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DORO

Earnings Release Feb 13, 2013

3150_10-k_2013-02-13_85ab6809-e3dc-4e86-bd87-f8f040394a52.pdf

Earnings Release

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Year-End Report January – December 2012

Press release, February 13, 2013

Solid earnings in a tough economic climate - The Board proposes raised dividend

Highlights of the fourth quarter, 2012:

  • Net!sales!amounted!to!SEK!299.8 m (263.5),!an!increase!of!13.8 percent.!
  • Operating!profit!(EBIT)!totalled SEK!28.0 m!(30.0). The!operating!margin!was 9.3 percent!(11.4).
  • Profit after!tax!for the!period!amounted!to!SEK!18.6 m!(19.2).
  • Earnings!per!share!after!tax!amounted!to!SEK!0.96 (0.99).!
  • Cash!flow!from!current!activities!amounted!to!SEK!33.9 m!(65.9).
  • Order!intake!amounted!to!SEK!213.4 m!(194.6),!an!increase!of!9.7 percent.!

Highlights of the full year, 2012:

  • Net!sales!amounted!to!SEK!837.5 m!(745.4),!an!increase!of!12.4 percent.
  • Operating!profit!(EBIT)!totalled SEK!61.4 (62.0).!The!operating!margin!was 7.3 percent!(8.3).
  • Profit!after!tax!for!the!year!amounted!to!SEK!52.9 m!(57.9).
  • Earnings!per!share!after!tax!amounted!to!SEK!2.73 (3.02)
  • Cash!flow!from!current!activities!amounted!to!SEK!40.2 m!(104.9)
  • The!Board!proposes!a!raised!dividend!of!SEK!1.25 (1.0)!per!share

Sales!per!quarter!and!rolling!12!months,!SEKm EBIT!per!quarter!and!rolling!12!months,!SEKm

DORO!GROUP! 2012 2011 2012 2011
(SEK!m) OctEDec Oct3Dec FullEyear Full3year
Net!sales 299.8 263.5 837.5 745.4
Net!sales!growth,!% 13.8 15.0 12,4 17.8
EBITDA 34.7 34.6 83.1 75.6
EBITDA margin,!% 11.6 13.1 9.9 10.1
EBIT 28.0 30.0 61.4 62.0
EBIT!margin,!% 9.3 11.4 7.3 8.3
Profit!after!tax 18.6 19.2 52.9 57.9
Earnings!per!share!after!tax,!SEK 0.96 0.99 2.73 3.02
Equity/assets!ratio,!% 40.5 39.5 40.5 39.5

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 13, 2013, at 07:30 a.m. CET.

Increased!market!share!confirmE ing!our!leadership!with!twice!the! size!of!the!runnerEup

Fulfilled!earnings!outlook!

We!have!an!edge!with!our!range! of!3G!products

Expansion!within!telecare!as!we! see!an!attractive!opportunity

New!segmentation!reporting!as! of!Q1!2013

CEO Jérôme Arnaud: We met last year's result in line with our outlook. 2013 sales have started well.

Despite!a!challenging!consumer!sentiment,!we!delivered!a!sales!increase!of 12.4 percent in!2012 – in!line!with!our!outlook!for!the!year.!Growth!was!strong in!most!of!our!mar3 kets,!especially!in!the!US,!Canada!and!UK.!!We!have!reinforced!our!geographical!foot3 print,!broadened!our!product!range!and!strengthened!the!Doro3brand.!Doro's!overall! market!share in!Western!Europe senior!mobile!phone!market!increased!during!2012!and! we!confirm!our!leadership!being!twice!the!size!of!the!runner3up1 . The!order!backlog by! the!end!of!the!year increased by!15!percent compared!to!last!year and!2013!sales!have started!well.

The!earnings!for!the!quarter!fulfilled!our!outlook!and!were in!line!with!the!same!quarter! 2011 in!spite!of!the!fact!that!we!increased!our spending within!product!development! with!more!than!50 percent. Our!margins!held!up!well!in!our!main!markets!with!the!ex3 ception!of!Germany,!where!we!have!seen!lower!margins!in!2012!due!to!increased!com3 petition!in!the!low!price!segment.!We!believe!that!during!2013,!supported!by!a!more!lo3 cally!adapted!product!range!and!other!actions,!margins!will!improve!in!Germany.

The!ramp3up!of!investments!in!product!development!has resulted!in!a!more!competi3 tive!product!mix,!including!our!first!smartphone!and!a!renewed!range!of!3G!feature! phones!3 a product!line!that is!unique!in!the!marketplace.!As!we!move!into!2013,!quite!a! few!operators!in!our!markets!are!about!to!close down!their GSM!networks!(2G)!in!favour! of!3G!and!4G!networks,!giving!us!an!edge!with!our!range!of!3G!products. Our! smartphone!adapted!for!seniors!was!launched!in!the!Nordics!by!the!end!of!the!forth! quarter!and!is!now!listed!at!several!leading!distributors.!After!the!end!of!the!year,!it!was! launched!in!Germany!and!we!will!continue!our!gradual!rollout!of!this smartphone!on!all! of!Doro's!markets.!

In!2013!we!will!expand!within!telecare and!assisted!living!devices where we!see!an at3 tractive!opportunity.!This!segment,!named Care, currently!stands!for!some 10!percent! of!our!sales but!we!have!the!prerequisites,!with!our!existing!high3value!platform,!to!be3 come!a!major!player!here.!This!is!an area within!general!senior!care!where!we!foresee! that!specialized!mobile solutions!will!take!a!substantial!part!of!the!market!over!the! coming!years.!We have begun!our!efforts in!the!segment!by,!in!November,!signing!a! deal!with!Bosch!Healthcare!that!will!bring!our!telecare!offer!to!the!German!and!Swiss! markets!and!progressively!to!the!rest!of!Europe!from!the!beginning!of!2013.

We!will!from!Q1!2013!report!our!activity!according!to!our!new main!segments:!Consum3 er!and Care, along!with!regional!sales. Our!business!unit!Consumer!aims at!a!senior!tar3 get!group!in!constant!evolution!on!one!hand,!and!the!business!unit!Care!aims at an el3 derly!target!group!requesting!assistance.!This!new!reporting replaces the!present!seg3 ment!reporting.

1 GfK!Senior!Mobile!Panel!WE10!2012

Important events during and after the period

Product(launches

  • Doro!showcased!new!offerings!within!telecare!and!telehealth at!MEDICA!– the!world's!larg3 est!trade!fair!for!medical!equipment
  • Doro's!smartphone!– the!PhoneEasy®!740 was!launched!in!the!Nordics!in!November,!with! gradual!roll3out!to!follow!on!all!of!Doro's!markets during!2013
  • Doro!PhoneEasy®!615!was!launched!in!a!limited!edition,!signed!by!the!Swedish!artist!and!our! new!style!icon!Lill3Babs!Svensson,!followed!by!a!full!Christmas!media!plan

Geographical(and(partner(expansion

  • Consumer!Cellular!launched!Doro's PhoneEasy®!618!– the!first!3G!model!for!seniors!on!the! North!American!market
  • Bosch!selected!Doro!to!enrich!its!telecare!offering!with!mobile!solutions

Group, fourth quarter and full year 2012

Net!sales!and!earnings

Doro's!net!sales!for!the!fourth quarter!amounted!to!SEK 299.8 m!(263.5),!an!increase!of! 13.8 percent!compared!with!the!fourth quarter!of!2011.!The!increase!in!net!sales!is! through improvements!in!most!geographical!regions,!especially!in!US,!Canada,!UK!and! the!Nordics!with good!customer!reception!of!new!product!launches. If!the!same!ex3 change!rates!are!applied!as!for!the!preceding year,!growth!for!the!fourth quarter amounted!to!16,7 percent. Net!sales!for!the!full3year 2012!amounted!to!SEK!837.5!m! (745.4),!corresponding!to!a growth!amounted!to!12.4 percent.

EBIT in!the fourth quarter was!SEK!28.0 m!(30.0).!The!EBIT!margin!amounted!to!9.3 percent!(11.4).!EBIT!margin was!lower compared!to!corresponding!quarter!last!year, partly!due!to!continued!spending in!product!development and!partly!due!to!lower!mar3 gins!in!EMEA!(Europe,!Middle!East!and!Africa)!as!an!effect!of increased!competition!in! the!low!price!segment!in!Germany. Accumulated!full!year EBIT!amounted!to SEK!61.4 m (62.0),!giving!an!EBIT!margin!of!7.3 percent!(8.3).

Net!financial!items!for!the!fourth!quarter were!SEK!0.2 m!(3.1), The!amount!in!the! fourth!quarter 2011!was!positively!affected!with!SEK!2.8!m!by!revaluation!of!foreign!ex3 change!forward!contracts. The!Group!tax!for!the!quarter!amounted!to!SEK!39.6 m! (313.9).!Due!to!accumulated!tax!losses!only!limited!amounts!are!paid. The!positive!tax! for!the!full!year!is!an!effect!from!recognized!temporary!differences!related!to!provi3 sions.

The!profit!after!tax!for!the!quarter!amounted!to!SEK!18.6 m!(19.2).!Full3year!accumulat3 ed!profit!after!tax!was!SEK!52.9 m!compared!to!SEK!57.9 m!for!the!full3year!2011.!

Cash!flow,!investments!and!financial!position

The!cash!flow!from!current!activities for!the!fourth!quarter!amounted!to!SEK!33.9 m! (65.9)!and!was!mainly!affected!by!a!temporary!higher!working!capital!relating to inven3 tories – as!order!intake!for!delivery in!January!2013 was!strong!and!an!increased use!of! sea!freight!to!improve!margin and!lower!carbon!footprint.!The change!in!cash!and!cash! equivalents for!the!fourth!quarter!amounted!to!SEK!27.1 m!(55.4). The!cash!flow!from! current!activities!for!the!full!year!amounted!to!SEK!40.2 m!(104.9)!

The!equity/assets!ratio!was!40.5 percent!(39.5)!at!the!close!of!the!period.! At!the!end!of!the!period,!Doro!had!interest!bearing!liabilities!of!SEK 1.6 m!(2.4) with a! net!cash!balance!of!SEK!139.5 m!(146.0).!The!company!also!has!unutilized!overdraft!fa3 cilities!of!SEK!32 m.

Full!year!growth!amounted!to! 12.4!percent

Decline!in!EBIT!margin!due!to! continued!efforts!in!product! development

Cash!flow!affected!by!strong! order!intake!for!delivery!in!JanuE ary

Nordic!region!saw!the!launch! of!the!PhoneEasy®!740

EBIT!increased!by!41.9!percent

Doro!continued its!steps!to! regain!its!profitability on!the! German!market!

The!UK!region!saw!a!58.6! percent!increase!in!growth

The!US!and!Canada!region! performed!well!

Other!regions!accounted!for! SEK!5.2!m!during!the!quarter

Geographical!regions

Nordic(region

Sales!in!the!Nordic!region!during!the!fourth quarter!amounted!to!SEK!96.6 m!(88.8)!– an! increase!of!8.8 percent!compared!with!the!corresponding!quarter!in!2011!due!to!an!up3 dated!range!of!products!and!the!launch!of!the!PhoneEasy®!740. EBIT!for!the!quarter! amounted!to!SEK!18.3 m!(12.9),!an!increase!of 41.9 percent.!The!EBIT!margin!was!also! significantly!higher,!amounting!to!18.9 percent!compared!to!14.5!percent!in!the!corre3 sponding!quarter!last!year,!as!an!effect!of!the!upgraded!product range.!

EMEA (Europe,(Middle(East(and(Africa)

Sales!in!the!EMEA!region!amounted!to!SEK!86.7!m!(110.8)!during!the!fourth!quarter,! mainly!due!to!the!German!market,!where!the!low!price!segment!are!larger!and!local! competitors!stronger, than!we!see!in!other!markets.!Doro!continued its!steps!to!regain! its!profitability on!the German market with!several!more!actions!being evaluated for! 2013.!Sales!in!Germany!during!the!fourth!quarter!were!SEK!22.0!m!(26.2).!Sales!in! France!amounted to!SEK!47.9!m!(57.8).!Belgium!(covering!full!Benelux)!showed net! sales!of!9.9!(8.0).!In!total,!growth!in!the!EMEA!region!was!negative!for!the!quarter.!The! EBIT!margin!was!at!0.7!percent (11.2),!mainly!due!to!competitive!pressure!in!Germany.

United(Kingdom

The!UK!region showed!sales!of!SEK!55.2 m (34.8)!in!the!fourth!quarter,!amounting!to!a! growth!of!58.6 percent!in!the!quarter!and!25.5!percent for!the!full3year!2012. EBIT!im3 proved!significantly!to!SEK!5.8 m!(0.7). The!strong!growth!was!an!effect!of!the!success3 ful co3operation!with!O2 but!also!from!our!new!partnerships!on!Ireland. The!EBIT!mar3 gin!was 10.5 percent!(2.0).

US(and(Canada

US!and!Canada!continued!to!perform!well!during!the!fourth!quarter!and!continuing!the! positive!trend!from!previous!quarters.!Sales!amounted!to!SEK!56.1!m!(26.8),!an!increase of!109 percent.!Sales!during!the!quarter!were!driven!by increased!sales!during!the!holi3 day!season!as!well!as!an!updated!product!line,!for!example!the!PhoneEasy!618®!3 the! first!3G!model!for!seniors!on!the!North!American!market. Net!sales!for!the!full3year amounted!to!SEK!125.2 m (104),!an!increase of!20.4 percent.

Other(regions

For!the!quarter,!Other!regions!accounted!for!SEK 5.2 m!(2.3)!with!a!slight!deficit in! terms!of!EBIT.

Because!overhead!costs!are!attributed!according!to!sales,!the!regions'!operating!mar3 gins!can!vary!from!quarter!to!quarter.

Personnel

At!the!end!of!the!period,!the!headcount!was!80 (77).!Of!these,!35 (33)!are!based!in!Swe3 den,!26 (26) in!France,!8 (8) in!the!UK, 8!(7)!in!Hong!Kong,!3 (3) in!Norway,!and 1(0) in! Germany.

Parent!Company

The!Parent!Company's!net!sales!for!the!year's!fourth quarter!amounted!to!SEK 297.8 m! (255.6).!The!profit!before!tax!amounted!to!SEK 20.9 m!(23.7).

Events!after!the!close!of!the!period

No!significant!events!after!the!close!of!the!period.

FullEyear!outlook!for!2013

Doro's growth!is!expected!to!continue!in!2013!with!expansion!initiatives!planned!in!both! business!units Consumer and!Care.!2013!has!started!with!a!bigger!order!book!and a! higher order!intake than!previous!year.!No!detailed!forecast!for!2013!is!given.!

Proposed!dividend

The!Board!proposes!an!increase!of!the dividend!to SEK!1.25 (1.0) per!share,!reflecting! the!strengthened!financial!position!of!the!company.

The!Doro!share

Doro's!shares!are!quoted!on!the!Nasdaq OMX!Nordic!Exchange!Stockholm,!Small!Cap!– Telecom/IT!list.!

As!per!December!31,!2012,!Doro's!market!capitalization!was!SEK 474.1 m,!which!can!be! compared!with!SEK 528.2 m!on!December!31,!2011.!

During!the!period!January 1 2012!to!December!31 2012,!the!share price!decreased!from! SEK 27.3 to!SEK 24.5.!This!is!equivalent!to!a!decrease of!10.3 percent,!which!can!be! compared!with!the!increase!of!9.5 percent!in!the!OMX!Stockholm!PI!over!the!same!pe3 riod.

As!per!December 31,!2012,!there!were!7,072 shareholders!(6,114).

On!December!31,!2012,!the!largest!shareholders!were:

Shareholder! Number!of!
shares
Proportion!of!shares!and!
votes,!%
Försäkringsaktiebolaget!Avanza!Pension 1,925,493 10.0
Nordea!Investment!Funds 1,452,918 7.5
Originat!AB 1,130,000 5.8
LAZARD!FRERES!BANQUE,!W8IMY 580,000 3,0
CLEARSTREAM!BANKING!S.A.,!W8IMY 550,543 2.8
Kastensson Holding AB 513,000 2.6
Nordnet Pensionsförsäkring!AB 502,710 2.6
Hajskäret!Invest!AB 430,000 2.2
ABN!AMRO!BANK NV,!W8IMY 386,545 2.0
Banque!et Caisse!d'Epargne!de!l'Etat,!Luxembourg 279,508 1.4
Hotel!Riddargatan!AB 260,000 1.3

Source:!Euroclear!Sweden AB!and!Doro AB.

RelatedEparty!transactions

No!transactions!took!place!between!Doro!and!related!parties!that!had!a!material!impact! on!the!Company's!financial!position!and!results.

Risks

Risks!and!instability!factors!are!mainly!related!to!supplier!disruption,!product! adaptation!and!certification,!customer!relations,!exchange!rate!fluctuations!and!loan!fi3 nancing.!Apart!from!these!risks!and!the!instability!factors!described!on! pages!22323!and!56358!of!the!2011!Annual!Report,!no!other!risks!of!any! significance!have!been!identified!during!the!most!recent!period.!

Accounting!principles!

This!Interim!Report!has!been!prepared!on!behalf!of!the!Group!according!to!IAS!34,!In3 terim!Financial!Reporting,!and!for!the!Parent!Company!in!accordance!with!the!Annual! Accounts!Act!and!the!Swedish!Financial!Reporting!Board's!recommendation!RFR!2!Ac3 counting!of!legal!entities.!Deferred!tax!assets!are!considered!to!the!extent!the!company! believes!that!this!can!be!utilized!in!the!foreseeable!future,!which!the!Company!consid3 ers!to!be!334!years. The!accounting!principles!and!calculation!methods!applied!are!con3 sistent!with!those!that were!applied!when!drawing!up!the!previous!year's!accounts.

Annual!Report!2012

The!Annual!Report!for!2012!will!be!published!on!the!company's!website!on!April!16,! 2013.

Annual!General!Meeting! 2013!will!be!held!on!May! 14th.!The!Q1!report!will!be! published!on!the!same!day.

Report!to!be!presented!at! an!Audiocast,!February!13! at!09:00 CET

Financial!calendar!2013E2014

The!Board!has!set!the!following!dates!for!the!publication!of!Doro's! Reports: Annual!General!Meeting!2013 and!Q1!report:!May!14, 2013 Q2!report:!August!21, 2013 Q3!report:!November!8, 2013 Year3end!report!2013:!February!14, 2014!

For!further!information,!please!contact:

President!&!CEO,!Jérôme!Arnaud,!+46!(0)46 280!50!05 CFO,!Gunnar!Modalen,!+46!(0) 46!280!50!06

Doro's!report!to!be!presented!via!audiocast

Analysts,!investors!and!the!media!are!welcome!to!attend!a!presentation!via! www.doro.com!or!by!telephone!from!09:00!a.m.!CET!on!February!13,!2013.!Doro's!Pres3 ident!and!CEO!Jérôme!Arnaud will!hold!the!presentation!and!take!questions.! Approximately!1!hour!before!the!start!of!the!presentation,!the!materials!will!be!made! available!on!the!Company's!website.! Please!call!about!five!minutes!before!the!advertised!starting!time!to!access!the!tele3

Call3in!details:! UK:!+44!(0)1452!555!131,!SE:!+!46!(0)8!506!307!79,!US:!+!1!866!682!8490

Lund,!Sweden,!February!13,!2012

phone!conference.

Board(of(Directors Doro!AB!(publ)!|!Company!registration!number!55616139429

Doro!AB!(publ)! Magistratsvägen!10 SE3226!43!Lund,!Sweden Tel:!+46 (0)46!280!50!00!| www.doro.com

The!Board!of!Directors!and!CEO!confirm!that!this!Q4 Report!provides!a!fair!overview!of!the!Com3 pany's!and!Group's!business,!position!and!results!and!describes!the!significant!risks!and!uncer3 tainties!faced!by!the!Company!and!its!subsidiaries.(

This!interim!report!has!not!been!reviewed by!the!Company's!auditors.

About!Doro

Doro,!the!leader!in!the!telecom!care!market,!is!a!Swedish!public!company.!With!over!38!years!of!experience!in!the!telecom!industry,! the!company!focuses!on!developing,!marketing!and!selling!products,!software,!TeleCare!and!mHealth!solutions!specially!adapted!to! the!growing!worldwide!population!of!seniors.!Doro's!range!of!easy3to3use!mobile!phones!is!unmatched!and!its!unique!know3how!has! been!recognized!through!several!international!design!awards.!The!company's!products!are!sold!in!more!than!30!countries!on!five! continents.!In!FY!2011!revenue!totaled!SEK!745!m.!Doro's!shares!are!quoted!on!the!Nasdaq!OMX!Stockholm!exchange,!Nordic!list, Small!companies.!Read!more!about!Doro!at!www.doro.com.

Financial Reports

INCOME!STATEMENT!(SEK!m)! 2012 2011 2012 2011
Doro!Group OctEDec Oct3Dec Full!year Full!year
Income/net!sales 299.8 263.5 837.5 745.4
Operating!cost E265.1 3228.9 E754.4 3669.8
Operating!profit/loss!before!depreciation!
and!write3downs,!EBITDA
34.7 34.6 83.1 75.6
Depreciation!according!to!plan E6.7 34.6 E21.7 313.6
Operating!profit/loss!after!depreciation!
and!write3downs,!EBIT
28.0 30.0 61.4 62.0
Net!financial!items 0.2 3.1 E11.9 10.9
Profit/loss!after!financial!items 28.2 33.1 49.5 72.9
Taxes E9.6 313.9 3.4 315.0
Profit/loss!for!the!period 18.6 19.2 52.9 57.9
Average!number!of!shares,!thousands 19 349 19 349 19 349 19 188
Average!number!of!shares!after!dilution*,!thousands! 19 349 19 349 19 349 19 188
Earnings!per!share!before!tax, SEK 1.46 1.71 2.56 3.80
Earnings!per!share!before!tax,!after!dilution*,!SEK! 1.46 1.71 2.56 3.80
Earnings!per!share!after!tax,!SEK 0.96 0.99 2.73 3.02
Earnings!per!share!after!tax,!after!dilution*,!SEK! 0.96 0.99 2.73 3.02

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

STATEMENT!OF!COMPREHENSIVE!INCOME!(SEK!m)! 2012 2011 2012 2011
Doro!Group OctEDec Oct3Dec Full!year Full!year
Profit/loss!for!the!period 18.6 19.2 52.9 57.9
Translation!differences!and!others 0.4 31.3 E1.9 30.4
Total!result 19.0 17.9 51.0 57.5

(Related!to!Parent!Company's!shareholders)

STATEMENT!OF!FINANCIAL!POSITION!(SEK!m)! 2012 2011
Doro!Group Dec 31 Dec!30
Intangible!assets 59.2 59.3
Tangible!assets 12.5 8.9
Financial!assets 0.5 0.5
Deferred!tax!asset 21.0 17.4
Inventories 91.3 60.2
Current!receivables 190.8 154.1
Cash!and!cash!equivalents 141.1 148.4
Total!assets 516.4 448.8
Shareholders'!equity 209.0 177.3
Long3term!liabilities Note!1 100.6 88.7
Current!liabilities 206.8 182.8
Total!shareholders'!equity!and!liabilities 516.4 448.8
STATEMENT!OF!CASH!FLOWS (SEK!m)! 2012 2011 2012 2011
Doro!Group! OctEDec Oct3Dec Full!year Full!year
Operating!profit/loss!after!depreciation!and!write3downs,!EBIT 28.0 30.0 61.4 62.0
Depreciation!according!to!plan 6.7 4.6 21.7 13.6
Net!financial!items 0.4 0.3 1.5 0.8
Revaluation!deferred!consideration!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Note!1 E2.0 0.0 E2.0 0.0
Taxes!paid E1.2 30.7 E4.3 33.5
Changes!in!working!capital 2.0 31.7 E38.1 32.0
Cash!flow!from!current!activities 33.9 65.9 40.2 104.9
Acquisitions!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Note!1 0.0 0.0 E0.4 319.6
Investments E6.6 310.2 E26.9 321.2
Cash!flow!from!investment!activities E6.6 310.2 E27.3 340.8
Loans!raised 0.0 30.3 0.0 2.6
Amortization!of!debt E0.2 0.0 E0.8 0.0
Dividend 0.0 0.0 E19.3 39.6
Premium!for!warrant!program 0.0 0.0 0.0 1.8
Cash!flow!from!financial!activities E0.2 30.3 E20.1 35.2
Exchange!differences!in!cash!and!cash!equivalents 0.0 0.0 E0.1 0.0
Change!in!cash!and!cash!equivalents 27.1 55.4 E7.3 58.9
Net!cash 139.5 146.0 139.5 146.0
STATEMENT!OF!CHANGES!IN!EQUITY!(SEK!m)! 2012 2011
Doro!Group Dec 31 Dec!31
Opening!balance 177.3 121.3
Total!result!for!the!period 51.0 57.5
New!issue!of!shares 0.0 6.3
Dividend 39.6
Other!allocated!capital,!warrant!program 1.8
Effects!of!warrant!program 0.0 0.0
Closing!balance 209.0 177.3
OTHER!KEY!FIGURES! 2012 2011
Doro!Group Dec 31 Dec!31
Order!book at!the!end!of!the!period,!SEK!m 96.7 84.2
Order!intake,!SEK!m 213.4 194.6
Gross!margin!% 38.1 41.3
Equity/assets!ratio,!% 40.5 39.5
Number!of!shares!at!the!end!of!the!period,!thousands 19 349 19 349
Number!of!shares!at!the!end!of!the!period!after!dilution*,!thousands! 19 349 19 349
Equity!per!share,!SEK 10.80 9.16
Equity!per!share,!after!dilution*,!SEK! 10.80 9.16
Earnings!per!share!after!taxes!paid,!SEK 2.34 3.62
Earnings!per!share!after!taxes!paid,!after!dilution*,!SEK 2.34 3.62
Return!on!average!share!holders'!equity,!% 27.4 38.8
Return!on!average!capital!employed,!% 94.5 116.1
Share!price!at!period's!end,!SEK 24.50 27.30
Market!value,!SEK!m 474.1 528.2

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

SALES!PER!REGION!(SEK!m)! 2012 2011 2012 2011
Doro!Group OctEDec Oct3Dec Full!year Full!year
Nordic 96.6 88.8 274.4 232.6
Europe,!Middle!East!and!Africa 86.7 110.8 286.8 297.2
USA!and!Canada 56.1 26.8 125.2 104.0
United!Kingdom 55.2 34.8 130.9 104.3
Other!regions 5.2 2.3 20.2 7.3
Total 299.8 263.5 837.5 745.4
OPERATING!PROFIT!AFTER!DEPRECIATION,
EBIT,!PER!GEOGRAPHICAL!REGION!(SEK!m)!
2012 2011 2012 2011
Doro!Group OctEDec Oct3Dec JanEDec Jan3Dec
Nordic 18.3 12.9 48.1 34.9
Operating(margin, % 18.9 14.5 17.5 15.0
Europe,!Middle!East!and!Africa 0.6 12.4 E2.2 22.0
Operating(margin,(% 0.7 11.2 )0.8 7.4
USA!and!Canada 4.6 3.8 12.4 7.9
Operating(margin,(% 8.2 14.2 9.9 7.6
United!Kingdom 5.8 0.7 5.2 30.8
Operating(margin,(% 10.5 2.0 4.0 M0.8
Other!regions E1.3 0.2 E2.1 32.0
Operating(margin,(% )25.0 8.7 )10.4 M27.4
Operating!profit/loss!after!depreciation 28.0 30.0 61.4 62.0
Operating%margin,%% 9.3 11.4 7.3 8.3
2012 2011 2012 2011
SALES!PER!COUNTRY!(SEK!m)! OctEDec Oct3Dec JanEDec Jan3Dec
Sweden 69.8 54.3 172.9 136.1
United!Kingdom 48.7 28.2 112.2 90.2
France 47.9 57.8 173.2 166.1
USA 38.1 22.7 81.7 58.6
Germany 22.0 26.2 55.6 66.4
Canada 18.3 4.0 41.0 45.1
Norway 16.0 15.9 51.9 43.4
Belgium 9.9 8.0 28.8 23.6
Denmark 1.3 7.2 14.5 24.3
Other!countries 26.9 33.0 89.7 84.0
Total 298.9 257.3 821.5 737.8
Other!revenue 0.9 6.2 16.0 7.6
Total!revenue 299.8 263.5 837.5 745.4
INCOME!STATEMENT!(SEK!m)! 2012 2011 2012 2011
Parent!Company OctEDec Oct3Dec Full!year Full!year
Income/net!sales 297.8 255.6 831.6 733.7
Operating!cost E268.5 3228.4 E757.6 3667.9
Operating!profit/loss!before!depreciation!
and!write3downs,!EBITDA
29.3 27.2 74.0 65.8
Depreciation!according!to!plan E8.4 36.6 E28.8 320.3
Operating!profit/loss!after!depreciation!
and!write3downs,!EBIT
20.9 20.6 45.2 45.5
Net!financial!items 0.0 3.1 E12.4 10.6
Profit/loss!after!financial!items 20.9 23.7 32.8 56.1
Taxes E10.2 312.6 4.2 312.6
Profit/loss!for!the!period 10.7 11.1 37.0 43.5
SUMMARY!OF!BALANCE!SHEET!(SEK!m)! 2012 2011
Parent!Company Dec!31 Dec!31
Intangible!assets 37.8 44.4
Tangible!assets 11.0 7.3
Financial!assets 42.1 37.7
Inventories 91.3 60.2
Current!receivables 183.5 151.9
Cash!and!cash!equivalents 138.6 144.7
Total!assets 504.3 446.2
Shareholders'!equity 174.9 157.2
Long3term!liabilities 95.4 81.2
Current!liabilities 234.0 207.8
Total!shareholders'!equity!and!liabilities 504.3 446.2

Notes

Note!1 – Contingent!consideration

In!2011!Doro!acquired!the!two!French!companies!Prylos SAS!and!Birdy!Technology!SAS.!The! acquisitions!included!conditions!for!possible!contingent!consideration!that!in!both!cases!are! based!on!the!companies'!sales!performances.!As!per!December!31st 2012,!Prylos!SAS!report3 ed!an!estimated!contingent!consideration!of!SEK!1.4!M.!As!per!December!31st 2011,!and!per! time!of!the!acquisition,!the!equivalent!estimation!was!SEK!1.8 M.!The!maximum!contingent! consideration!amounts!to!EUR!800!K.!For!Birdy!Technology!SAS,!as!per!December!31st 2012,! the!estimated!contingent!consideration!amounts!to!SEK!2.3!M.!As!per!December!31st 2011,! and!per!time!of!the!acquisition,!the!equivalent!estimation!was!SEK!4.0!M.!The!maximum!con3 tingent!consideration!amounts!to!EUR!600!K.!During!2012,!no!contingent!consideration!has! been!paid.

Financial Definitions

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!di3 vided!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!mi3 nus!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!clos3 ing!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!aver3 age!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!liabil3 ities.

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!non3interest!bearing!debt.

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.

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