Shall we begin? Yeah. Good morning, and welcome to Doro's first quarterly report, 2023. Today, Isabelle Sengès. Good morning. I'm Jørgen Nilsson. This is Doro's Q1 report. If we move on here, we'll switch to focus for you guys. We'll start off with some key highlights, then we'll look at the first quarter and zoom in, and then concluding remarks, and we open up for a Q&A. Given how Q4 was finishing, with sky-high inflation rates, with energy crisis, prices going through the roof, I think many of us was fearing that Q1 would be very abysmal. Normally, Q4 is a strong one and Q1 the weak quarter. Actually, during the quarter, a number of indicators started turning in the right directions. We saw inflation in our currencies becoming much more stable. We also saw that our input prices, our COGS, were beginning to stabilize, and which we're very happy about, our biggest customers started replenishing their previously very depleted inventory. We're happy to be able to deliver a solid gross margin and a positive EBIT. We will zoom in on those numbers shortly. We also, during Q1, continued what we call our sales innovation. We're investing in various sales activities. We're rolling out what we call the Doro end cap solution or the dedicated Doro corners, which is a separate section of our customers' shops with only Doro products. I think we'll be able to show you later. We also started working on what we call the Doro pop-up store, which is a new concept that we are rolling out now in the autumn of 2023. Finally, we're very happy to say that we're now starting to get all the right people on board. We were going through a phase for a couple of years where we were downsizing the consumer section. In line with our strategy to broaden our portfolio, we've managed to recruit several key resources and also restarted our market research. We feel with this reinforcement coming into place, we should be looking forward to accelerating our portfolio expansion. We look into the more detail on the first quarter of 2023. As I said, there was a much uncertainty going into the first quarter of this year. Europe was in general plagued by the Russian war on Ukraine, energy crisis especially, sky-high inflation, and very sharply high rising interest rates. People therefore basically refrained from any kind of consumer sales or consumer buying. We thought that COVID was tough, actually for our business, it turned out it wasn't so bad, besides the fact that many of our customers' stores were completely closed. As people were spending basically two years at home, they actually invested quite heavily in consumer electronics. Once the Russian attack on Ukraine came, the energy crisis that followed, people really stopped buying. As Q1 is normally a weak quarter, we were really worried about this. As I said, a number of indicators actually turned in a much more positive direction. The biggest one was, of course, the stabilization of both the inflation and for us, the US dollar and the Euro. We saw some very nice decreases and stabilizations too in the shipping fees from Asia and a much more stable component price situation from our sub-suppliers. The biggest up for us, of course, was that our biggest customers, or actually all our customers, began replenishing their inventories. That was because they basically hadn't bought anything during Q4. After very low levels and cautious ordering at the end of last year, we managed to increase our sales by almost 2% in the first quarter compared to the same quarter in 2022. One of the reasons for also giving a very good gross margin was that not only did the freight prices become better, but we managed to achieve a much better sea to air transport ratio. During COVID, it was literally impossible from time to time to get containers from Asia to Europe. Therefore, we had to fly a lot, especially when we could not find components. Now, when this thing has stabilized, we have had a much better sea to air transport ratio. Do you recall, was it 10 to 90 something? Yes. Yeah. 10% basically only of our shipping to Europe was through air. We also managed to decrease our inventory because we managed to have a good sell-out of our older products, and therefore, we could lower the provision for inventory write-offs. As a result, we are happy to report that we can deliver a gross margin of 36%, which we feel is a very good improvement compared to the same quarter last year. I think we all know that we're still about 75% depending on feature phones, senior feature phones, and that market is declining. Despite the market being declining both in volumes and value, we continue to gain our market share. One of the reasons is probably because we started to roll out our new sales initiatives. We have what we call Doro dedicated corners in several of our stores in the Nordics, especially in Sweden. We are to follow with more countries, sorry, more shops in the other countries in the Nordics, Ireland and Germany. Then of course our other regions. Then, as I was just alluding to, we were very happy. We started it very actively during 2022, but now in end of '22 and early '23. We've managed to recruit several of the key resources we need to go on to the next stage in our rolling out of becoming the sole, um, senior provider for seniors. In light of all these challenging market conditions, but also in the fact that we're now investing heavily both in product, people, marketing, and sales, we're incredibly happy to continue to report positive operating profits, SEK 3 million, slightly over even, with 1.5% margin. For us, this is a clear sign of strength, although of course it's still lower than what we think we should be able to reach. If we have a look at our different markets, the two biggest ones, Nordics and West and South Europe and Africa, they increased. In the Nordics, we increased by almost 10%, and the main reason here was that our customers started replenishing their previously depleted inventories. The interesting thing here is that most of the Nordic countries didn't do very well. It was Sweden went really well. Unfortunately, we also saw some of our biggest customers starting closing down some of their stores. We also see consolidation in the Nordic market where, especially in Sweden, MediaMarkt has now been purchased by the Norwegian Power Group. The big star of the quarter is our FraBel or West and South Europe and Africa region, which increased by 25%. Here, the main reason is that there's still a very strong demand from our French mobile operators. There is also a continued good demand from, let's say, retail specialist electronic chains. For general retail, the demand has been much weaker. The main reason for that is because the shift from 2G to 4G is now happening, and the general retail, and then we're talking about discount stores and food stores, et cetera, for them, it's less interesting to sell 4G than 2G. UK and Ireland basically became in flat, which seems a little bit down, but we're still very happy because compared to last year, we had one of our major 3G deals that year. As 3G is being shut down, our biggest customers in the UK, they really restocked a lot. Compared to last year, we were fearing it would not go so well. We basically balanced out this decline by increasing sales to new customers as well as online. The biggest problem we've had this quarter was our DACH region or Central and Eastern Europe. It's been quite a substantial drop, of course, 32%, but it's important to take into account here that last year we still had deals with non-Doro branded products which were high in value, but very low in terms of margin. That was a one-off deal that we did with PMRs or walkie-talkies, which we don't do anymore. In general, we are still in a transition period in DACH, as we are changing our direction from being a previous distributor of everything to a Doro-focused senior products only model. In terms of the division between the regions, it's quite the same as before. West South Europe is still the dominating 40%, Nordics accounting for a fourth, and then Central Europe or DACH and UK and Ireland is about a fifth each. Anything to add to that, Anna? Would you like to take over a little bit? Yes. A bit more figures now. As previously said, the net sales for Q1 landed at SEK 208 million, 1.8% better than the same quarter last year. As Jørgen mentioned, and considering that Q1 last year included a significant one-off deal in Germany and non-recurring 3G sales in UK, I think it's quite satisfying that we deliver an increase of the sales year on year. Sales were particularly good in France and Sweden with the launch of our latest smartphone in France and an overall good performance of our 4G category. Gross margin was at 35.8% in the quarter compared to 32% last year. The COGS finally got more stable. The US dollar was still high during the quarter, especially compared to a rather weak Swedish krona. Fluctuations are not as extreme as last year. We also start to see the effect of the very good work done by our purchasing department in negotiating prices with factories and the positive impact of our portfolio customer mix on the margin on products. Another major and very positive deviation compared to last year is the cost of freight, as Jørgen mentioned. Not only the decrease CNR costs, also the lower the ratio, favorable ratio of less shipment by air. The EBITDA for the first quarter was SEK 15.2 million compared to SEK 14.8 million last year. The EBIT landed at SEK 3.2 million compared to SEK 3.0 million last year. Our EBIT in percentage of sales was 1.5%, similar to last year's, even though we have invested more in terms of operational costs to fulfill our strategy. The profit after tax ended up at SEK 3.6 million compared to SEK 3.5 million last year, giving earnings per share of SEK 0.15 compared to SEK 0.14 last year. If we move on to the cash flow. The cash flow from operating activity was negative this quarter at minus SEK 10.6 million compared to minus SEK 9.4 million same quarter last year. The negative working capital this quarter is mostly due to lower trade payables and an inventory a bit higher than at the end of 2022, which is usually the case in Q1 due to Chinese New Year and needed to buy stock. Investment for the quarter were SEK 4.3 million versus SEK 4.8 million last year, and free cash flow for the quarter was minus SEK 14.9 million compared to minus SEK 14.2 million. On the liquidity side, we had a bank balance, at the end of the quarter of SEK 125.1 million compared to SEK 91 million last year. During the quarter, we have lowered the utilization of our bank loan by SEK 15 million. The equity ratio is 54.2%. It was 49.9% at the end of Q1 last year. We finished the quarter in a net cash position of SEK 50 million, which is less than at the end of the year, where the net cash position was SEK 63.3 million. It is much better than same quarter last year when we had a net debt position of SEK 1.8 million. This was my last number. That was your last number. Great. Some concluding remarks, and then we'll open up for a Q&A. On the positive side, continued positive operating profit. We sold a little bit more than Q1 last year. We're still investing a lot, I would say, and most of the investments for now have been in new resources. We will of course, as the new products will be launched, we'll be able to start writing off also the CapEx investments, but so far we cannot do. Getting these new resources into the organization is very important for us in order to be able to expand to new product categories. Despite the senior market for senior phones in general declining, we continue to grow both value and volume-wise in all of our regions. We've been saying several times here now that the freight costs have stabilized, especially from Asia coming in addition to having lower warranty costs, and we managed to reduce our inventory. Our e-commerce continues to make good traction. We are focusing very much on that now. We have set together a special e-commerce team. Our new smartphone, which we just launched for Orange in France, the Doro 8220, has taken off very well there, and we're looking to roll out a Nordic model of it in May, I believe it is. In terms of challenges, well, of course, even though we see the indicators turning in the right direction, there is still a continued economic challenges for many consumers in Europe. People are still struggling with interest rates and inflation and energy crisis, but obviously we're now moving into a warmer part of the year, so maybe people will have a little bit more disposable money. Of course, people are still postponing purchases in consumer electronics. If they had to choose between buying a new phone, upgrading their existing one or paying their electricity bill. I would say in general, there is very much a wait and see behavior, where people are kind of being very cautious in their spending. We saw there was a big consolidation in terms of our distributors in the Nordic markets, and now we're seeing something similar in terms of consolidation in the retailer market where, for example, Power Group was acquired MediaMarkt. To our big surprise, Elgiganten actually downsizing staff in a number of shops in the Nordics. Finally, priorities ahead. Well, we wanna continue rolling out what we call our new sales initiatives, these Doro dedicated shelves and then the pop-up stores. The whole thinking behind this is that when people come in today and they see a range of, let's say, telephones in this case, 100 smartphones, I'm a senior, what should I choose? Well, if you're a senior, then you should go to the Doro corner of that shop and you'll be introduced not only to a phone, but also the full range of Doro's portfolio. We are to initiate the final parts of our conversion of the DACH region. As you know, we have a. A daughter company in DACH have a separate setup. Now we're making it a full-fledged Doro region because we really believe that there is a big potential for us to grow in Germany, the biggest market in Europe. Finally, we wanna continue strengthening our 4G portfolio, because now we're really seeing throughout basically all countries except Germany and Europe that 4G is taking over and 2G is being switched off. We've managed that transition very well so far, I would say. It's super important for us to continue doing that because the money we make in our feature phone is funding our expansion into the adjacent product areas. I think that was pretty much that one. We'll switch on the camera, and we will ask our technicians to open up for the Q&A. See if we zoom in a bit on this here. There is a guy already. Is that Fredrik who has the first question? Fredrik Røtheim. Not sure if Fredrik can hear us. Oh, Baptiste, can you make sure that they can speak? Yeah. It's done. You just have to unmute yourself before speaking. Okay. Oh. hi, Jorgen and Isabelle. This is Fredrik. Hi, Fredrik. Yeah. Hi. Thank you for the presentation. I have some questions for you here. First, I wanna ask you about the recruitments you did during the quarter. Can you know, tell us how many headcounts this is? Exact number I don't recall, but it's a number of product managers and project managers, and then we also are taking in two consultants who's helping out in the group management. We're looking to get permanent positions in this one. Maybe 10 people or something like that. Yes. Can look up the exact number for you, but I don't know it by heart. Okay. You think the net employees for the full year will increase then? I mean, or are people leaving as well or? For now I would say that it would increase, because you also have to remember that during the first 5 years, and especially after we did the division with Careium, we lost a lot of people. A lot of people went over to the Careium side, so to say. First we had to restaff those basic things like compliance and IT management, et cetera. Now we're adding people within the new categories of new product portfolio areas. I think it will grow. some other department like product development, it will be also a switch between- Sure ... own people and consulting. Yes. That's it. Okay. Makes sense. You write in the report that you were gonna invest more in R&D, and historically you invest around 7% of sales. What level do you think you will end up during 2023? Will we see like 7.5% or up to 8% or how, how aggressive are you gonna be then? Numbers percentage. Yeah. Can as well. Around SEK 80 million, right? Yes, eight. SEK 80 million I think we have. So. Oh, for the full year, huh? Yep. Yeah. Okay. In terms of CapEx. Yeah. I mean, I would say that we are investing. It's not the same kind of investing, you can't write it off, but as we're getting the right people in, that's also investing for us, of course. Yeah. Yeah. I guess OpEx will, you know, continue to stay above 30% of sales going forward. It was slightly below in 2022. Yes. We were running very low at the end of Q1 of 2021 and slightly higher in 2022. The budget we've made obviously shows that we would increase OpEx in 2023. Okay. Your EBIT came in at SEK 3.2 million in the quarter. I mean, looking back, I think you more or less never lost any money on the EBIT. I mean, with the growth initiatives, is the risk that you're gonna run into red going forward? No, I don't think so. I mean, we don't like that, so to say. No, we will monitor of course. Exactly. Of course, we have made a budget and there is no plan in turning red. Nope. There is a plan in growing, so. There is a plan in growing, definitely. EBIT might suffer a bit, but not going red. Okay. That's good. I mean, you're talking a lot about the growth in the report and you've done it for quite some time. With all these initiatives you're launching, what is your growth perspective for 2023 and 2024? I would say, I mean, in terms of feature phone, or let's say phones, there we need to start growing again. We hope that first, the two years of COVID and then let's follow the Russian year or the Russian-Ukraine year. We still believe there is numbers to be taken and grow in phones. Eventually there will be a last man standing in feature phones, and if you look at feature phones in general, the normal traditional feature phones, very few people buying them. The few people who do buy feature phones today are mainly for seniors, and that we really would like to take. Over and beyond that, of course, we are now expanding into new categories. I would love to say that we're gonna grow that super fast this year, let's be a little bit cautious. We see now that when we came out with a watch and a tablet, people are very positive. Obviously they are not at all connecting Doro at this point in time with a watch and a tablet. It's been quite of an aha, do you guys do that as well? Yes, I do definitely hope, and we have planned to grow this year in terms of sales. Will the most of it come from the new categories? Not yet, I think. Although we are rolling out two new categories as well at the end of this year at IFA hopefully. As we stock up with more categories, we should be able to grow even more. Okay. No hard figures then. I mean, could expect like 1%? I wouldn't say. Bit of five or? I don't think we should make these kind of- No. No. We really invest for maybe more midterm than very short term. Yeah because these things take time, and, the feature phone market is declining. Yeah. Even if we grow, it might not make a huge growth overall. We really need to expand the portfolio and that takes a little time. Mm-hmm. I think we'll see more effect probably next year on top line. Okay. Makes sense. I have one question regarding gross margin, and you talked about it, as well. The increase, is it only the sea air shipping cost, or is there anything else there? The price in general of transport from Asia has gone down. Okay. The ratio between sea and air. The prices are in prices, let's say the costs that we're paying to our suppliers have stabilized. The warranties continue to be lower or very low, if you put it that way. I think we also see the result of a change in portfolio. Absolutely. For instance, if you take the one-off deal in Germany, on top line, of course, it's very negative, but margin-wise, it's quite positive. Yep because those deal were not very, valuable in terms of margin. True. Also the move to 4G. Yep. We have the latest generation have a good margin, so that helps us as well. Okay. We've been very successful in our renegotiation of our licenses and IPR contracts. Our CEO, CTO and the guys working on that has done a very good job on that one. No, it feels positive. Okay, great. Thank you very much. That was all for me. Mm-hmm. More questions? I'll just ask Baptiste if you can see more. We only see a few users here and we do not see any raised hands, so I guess there are none. Looks like there is no more question. Okay. We'll just open up for anyone. If anyone has a questions, please feel free to unmute yourself. Fire away. No? If there are no further questions, we'll thank you for today. We will be seeing some of you, I think now at the annual general meeting in one hour's time. The Q2 report will be coming mid-July. Yep. Thank you very much. Thank you. for your attention. Have a nice day. Bye. Bye-bye.