DORO

Quarterly Report • Oct 27, 2023

January-September ²⁰²³ Q3 Interim Report

Quarter 3 2023 in summary

 Doro's net sales amounted to SEK 272.7 million (241.2), an increase of 13.1 percent.	+13.1 %
 Gross margin was 43.4 percent (37.7).
 EBITDA amounted to SEK 48.4 (37.7), an increase of 28.4 percent.	Net sales
 Operating profit (EBIT) amounted to SEK 38.9 million (26.9), corresponding to an operating margin of 14.3 percent (11.2).	14.3 %
 Profit after tax for the period was SEK 22.0 million (16.6) and earnings per share was SEK 0.90 (0.68).	EBIT-margin
 Free cash flow was SEK 65.8 million (‑18.2).
January-September 2023 in summary

 Doro's net sales amounted to SEK 684.0 million (644.1), an increase of 6.2 percent.	+6.2 %
 Gross margin was 40.2 percent (35.2).
 EBITDA amounted to SEK 76.4 (68.2), an increase of 12.0 percent.	Net sales
 Operating profit (EBIT) amounted to SEK 43.1 million (35.2), corresponding to an operating margin of 6.3 percent (5.5).	6.3 %
 Profit after tax for the period was SEK 26.7 million (24.9) and earnings per share was SEK 1.10 (1.02 ).	EBIT-margin

Free cash flow was SEK 64.0 million (2.6).

KEY FIGURES	2023	2022		2023	2022		2022
SEK million	Quarter 3	Quarter 3	%	Jan-Sep	Jan-Sep	%	Full year
Net sales	272.7	241.2	13.1%	684.0	644.1	6.2%	909.5
Net sales growth, %	13.1	-10.5		6.2	-11.6		-12.5
Gross result	118.3	90.8	30.3%	274.7	226.9	21.1%	317.6
Gross margin, %	43.4	37.7		40.2	35.2		34.9
EBITDA	48.4	37.7	28.4%	76.4	68.2	12.0%	100.4
EBITDA margin, %	17.7	15.6		11.2	10.6		11.0
EBIT	38.9	26.9	44.6%	43.1	35.2	22.4%	55.4
EBIT margin, %	14.3	11.2		6.3	5.5		6.1
Earnings per share, SEK	0.90	0.68	32.4%	1.10	1.02	7.8%	1.68
Equity/assets ratio, %	55.9	47.7		55.9	47.7		52.6

MESSAGE FROM THE CEO

High activity level with strong results

The third quarter of the year is typically a busy period with major fairs and heightened marketing and sales activities in preparation for Black Friday and Christmas. This year's third quarter proved to be robust for us, marked by increases in sales, profit, and cash flow. Despite a declining market in our regions, we expanded market share and grew sales in most countries, driven by our successful early migration of 2G to 4G technology.

The transition to 4G continues to yield favourable results. We have managed the sunset of 2G in France and Sweden without any lingering 2G inventory concerns, even though the transition occurred faster than expected. The range of 4G products launched last year has emerged as bestsellers in these countries with strong margins. Furthermore, by the end of September, we introduced our new range of better positioned 4G products ahead of schedule, intended as a direct replacement of our 2G phones and providing us with a comprehensive portfolio.

Major sales numbers from the non-phones' portfolio have yet to be realised, but thanks to the success of the 4G portfolio, our thirdquarter sales reached SEK 272.7 million, reflecting an increase of 13.1% compared to the same quarter last year. Gross margin reached 43.4%, driven by several factors in our favour, including portfolio mix, low freight costs, and positive foreign currency effects. While operational costs increased compared to the previous year, as planned, the strong sales and high margin generated an EBIT of SEK 38.9 million, corresponding to an EBIT margin of 14.3% compared to 11.1% the same quarter last year.

Another highlight for the quarter was free cash flow reaching SEK 65.8 million. This result reflects a strong EBIT, and a positive development of working capital.

In early September, we participated at the IFA Telecom Fair in Berlin, where we launched Doro HearingBuds. The development of the HearingBuds has required extensive time and effort from our R&D team to ensure that the new technology meets our desired quality standards. We are proud to deliver a product that can truly make a difference for individuals suffering from minor hearing impairment, or for those simply wanting to listen to music with crystal-clear sound. At IFA, we also pre-announced the forthcoming Doro DoorBell product.

" Despite a declining market in our regions, we expanded market share and grew sales in most countries, driven by our successful early migration of 2G to 4G… "

" The transition to 4G continues to yield favourable results… and the 4G products have emerged as best sellers with strong margin

" Our third-quarter sales reached SEK 272 million (+13%)… with a gross margin at 43% …The strong sales and margin generated EBIT of SEK 38.9M with an EBIT margin of 14% " Since the IFA Fair, the HearingBuds product has garnered positive media coverage and good feedback from reviewers, customers, and users. In preparation for the upcoming commercial launch, we have developed a hearing simulator which has been made available on our website, allowing potential users to experience the benefits of our HearingBuds product first hand.

A milestone in September was the opening of the first Doro pop-up store, located in the southern city of Malmö, in one of the largest shopping malls in Scandinavia. While we anticipate that this store will raise brand awareness and promote our products, the primary objective is to be able to directly engage with our end-users, the seniors, and their relatives to gain valuable insights into their needs and preferences.

Throughout the third quarter, our Products and R&D teams have been working on the Ecodesign Directive which is expected to significantly impact the mobile phone market in the near future. The Ecodesign Directive establishes a framework for implementing mandatory ecological standards for energy-using and energy-related products. This Directive directly affects the development of all our – and the whole industry's - future products, with specified requirements pertaining to durability, energy efficiency, recyclability, environmental impact, and waste reduction.

While the interpretation and implementation of the Ecodesign directive necessitate significant resources from our side, we believe that our well-designed and purpose build products, positions us well for future.

We close the third quarter knowing that we stand on solid financial ground, have good sales, order intake and healthy margins, and exciting new products just about to be launched.

Jörgen Nilsson, President and CEO

"… The HearingBuds have garnered positive media coverage and good feedback from reviewers, customers, and users… We have developed a hearing simulator available allowing users to first hand experience the benefits of the Doro HearingBuds."

" We close the third quarter standing on solid financial ground, with good sales, order intake and healthy margins, and exciting new products about to be launched."

QUARTER HIGHLIGHTS

In the third quarter, net sales reached SEK 272.7 million (241.2), an increase of 13.1% compared to the same period last year. Despite the ongoing decline in both feature and smart phone markets, we saw good momentum in three of four regions across all sales channels. Unlike the sales dip experienced last year during the summer months, this year we maintained a strong performance and had an additional late-quarter push, which helped deliver sales growth in the quarter.

The success of our 4G feature phones significantly contributed to the sales growth, and we also observed a positive trend in smart phone sales. By increasing the share of these higher-value products, we continued to grow turnover, even though the volume of units shipped somewhat declined. At the same time, Doro presence in the 2G category continues to remain strong in regions where the technology transition has not yet taken off, such as Germany.

Sales in the Nordics grew to SEK 71.2 million (47.0), an increase of

51.5 percent, as third quarter of last year presented major challenges in the region. In contrast, this year saw steady demand as customers completed the transition to new network technology. Our B2B business also remained robust in the region, with the main Swedish operator continuing to place substantial orders of 4G, DECT and cordless phones, intended to replace their fixed line portfolio.

Sales in Western and Southern Europe increased by 11.1 percent, reaching SEK 106.4 million (95.8) in the quarter. The transition to 4G is now underway across all distribution channels in the region, and we estimate that there are still around one million 2G phones active in France. The retail sector also demonstrated a quite strong resurgence compared to previous year when facing challenges of low sales and high inventory levels. Additionally, smart phones exhibited a good trend thanks to the success of our latest Doro 82xx series.

Sales in Central and Eastern Europe totalled SEK 44.6 million (54.8), a decrease of 18.6 percent. The decline stems from reduced volumes of non-strategic products, which aligns with our strategic plan to reshape the business in Germany. Strategic products showed a slight decline primarily explained by slow performance of our e-commerce as we are redefining our Amazon business.

Sales in UK and Ireland reached SEK 50.5 million (43.6), an increase of 15.8 percent. The favourable momentum from previous quarter continued into this period. Increased marketing activities in radio, online and social media advertising, resulted in increased sales and higher volume of visitors to the doro.co.uk website and the regional Doro Amazon store. Within traditional channels, retail and operators, the transition to 4G continued to provide favourable results. Good store sales numbers of our first deliveries, have prompted re-orders and boosted overall sales.

NET SALES PER MARKET	2023	2022		2023	2022		2022
SEK million		Quarter 3 Quarter 3	%	Jan-Sep	Jan-Sep	%	Full year
Nordics	71.2	47.0	51.5	179.0	138.2	29.5	187.1
West, S. Europe and Africa	106.4	95.8	11.1	263.2	240.7	9.3	348.4
Central and Eastern Europe	44.6	54.8	-18.6	114.0	153.0	-25.5	212.5
UK and Ireland	50.5	43.6	15.8	127.8	112.5	13.6	161.6
Other	0.0	0.0	na	0.0	-0.2	na	-0.2
Total	272.7	241.2	13.1	684.0	644.1	6.2	909.5

At the end of the third quarter, the order backlog reached SEK 108.1 million, an increase of 7.5 percent compared to the same quarter last year.

The gross margin for the third quarter was 43.4 percent compared to 37.7 percent previous year. As in prior quarters, the advantageous gross margin was primarily attributable to last year's price increase, favourable developments in product costs, improved product portfolio mix, and a significant foreign exchange effect on sales due to the weakened Swedish krona.

Freight costs continued to positively impact margin when compared to last year. The sea-to-air transportation ratio was also this quarter successfully managed, despite the launch of new products, which typically necessitate expedited air shipments.

Other items affecting margin, including outbound freight, warranty costs, and inventory depreciation, remained stable. Royalty costs increased as a percentage of sales, as expected due to increased share of 4G feature phones and smartphones, both categories that incur higher license costs.

During the third quarter, EBIT reached SEK 38.9 million (26.9), corresponding to an EBIT margin of 14.3 percent (11.2). Planned marketing and sales activities conducted throughout the quarter, including fairs and pop-up stores, along with preparations for the HearingBuds launch, contributed to the increase in operating costs. Concurrently, our R&D team initiated extensive work related to compliance with the Ecodesign Directive, which will now be an integral aspect of all future developments. Several new projects currently in the pre-study phase, generated additional costs.

Profit for the period amounted to SEK 22.0 million (16.6) during the third quarter. Net financial items amounted to SEK ‑8.4 million (‑4.1). The effective tax rate for the period was 21.3 percent (21.1).

KEY FIGURES	2023	2022		2023	2022		2022
SEK million		Quarter 3 Quarter 3	%	Jan-Sep	Jan-Sep	%	Full year
Net sales	272.7	241.2	13.1%	684.0	644.1	6.2%	909.5
Cost of goods and services sold	-154.4	-150.4	2.7%	-409.3	-417.2	-1.9%	-591.9
Gross profit	118.3	90.8	30.3%	274.7	226.9	21.1%	317.6
Gross margin, %	43.4	37.7		40.2	35.2		34.9
Other operating expenses	-79.4	-63.8	24.5%	-231.6	-191.7	20.8%	-262.2
Operating profit (EBIT)	38.9	26.9	44.6%	43.1	35.2	22.4%	55.4
Operating margin (EBIT margin), %	14.3	11.2		6.3	5.5		6.1

Order book	108.1	100.6	7.5%	108.1	100.6	7.5%	67.0
Order intake	278.2	255.3	9.0	725.1	670.2	8.2%	902.0
Investment product development	7.3	13.8	-47.1%	20.0	28.0	-28.6%	37.8

FINANCIAL DEVELOPMENT

Cash flow, investments, and financial position

Cash flow from operating activities during the quarter was SEK 73.1 million (‑4.4). The improvement was driven by higher EBIT and lower working capital. Lower inventory and higher accounts payable were the main drivers behind the improvement of working capital. Free cash flow after investments amounted to SEK 65.8 million (‑18.2). Investments during the period amounted to SEK 7.3 million (13.8).

Cash and cash equivalents totalled SEK 167.4 million (117.4) at the end of the third quarter. The equity ratio was 55.9 percent (47.7)

Net cash amounted to SEK 135.3 million at the end of the third quarter, compared with net cash of SEK 74.9 million at the end of the previous quarter, and net cash of SEK 27.2 million at the end of the third quarter of 2022.

FREE CASH FLOW (SEK m)

Significant events during the period

No significant events during the period.

Significant events after the period

No significant events after the period.

OTHER INFORMATION

Equity and the Doro share

Doro's share is listed on Nasdaq Stockholm, Small Cap, in the segment Telecom/IT. On 30 September 2023, the number of issued shares was 24.532.500, of which Doro AB holds 206.286 Doro shares. Total equity amounted to SEK 515.1 million (457.3).

Employees

On 30 September 2023, Doro had 114 (112) employees, corresponding to 111 (107) full-time equivalents. Of these employees, 62 (57) were based in the Nordic region, 21 (23) in Central and Eastern Europe, 12 (13) in Western and Southern Europe and Africa, 8 (8) in the United Kingdom and Ireland and 11 (11) in the rest of the world.

Risks

Geopolitical instability and conflicts are very tangible risks at the moment, as the same time as the fear of inflation and rising interest rates seem to gradually fade away. The volatility of the exchange rate of the main currencies against the Swedish krona is an important factor of uncertainty for the Doro business, highly exposed to foreign currencies. The technology shift and the increased technical requirements in connection with the focus on sustainability are a risk too but can also prove to be an opportunity in future. Cyber-attacks are an increasing risk and cyber security is very much on top of our IT department priority.

Other risks are described on pages 32–33 of the Annual Report 2022.

Parent company

The parent company's net sales during the third quarter totalled SEK 245.3 million (207.9). Profit after tax amounted to SEK 14.2 million (12.0).

Accounting principles

This interim report has been prepared for the group in accordance with IAS 34. "Interim Financial Reporting." and for the parent company in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2. "Accounting for legal entities." Government assistance received is reported as other income. The accounting principles and calculation methods applied correspond to those that were used to prepare the most recent annual report.

FINANCIAL REPORTS

GROUP

INCOME STATEMENT	2023	2022	2023	2022	2022
SEK million Doro Group		Quarter 3 Quarter 3	Jan-Sep	Jan-Sep	Full year
Net Sales	272.7	241.2	684.0	644.1	909.5
Cost of goods and services sold	-154.4	-150.4	-409.3	-417.2	-591.9
Gross profit	118.3	90.8	274.7	226.9	317.6
Selling, distribution and marketing expenses	-53.3	-39.1	-140.1	-113.3	-152.5
Research and development expenses	-14.0	-14.7	-52.2	-45.4	-64.4
Administrative expenses	-14.5	-11.0	-45.1	-37.1	-50.9
Other income and expense	2.4	0.9	5.8	4.1	5.6
Total operating expenses	-79.4	-63.9	-231.6	-191.7	-262.2
whereof depreciation and amortization of intangible				-33.0
and tangible fixed assets	-9.5		-10.8 -33.3		-45.0
Operating profit/loss before depreciation and		37.7	76.4	68.2
amortization (EBITDA)	48.4				100.4
Operating profit/loss after depreciation and
amortization (EBIT)	38.9	26.9	43.1	35.2	55.4
Net financial items	-8.4	-4.1	-6.5	-1.4	-10.9
Profit/loss before taxes	30.5	22.8	36.6	33.8	44.5
Taxes	-8.5	-6.2	-9.9	-8.9	-3.6
Profit/loss for the period	22.0	16.6	26.7	24.9	40.9
Average number of shares, thousands	24 326	24 326	24 326	24 326	24 326
Average number of shares after dilution, thousands*	24 326	24 326	24 326	24 326	24 326
Earnings per share, SEK	0.90	0.68	1.10	1.02	1.68
Earnings per share after dilution, SEK*	0.90	0.68	1.10	1.02	1.68

*The effect of dilution is considered only when the effect on earnings per share is negative.

STATEMENT OF COMPREHENSIVE INCOME	2023	2022	2023	2022	2022
SEK million Doro Group		Quarter 3 Quarter 3	Jan-Sep	Jan-Sep	Full year
Profit/loss for the period	22.0	16.6	26.7	24.9	40.9
Other comprehensive income to be reclassified to
profit or loss in subsequent periods:
Translation differences	-4.4	3.5	9.3	11.1	13.5
Effects from cash flow hedges	3.4	-5.1	5.1	-1.9	-2.8
Tax on items that may be reclassified to profit or loss	-0.7	1.1	-1.0	0.4	0.5
Other comprehensive income, total	-1.7	-0.5	13.4	9.6	11.2
Other comprehensive income related to Parent company's shareholders	20.3	16.1	40.1	34.5	52.1

STATEMENT OF FINANCIAL POSITION	2023	2022	2022
SEK million Doro Group	30-Sep	30-Sep	31-Dec
Non-current assets
Intangible assets	283.8	283.4	285.5
Property, plant and equipment	13.2	16.8	17.4
Financial assets	40.7	52.8	38.6
Deferred tax asset	14.4	13.9	14.2
Current assets
Inventories	183.2	240.7	208.4
Current receivables	219.2	233.5	185.3
Cash and cash equivalents	167.4	117.4	154.4
Total assets	921.9	958.6	903.8
Shareholders' equity attributable to Parent company's shareholders	515.1	457.3	475.0
Long term liabilities, interests-bearing	28.4	87.1	86.3
Long term liabilities, non-interests bearing	41.5	50.3	48.1
Current liabilities, interests-bearing	6.5	6.7	7.3
Current liabilities, non-interests bearing	330.4	357.2	287.1
Total shareholders' equity and liabilities	921.9	958.6	903.8
		2022	2022
Financial instruments recognized at fair value in the Balance Sheet	2023
SEK million Doro Group	30-Sep	30-Sep	31-Dec
Exchange rate contracts recorded as current liability	0.9	5.3	14.1
Exchange rate contracts recorded as current receivable	2.6	10.8	0.1
Hybrid loan	40.3	52.3	38.0

Financial instruments recognized at fair value consist of currency forward contracts and are used primarily for hedging purposes and are measured at level 2.

STATEMENT CASH FLOWS	2023	2022	2023	2022	2022
SEK million Doro Group	Quarter 3	Quarter 3	Jan-Sep	Jan-Sep	Full year
EBIT	38.9	26.9	43.1	35.2	55.4
Depreciation according to plan	9.5	10.8	33.3	33.0	45.0
Net paid financial items	-0.3	-0.6	0.4	-1.8	-2.2
Unrealized exchange rate differences in cash flow hedges	-3.1	-5.2	-10.6	-6.7	11.9
Income tax paid	-3.1	-3.2	-12.7	-24.3	-25.6
Change in working capital (incl. changes in provision)	31.2	-33.1	30.6	-4.4	-11.4
Cash flow from current activities	73.1	-4.4	84.1	31.0	73.1
Investments in intangible and tangible assets	-7.3	-13.8	-20.1	-28.4	-38.0
Free cash flow before acquisitions	65.8	-18.2	64.0	2.6	35.1
Cash flow from investing activities	-7.3	-13.8	-20.1	-28.4	-38.0
Amortization of debt	-31.8	-1.9	-60.6	-80.6	-82.4
Cash flow from financing activities	-31.8	-1.9	-60.6	-80.6	-82.4
Exchange rate diff in cash and cash equivalents	-4.9	5.0	9.6	16.3	22.6
Change in liquid funds	29.1	-15.1	13.0	-61.7	-24.7
Net cash	135.3	27.2	135.3	27.2	63.6
Net debt	-	-	-	-	-

STATEMENT OF CHANGES IN EQUITY	2023	2022	2022
SEK million Doro Group	30-Sep	30-Sep	31-Dec
Opening balance	475.0	422.9	422.9
Total Comprehensive income related to Parent company's shareholders	40.1	34.5	52.1
Closing balance	515.1	457.3	475.0

OTHER KEY FIGURES	2023	2022	2022
SEK million Doro Group	30-Sep	30-Sep	31-Dec
EBITDA	76.4	68.2	100.4
Equity/assets ratio, %	55.9	47.7	52.6
Number of shares at the end of the period, thousands	24 326	24 326	24 326
Number of shares at the end of the period after dilution, thousands*	24 326	24 326	24 326
Equity per share, SEK	21.17	18.80	19.53
Equity per share, after dilution SEK*	21.17	18.80	19.53
Return on average shareholders' equity, %	8.8	12.4	9.1
Return on average capital employed, %	15.1	17.1	13.1
Share price at period's end, SEK	16.7	14.72	14.86
Market value, SEKm	406.2	358.1	361.5

*The effect of dilution is considered only when the effect on earnings per share is negative.

PARENT COMPANY

INCOME STATEMENT	2023	2022	2023	2022	2022
SEK million Parent company	Quarter 3	Quarter 3	Jan-Sep	Jan-Sep	Full year
Net Sales	245.3	207.9	628.8	573.1	808.0
Cost of goods and services sold	-141.5	-130.2	-388.5	-379.0	-543.5
Gross profit	103.8	77.7	240.3	194.2	264.5
Operating expenses	-74.2	-58.3	-221.0	-177.3	-245.3
Operating profit/loss (EBIT)	29.6	19.4	19.3	16.9	19.2
Net financial items	-9.4	-3.6	9.4	2.0	-7.0
Profit/loss after financial items	20.2	15.8	28.7	18.9	12.2
Taxes	-6.0	-3.8	-4.2	-4.3	-6.6
Profit/loss for the period	14.2	12.0	24.5	14.6	5.6
STATEMENT OF COMPREHENSIVE INCOME	2023	2022	2023	2022	2022
SEK million Parent company	Quarter 3	Quarter 3	Jan-Sep	Jan-Sep	Full year
Profit/loss for the period	14.2	12.0	24.5	14.6	5.6
Other comprehensive income to be
reclassified to profit or loss in subsequent
periods:
Effects from cash flow hedges	3.4	-5.1	5.1	-1.9	-2.8
Tax on items that maybe reclassified to profit or loss	-0.7	1.1	-1.0	0.4	0.5
Total Result related to Parent company's shareholders	16.9	8.0	28.6	13.1	3.3

STATEMENT OF FINANCIAL POSITION	2023	2022	2022
SEK million Parent company	30-Sep	30-Sep	31-Dec
Non-current assets
Intangible assets	47.7	55.1	54.6
Property, plant and equipment	0.6	0.8	0.9
Financial assets	112.3	124.3	110.2
Current assets
Inventories	153.7	198.7	171.5
Current receivables	404.2	419.7	370.7
Cash and cash equivalents	156.0	104.9	142.4
Total assets	874.5	903.5	850.3
Shareholders' equity attributable to Parent company's
shareholders	253.9	235.1	225.3
Provisions	67.9	75.1	72.2
Long-term liabilities	20.0	75.0	75.0
Current liabilities	532.7	518.3	477.8
Total shareholders' equity and liabilities	874.5	903.5	850.3

FINANCIAL DEFINITIONS

Average number of shares after	Average number of shares adjusted with the dilution effect
dilution	from warrants is calculated as the difference between the
	assumed number of shares issued at the exercise price and
	the assumed number of shares issued at average market price
	for the period.
Earnings per share	Profit/loss after financial items minus tax divided by average
	number of shares for the period.
Earnings per share, after dilution	Profit/loss after financial items minus tax divided by the
	average number of shares for the period after dilution.
Number of shares at the end of the	The number of shares at the end of the period adjusted with
period, after dilution	the dilution effect from warrants is calculated as the
	difference between assumed number of shares issued at the
	exercise price and the assumed number of shares issued at
	the closing market price at the end of the period.
Equity per share	Shareholders' equity at the end of the period divided by the
	number of shares at the end of the period.
Equity per share, after dilution	Shareholders' equity at the end of the period divided by the
	number of shares at the end of the period, after dilution.
Net Debt/Net Cash	Cash and bank balances reduced with interest-bearing
	liabilities.
Market value, SEK m	Share price at period's end times the number of shares at the
	end of the period.

Use of non-IFRS performance measures

Guidelines on Alternative Performance Measures (APMs) for companies with securities listed on a regulated market within the European Union have been issued by ESMA (the European Securities and Markets Authority). These guidelines apply to APMs disclosed when publishing regulated information on or after July 3, 2016. Reference is made in the interim report to a number of non-IFRS performance measures that are used to help investors as well as management analyse the company's operations. Described below are the non-IFRS performance measures that are used as a complement to the financial information that is reported in accordance with IFRS.

Description of financial performance measures that are not used in IFRS

Non-IFRS performance measure	Description	Reason for use of measure
Gross Margin %	Net Sales minus Cost of goods and services sold in percentage of Net Sales.	Gross Margin is an important measure for showing the margin before Other operating expenses.
Sales growth comparable entities %	Net Sales for the period minus Net Sales for entities acquired during the year minus Net Sales for the corresponding period last year in percentage of Net Sales for the corresponding period last year.	Sales growth for comparable entities shows the Group's organic growth excluding acquired businesses.

Currency adjusted Sales growth %	Net Sales for the period minus Net Sales for the corresponding period last year recalculated using this year's currency exchange rates in percentage of Net Sales for the corresponding period last year recalculated using this year's currency exchange rates.	The measure shows the Sales growth excluding the effect of changes in currency exchange rates between the years.
Equity/assets ratio	Equity expressed as a percentage of total assets.	A traditional measure for showing financial risk, expressing the amount of restricted equity which is financed by the owners.
Return on average shareholders' equity	Profit/Loss rolling twelve months after financial items and tax divided by average shareholders' equity.	Shows from a shareholder perspective the return that is generated on the owners' capital that is invested in the company.
Capital employed	Total assets reduced with non interest-bearing debt and cash and bank balances.	This measure shows the amount of total capital that is used in the operations and is thus one component for measuring the return from operations.
Return on average capital employed	Operating profit/loss rolling twelve months, divided by the quarterly average capital employed excluding cash and bank balances.	This is the central ratio for measuring the return on the capital tied up in operations.

Calculation of financial performance measures that are not defined in IFRS

	2023	2022	2023	2022
	Quarter 3	Quarter 3	30-Sep	30-Sep
Currency adjusted sales growth (MSEK)
Currency adjusted sales growth	9.6	-41.0	0	0
Currency effect	21.9	12.8	0	0
Reported sales growth	31.5	-28.2	0	0
Capital employed
Total assets	922.3	958.7	921.9	958.6
Non-interest-bearing liabilities	371.9	411.1	371.9	407.5
Cash and bank	167.4	117.4	167.4	117.4
Reported capital employed	383.0	430.1	382.6	433.7

CONFIRMATION BY THE BOARD

The board and CEO affirm that this Interim Report provides an accurate overview of the operations, position and earnings of the company and group and that it also describes the principal risks and uncertainty factors faced by the company and its subsidiaries.

Malmö, 27 October 2023

Henri Österlund Chairman of the board

Juha Mört Board member Victor Saeijs Board member

Noora Jayasekara Board member

Fredrik Löthgren Board member

Jörgen Nilsson President & CEO

Auditor's report

DORO AB (publ), corp. reg. no. 556161-9429

Introduction

We have reviewed the condensed interim financial information (interim report) of DORO AB (publ) as of 30 September 2023 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Malmö, 27 October 2023

PricewaterhouseCoopers AB

Vicky Johansson Fredrik Aprili Authorized Public Accountant Authorized Public Accountant Auditor in charge

REPORT DATES

Q4 report January-December 2023	15 February 2024
Q1 report January-March 2024	26 April 2024

The Annual General Meeting will be held in Malmö on 26 April 2024.

CONTACT

For further information. please contact: Jörgen Nilsson, President and CEO, +46 (0)73 101 28 01 E-post: ir@doro.com

WEBCAST

A video conference call will be held on Friday, 27 October at 9.00 am (CEST) when President and CEO Jörgen Nilsson and CFO Isabelle Sengès will present the report. The videoconference is accessed at Quarterly report meeting (doro.com). The presentation material is available on Doro's financial website Presentations (doro.com).