DORO

Earnings Release • Oct 22, 2021

Strong development in operating profit during the quarter

The quarter in summary

• Doro's net sales amounted to SEK 409.9 million (443.2), a decrease of 7.5 percent.
• Net sales for business area Doro Care were SEK 140.5 million (124.2), an increase of 13.1 percent and for business area Doro Phones were SEK 269.4 million (319.0), a decrease of 15.5 percent. -7.5% Net sales
• Gross margin increased to 37.4 percent (32.4). For Doro Care, the gross margin decreased to 40.2 percent (40.8) and for Doro Phones the gross margin increased to 36.0 percent (29.1).
• EBITDA amounted to SEK 66.9 million (53.2), an increase of 25.8 percent.
• Operating profit (EBIT) amounted to SEK 38.4 million (25.0) corresponding to an operating margin of 9.4 percent (5.6).
• Profit after tax for the period was SEK 27.2 million (18.7) and profit per share was SEK 1.13 (0.79).
• Free cash flow before acquisitions was SEK -33.8 million (145.1).

January – September in summary

• Doro's net sales amounted to SEK 1,153.5 million (1,199.7), a decrease of 3.9 percent.
• Net sales for business area Doro Care were SEK 425.1 million (379.4), an increase of 12.0 percent and for business area Doro Phones were SEK 728.4 million (820.3), a decrease of 11.2 percent.
• Gross margin increased to 37.5 percent (33.5). For Doro Care, the gross margin decreased to 41.0 percent (42.2) and for Doro Phones the gross margin increased to 35.4 percent (29.5).
• EBITDA amounted to SEK 166.4 million (134.9), an increase of 23.4 percent.
• Operating profit (EBIT) amounted to SEK 87.6 million (54.7), excluding restructuring costs and costs for the listing of business area Doro Care of SEK 10.3 million, corresponding to an operating margin of 7.6 percent (4.6). Including restructuring costs and costs for the listing, EBIT amounted to SEK 77.3 million (48.0) with an operating margin of 6.7 percent (4.0).
• Profit after tax for the period was SEK 59.0 million (29.9) and profit per share was SEK 2.46 (1.26).
• Free cash flow before acquisitions was SEK -76.5 million (152.5).

KEY FIGURES	2021	2020		2021	2020		2020
(SEK million)	Quarter 3	Quarter 3	%	Jan-Sep	Jan-Sep	%	Whole year
Net sales	409.9	443.2	-7.5	1,153.5	1,199.7	-3.9	1,689.3
Sales growth. %	-7.5	-15.0		-3.9	-17.1		-18.1
EBITDA	66.9	53.2	25.8	166.4	134.9	23.4	203.9
EBITDA margin. %	16.3	12.0		14.4	11.2		12.1
EBIT	38.4	25.0	53.6	77.3	48.0	61.0	85.7
EBIT margin. %	9.4	5.6		6.7	4.0		5.1
Adjusted EBIT*	38.4	31.7	21.1	87.6	54.7	60.1	101.6
Adjusted EBIT margin*. %	9.4	7.2		7.6	4.6		6.0
Profit per share	1.13	0.79	44.1	2.46	1.26	95.1	2.06
Equity ratio. %	53.4	48.7		53.4	48.7		50.9

*EBIT excluding restructuring costs and costs for the listing

of business area Doro Care

Net sales

-3.9%

9.4%

EBIT margin

7.6%

Adjusted EBIT margin

Message from the CEO

During the third quarter, the market has started to return to a more normal position and our sales have increased compared to the previous quarter. Doro Care have continued to deliver growth and gained new market shares in Europe. During the quarter, Doro Phones defended its market leading position and we also see a positive recovery in Germany, after the recent restructuring we carried out in the region.

We have during the quarter delivered an improved operating profit of SEK 38.4 million (25.0) adjusted for restructuring costs and costs for the listing of business area Doro Care. This is an improvement of 54 percent compared to the same quarter last year and an improvement to the previous quarter. The improved operating profit is mainly an effect of lower operating costs, due to the previously implemented restructuring program within Doro Phones. During the quarter, Doro Care performed below expectations with lower profitability, which can partly be explained by non-recurring costs in Norway of approximately SEK 5 million and partly by higher costs in our alarm receiving centres and continued high component costs. We are expected to see improved profitability in the coming quarters, and we work continuously to improve the efficiency in our service delivery.

During the quarter, we made two new acquisitions that further strengthened our Doro Care business. In line with our strategy, we have expanded and extended our geographical presence through the acquisition of Dutch Innocom. The Dutch market is an attractive market that we believe has great potential. Innocom is one of three leading companies in technology enabled care in the Netherlands and will be a perfect addition to our current business. At the end of the quarter, we also made a small acquisition in the United Kingdom when we acquired the assets of Helpline from Bromford Housing. Through the acquisition of Helpline, we are involved in driving the digital shift forward, as it becomes increasingly difficult for smaller players like Helpline to implement the shift themselves. Both acquisitions are fully in line with our strategy of becoming the European market leader in technology enabled care, which we want to pursue through both organic and acquisition growth.

Doro Phones delivered strong margins and a strong operating profit during this quarter. The strong gross margin is mainly driven by an improved product and customer mix as well as a positive currency effect. It is with great satisfaction that we see that, unlike many others, we have been able to continue to supply and sell products despite the great challenges that currently exist in component availability and logistics.

The strategy for the business area going forward will be to continue to consolidate its position as the market leader for senior phones in Europe, but also to broaden the offering to new product areas. Doro intends to continue to make new technology available to seniors, by constantly working closely and developing new products for the senior market. We also want to initiate new strategic collaborations and implement smart acquisitions. Thereby continuing to facilitate the use of new technology and stimulate the senior's interest and curiosity for technology going forward.

The implementation of our long-term strategies for each business area is fully in progress, at the same time we work daily to deliver excellent quality in the entire service delivery, as well as in our products. The work aims to create the best possible conditions for both business areas, ahead of the planned separate listing. The ambition to complete the listing at the end of the quarter remains and we look forward to developing both businesses and reach their full potential as independent companies.

Carl-Johan Zetterberg Boudrie, President and CEO

" During the quarter, we expanded our geographical presence within Doro Care and acquired Innocom, a leading player in technology enabled care in the Dutch market."

"Doro Phones goal is to broaden its product offering and make new technology available for seniors while consolidating its position as a market leader."

NET SALES

Highlights during the third quarter

Doro's net sales for the third quarter amounted to SEK 409.9 million (443.2), a decrease of 7.5 percent compared with the third quarter of 2020. Adjusted for currency effects, the decrease was -7.3 percent.

Sales in business area Doro Care increased by 13.1 percent, while sales in business area Doro Phones decreased by 15.5 percent compared with the third quarter of 2020. Organic growth within Doro Care was 4.8 percent, adjusted for currency effect the organic growth was 6.0 percent.

NET SALES BY BUSINESS AREA

(SEK million)	2021 Quarter 3	2020 Quarter 3	%	2021 Jan-Sep	2020 Jan-Sep	%	2020 Whole year
Doro Care	140.5	124.2	13.1	425.1	379.4	12.0	524.1
Doro Phones	269.4	319.0	-15.5	728.4	820.3	-11.2	1,165.2
Total	409.9	443.2	-7.5	1,153.5	1,199.7	-3.9	1,689.3

34% 66%

Net sales by business area for the quarter

Doro Phones

Doro Care

OPERATING PROFIT

Highlights during the third quarter

The gross margin increased compared with the third quarter of 2020 and amounted to 37.4 percent (32.4).

EBITDA for the third quarter increased by 25.8 percent to SEK 66.9 million (53.2), which corresponds to an EBITDA margin of 16.3 percent (12.0).

EBITA for the third quarter increased to SEK 40.3 million (26.2). Planned depreciation of intangible assets from company acquisitions was SEK -1.9 million (-1.2) during the quarter, resulting in an EBIT of SEK 38.4 million and an EBIT margin of 9.4 percent. The improved operating margin is mainly explained by the effects of the cost saving program and the improved gross margin.

Net financial items for the third quarter totalled SEK -1.8 million (0.2) including revaluation of financial instruments in foreign currency. The decrease is mainly due to the strengthening of SEK against the EUR and USD currencies. Group tax for the quarter was SEK -9.4 million (- 6.5). Profit after tax for the period was SEK 27.2 million (18.7).

OPERATING PROFIT BY BUSINESS AREA

(SEK million)	2021 Quarter 3	2020 Quarter 3	%	2021 Jan-Sep	2020 Jan-Sep	%	2020 Whole Year
Doro Care
Gross profit	56.5	50.7	11.4	174.5	160.0	9.1	217.2
Gross margin	40.2	40.8		41.0	42.2		41.4
Operating profit (EBIT)	4.4	9.7	-54.6	20.2	31.8	-36.5	38.7
EBIT margin	3.1	7.8		4.8	8.4		7.4
Doro Phones
Gross profit	96.9	92.8	4.4	258.2	242.3	6.6	352.7
Gross margin	36.0	29.1		35.4	29.5		30.3
Operating profit (EBIT)	39.5	23.1	71.0	77.0	31.1	147.6	71.5
EBIT margin	14.7	7.2		10.6	3.8		6.1
Unallocated operating	-5.4	-7.9	-31.6	-19.8	-14.9	32.9
expenses							-24.5
Group
Gross profit	153.2	143.5	6.8	432.5	402.3	7.5	570.0
Gross margin	37.4	32.4		37.5	33.5		33.7
Operating profit (EBIT)	38.4	25.0	53.6	77.3	48.0	61.0	85.7
EBIT margin	9.4	5.6		6.7	4.0		5.1

HIGHLIGHTS BY BUSINESS AREA

DORO CARE

Third quarter

Net sales in business area Doro Care for the third quarter amounted to SEK 140.5 million (124.2), an increase of 13.1 percent compared with the third quarter of 2020. Sales of services increased by 7.6 percent to SEK 111.2 million (SEK 103.3 million) and product sales increased by 40.2 percent to SEK 29.3 million (20.9). Organic growth in the quarter amounted to 4.8 percent, adjusted for currency effects it amounted to 6.0 percent, which is a step in the right direction for the business area.

The gross margin for the third quarter was 40.2 percent (40.8). The margin has been negatively affected by higher costs for components and freight. The cost for the service delivery has also been negatively affected by challenges in recruiting, as there is high competition for competent employees in the market and increased salaries. We work continuously to ensure that we become more efficient in our service delivery and in the long term counteract the negative effects while maintaining high quality.

EBIT amounted to SEK 9.4 million (9.7) in the quarter, excluding correction of historical VAT in Norway of SEK 5.0 million, which corresponds to an EBIT margin of 6.7 percent (7.8). The lower operating profit is mainly explained by the decreased gross margin. The number of subscriptions at the end of the period was 390.000 (304.000) an increase by 12.1 percent, mainly explained by the acquisition of Innocom.

Sales in the Nordics increased by 0.9 percent compared with the third quarter of 2020. We have won and defended several contracts during the period, which shows our strength in the market. Resource challenges for our customers, as a result of COVID-19, and component shortages have led to delayed implementations of new contracts and lower hardware sales, which has affected sales negatively.

Sales in the UK and Ireland increased by 15.3 percent compared with the third quarter of 2020. The increase in sales is mainly a result of the acquisitions which were incorporated into the group last year. At the end of the quarter, we communicated the acquisition of the assets from Helpline, a clear sign of how we believe the market will develop with the digital shift. Sales for Other regions during the third quarter totalled SEK 13.4 million (6.0), the increase is mainly due to increased product sales and the acquisition of the Dutch company Innocom. With the acquisition we have a strong and interesting position in the Netherlands for growth.

KEY FIGURES

DORO CARE	2021	2020		2021	2020		2020
(SEK million)	Quarter 3	Quarter 3	%	Jan-Sep	Jan-Sep	%	Whole year
Net sales	140.5	124.2	13.1	425.1	379.4	12.0	524.1
Cost of goods and services sold	-84.0	-73.5	14.3	-250.6	-219.4	14.2	-306.9
Gross profit	56.5	50.7	11.4	174.5	160.0	9.1	217.2
Gross margin %	40.2	40.8		41.0	42.2		41.4
Other operating expenses	-52.1	-41.0	27.1	-154.3	-128.2	20.4	-178.5
Operating profit after depreciation and write downs (EBIT)	4.4	9.7	-54.6	20.2	31.8	-36.5	38.7
EBIT margin %	3.1	7.8		4.8	8.4		7.4
Number of subscriptions (thousand)	390.0	348.0	12.1	390.0	348.0	12.1	372.0
Product sales	29.3	20.9	40.2	87.2	70.4	23.9	105.4
Sales of services	111.2	103.3	7.6	337.9	309.0	9.4	418.7
Investment in product development	4.8	3.7	29.7	19.8	14.6	35.6	21.9

NET SALES BY MARKET	2021	2020		2021	2020		2020
(SEK million)	Quarter 3	Quarter 3	%	Jan-Sep	Jan-Sep	%	Whole year
Nordics	64.5	63.9	0.9	201.3	198.3	1.5	265.1
United Kingdom and Ireland	62.6	54.3	15.3	187.8	164.3	14.3	226.1
Other	13.4	6.0	123.3	36.0	16.8	114.3	32.9
Total	140.5	124.2	13.1	425.1	379.4	12.0	524.1

Sales by market

• United Kingdom and Ireland
• Other

DORO PHONES

Third quarter

Net sales in business area Doro Phones for the third quarter amounted to SEK 269.4 million (319.0), a decrease of 15.5 percent compared with the third quarter of 2020. We have continued to see good development in our main markets with maintained or strengthened market position. Especially in Central and Eastern Europe, where we saw an improvement compared with the second quarter of this year. The strategic decision to phase out less profitable markets as part of our cost-saving program has as planned had a negative effect on sales, primarily due to the phasing out of North America

The order book decreased by 34.9 percent compared to the third quarter of 2020 but increased by 10.1 percent compared to the second quarter of 2021. The decrease is mainly explained by the phase out of North America.

The gross margin for the third quarter was 36.0 percent (29.1). The high gross margin is partly explained by a more profitable product and customer mix and partly due to more favourable exchange rates in the quarter. EBIT amounted to SEK 39.5 million (23.1) during the third quarter, which is equivalent to an EBIT margin of 14.7 percent (7.2). The improved profitability is explained by the strong gross margin and a lower cost level from the initiatives incorporated through the restructuring program.

Sales in the Nordics increased by 8.6 percent compared with the third quarter of 2020 and sales in Western and Southern Europe and Africa decreased by 20.1 percent. In both regions, we maintained our strong market position even though sales in Western and Southern Europe and Africa were negative in the quarter compared with the same period last year. This is an effect of the price increase announced during the second quarter, which influenced customers' inventory levels at the beginning of the third quarter. Furthermore, the third quarter of last year, especially in Western and Southern Europe, was positively affected by a recovery from the first wave of COVID-19.

Sales in the United Kingdom and Ireland increased by 3.5 percent compared to the third quarter of 2020 and sales in Central and Eastern Europe decreased by 16.8 percent. The restructuring that was initiated at the end of the first quarter of the Central and Eastern Europe region has resulted in an improved level of sales compared with previous quarters this year. During the quarter, North America was completely phased out as an effect of the strategic decision to focus on more profitable markets.

KEY FIGURES

DORO PHONES (SEK million)	2021 Quarter 3	2020 Quarter 3	%	2021 Jan-Sep	2020 Jan-Sep	%	2020 Whole year
Net sales	269.4	319.0	-15.5	728.4	820.3	-11.2	1,165.2
Cost of goods and services sold	-172.5	-226.2	-23.7	-470.2	-578.0	-18.7	-812.5
Gross profit	96.9	92.8	4.4	258.2	242.3	6.6	352.7
Gross margin %	36.0	29.1		35.4	29.5		30.3
Other operating expenses	-57.4	-69.7	-17.6	-181.2	-211.2	-14.2	-281.2
Operating profit after depreciation and write downs (EBIT)	39.5	23.1	71.0	77.0	31.1	147.6	71.5
EBIT margin %	14.7	7.2		10.6	3.8		6.1
Order book	122.2	187.7	-34.9	122.2	187.7	-34.9	70.8
New orders	280.6	370.1	-24.2	779.8	909.6	-14.3	1 137.6
Investment in product development	10.9	4.1	165,9	19.2	22.1	-13.1	25.2

NET SALES BY MARKET

(SEK million)	2021 Quarter 3	2020 Quarter 3	%	2021 Jan-Sep	2020 Jan-Sep	%	2020 Whole year
Nordics	65.5	60.3	8.6	185.5	160.4	15.6	232.1
West and South Europe and Africa	94.0	117.7	-20.1	273.2	257.5	6.1	366.0
Central and Eastern Europe	66.2	79.6	-16.8	159.6	210.5	-24.2	292.6
UK and Ireland	43.8	42.3	3.5	110.9	111.0	-0.1	171.5
North America	0.0	19.6	-100.0	1.5	82.9	-98.2	99.9
Other	-0.1	-0.5	-78.7	-2.3	-2.0	15.0	3.1
Total	269.4	319.0	-15.5	728.4	820.3	-11.2	1,165.2

Sales by market

• Western and Southern Europe and
• Africa Central and Eastern Europe
• United Kingdom and Ireland

FINANCIAL DEVELOPMENT

Cash flow, investments, and financial position

Cash flow from operating activities during the third quarter was SEK -13.1 million (155.9). The decrease is mainly due to a negative change in working capital compared with the third quarter of 2020. Free cash flow. after investments but before acquisitions. amounted to SEK -33.8 million (145.1). Investments during the period amounted to SEK 20.7 million (10.8).

During the quarter, we acquired the Dutch company Innocom, it is reported as acquisitions. Cash and cash equivalents totalled SEK 73.1 million (249.3) at the end of the third quarter. At the same time, the equity ratio was 53.4 percent (48.7).

Net debt amounted to SEK 172.8 million at the end of the third quarter, the increased net debt is mainly explained by the acquisition of Innocom, compared with a net debt of SEK 73.1 million at the end of the previous quarter and a net cash of SEK 6.2 million at the end of the third quarter of 2020.

FREE CASH FLOW

Significant events during the period

• In September, Doro acquired the Dutch Innocom Bureau voor Bedrijfscommunicatie BV. The acquisition gives Doro a strong position in the attractive Dutch market, fully in line with the ambition to expand and strengthen its geographical presence.
• In September, Doro acquired the assets of Helpline from the Bromford Housing Association. As the market is forced to undergo a digital transformation, we are keen to support those facing increased investment and complex transitions.

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 2021, the number of issued shares was 24,204,568 of which Doro AB holds 206,286 Doro shares. Total equity amounted to SEK 885.2 million (810.4).

Employees

On 30 September 2021, Doro had 1,109 (1,043) employees, corresponding to 817 (793) fulltime equivalents. Of these employees, 373 (358) are based in the Nordic region, 34 (36) in Central and Eastern Europe, 73 (34) in Western and Southern Europe and Africa, 618 (605) in the United Kingdom and Ireland and 11 (10) in the rest of the world.

Risks

In the present situation, the most significant risks are those relating to the COVID-19 pandemic. Within Doro Care, the pandemic may result in problems meeting demand for services if a large number of our alarm centre staff are absent from work while at the same time there is an increase in the number of alarms being generated. Risks relating to information security are slightly increased (personal data) due to a large number of staff working from home, including alarm receiving centre staff. Procurements and product launches are in danger of being postponed as a result of the pandemic.

As a consequence of the pandemic and the situation in the world with higher shipping costs and an increased shortage of components, there is a risk of increased costs and challenges in the supply chain.

Other risks are described on pages 40–42 of the Annual Report 2020.

Parent company

The parent company's net sales during the third quarter totalled SEK 244.1 million (321.8). Profit after tax amounted to SEK -13.1 million (-2.2).

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.

Separate listing of business area Doro Care

As previously communicated, the Board has instructed the management to prepare a separate listing of business area Doro Care. This is to give both businesses the opportunity to develop more favourably and reach their full potential. The work has progressed according to plan during the third quarter. The ambition is to continue to carry out the special listing during the year.

Options programme

At the AGM on April 27, 2018, it was decided to issue maximum 1,000,000 warrants to senior executives and key employees within the Doro Group. The warrants were sold to the participants at market value calculated according to the Black&Scholes model. The valuation of the warrants was carried out by an independent valuer. Each warrant gives the holder the right to buy one Doro AB share during the two-week period following the announcement of the

second or the third interim report 2021 to a share price of SEK 63.80. A total of 399,932 warrants is subscribed to by the participants.

Seasonal variations

Doro's sales in business area Doro Phones are affected by seasonal variations. Normally, sales are lowest during the first quarter, improve during the second and third quarters and peak during the fourth quarter. Sales in business area Doro Care usually experience only small seasonal variations.

FINANCIAL REPORTS

Group

INCOME STATEMENT Doro – Group (SEKm)	Note	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020	Whole year 2020
Net sales		409.9	443.2	1 153.5	1 199.7	1,689.3
Cost of goods and services sold		-256.7	-299.7	-721.0	-797.4	-1,119.3
Gross profit		153.2	143.5	432.5	402.3	570.0
Selling, distribution and marketing expenses		-61.0	-52.8	-170.7	-168.4	-224.4
Research and development expenses		-22.9	-27.7	-78.5	-76.5	-108.4
Administrative expenses		-35.6	-40.1	-113.5	-114.8	-160.9
Other income and expense		4.7	2.1	7.5	5.4	9.4
Total operating expenses		-114.8	-118.5	-355.2	-354.3	-484.3
whereof depreciation and amortisation of intangible and tangible fixed assets		-28.5	-28.2	-89.1	-86.9	-118.2
Operating profit/loss before depreciation and amortisation (EBITDA)		66.9	53.2	166.4	134.9	203.9
Operating profit/loss after depreciation and amortisation (EBIT)		38.4	25.0	77.3	48.0	85.7
Net financial items		-1.8	0.2	1.4	-7.3	-17.1
Profit/loss before taxes		36.6	25.2	78.7	40.7	68.6
Taxes		-9.4	-6.5	-19.7	-10.8	-19.5
Profit/loss for the period		27.2	18.7	59.0	29.9	49.1
Average number of shares. thousands		23,998	23,768	23,998	23,766	23,890
Average number of shares after dilution. thousands*		23,998	23,768	23,998	23,766	23,890
Earnings per share. SEK		1.13	0.79	2.46	1.26	2.06
Earnings per share after dilution. SEK*		1.13	0.79	2.46	1.26	2.06
*The effect of dilution is considered only when the effect on earnings per share is negative.

STATEMENT OF COMPREHENSIVE

INCOME	Note	Quarter 3	Quarter 3	Jan-Sep	Jan-Sep	Whole year
Doro – Group (SEKm)		2021	2020	2021	2020	2020
Profit/loss for the period		27.2	18.7	59.0	29.9	49.1
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Translation differences		2.4	-0.3	15.5	-16.7	-34.4
Effects from cash flow hedges		-1.7	4.9	7.7	6.3	-3.3
Deferred tax		0.3	-1.1	-1.6	-1.4	0.7
Total Result related to Parent company's shareholders		28.2	22.3	80.6	18.1	12.2

STATEMENT OF FINANCIAL POSITION

-	2021	2020	2020
Doro – Group (SEKm)	30-Sep	30-Sep	31-Dec
Non-current assets
Intangible assets	815.4	763.4	752.6
Property. plant and equipment	113.1	123.9	123.0
Financial assets	5.4	5.5	4.2
Deferred tax asset	15.0	16.8	13.9
Current assets
Inventories	261.3	203.1	224.4
Current receivables	374.7	303.6	292.6
Cash and cash equivalents	73.1	249.3	170.6
Total assets	1,658.0	1,665.7	1,581.3
Shareholders' equity attributable to Parent company's shareholders	885.2	810.4	804.5
Long term liabilities	317.6	338.0	261.0
Current liabilities	455.2	517.3	515.8
Total shareholders' equity and liabilities	1,658.0	1,665.7	1,581.3

Financial instruments valued at fair value on the balance sheet. SEK million	2021 30-Sep	2020 30-Sep	2020 31-Dec
Exchange rate contracts recorded as current liability	0.8	4.9	12.8
Exchange rate contracts recorded as current receivable	7.5	7.9	3.1
Financial instruments valued at fair value consist of currency derivatives and these are valued at level 2

STATEMENT CASH FLOWS Doro – Group (SEKm)	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020	Whole year 2020
Operating profit/loss after depreciation and write-downs. EBIT	38.4	25.0	77.3	48.0	85.7
Depreciation according to plan	28.5	28.2	89.1	86.9	118.2
Net paid financial items	-1.1	-1.5	-3.5	-5.0	-6.3
Unrealized exchange rate differences in cash flow hedges	-5.2	2.0	-10.2	-2.2	0.6
Taxes paid	-11.9	-9.2	-26.8	-39.2	-26.7
Changes in working capital (incl changes in provisions)	-61.8	111.4	-150.3	112.4	72.3
Cash flow from current activities	-13.1	155.9	-24.4	200.9	243.9
Investments in intangible and tangible fixed assets	-20.7	-10.8	-52.1	-48.5	-63.5
Total Free Cash flow before acquisitions	-33.8	145.1	-76.5	152.5	180.4
Acquisitions	-70.6	-30.9	-112.5	-31.6	-38.2
Cash flow from investment activities	-91.3	-41.7	-164.6	-80.1	-101.7
Amortisation of debt	-5.9	-55.0	-16.7	-65.1	-155.3
Warrant program. new/buy back	100.0	0.0	100.0	0.0	0.0
Cash flow from financial activities	94.1	-55.0	83.3	-65.1	-155.3
Exchange rate differences in cash and cash equivalents	4.2	-3.9	8.2	-4.8	-14.8
Change in liquid funds	-6.1	55.4	-97.5	50.9	-27.9
Net cash	0.0	6.2	0.0	6.2	12.1
Net debt	172.8	0.0	172.8	0.0	0.0

STATEMENT OF CHANGES IN EQUITY Doro – Group (SEKm)	2021 30-Sep	2020 30-Sep	2020 31-Dec
Opening balance	804.5	781.8	781.8
Total Result related to Parent company's shareholders	80.6	18.1	12.2
Acquisition of subsidiaries net assets	0.0	10.5	10.5
Closing balance	885.2	810.4	804.5

OTHER KEY FIGURES - Doro – Group (SEKm)	2021 30-Sep	2020 30-Sep	2020 31-Dec
EBITA, SEKm	84.3	54.8	95.0
Equity/assets ratio, %	53.4	48.7	50.9
Number of shares at the end of the period. thousands	23,998	23,998	23,998
Number of shares at the end of the period after dilution. thousands*	23,998	23,998	23,998
Equity per share. SEK	36.89	33.77	33.52
Equity per share. after dilution SEK*	36.89	33.77	33.52
Return on average share holders' equity, %	9.3	6.4	2.6
Return on average capital employed, %	16.8	8.9	9.9
Share price at period's end. SEK	63.10	47.50	46.70
Market value, SEKm	1,514.3	1,139.9	1,120.7
*The effect of dilution is considered only when the effect on earnings per share is negative.

INCOME STATEMENT

Business Area (SEKm)	Note	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020	Whole year 2020
Net sales Doro Care		140.5	124.2	425.1	379.4	524.1
Net sales Doro Phones		269.4	319.0	728.4	820.3	1,165.2
Total Net sales		409.9	443.2	1,153.5	1,199.7	1,689.3
Gross profit Doro Care		56.5	50.7	174.5	160.0	217.2
Gross profit Doro Phones		96.9	92.8	258.2	242.3	352.7
Total Gross profit		153.2	143.5	432.5	402.3	570.0
Operating profit/loss (EBIT) Doro Care		4.4	9.7	20.2	31.8	38.7
Operating profit/loss (EBIT) Doro Phones		39.5	23.1	77.0	31.1	71.5
Non-allocated operating expenses		-5.4	-7.9	-19.8	-14.9	-24.5
Total Operating profit/loss after depreciation and amortisation (EBIT)		38.4	25.0	77.3	48.0	85.7

DORO CARE

INCOME STATEMENT	Note	Quarter 3	Quarter 3	Jan-Sep	Jan-Sep	Whole year
Doro Care (SEKm)		2021	2020	2021	2020	2020
Net sales		140.5	124.2	425.1	379.4	524.1
Cost of goods and services sold		-84.0	-73.5	-250.6	-219.4	-306.9
Gross profit		56.5	50.7	174.5	160.0	217.2
Gross margin. %		40.2	40.8	41.0	42.2	41.4
Other operating expenses		-52.1	-41.0	-154.3	-128.2	-178.5
Operating profit (EBIT)*		4.4	9.7	20.2	31.8	38.7
Operating margin (EBIT margin), %		3.1	7.8	4.8	8.4	7.4

EBIT in 2021 consists of a historical correction of VAT in Norway of SEK 5 million in Q3 and SEK 7 million YTD

NET SALES PER MARKET Doro Care (SEKm)	Note	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020	Whole year 2020
Nordics		64.5	63.9	201.3	198.3	265.1
UK and Ireland		62.6	54.3	187.8	164.3	226.1
Other		13.4	6.0	36.0	16.8	32.9
Total		140.5	124.2	425.1	379.4	524.1

KEY RATIOS DORO CARE Doro Care (SEKm)	Note	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020	Whole year 2020
Number of subscriptions (thousands)		390.0	348.0	390.0	348.0	372.0
Product sales		29.3	20.9	87.2	70.4	105.4
Service sales		111.2	103.3	337.9	309.0	418.7
Investments in product development		4.8	3.7	19.8	14.6	21.9

DORO PHONES

INCOME STATEMENT

	Note	Quarter 3	Quarter 3	Jan-Sep	Jan-Sep	Whole year
Doro Phones (SEKm)		2021	2020	2021	2020	2020
Net sales		269.4	319.0	728.4	820.3	1,165.2
Cost of goods and services sold		-172.5	-226.2	-470.2	-578.0	-812.5
Gross profit		96.9	92.8	258.2	242.3	352.7
Gross margin. %		36.0	29.1	35.4	29.5	30.3
Other operating expenses		-57.4	-69.7	-181.2	-211.2	-281.2
Operating profit (EBIT)		39.5	23.1	77.0	31.1	71.5
Operating margin (EBIT margin). %		14.7	7.2	10.6	3.8	6.1

NET SALES PER MARKET Doro Phones (SEKm)	Note	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020	Whole year 2020
Nordics		65.5	60.3	185.5	160.4	232.1
West and South Europe and Africa		94.0	117.7	273.2	257.5	366.0
Central and Eastern Europe		66.2	79.6	159.6	210.5	292.6
UK and Ireland		43.8	42.3	110.9	111.0	171.5
North America		0.0	19.6	1.5	82.9	99.9
Other		-0.1	-0.5	-2.3	-2.0	3.1
Total		269.4	319.0	728.4	820.3	1,165.2

KEY RATIOS PHONES

	Note	Quarter 3	Quarter 3	Jan-Sep	Jan-sep	Whole year
Doro Phones (SEKm)		2021	2020	2021	2020	2020
Order book		122.2	187.7	122.2	187.7	70.8
Order intake		280.6	370.1	779.8	909.6	1,137.6
Investment's product development		10.9	4.1	19.2	22.1	25.2

PARENT COMPANY

INCOME STATEMENT Parent company (SEKm)	Note	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020	Whole year 2020
Net sales		244.1	321.8	779.2	866.8	1,266.8
Cost of goods and services sold		-172.2	-237.8	-514.8	-598.7	-853.3
Gross profit		71.9	84.0	264.4	268.1	413.5
Operating expenses		-215.1	-89.9	-395.9	-261.1	-365.2
Operating profit/loss (EBIT)		-143.2	-5.9	-131.5	7.0	48.3
Net financial items		131.3	2.2	138.0	-1.0	-13.5
Profit/loss after financial items		-11.9	-3.7	6.5	6.0	34.8
Group contribution		0.0	0.0	0.0	0.0	0.0
Taxes		-1.2	1.5	-6.0	-2.7	-11.3
Profit/loss for the period		-13.1	-2.2	0.5	3.3	23.5

STATEMENT OF COMPREHENSIVE

INCOME	Note	Quarter 3	Quarter 3	Jan-Sep	Jan-Sep	Whole year
Parent Company (SEKm)		2021	2020	2021	2020	2020
Profit/loss for the period		-13.1	-2.2	0.5	3.3	23.5
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Effects from cash flow hedges		-1.7	4.9	7.7	6.3	-3.3
Deferred tax		0.3	-1.1	-1.6	-1.4	0.7
Total Result related to Parent company's shareholders		-14.5	1.6	6.6	8.2	20.9

STATEMENT OF FINANCIAL POSITION

- Parent Company (SEKm)	2021 30-Sep	2020 30-Sep	2020 31-Dec
Non-current assets
Intangible assets	60.0	303,2	292.1
Property. plant and equipment	0.1	21,1	21.3
Financial assets	431.6	352,3	402.5
Current assets
Inventories	182.9	175,7	181.3
Current receivables	751.3	463,0	432.8
Cash and cash equivalents	16.8	169,3	109.9
Total assets	1,442.7	1,484.6	1,439.9
Shareholders' equity attributable to Parent company's shareholders	549.0	519,2	542.3
Provisions	65.1	65,2	67.0
Long term liabilities	185.0	170,0	125.9
Current liabilities	643.6	730,2	704.7
Total shareholders' equity and liabilities	1,442.7	1,484.6	1,439.9

Note 1 - Business combinations

FirstCall 24/7

On 1 February 2021. Doro acquired FirstCall 24/7 from Trent and Dove Hpusing. The acquisition means that Doro takes over the customer agreements for the business. The purchase price was paid in cash. GBP 1.00 on a debt free basis. FirstCall 24/7 had annual sales in 2019/20 of 0.5 million GBP. Below figures are preliminary.

Preliminary information about the acquisition is given below, fair value SEK million

Intangible assets	1.5
Accrued expenses	-1.5
Acquired net assets	0.0
Goodwill	0.0
Total purchase price	0.0
Effect of the acquisition on group cash flow	0.0

Innocom

September 1st 2021 Doro acquired the Dutch company Innocom Bureau voor Bedrijfscommunicatie B.V. ("Innocom"). The purchase price was paid in cash and amounted to around 72 million SEK on a cash and debtfree basis. Goodwill is linked to the strengthened position in the Dutch market, which Innocom sales channels provide. Innocom had annual sales in 2020 of EUR 4.9 million (approximately SEK 50 million). At the time of acquisition, the company had about 40 employees and supports 26,000 end-users. Below figures are preliminary.

Preliminary information about the acquisition is given below, fair value SEK million

Intangible assets	0.0
Property, plant and equipment	2.5
Inventories	5.8
Current receivables	4.9
Cash and cash equivalents	1.4
Current liabilities	-3.6
Acquired net assets	11.0
Goodwill etc	65.4
Total purchase price	76.4
Cash in acquired company	1.4
Estimated additional consideration	4.4
Effect of the acquisition on group cash flow	70.6

FINANCIAL DEFINITIONS

Average number of shares after dilution	The average number of shares adjusted for the dilution effect of subscription options calculated as the difference between the presumed number of shares issued at the redemption price and the presumed number of issued shares at the average market price for the period.
Profit per share	Profit after tax divided by the average number of shares for the period.
Profit per share after dilution	Profit after tax divided by the average number of shares for the period. after the dilution effect.
Number of shares at end of period after dilution effect	The number of shares at the end of the period adjusted for the dilution effect of subscription options calculated as the difference between the presumed number of shares issued at the redemption price and the presumed number of issued shares at the market price at the end of the period.
Equity per share	Equity on the balance date divided by the number of shares on the balance date.
Equity per share after dilution	Equity on the balance date divided by the number of shares at the end of the period after dilution effects.
Net liabilities/Net cash	Cash and bank deposits less interest-bearing liabilities
Market value. SEK million	Share price at the end of the period times the number of shares at the end of the period.

Use of non-IFRS results measurement

Guidelines regarding alternative key figures for companies with securities listed on a regulated market within the EU have been issued by the ESMA (European Securities and Markets Authority). These guidelines shall be applied to alternative key figures that are used with effect from 3 July 2016. The interim report has references to a number of non-IFRS result measurements that are used to help both investors and management in analysing the company's activities. Below we describe the non IFRS result measurements that are used as a supplement to the financial information that is reported according to IFRS.

Description of financial result measurements that are not found in the IFRS rules

Non-IFRS result measurement	Description	Reason for use of measurement
Restructuring costs	Costs of impairment and personnel costs in connection with restructuring.	This measurement shows the specific costs that arise in connection with restructuring of a specific activity. which contributes to better understanding of the underlying cost level in the ongoing operational activities.
Gross margin %	Net sales minus cost of goods and services sold as a percentage of net sales.	The gross margin is an important measurement for showing the margin before other costs.
Sales growth comparable units %	Net sales for the period minus net sales for companies acquired during the period minus net sales for the corresponding period in the previous year as a percentage of net sales for the corresponding period in the previous year.	Sales growth comparable units shows the group's organic growth excluding company acquisitions.
Currency adjusted sales growth %	Net sales for the period recalculated with exchange rates for the corresponding period the previous year minus net sales for the corresponding period the previous year as a percentage of net sales for the corresponding period the previous year.	This measurement shows sales growth with currency effects cancelled out.
Equity ratio	Equity expressed as a percentage of total assets	A traditional measurement for showing financial risk. expressed as the percentage of the total capital that is financed by the owners.
Return on average equity	Rolling 12-month profit. after financial items and tax. divided by average equity.	Shows from a shareholder perspective what the return is on the owners' invested capital.
Capital employed	Total assets less non-interest-bearing liabilities and cash and bank deposits.	The measurement shows how much total capital is used in the operation and is thus the only component in measuring return from the activities.
Return on average capital employed	Rolling 12-month operating profit divided by the average quarterly capital employed	The key measurement for measuring the return on all the capital in the company.
Number of subscription customers	Number of subscription customers connected to alarm reception.	This measurement shows the volume of customers in the services activities.
Unallocated operating expenses	Central operating expenses not allocated to the business segments. Doro Care and Doro Phones. These expenses include acquisition costs. restructuring costs. amortisation of values identified at company acquisitions and effects of accounting of leases in accordance with IFRS 16.	These operating expenses are not allocated to the business segments so that the EBIT of the business segments shows the profitability excluding costs related to restructuring. acquisitions and IFRS 16- effects. This agree with how the business segments are measured internally.

- Calculation of financial result measurements that are not found in the IFRS rules	Quarter 3 2021	Quarter 3 2020	Jan-Sep 2021	Jan-Sep 2020
Currency adjusted sales growth (SEK million)
Currency adjusted sales growth	-32.4	-63.1
Currency effect	-0.9	-15.1
Reported sales growth	-33.3	-78.2
Capital employed
Total assets			1,658.0	1,665.7
-non-interest-bearing liabilities			503.0	612.9
-cash and cash equivalents			73.1	249.3
Reported capital employed			1,081.9	803.5

CONFIRMATION BY THE BOARD

The board and managing director 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, 22 October 2021

Lennart Jacobsen Chairman of the Board Henri Österlund Deputy Chairman of the Board Tova Jexmark Board member

Juha Mört Board member Cecilia Ardström Board member

Victor Saeijs Board member

Mona Sahlberg Board member

Carl-Johan Zetterberg Boudrie 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 2021 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 22nd October 2021

PricewaterhouseCoopers AB

Tomas Hilmarsson Johan Rönnbäck Authorized Public Accountant Authorized Public Accountant

Auditor in charge

REPORT DATES

Q4-report. January-December 2021: 17 February 2022

Q1-report. January-March 2022: 29 April 2022

The annual general meeting will be held in Malmö on 29 April 2022.

CONTACT

For further information. please contact: Carl-Johan Zetterberg Boudrie. President and CEO, acting CFO +46 (0)703 35 84 49 E-mail: ir@doro.com

WEBCAST

A webcast conference call will be held on Friday 22 October at 9.00 am (CEST) when President and CEO Carl-Johan Zetterberg Boudrie will present the report. The webcast is accessed at https://tv.streamfabriken.com/doro-q3-2021. The presentation material is available on Doro's financial website http://www.doro.com/corporate.

Telephone numbers: Sweden: +46 8 50 55 83 51 United Kingdom: +44 33 33 00 92 62 USA: +1 63 19 13 14 22 (PIN 97638173#) France: +33 170 75 07 36