Good morning, everyone. I hope you can see us and hear us. We've had some technical difficulties here in the morning with our video equipment. We're gonna do this presentation directly from our laptops. Welcome to the Doro Quarterly Interim Report number 2. My name is Jörgen Nilsson. On my side here, I have Isabelle Sengès, our eminent CFO, and this is our Q2 report. We're gonna start off today with some key highlights from the quarter, then we're gonna zoom in on more details of it. We'll do some concluding remarks. We'll open up for a, sorry, FAQ. When we do, please don't forget to unmute your microphones, because during the meeting now, your microphones are muted. Okay, let's see if we can get this going. Let's do like this. Key highlights in the quarter. Q2 continued very much as the Q1, with the consumer sentiment in Europe remaining weak. There has been challenging economic conditions throughout the continent, which have resulted in reduced household consumption. Because of that, most of our consumer electronic chains, they have struggled. In some markets have even closed down shops and had to lay off staff. Not surprisingly, the EU4 market for elderly phones did shrink in terms of value, but basically, it's still in line with the overall European smartphone market development. Our fixed line and our non-Doro products also declined compared to the same quarter last year. Despite this, our feature and our smartphone sales increased, and overall, our sales ended up with an increase of 2% compared to the previous year. On a more positive note, our gross margin improved significantly. Once again, thanks to a number of different reasons, which we will zoom in on soon. Likewise, in line with our strategy to broaden our offering, while we try to maintain the leadership in senior phones, we have continued investing in the future. Despite these many investments, and despite the tough market conditions with a shrinking senior phone market, we are happy to continue to show a positive EBIT in the quarter. Also a key highlight in the quarter, is worth mentioning that the transition to 4G networks, whereby basically the operators shut down 2G and 3G, or at least they don't allow new connections to 3G, 2G and 3G, is now further speeding up. In the last quarter, it's been the French mobile operators which have all basically communicated their end -of -life -schedules, and the biggest mobile operator in France is now also planning to incentivize the shift to 4G products. This actually plays perfectly in our hands because we have a very good positioning in 4G. Nevertheless, there are still some regions and markets where there's a solid demand for 2G, and that, which is good for us too, actually enable us to maintain good sales of 2G. In such a way, we've been able to have a more efficient inventory management. That said, let's zoom in on the more details of the second quarter. Pardon my... Yeah. That said, we are still working in a very tough consumer electronics market, where many of our customers, I mean, the retailers, the operators, and distributors, are being heavily impacted by consumers delaying or completely putting off their upgrades of new products. Pardon. Some of our customers have also had to close down shops and lay off staff. In some of the regions, for example, in Germany, one of our major customers got their financial rating downgraded by Moody's and therefore stopped all orders during the initial months of this quarter. In other regions, like the Nordics, we've also seen major consolidations taking place, where, for example, the Power Group taking over the MediaMarkt channels. As I just mentioned before, the senior phone market declined almost 12.5% year-on-year in May. This was once again in line with the overall European phone market decline. Likewise, as I said, our fixed line and non-Doro products dropped, to our big happiness, the Doro feature on smartphone sales increased compared to last year. Both about 7% up compared to last year. Overall, our sales ended up at SEK 203 million in this quarter, which is, of course, just a minor increase of 2% compared to previous year. It is still a plus and in a shrinking market. Better still is that our gross margin improved significantly, in the quarter, reached 40%, this was thanks to a favorable product mix, where we have more 4G than 2G, a much more stable U.S. dollar to the Swedish krona, once again, a very positive freight cost development, plus a good control of our warranty costs. We have also, in line with our strategy to maintain our leadership in feature phones, senior phones, while we develop the new software offering, continued investing. Our investments today have been in more staff, new product development, and various sales and marketing initiatives. Despite these many investments, despite the tough market conditions, we are still happy to be able to show a positive EBIT in the quarter of SEK 1 million. As I just mentioned, the technology shift from 2G and 3G to 4G has continued and is really speeding up. I said, it is the French mobile operators we have communicated their go live. Losing my voice here. I'm so sorry, guys. Despite this increased focus on moving to 4G, we still have regions like Germany, where there is a solid demand for 2G. This might seem like a problem, but for us, it actually suits us perfectly, because we have a good position in 4G category, and we're still able to shift goods into 2G. We were also at a certain time, a little bit worried that if the four-year transition went too fast, that we would end up with too many 2Gs in our inventory. Thanks to the good demand, and especially Germany, we have been able to have a very efficient inventory management. Given this phase-out of the older networks, our in-inventory management has become increasingly important. As we had good sales in both 4G and 2G, we've been able to reduce our stock values by SEK 35 million compared to the same quarter last year. During the quarter, we've also continued rollout of what we call the Doro end -caps, which is basically a senior corner that we put in our customer stores. We've done so successfully in the Nordics, and we also started in U.K.. and Ireland, and with Germany soon to follow. Presently, we have so equipped, I think, 36 stores in the Nordics, and there are another 50 to come during this year. Hopefully, we'll see the uptake coming as fast in the U.K., Ireland and Germany. One of the most important things for us is, of course, the seniors, and our strong focus on seniors and end users have continued. We continue with external research like we started again, but also more importantly, with consumer hands-on prototyping. It is really pleasant to see the number of seniors walking around here in the office, with our usability experts and participating in various end-user trials in order for us to, you know, really understand the needs and challenges of the seniors. We have equipment which has been developed together with University of Cambridge, which enables us to have the same tactility and movability in our hands and the same eyesight as a senior. Together with actual seniors, we work actively to develop our new products. Just to round off the business key points. We are in a tough market. Our customers, the operators, retailers, and distributors, they are struggling. The senior phone market is shrinking, and we're having a very good gross margin, which we're basically investing full out. Despite these many investments, we still are able to report a positive EBIT. We zoom in on the market, in the individual markets, we see that the Nordic has once again, come in on a very solid SEK 56 million, which is almost 28% up compared to last quarter, last year's quarter. You have to remember that last year's quarter was really tough because then we were faced with trying to implement the new price increases at the same time as many of our customers had large overstocks and consolidations took place. To our big delight, our new smartphone has started generating higher sales than its predecessor, and also there's an increasing part of 4G sales among our feature phones, which have contributed to the high turnover. Once again, our B2B sales in the Nordic were very good. This is boosted mainly by Sweden's largest operator, which is switching from corporate to digital networks. In most of those cases, they actually propose the Doro's 4G fixed phone or the Doro 4G feature phones for updating to the customers. Our Western and Southern France, Southern Europe, Frabel, as we say, reached almost SEK 73 million this quarter, which is a decline. Overall, we still think it was satisfying, given that the Frabel market is the one that's been decreasing the most sharply in the quarter. Our latest smartphone, which we launched at the biggest operator, has actually come back with good volumes and also reorders. Our 4G feature phone, and especially clamshells, are continuing to increase. We still here on France also, despite the communication of switching off 2G, still have very good delivery volumes for 2G. We are actively preparing, as I said, the phase -out of 2G in the region, and especially now when the operators are communicating to the retailers. We do think there's gonna be an impact, but we're super happy to be able to report that we have a very close relationship with the biggest operator in France, and in along with their economic incentives to switch, we are also preparing activities. Finally, for that region, sales in Belgium has now resumed, after some time of uncertainty, and they have a different product mix, which is now much more favorable to our margin. Looking at Central Eastern Europe, DACH, as we normally call it, the sales once again was down and almost by 25%. This time, however, most of this is actually explained by a turbulent start from our biggest customer in Germany. As I mentioned before, they suffered from a financial downgrading by Moody's and therefore, stopped all their orders for over one month. The situation's been restored, and they've started ordering like before. Of course, this initial hiccup affected the overall sales, not only in the region, but left a dent in all of our sales. On the upside, our distribution channels in DACH has had a very good quarter, but the e-com business in Germany went down somewhat versus last year. That is in line with the overall e-commerce trend in DACH region for the last quarter. Finally, but not least, sales in U.K. and Ireland amounted to about SEK 41 million. That is an increase of 26%, which is really good, and there is a good momentum in the region, which is actually the only region where the market folder phones grew during the last quarter. At the same time, it's important to remember when we say that they grow, that they grew, that this is basically the region that dropped the most previously. Basically, they bottomed out, they reached rock bottom, so now the only way is up. Very good for us is the transition from 2G to 4G, our biggest retail customer has been flawlessly executed by our sales and product teams. That has generated really high volumes for the category during the quarter. Also, non-direct retails came back quite strong in the quarter, and as always, the online sales in U.K. continued to grow compared to same last year, the same quarter last year. We're also happy to report that we've signed up a couple of new customers in Ireland, which have a quite widespread listing of our products. We continue to develop our own website during the quarter in Ireland, with an ever-increasing range and better delivery options. I leave over to you, Isabelle. As a recap for the quarter, net sales landed at SEK 203 million, which is a 2.3% increase compared to same quarter last year. As Jörgen said, we faced some difficulties in Germany, but sales were quite good in Nordic and U.K., and Ireland. 4G feature phones and smartphones are the category performing best, which also increase the average sales price of our transactions. The gross margin was 40.3% in the quarter, compared to 35.6% for same quarter last year. The main improvement year-over-year is the marginal products. The cost of goods of our most important products went down by around 5%-6% due to better U.S. dollar rate and good negotiations. Furthermore, the products which we released in the previous period, such as the new generation of 4G and the new smartphone series, they have a better margin than the previous devices, independently of the currency. We also benefit this quarter again from lower freight prices than same time previous year and from a more favorable ratio air -to -sea transport. Royalty and warranty costs remain at a very stable and fairly low level. The EBITDA for the second quarter was at SEK 12.8 million, compared to SEK 15.7 million. The EBIT landed at SEK 1 million, compared to SEK 5.3 million last year, same quarter. The EBIT in percentage of sales was at 0.5% compared to 2.7%. As Jörgen said, we have consciously allowed the increase of our operational costs to secure internal resources and to develop marketing to support our coming launch of products. We are also in the early stage of the development process for a number of projects, which means that this cost cannot be activated and thus increase our operational costs. The profit after tax ended up at SEK 1.1 million, compared to SEK 4.9 million last year, giving earnings per share of SEK 0.05, compared to SEK 0.20. Looking at the cash flow, cash flow from operating activities was positive this quarter at SEK 21.6 million, compared to SEK 44.7 million, same quarter last year. We had a positive development of working capital during the quarter, mainly due to lower inventory. Our accounts payable were rather low, and our accounts receivable increased, partly due to currency inflation, the euro. The improvement of the working capital was not as significant as same quarter last year. Investment for the quarter were SEK 8.5 million versus SEK 9.8 million last year, and free cash flow for the quarter was SEK 13.1 million, compared to SEK 34.9 million. On the liquidity side, we had a bank balance at the end of the quarter of SEK 138.3 million, compared to SEK 132.5 million. The equity ratio was 55.4% versus 48.9%, end of Q2 last year. During the quarter, we have lowered the utilization of our bank loan from SEK 60 million to SEK 50 million, and we finished the quarter in a net cash position of SEK 74.2 million, which is an increase compared to the previous quarter, where we were at SEK 50.0 million, and it's also an increase compared to same quarter, 2022, when we had a net cash position of SEK 41 million. This was my last number. Yep. Thank you, Isabelle. Give the computer over. Sorry for that. Some final remarks. We'll open up for the Q&A. On the positive side, as I said, continued positive EBIT. I know it's not much. It's quite slow, but given that we have a strong gross margin and also slight increase in sales despite the tough market conditions, and then this basically, most or all of that gross margin, we've invested in the future. We are releasing a number of new products during the autumn. Most of them will be debuted now at IFA in September, and we've hired new people, and we're putting efforts into the marketing and sales initiatives, like the Doro end-cap solution. We also have the Doro pop-up store, which we're gonna open at a big shopping mall in the south of Sweden, at the end of or during Q3 of this year. If we hadn't invested so much in the future, obviously, our EBIT would have been higher, but it's still continually positive. As I said, we did roll out the end-cap solution, this senior corner, in more than 30 stores in the Nordics and another 40-50 to come. We started slowly in the U.K. and Ireland, Germany is next in line. We've also conducted a number of customer events and fairs, we were actually awarded a prize for the best smartwatch at one of the fairs in France, which is very nice to receive. Our direct-to-consumer business and our inventory management remains strategic priorities in the quarter. We're really happy to keep the stock value at SEK 35 million lower than the same quarter last year. One of the reasons for this is, of course, that we are able to sell 4G, where we're very well positioned. At the same time, as there are still markets where we can offset our 2G volumes. We actually have an order backlog in Q2 of SEK 104 million, which is an increase of more than 20% versus last year. I would say that's almost somewhat of a trend change, because the order backlog has been rather low in the past quarters. Previously, customers have been very cautious in their reordering, but now it seems that people are being a bit more optimistic, since I guess last year everybody had expected sales to go back to normal after COVID, but then we had the Russian invasion of Ukraine. Now people got probably a little bit more to terms with that. I guess also we've all had our winter electricity bills disappearing in memory. People are probably feeling a bit more optimistic, and therefore, we're getting better reorders and backlogs. Obviously, there are still challenges. The main is that the European consumer sentiment still remains weak, and there are challenging economic conditions for all of us, of course, which results in people putting up or completely postponing their repurchases. Some of our biggest electronic chains in Sweden and Germany, they have faced financial difficulties, which impacted their ordering, at least temporarily. For the senior phone market, especially for the feature phones, they continue to decline, and so far, our new products are not yet replacing the revenue. On the upside, our Doro feature and smartphone sales grew compared to the same quarter last year. Priorities ahead. We will continue the deployment of our end -caps, and we will also, as I said, roll out the new first pop-up store, and we continue our development of direct-to-consumer sales. Our direct-to-consumer sales, for now, is mainly through web, but also we're rolling out through our customer support, which we think is gonna be very useful. We have to continue maintaining tight control of the warehouse, which I think we've done excellently so far. We will continue on the final leg of the conversion of the DACH region to become a full-fledged Doro sales region, to be able to deliver on its potential, so we can start seeing better results there in the year to come. Of course, as always, we need to ensure secured revenue and margin from our existing own feature phone products, if you like, while we develop the new revenue streams for the future. I think that pretty much sums up our report. We will now open up for a Q&A for all our guests and visitors, and I remind you to please unmute your microphone, so you can hear. Now, we'll see if we can put on the cameras, and we can also. There we go. Please feel free to. Good morning. Yes, good morning. This is Fredrik from Redeye. Hi, Fred. Hi, thank you very much for the presentation. I have some questions. Just kicking off, you sold a pretty good amount of 2G products, especially in West Europe, as you talked about, and this will taper off. How fast will you phase out 2G, you think? Is it next quarter, or is it next six months, or? You could say, I mean, it's very interesting. The best example than that is that one of our major channels in France, they communicated recently from the headquarters to us that there would be no more orders for 2G. 2G stopped. A few days later, their warehouses started placing massive orders, biggest orders ever in 2G, and we just wanted to make sure that this was correct. They said, "Yeah," They disagreed with our headquarters. They still believed in 2G, The headquarters didn't. There is a predicament kind of within the market, I would say that in Nordics, U.K., and for Belgium, there's a much stronger push on the 2G, 3G migration to 4G, whereas especially Germany and DACH, it's a much slower. We will not be phasing out 2G for another year easily, I would say, in Germany. As I said, maybe things can change fast, but given the latest meetings I've had in Germany, I do not see 2G disappearing for at least another year. As I said, all French mobile operators communicated a switch off. At the same time, they continue ordering. I wish it was kind of black and white, but most of it is kind of gray. Nordic is probably the region where we come the farthest with 4G only, basically. Even there, we get results in 2G. Sorry. It's not a risk that you will have a lot of 2G phones in the inventory and can't sell them? We were a bit worried, as I said. I mean, obviously. Mm ... had the same thoughts like you, we see these reordering coming even from regions which have communicated they would not. On top, we get the orders from the, from the DACH region. It's been really good for us. Okay. Okay, good. I mean, from a technology point of view, it would have been nice if there was only 4G, we could focus on one technology. From a sales point of view, it's quite nice that the regions are coming in different timings. Yeah, I guess the margin is pretty good on 2G phones, right? Yeah, the margins is pretty good on. Sorry, yes. On 2G phones. Yeah. Yeah. Yeah, yeah. Absolutely. Sorry. Good. Correct. I have one question regarding the organic growth. I mean, X currency was - 10%. This currency effect, was it due to a full FX hedge, or was it part? I need to- I didn't understand. The part is the hedging, since we are selling euros, and we committed to sell euros when they were at a much lower rate as a SEK, some five months ago. The other part is the regular current rate for. It's it's it's I've lost myself. It's a big euro Forex of a couple of million EUR that decrease our sales in Q2. Okay. And, I mean, so the SEC is now strengthening, a bit towards- Yes ... the US dollars. Going forward, how should we think about the hedge now? I mean, you hedge, like, 50%, or how should I think? Yes, exactly. We have actually adapted our hedging policy. We hedge a little bit because it's so such turbulent time that we realize that the hedging, which is still, is the probably the best way to protect ourselves from deviation, might not be always optimal if we were to hedge a lot. Now we are down to, we have a flexibility between 50%-90%, and we are closer to 50% in order to minimize the loss from hedging. Mm. It will be. We had to buy some U.S. dollar when it was a bit higher than it is today, we might have a little. Delay. Yeah, delay and a bad effect from this, but not as we saw last year. For the euro, it could be the opposite, so it's actually quite hard to predict. 'Cause we buy U.S. dollar, we sell mostly euro and GBP, so the one usually allow us to offset. The best would be that the Swedish krona will stabilize. Yeah. Get a bit stronger and stabilize. Yeah. Yeah, I understand it's really tough. This also spilled over to a strong gross margin. Yes. I know you don't guide, but I mean, I was thinking about 36% throughout the full year, but do you think we can manage to get above 38% this year, or? We shouldn't really be making those predictions, but I mean. Mm It's been a good quarter in the gross margin point of view. Yeah. Yeah. You don't see the freight costs coming up anytime soon. I mean, they should stabilize down here, right? As it is now, I don't see that happening. Again, who saw that happening when Russia invaded Ukraine, and all of a sudden, half of the transportation disappeared overnight? Mm. I don't know. No, I think the freight cost will remain stable. What we see is that when we release new product, as we will do in Q3, we might have to have a bit more air. Yeah. Mm. In that sense, it could be a little higher than in Q1 and Q2, nowhere near what we have experienced last year. Our logistic department is really working super good with the stock and the purchasing, so I think freight will remain low. Yeah. Comparatively less. Comparatively. Yeah. Mm. Makes sense. Moving on to the R&D cost. Yep ... in the quarter. For the first half year, it's, like, SEK 38 million. Will you continue to spend R&D throughout the year, or will you? Yes back off? No, no, definitely. I mean. Yeah ... basically, we can't capitalize it because, you know, let's say it takes one year, one and a half years maybe. If you develop a new feature, and it takes probably one year all in all, and then it's from really from the first day until it's on the shelf. Obviously, now, as we move into more advanced and new stuff, it takes longer time, and we won't be able to activate and capitalize on these costs unless a product is actually launched. Obviously, there is a whole process of steps going through. We start products, we test them, and then some of them, they will not pass our rigorous test. I'm not talking about technical test only, it's also for financial and the business proposition, where we say, "Okay, we tried it. It didn't work. Let's close it down." That money then becomes OpEx. It's an investment from our point of view, but it doesn't look like a CapEx investment. ... yes, we will continue, because otherwise, what should we do? I mean, we think that feature phone will probably continue living for another 10 years. I think 10 years ago, people told us the feature phone was gone. This is a testament that it's not. That said, the number of people using feature phone, which is our strength, is declining. Therefore, we are expanding into other areas. Hence, we need to invest. Yes, we will continue investing during the year for R&D. Okay. The same goes for the sales cost as well. Yes ... continue to spend there. Yeah. Definitely. I mean, the current products, let's say the feature, and that's a mature market, we don't have to spend so much. On the new products, I mean, now we're moving into new things, and we're releasing this, what we call the HearingBuds, very soon. Obviously, that's in a sector, in a category where we haven't been before. Of course, with the big retailers, the Currys, and the MediaMarkts, and then Amazon, et cetera, we have a lot of credibility. It's still a new buyer, and it's a new segment, and we need to reach out to customers who maybe did not associate Doro with this kind of product before. Yes, we will have to invest in itself. We also believe that we stepped up the game by creating these senior corners, by launching a pop-up store, et cetera, et cetera. We wanna be seen by the customer. We wanna be close to the end users. Okay. The sales and marketing cost will continue. You mentioned it in your closing remarks that the order intake and the order book looked pretty good. I mean, it was pretty strong. Can you talk more about it? Do you think we're seeing a turnaround now, or? If I say yes, then probably everything's gonna come to a stop, I'm sure. I mean, I would say that there was a trend break this now. I mean, it, our customers have been very cautious in reordering, partly because of, you know, the, what you call it, the hangover from COVID, and then running into the Ukraine crisis. Also because there was a lot of stock out there in the warehouses of our customers, and then a lot of consolidations took place. Some of the biggest distributors, they started consolidating the warehouse in different countries, and then they realized, "Wow, we're sitting on a lot of goods." Most of the times, it was not a lot of Doro goods, but they were sitting on a lot of the big phone manufacturer goods, and then they realized that that's hurting them badly, so they stopped all reordering. That seemed to have been eased out now. That year is gone. I think that, in conjunction with the fact that people it sounds horrible, but I think 1 year ago we were all completely outraged by the war in the Ukraine, and of course, we're still thinking it is bad, but people are maybe worrying a little bit less about their own private economy here. Let's not forget, I mean, in six months ago, in November or something in December, when people saw their electricity bills going to EUR 1,500 a month, you get really, really worried, and then you do not go to the shop at all. People have come to terms with it, come to grips with it, so people are coming back a little bit more to the stores, therefore, I think our customers are seeing that. Hence, our customers are feeling a little bit less reluctant to place reorders early on, whereas previous quarters, they were really waiting and postponing their reorders till they were basically empty in the warehouse. They would rather go empty than having one stock too many. Yes, I do think it's a turnaround, but it was clear trend break now where we had an order backlog well over SEK 100 million. Let's hope it continues, but if I say it will, it probably won't. I hear you. I just have one more question that, then my questions is over. You managed to take down the inventory quite a lot. I mean, it's now 21% of rolling 12-month sales. I think you have to go back all the way to Q2 2021 to see that. Yeah. Is it your intention to be this slow going forward? Can you manage or do you need to increase it? No, it's our intention, and even though we keep on selling 2G, there will be less different SKU in our portfolio. Hopefully we will decrease even further the inventory. Having said that, we will release some new product. Mm. Well, you never know how they will fly in the first, in the first period. It might increase at some point, but I think it is our aim. Mm. to keep it fairly low. I think. Okay historically, Doro was quite good at building up a big inventory, if you put it that way, which, of course, our customers loved, 'cause they could basically call us on a Friday and say, "Hey, can I have my delivery on Monday?" We could. From a customer point of view, that was great, but from our financial point of view, it was not. That is not the way we do business anymore. Since quite some years now, two, three years, we're really making sure that the warehouse is optimized that way. That said, we noticed during the first six months of COVID, and all of a sudden, there were no components whatsoever. When we hedged very low, then, that was bad. During the, let's say, the last 18 months of COVID, we built up quite a warehouse, but that was also a competitive advantage, 'cause most of our competitors, including the big guys, they could not deliver, whereas we could deliver throughout all of COVID. Assuming we don't have another new crisis, you know, let's not even think about some countries invading a place where they make a lot of chipsets, et cetera, yeah, then we should definitely, or we are definitely striving to optimize our inventory. When things happen, to sit with some inventory and be able to deliver, that can also be gold. How much of the inventory is 2G, roughly? Let me see. Like one -third or 20% or 10%? Let me check that. I don't know. Can we come back to you on that one? Yeah, yeah. I don't know by heart. No problem. Yeah. We'll make a note. Okay, that. Come back to you for it. Yeah. That was all for me. Thank you very much. Okay. Thank you, Fredrik. Any more questions from anyone? Be happy to take. Please don't forget to unmute. I see there are quite a lot of guests here today. No? Leave it another 30 seconds in case there's somebody trying to get online. I think, thank you very much for your attention. Wishing you all a fantastic summer. Hope you get some time off. We aim to do that. We will see you in October for the Q3 report. Have a nice one. Take care. Goodbye. Bye-bye.