focus on driving sales, increasing our market position, but at the same time getting the cost structure right. Thank you very much, Carl. You want to keep up the hard work. Thank you, Viktor. Likewise. I remind you that if you want to ask a question, please press zero, one on your telephone keypad now. While you formulate your question, I can take a question that we received from the web, and it's a question from Frederick, who's asking, "What is the time schedule for the spin-off of Doro Care?" As we communicated our plans with the planned separation and spin-off of Doro Care, is that we are currently working on finalizing the separation of Doro Care, creating the, call it the listable entity for Doro Care with a plan to separately list Doro Care during the fourth quarter of this year. There are no further audio questions registered. I think we've no further questions on the web now either. I would like to thank you again very much for listening in and for the questions. I wish you a great day and great weekend when that comes after tomorrow.
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