Annual Report • Feb 17, 2016
Annual Report
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Doro AB Corporate Identity Number 556161-9429
2016 sales and profit for the group are expected to increase.
| 2015 | 2014 | 2015 | 2014 |
|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| 625.6 | 437.1 | 1,838.0 | 1,276.2 |
| 43.1 | 14.7 | 44.0 | 11.7 |
| 71.8 | 45.5 | 139.2 | 122.6 |
| 11.5 | 10.4 | 7.6 | 9.6 |
| 61.2 | 36.8 | 105.1 | 85.8 |
| 9.8 | 8.4 | 5.7 | 6.7 |
| 58.7 | 35.2 | 95.2 | 79.7 |
| 9.4 | 8.1 | 5.2 | 6.2 |
| 42.4 | 22.4 | 63.8 | 58.2 |
| 1.82 | 1.06 | 2.78 | 2.76 |
| 40.4 | 39.3 | 40.4 | 39.3 |
*) Note 3.
43.1%
Net sales growth
EBIT margin
Strong growth, 43% in both Q4 and for the full year 2015
Doro Care serves more than 65% of Swedish municipalities
More than 80,000 subscribers and SEK 71m in recurring revenues
Additional alarm receiving center in Kalix, Sweden
The Doro Connect and Care App will be launched at MWC
A solid platform provides confidence to seize strategic opportunities
It is with great satisfaction that I look back on a strong 2015. Doro delivered more than 43% sales growth in the fourth quarter and for the full year, with a gross margin that gradually has recovered from the rapid US dollar increase one year ago. In the fourth quarter, EBITDA increased 58 percent to 72 MSEK compared to the same quarter last year. Further, the cash flow from current activities improved to 32 MSEK for the fourth quarter compared to negative in same quarter last year. We are entering 2016 as a growth company, now with revenues approaching 2 BSEK and close to 300 employees.
We successfully launched our 4G smartphone in Europe in the fourth quarter and we are looking forward to launching it in the US and Canada during the first quarter 2016. In 2015 we sold about 2.8 million mobile phones (2.5 million in 2014). In terms of specific markets, we experienced particularly strong growth in among others the Baltics, Spain and Italy. In 2015, we invested significantly to develop an improved user interface for our smartphones and cloud connections for relatives of our users.
The Caretech acquisition, now called Doro Care, has during 2015 materialized synergies within sales, marketing, R&D, HR and finance. The integration has been successful and given us a platform for service offerings. Our ambition is to grow our B2B offerings within mobile telecare, increasing average revenue per user and expanding geographically via acquisitions. In 2015 Caretech sales grew 38%, we entered the Norwegian market and achieved good sales in Germany, UK and the Netherlands. To further strengthen our international presence, we are continuously evaluating complementary acquisitions.
In Sweden, the trend toward conversion of analogue personal alarms to digital puts Doro Care at a distinct technical advantage in the market. We now serve over 65% of Swedish municipalities. The number of subscribers has increased by 26,000 to more than 80,000 in 2015, (compared to an increase of 11,000 in 2014), generating SEK 71m in recurring revenues entering 2016. To drive this expansion and offer a 100% redundant service, we have decided to open an additional alarm receiving center in Kalix, Sweden.
The next step of our strategy is to develop a B2C service platform by combining the Doro Care infrastructure with the marketing channels and skills of our consumer device business. Reflecting this ambition, we will in February at the Mobile World Congress (MWC) in Barcelona present the Doro Connect and Care application - a private social network service enabling social connections between Seniors and Carers.
The order book almost doubled to SEK 194m in Q4 2015, which makes me confident in our ability to continue to deliver profitable growth in 2016. I am convinced that our strategy across all our businesses will continue to bear fruit. Particularly within Doro Care, we see high-potential opportunities ahead. The solid platform we established in 2015 provides us with the assurance and ability we need to seize these opportunities.
Doro's net sales in the fourth quarter amounted to SEK 625.6m (437.1), an increase of 43.1 percent compared with the fourth quarter 2014. Adjusted for Caretech net sales grew by 31.6 percent (14.7). Currency adjusted growth for the fourth quarter amounted to 29.0 percent.
The Christmas season contributed strongly to sales growth. Particularly smartphones and the 4G smartphone that was launched in Europe during the quarter boosted sales, but feature phones and accessories generated solid sales as well. Well-received campaigns and strong partnerships also contributed to the success.
The service offerings within Caretech performed well and supported the sales growth. The number of subscribers reached above 80,000 in the fourth quarter and are now generating recurring revenues of SEK 71m on a yearly basis by year-end.
Order intake increased by 43.8 percent for the fourth quarter to SEK 527.5m (366.9). Excluding Caretech, order intake increased by 30.0 percent to SEK 476.9 (366.9). Sales in all regions were strong, and Nordics which is the main market for the service offerings within Caretech, contributed the most with sales growth of almost 60 percent.
The gross margin decreased to 38.5 percent compared to 40.6 percent the corresponding quarter last year as an effect of changed product mix, variation in regional sales volumes and a stronger US dollar. The gross margin improved compared to the third quarter (36.6 percent) as an effect of higher sales in Caretech, lower technology costs and that the company has been able to compensate the higher dollar level in pricing and currency hedging.
EBITDA for the quarter increased compared to last year, to SEK 71.8m (45.5), corresponding to an EBITDA margin of 11.5 percent (10.4).
EBITA for the fourth quarter increased to SEK 61.2m (36.8). Amortization of intangible assets generated in conjunction with company acquisitions, amounted to SEK -2.5m (-1.6), resulting in an EBIT of SEK 58.7m (35.2). The EBIT margin improved to 9.4 percent (8.1).
Net financial items in the fourth quarter were SEK -2.1m (-1.9), including revaluation of financial instruments in foreign currencies.
Group tax in the quarter amounted to SEK -14.2m (-10.9).
Net profit for the period amounted to SEK 42.4m (22.4).
Cash flow from current activities in the fourth quarter improved to SEK 32.1m (-9.8), mainly as an effect of improved results and lower paid taxes. Investments in the fourth quarter were higher than in the corresponding quarter 2014, the main reason being product launches, particularly smartphones.
Cash and cash equivalents at the end of the fourth quarter amounted to SEK 43.9m (78.2).
The equity/asset ratio was 40.4 percent (39.3) at the end of the period. Net debt was SEK 116.6m, compared with SEK 122.9m at the end of the previous quarter and with a net cash position of SEK 36.5m at the end of the corresponding period last year.
To improve our financial flexibility, we have during the fourth quarter signed a new bank agreement that is an extension of our current. The new agreement includes an increased facility that may be used for acquisitions as well as to finance working capital.
The board of directors will announce its proposal for dividend for 2015 in the notice of the Annual General Meeting 2016, which will be published in late March.
Doro announced on January 7 that it has decided to establish a new call center in Kalix, Sweden. As the number of municipalities switching to digital social alarms keep increasing, this is a necessary investment in order to be able to offer a 100% redundancy service. Doro will be the only digital social alarm provider operating two call centers in the Nordic region. The two call centres, including the previous one in Malmö, will offer services in all Nordic languages as well as another 15 more. The call-center in Kalix will open in March 2016.
Announced January 20th, all offerings related to digital and mobile care solutions are now rebranded and organized under one name, Doro Care. At the same time as the rebranding was communicated, Doro Care also launched the alarm device Doro Secure 480. This watch is the result of a joint R&D project with participants from Doro's hardware development team and Doro Care's development team. The watch is an alarm device and mobile phone that offers features such as GPS tracking and Geofencing. (Geofencing uses GPS to send notifications when a person leaves or enters an area preset to personal preferences and as such increasing the security for the elderly.)
DACH
United Kingdom
USA, Canada
Other regions
| Doro Group (SEK m) | 2015 Oct-Dec |
Net sales growth, % |
2014 Oct-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
|---|---|---|---|---|---|
| Nordic | 146.8 | 59.6% | 92.0 | 492.9 | 270.8 |
| Europe, Middle East and Africa | 130.7 | 31.8% | 99.2 | 462.9 | 309.7 |
| Dach (Germany, Austria, Switzerland, Eastern Europe) |
172.0 | 35.3% | 127.1 | 435.8 | 348.0 |
| United Kingdom | 97.7 | 33.3% | 73.3 | 267.9 | 206.4 |
| USA and Canada | 58.6 | 40.5% | 41.7 | 149.5 | 137.3 |
| Other regions | 6.1 | NM | 0.3 | 12.3 | 9.4 |
| Central | 13.7 | NM | 3.5 | 16.7 | -5.4 |
| Total | 625.6 | 43,1% | 437.1 | 1,838.0 | 1,276.2 |
*) Note 3.
Good sales in all channels, physical stores and e-commerce. The Christmas campaigns were successful and focused on smartphones and age. Sales in the Nordic region increased with close to 60% (4.8 percent excluding Caretech). Doro Liberto 825 sold particularly well, as did smartphone accessories. Sales in the Baltics are expanding.
The successful launch of the 4G Doro Liberto 825 boosted sales, however feature phones sold well, too. A campaign with Aldi for the Doro Liberto 820 also generated strong sales successes is the quarter. Progress was further made in the Swiss market with a significant listing with M-Budget Mobile. In the Czech market, and with potential partnerships in other Eastern European markets, progress was made as well. Sales grew ca 35% in DACH.
Sales in France showed a temporary slowdown for a few weeks following the Paris terrorist attacks on November 13, however, sales still increased ca 32 percent in the quarter. Orange France started selling the 4G smartphone and the customers Algeria Telecom, Vodafone Spain and Telcar in Italy contributed to the strong sales.
UK sales growth of ca 33 percent in the fourth quarter was backed by strong sales of Doro Liberto 820 mini and an excellent campaign that established smartphones for seniors as a serious category in the UK. Sales at Tesco retail, EE and O2 also contributed well in the fourth quarter.
Sales in USA and Canada increased by 40.5 percent, supported by pre-sales for a new smartphone in Canada.
Net sales of other regions amounted to SEK 6.1m (0.3).
For the fourth quarter, income and income adjustments not related to any specific region amounted to SEK 13.7m (3.5), mainly related to currency effects and capitalized development costs.
Doro's shares are listed on Nasdaq Stockholm, Small Cap – Telecom/IT list. As per December 31, 2015, the total number of shares outstanding was 23,238,255. Shareholders' equity amounted to SEK 482.0m (334.8).
No transactions took place between Doro and related parties that had a material impact on the Company's financial position and results during the period.
Doro had 358 (172) employees as of December 31, 2015, equivalent to 301 (167) full-time employees. Of these, 233 (47) are based in Sweden, 41 (39) in France, 13 (10) in the UK, 9 (9) in Hong Kong, 3 (3) in Norway 1 (1) in Italy, and 58 (63) in Germany.
Risks and instability factors are mainly related to supplier disruption, product adaptation and certification, customer relations, exchange rate fluctuations and loan financing. Apart from these risks and the instability factors described on pages 20-21 of the 2014 Annual Report, no other risks of any significance have been identified during the period.
The Parent Company's net sales for the fourth quarter amounted to SEK 472.9m (358.9). The profit after tax amounted to SEK 20.6m (8.9).
This Interim Report has been prepared on behalf of the Group according to IAS 34, Interim Financial Reporting, and for the Parent Company in accordance with the Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2 Accounting of legal entities. Deferred tax assets are considered to the extent the company believes that these can be utilized in the foreseeable future. The accounting principles and calculation methods applied are consistent with those that were applied when drawing up the previous year's accounts, except for what is described in note 3 regarding accounting of exchange rate differences.
In the financial section of our interim reports, we have previously included a table named "Operating profit after depreciation, EBIT, per geographical region". As these figures no longer contributes to understanding and analysing our earnings, we have decided to omit the table from our reports.
Doro's sales are subject to seasonal changes. Sales in the first and second quarters are normally the lowest in the year. Sales in the third quarter is normally stronger than in the first two quarters. Sales in the fourth quarter is normally the strongest in the year.
The acquisition of Caretech has slightly affected the seasonality in sales of the group. Sales in the first quarter are still normally the lowest in the year and sales in the fourth quarter are normally the strongest in the year. Sales in the second and third quarter are normally sequentially stable.
The Q1 report will be presented on May 3
Outlook
2016 sales and profit for the group are expected to increase.
The Board has set the following dates for the publication of Doro's Reports. Q1 report January – March 2016: May 3, 2016 Q2 report April – June 2016: August 11, 2016 Q3 report July – September 2016: October 28, 2016
The annual general meeting 2016 will be held on May 3, 2016 in Stockholm.
Jérôme Arnaud, President and CEO, +46 (0)46 280 50 05 Magnus Eriksson, CFO, +46 (0)46 280 50 06
Analysts, investors and the media are welcome to attend a presentation via http://edge.media-server.com/m/p/fyg74cz6 or by telephone at 9.00 CET on February 17, 2016. Doro's President and CEO Jérôme Arnaud and Doro's CFO Magnus Eriksson will hold the presentation and answer questions. Before the start of the presentation, the material will be made available on http://corporate.doro.com/investors/financial-reports/financial-reports.
Sweden: + 46 (0) 8 505 564 74 France: + 33 (0) 170 721 541 United Kingdom: +44 (0) 203 364 5374 United States: + 1 855 7532 230
This report will be presented via an audiocast on February 17, at 9.00 CET
Doro develops telecom products and services for Seniors to lead full and rich lives: to do things they want to do more easily as well as the things they thought they might never do. The global market-leader in senior mobile phone, Doro offers easy-to-use mobile phones and smartphones, mobile applications, fixed line telephony with loud and clear sound. Within Doro Group, Doro Care offers social care and telecare solutions for elder and disabled persons for independent and safe living in their own homes. Doro AB is a Swedish public company and its shares are quoted on the Nasdaq OMX Stockholm exchange, Nordic List, Small Companies. Net sales of SEK 1,838 million were reported for 2015.
www.doro.com
| Doro Group (SEKm) | Note | 2015 Oct-Dec |
2014 Oct-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
|---|---|---|---|---|---|
| Income/Net sales | 625.6 | 437.1 | 1,838.0 | 1,276.2 | |
| Operating cost | 1, 2 | -553.8 | -391.6 | -1,698.8 | -1,153.6 |
| Operating profit/loss before depreciation and write-downs, EBITDA | 71.8 | 45.5 | 139.2 | 122.6 | |
| Depreciation according to plan, excluding depreciation of intangible assets related to company acquisitions |
-10.6 | -8.7 | -34.1 | -36.8 | |
| Operating profit/loss after depreciation and write-downs, EBITA | 61.2 | 36.8 | 105.1 | 85.8 | |
| Depreciation according to plan of intangible assets related to company acquisitions |
-2.5 | -1.6 | -9.9 | -6.1 | |
| Operating profit/loss after depreciation and write-downs, EBIT | 58.7 | 35.2 | 95.2 | 79.7 | |
| Net financial items | 1 | -2.1 | -1.9 | -10.8 | -0.4 |
| Profit/loss after financial items | 56.6 | 33.3 | 84.4 | 79.3 | |
| Taxes | -14.2 | -10.9 | -20.6 | -21.1 | |
| Profit/loss for the period | 42.4 | 22.4 | 63.8 | 58.2 | |
| Average number of shares, thousands | 23,238 | 21,204 | 22,937 | 21,059 | |
| Average number of shares after dilution, thousands**) | 23,374 | 21,204 | 22,995 | 21,059 | |
| Earnings per share before tax, SEK | 2.44 | 1.57 | 3.68 | 3.77 | |
| Earnings per share before tax, after dilution, SEK**) | 2.42 | 1.57 | 3.67 | 3.77 | |
| Earnings per share after tax, SEK | 1.82 | 1.06 | 2.78 | 2.76 | |
| Earnings per share after tax,after dilution, SEK**) | 1.81 | 1.06 | 2.77 | 2.76 | |
| *) Note 3 |
**) The effect of dilution is considered only when the effect on earnings per share is negative.
| Doro Group (SEKm) | 2015 Oct-Dec |
2014 Oct-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
|---|---|---|---|---|
| Profit/loss for the period | 42.4 | 22.4 | 63.8 | 58.2 |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: |
||||
| Translation differences | -3.5 | 3.4 | -2.3 | 8.7 |
| Effects from cash flow hedges | -6.6 | -8.9 | 1.7 | -2.8 |
| Deferred tax | 1.4 | 1.9 | -0.4 | 0.6 |
| Total Result related to Parent company's shareholders | 33.7 | 18.8 | 62.8 | 64.7 |
| Doro Group (SEKm) | Note | 2015 31 Dec |
2014 31 Dec |
|---|---|---|---|
| Intangible assets | 443.1 | 201.2 | |
| Tangible assets | 7.7 | 4.8 | |
| Financial assets | 15.2 | 0.7 | |
| Deferred tax asset | 15.6 | 15.6 | |
| Inventories | 188.5 | 204.6 | |
| Current receivables | 478.2 | 347.6 | |
| Cash and cash equivalents | 43.9 | 78.2 | |
| Total assets | 1,192.3 | 852.7 | |
| Shareholders' equity | 482.0 | 334.8 | |
| Longterm liabilities | 1 | 204.3 | 59.6 |
| Current liabilities | 1 | 506.0 | 458.3 |
| Total shareholders' equity and liabilities | 1,192.3 | 852.7 | |
| *) See Note 2 for effects by Caretech AB |
|||
| Financial instruments recognized at fair value in the Balance Sheet (SEKm) | 2015 31 Dec |
2014 31 Dec |
|---|---|---|
| Exchange rate contracts recorded as current liability | 7.3 | 7.4 |
| Exchange rate contracts recorded as current receivable | 10.8 | 15.8 |
Financial instruments recognized at fair value consist of currency forward contracts and are used primarily for hedging purposes and are measured at level 2.
| Doro Group (SEKm) | Note | 2015 Oct-Dec |
2014 Oct-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
|---|---|---|---|---|---|
| Operating profit/loss after depreciation and write-downs, EBIT | 3 | 58.7 | 35.2 | 95.2 | 79.7 |
| Depreciation according to plan | 13.1 | 10.3 | 44.0 | 42.9 | |
| Net Financial items | 3 | -1.6 | -3.2 | -9.3 | -0.1 |
| Unrealized exchange rate differences in cash flow hedges | -6.5 | -6.1 | 6.3 | -14.6 | |
| Revaluation deferred consideration | 1 | -0.5 | -4.1 | -0.5 | -8.7 |
| Taxes paid | 1.4 | -6.9 | -17.4 | -18.3 | |
| Changes in working capital | -32.5 | -35.0 | -32.6 | -58.4 | |
| Cash flow from current activities | 32.1 | -9.8 | 85.7 | 22.5 | |
| Acquisitions | 1, 2 | 0.0 | -1.3 | -162.0 | -21.9 |
| Investments | -22.8 | -5.8 | -58.7 | -29.3 | |
| Cash flow from investment activities | -22.8 | -7.1 | -220.7 | -51.2 | |
| Amortisation of debt | -9.8 | -44.5 | -52.9 | -45.0 | |
| New loans/change in bank overdraft facility | 4.1 | 41.5 | 154.7 | 41.5 | |
| Dividend | 0.0 | 0.0 | 0.0 | -31.7 | |
| New share issue | 0.0 | 0.0 | 0.0 | 14.1 | |
| Warrant program, new/buy back | -0.6 | 0.1 | 0.0 | 0.7 | |
| Cash flow from financial activities | -6.3 | -2.9 | 101.8 | -20.4 | |
| Exchange rate differences in cash and cash equivalents | -1.7 | 1.6 | -1.1 | 3.4 | |
| Change in liquid funds | 1.3 | -18.2 | -34.3 | -45.7 | |
| Net debt | 116.6 | 0.0 | 116.6 | 0.0 | |
| Net Cash | 0.0 | 36.5 | 0.0 | 36.5 |
| Doro Group (SEKm) | 2014 | |
|---|---|---|
| 2015 31 Dec |
31 Dec | |
| Opening balance | 334.8 | 287.0 |
| Total result for the period | 62.8 | 64.7 |
| Dividend | 0.0 | -31.7 |
| Warrants | 0.0 | 0.7 |
| New share issue | 84.4 | 14.1 |
| Closing balance | 482.0 | 334.8 |
| Doro Group | 2015 | 2014 |
|---|---|---|
| 31 Dec | 31 Dec | |
| Orderbook at the end of the period, SEK m*) | 193.7 | 65.2 |
| Order intake Q, SEKm**) | 527.5 | 366.9 |
| Gross margin Q1-Q4, % | 37.2 | 41.0 |
| Gross margin Q4, % | 38.5 | 40.6 |
| Equity/assets ratio, % | 40.4 | 39.3 |
| Number of shares at the end of the period, thousands | 23,238 | 21,204 |
| Number of shares at the end of the period after dilution, thousands***) | 23,464 | 21,204 |
| Equity per share, SEK | 20.74 | 15.79 |
| Equity per share, after dilution SEK***) | 20.54 | 15.79 |
| Earnings per share after taxes paid, SEK | 2.92 | 2.90 |
| Earnings per share after taxes paid, after dilution, SEK***) | 2.91 | 2.90 |
| Return on average share holders' equity, % | 15.6 | 18.7 |
| Return on average capital employed, % | 17.1 | 32.8 |
| Share price at period's end, SEK | 62.00 | 38.80 |
| Market value, SEKm | 1,440.8 | 822.7 |
*) Including order book for Caretech as of December 31, 2015, amounting to SEK 68.1m.
**) Including order intake Q4, 2015 for Caretch, amounting to SEK 50.6m.
***) The effect of dilution is considered only when the effect on earnings per share is negative.
| Doro Group (SEKm) | 2015 | 2014 | 2015 | 2014 |
|---|---|---|---|---|
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| Nordic | 146.8 | 92.0 | 492.9 | 270.8 |
| Europe, Middle East and Africa | 130.7 | 99.2 | 462.9 | 309.7 |
| Dach (Germany, Austria, Switzerland, Eastern Europe) | 172.0 | 127.1 | 435.8 | 348.0 |
| United Kingdom | 97.7 | 73.3 | 267.9 | 206.4 |
| USA and Canada | 58.6 | 41.7 | 149.5 | 137.3 |
| Other regions | 6.1 | 0.3 | 12.3 | 9.4 |
| Central | 13.7 | 3.5 | 16.7 | -5.4 |
| Total | 625.6 | 437.1 | 1,838.0 | 1,276.2 |
*) Note 3.
| Parent company (SEKm) | 2015 Oct-Dec |
2014 Oct-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
|---|---|---|---|---|
| Income/Net sales | 472.9 | 358.9 | 1 394.8 | 1 012.4 |
| Operating cost | -435.9 | -337.4 | -1 332.3 | -945.8 |
| Operating profit/loss before depreciation and write-downs, EBITDA | 37.0 | 21.5 | 62.5 | 66.6 |
| Depreciation according to plan | -9.1 | -9.0 | -31.0 | -38.8 |
| Operating profit/loss after depreciation and write-downs, EBIT | 27.9 | 12.5 | 31.5 | 27.8 |
| Net financial items | -1.0 | -1.1 | -5.1 | 4.1 |
| Profit/loss after financial items | 26.9 | 11.4 | 26.4 | 31.9 |
| Taxes | -6.3 | -2.5 | -6.1 | -7.3 |
| Profit/loss for the period | 20.6 | 8.9 | 20.3 | 24.6 |
| Parent company (SEKm) | 2015 Oct-Dec |
2014 Oct-Dec |
2015 Jan-Dec |
2014 Jan-Dec |
|---|---|---|---|---|
| Profit/loss for the period | 20.6 | 8.9 | 20.3 | 24.6 |
| Other comprehensive income to be reclassified to profit or loss in subsequent periods: |
||||
| Effects from cash flow hedges | -6.6 | -8.9 | 1.7 | -2.8 |
| Deferred tax | 1.4 | 1.9 | -0.4 | 0.6 |
| Total Result | 15.4 | 1.9 | 21.6 | 22.4 |
| Parent company (SEKm) | Note | 2015 | 2014 |
|---|---|---|---|
| 31 Dec | 31 Dec | ||
| Intangible assets | 59.0 | 39.1 | |
| Tangible assets | 1.4 | 2.1 | |
| Financial assets | 2 | 319.3 | 85.4 |
| Inventories | 121.2 | 156.9 | |
| Current receivables | 469.5 | 443.9 | |
| Cash and cash equivalents | 72.9 | 9.9 | |
| Total assets | 1,043.3 | 737.3 | |
| Shareholders' equity | 370.9 | 264.9 | |
| Provisions | 73.0 | 73.5 | |
| Long-term liabilities | 120.0 | 0.0 | |
| Current liabilities | 479.4 | 398.9 | |
| Total shareholders' equity and liabilities | 1,043.3 | 737.3 |
During Q1 2015 deferred consideration of EUR 1.6m (SEK 14.9m) has been paid. This deferred consideration was discounted to present value of EUR 1.458m in the purchase price analysis. The difference of EUR 0.142m has been accounted for as a financial cost in the consolidated accounts. The acquisition of IVS is now fully paid.
On December 31, 2013, the contingent consideration was estimated to SEK 11.7m whereof SEK 0.7m was accounted for as a current liability and SEK 11.0m as a long-term liability. The current contingent consideration for 2013, SEK 0.3m, was paid in Q2 2014. The contingent consideration as of December 31, 2014 was estimated to SEK 3.6m, whereof SEK 2.6m was accounted for as a long-term liability and SEK 1.0m was accounted for as a current liability. During Q2 2015 the contingent consideration for 2014, SEK 0.9m was paid. The contingent consideration for 2015 is revised as of December 31, 2015 and is estimated to SEK 2.1m and accounted for as a current liability.
On January 30, 2015, DORO AB acquired 63.7 percent of the shares in Caretech AB in Kalix. The remaining 36.3 percent was acquired on February 18, 2015, through a share issue in kind. Costs for the acquisition was charged to the operating result in 2014 of SEK 3.0m. Additional acquisition costs of SEK 0.8m has been accounted for in the operating result of 2015. The purchase price was paid in cash with SEK 148.1m and SEK 84.4m as a share issue in kind. Goodwill is linked to the enhanced position in the Care segment that Caretech's sales channel provide, as well as increased expertise in the care segment for the senior population. On the acquisition date, the headcount was 154. Net sales for 2014 amounted to SEK 130.1m with an EBIT of SEK 7.5m.
| Fair | |
|---|---|
| The preliminary figures for the acquired net assets and goodwill are presented below: |
value SEKm |
| Intangible assets | 29.7 |
| Tangible assets | 4.1 |
| Deferred tax receivables | 5.1 |
| Other financial assets | 0.3 |
| Inventories | 9.9 |
| Accounts receivables | 20.2 |
| Other receivables, Prepaid expenses and accrued income | 10.7 |
| Cash and bank balances | 2.0 |
| Interest bearing debt | -16.0 |
| Accounts payable | -11.9 |
| Deferred tax liability | -3.1 |
| Other liabilities, Accrued expenses and prepaid income | -18.5 |
| Acquired Net Assets | 32.5 |
| Goodwill | 200.0 |
| Total purchase consideration | 232.5 |
| -whereof paid in cash | 148.1 |
| Cash in acquired company | 2.0 |
| Change in the Group's cash flow resulting from the acquisition | 146.1 |
Doro has changed its reporting principle of exchange rate differences regarding revaluation of bank account balances and intra group loans in foreign currency. Previously this kind of exchange rate differences were not separated and reported in the operating result. As of January 1st 2015 the reporting principles have been changed and these kind of exchange rate differences are reported in the financial result. Hence the figures for previous periods have been recalculated for comparison.
| Gross Margin | Net sales - Merchandise costs |
|---|---|
| Gross Margin, % | Gross Margin in percentage of Net sales |
| Average number of shares | Number of shares at the end of each period divided with number of periods. |
| Average number of shares after dilution |
Average number of shares adjusted with the dilution effect 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 before tax | Profit/loss after financial items divided by the average number of shares for the period. |
| Earnings per share before tax, after dilution |
Profit/loss after financial items divided by the average number of shares for the period after dilution. |
| Earnings per share after tax | Profit/loss after financial items minus tax divided by average number of shares for the period. |
| Earnings per share after tax, 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 period |
Actual number of shares at the end of the period. |
| Number of shares at the end of the period, after dilution |
The number of shares at the end of the period adjusted with 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. |
| Earnings per share after taxes paid | Profit/loss after taxes paid divided by average number of shares for the period. |
| Earnings per share after taxes paid, after dilution |
Profit/loss after taxes paid divided by the average number of shares for the period after dilution. |
| Net Debt/Net Cash | Cash and bank balances reduced with interest bearing liabilities. |
| Equity/assets ratio, % | Shareholders' equity as a percentage of the balance sheet total. |
| Return on average shareholders' equity, % |
Profit/Loss rolling twelve months after financial items and tax divided by average shareholders' equity. |
| Capital employed | Total assets reduced with non-interest bearing debt and cash and bank balances. |
| Return on average capital employed, % |
Operating profit/loss rolling twelve months, divided by the quarterly average capital employed excluding cash and bank balances. |
| Share price at period's end | Closing market price at the end of the period. |
| Market value, SEK m | Share price at period's end times the number of shares at the end of the period. |
The Board of Directors and CEO confirm that this Quarterly Report provides a fair overview of the Company's and Group's business, position and results and describes the significant risks and uncertainties faced by the Company and its subsidiaries.
Stockholm, Sweden, February 17, 2016
Bo Kastensson Chairman of the Board
Jérôme Arnaud President and CEO Charlotta Falvin Board Member
Lena Hofsberger Board Member
Karin Moberg Board Member Jonas Mårtensson Board Member
Henri Österlund Board Member
Doro AB discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for public release on Wednesday, February 17, 2016, at 08:00 CET.
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