Annual Report

Annual Report 2008

In recent years, Doro has focused on a more clearly defined product range primarily within Care Electronics.

This focus has enjoyed a favorable development and

sales are increasing in several geographic markets.

Contents

This is Doro 2

Year in brief 3

Products in focus 4

Financial overview 5

Doro’s offering 6

Message from the CEO 10

Business concept 12

Quality, environment and people 14

The Doro share 16

Quarterly summary 18

Directors’ report 19

Care Electronics 20

Home Electronics 20

Business Electronics 20

Home Electronics focuses on families seeking to simplify their everyday lives.

Doro’s range of telephones, baby moni- tors and walkie-talkies is distinguished by its attractive and functional design.

Care Electronics with products aimed at customers requiring simple and secure devices that help them over- come functional disabilities. Doro’s product range includes home and mobile phones, remote controls and ringer amplifiers.

Business Electronics offers products adapted to professional environments that utilize a standardized interface.

More enterprises are installing IP PBX, which is a cost-efficient system for telephony over internet (IP). The product range includes ergonomic telecom products such as telephones, headsets and walkie-talkies.

An increased focus on selected customer segments will generate profitable growth for Doro.

Doro develops and sells electronics products, primarily within the telecom sector. Its most important customer segments are:

Five-year summary 24

Financial statements 25

Accounting principles 30

Notes 34

Definitions 44

Auditor’s report 45

Corporate governance 46

Internal control 48

Board of Directors and Auditors 49

Management team 50

Doro’s international presence 51 Information to the shareholders 52

The audited Annual Report is presented on pages 19–44.

Doro AB is a public limited liability company. It’s headquarters are located in Lund, Sweden. Denna årsredovisning finns också i svensk version.

All values are in Swedish krona (SEK). Unless otherwise sta- ted, figures in parentheses relate to the 2007 fiscal year.

This document is a translation from Swedish. In the event of

any difference between this version and the Swedish original Annual Report, the Swedish original shall govern.

This Annual Report was published on the company’s web site (www.doro.com) on March 12, 2009.

Printed versions can be ordered from Doro AB.

Doro AB in corporation with RHR Corporate Communication.

Sales by business unit 2008, %

Business Electronics, 9

Care

Electronics, 39

Home

Electronics, 52 Sales by geographical area 2008, %

Year in brief

Group net sales increased to SEK 363 m (346),

•

a growth by 5 percent.

Operating loss (EBIT) amounting to SEK 8 m (profit: 9).

•

The full-year result includes extraordinary costs of SEK 13 m in fourth quarter, following the rapid appreciation of the US-dollar and provisions related to the slump in the UK market and the general recession in the Business Electronics segment.

Care Electronics showed continued strong growth of 180

•

percent, from 51 to SEK 143 m. Sales of easy-to-use mobile phones in several markets have been a main driver for this success.

The difficult market conditions for DECT and corded

•

home telephony in many European countries, continued and sales in Home Electronics decreased by 26 percent, from 255 to SEK 189 m.

Sales in Business Electronics declined by 25 percent,

•

from 40 to SEK 30 m, partly due to low sales of new products in IP telephony. Business Electronics will as from 2009 be reported under Home Electronics.

Operating cash flow amounting to SEK –21 m (–30),

•

mainly due to increased working capital and the negative result.

Net debt at year-end amounted to SEK 31 m (0).

•

Pre-agreed total credit facilities amounted to SEK 59 m.

During the 2008 year of operations, Doro continued its process of developing products for selected customer segments, primarily within Care Electronics.

• During the year, Doro received awards for its functional designs. In France, Doro received the prestigious Janus Award for its MemoryPlus 319ph phone for seniors. In the US, five products from Doro’s Care Electronics range received the IDEA® award, one of the world’s most recognized design distinctions.

• Doro signed a distribution agreement with IVS, Industrie- vertretung Schweiger, one of Germany’s leading retailers specializing in telecom equipment with functional design.

• Doro became the first telephone manufacturer in Europe to have a DECT telephone certified with the Energy Star label, an international labeling of energy efficient office equipment.

• Doro signed a distribution agreement with Brightpoint for the US market. The agreement includes mobiles from Doro Care Electronics.

• Annette Borén was appointed as the new CFO of Doro in October 2008.

Nordic region, 39

Rest of Europe, 58

Rest of world, 3

Products in focus

A handsome phone that’s easy to use

Doro’s user-friendly MemoryPlus 319ph telephone is an excellent choice for those with limited movement in their hands, weak eyesight or impaired memory. Telephones of this type make everyday life easier for many seniors. The phone has received awards from international design organizations.

Easy mobile phone with SMS

HandleEasy 330gsm is an easy-to-use mobile phone for everyday calling and text messaging. Big buttons make it easy to dial and write SMS messages, while the colour screen features large characters.

Saving energy in the home

Doro’s super-slim cordless phone th80 is Europe’s first DECT telephone to be certified with the Energy Star label, an international labeling of energy efficient office equip- ment. The certification helps European consumers find energy-saving products.

Efficiency in the workplace

Doro’s new slimline IP telephone, ip880dect, is ideal for both

small companies and larger organizations. This phone combines

the latest IP technology with wireless DECT technology and is

the natural choice for workplaces that need a flexible, mobile

and efficient telephone solution.

Financial overview

In line with Doro’s strategy, 2008 was a year of steady growth in the Care Electronics business unit, off-setting lower sales in Home Electronics and Business Electronics.

0 20 40 60 80 100

2006 Business Electronics

Care Electronics Home Electronics

%

2007 2008

2008 2007 2006

Net sales, SEK m 362.5 346.3 433.2

Operating profit/loss (EBITDA), SEK m –3.6 9.9 –57.3

Operating profit/loss (EBIT), SEK m –8.2 9.2 –76.9

Profit/loss after financial items, SEK m –10.1 8.1 –81.7

Profit/loss for the year, SEK m –11.5 7.5 –94.7

Operating margin (EBIT), % –2.3 2.7 –17.8

Average return on capital employed, % neg 27.1 neg

Average return on shareholders’ equity, % neg 21.1 neg

Equity/asset ratio 17.6 24.5 17.4

Cash flow from current activities, SEK m –21.4 –30.2 –5.4

Liquid assets (incl. unused credit), SEK m 28.3 60.2 68.0

Number of employees (average) 59 61 87

Earnings per share after tax, SEK –0.66 0.43 –8.76

Shareholders’ equity per share, SEK 1.73 2.27 1.81

Sales split per business unit

Care Electronics’ share of total sales has increased from 7 percent in 2006

to 39 percent in 2008. 7 %

16 %

39 %

We want to make products with functional and modern design that make everyday life easier and business more efficient.

Doro’s offering

Many of us find ourselves surrounded by products that are unnecessarily complicated, with functions that are never used. Often, we do not even know they are there or how to make them work.

At Doro, we want to change this. We want to make products that are user-friendly and adapted to make people’s everyday lives easier, and that help them use their time more efficiently at work. Our range of communication products includes telephones, network devices and acces- sories. Regardless of whether customers are businesses, modern families or seniors, they can learn to use Doro products quickly and securely.

We live in our customers’ world

Doro plays a central role as an organization, developing products and adding value between production suppliers and retailers primarily in the Nordic region, France and the United Kingdom. We generate added value through our expertise in the following areas:

• Market segmentation – gaining an understanding of end-users and retailers by focusing on defined target groups.

• Proprietary product concepts representing a complete product range for retailers and distributors.

• Distribution channels to which suppliers lack access.

Total quality

With a broad range of telephone products and rapid technological development comes increased demand for full service. Doro offers both customers and end-users a complete value chain, from a product designed according to the end-user’s requirements regarding feel and sim- plicity, via a competent sales organization to support and guarantees.

Market

Global sales of mobile phones (telephones using GSM, CDMA or 3G technology) is slowing down and in some areas declining. In recent years, the market has been characterized by increasing price pressure, resulting in lower average prices. Forecasts by leading manufacturers Sony Ericsson and Nokia indicate a continued weaken- ing in global sales of mobile telephones. Beyond the two mentioned above, there are several global manufacturers of mobile handsets, including Motorola and Samsung.

Doro is a niche player, offering mobile phones for users seeking somewhat simpler models. In this segment, Doro holds a market share of some 70 percent in the Nordic

region and of about 30 percent in other parts of Europe.

Other players in this segment are Emporia and ITT.

Cordless phones are gaining market share in most countries, regardless of whether they use DECT or IP technology. In Western Europe, sales trends vary, according to market research company MZA. In the UK and Germany sales rose by 10 percent and 2 percent respectively at the beginning of the year compared with early 2007. Over the same period, sales declined by 7 percent in Spain and by 9 percent in France. Doro is a niche player, holding about 20 percent of the Nordic market and 4 percent in the rest of Europe. The market leaders include Alcatel-Lucent, Panasonic, Philips and Gigaset.

Doro has recently established cooperation with US distributors for special products targeting the US market and has not yet achieved more than marginal sales there.

Functional design in everyday life

Knowledge of end-users is the most important compo- nent for Doro when designing new products. The basis of our understanding of end-user is generated by working together with various partners, each making a different contribution. Two significant partners are the world-leading companies Ergonomidesign and Synovate. Together with these two partners, Doro has gathered considerable exper- tise about end-users, their world and where we can expect to be able to sell products.

The Doro HearPlus 318w is an example of how Doro has developed products in close cooperation with experts in the design of devices and everyday products for people with functional impairment. Together with Professor Maria Benktzon at the University College of Arts, Crafts and Design in Stockholm and her team of designers at the internationally recognized design agency Ergonomidesign, a cordless phone was developed for older people that makes it easy for them to keep in touch with family and

In addition to its ergonomic benefits,

the Doro HearPlus 318w is specially

designed for people with impaired hear-

ing and those who use hearing aids.

Doro’s offering

Specialized retail stores, such as Hörsam in Malmö (Sweden), are pleased to assist custo- mers in their choice of easy-to-use phones.

friends. Beyond its innovative ergonomic benefits, the Doro HearPlus 318w is specifically designed for people with impaired hearing or who use a hearing aid.

The process took the user’s practical situation as its point of departure. Through interviews, simulated calls and observations based on still and video images, a study was conducted of how different products are used. The resulting phone has a high amplifier level, while retaining very high sound quality and improved compatibility with hearing aids.

This makes the Doro HearPlus 318w the perfect cord- less phone for those with impaired hearing. The enlarged and somewhat curved handset is not only easier to grip but also provides extra arm support during calls. It easily falls into the right position in the stable base unit and features large buttons and a large, easy-to-read display.

Seniors often intimidated by new technology

How products are used in current everyday life is impor- tant, although an understanding of users’ attitudes towards communication in the future will be decisive for Doro’s

product development. Through the research company Synovate, Doro has interviewed more than a thousand people over 65 years of age in France, the United Kingdom and Sweden. The results show that although the majority of Swedes above 65 have mobile phones, nearly half of people in that age category feel intimidated by, or uncertain about, modern technologies. Consequently, when it comes to mobile phones, today’s pensioners demand simplicity and user-friendliness over modern functions and services.

Within the EU, some 70 million people suffer from some

form of age-related functional disability. This figure will

increase to 84 million by 2020. Within ten years, people

above 65 are expected to make up 25 percent of Sweden’s

population. For these people, large, clear screens, large

and clear buttons and simple functions will grow increas-

ingly important as criteria when choosing a new mobile

phone. The study also revealed a number of interesting

differences between Sweden, France and the United King-

dom. For example, only half of French pensioners have

access to a mobile phone, while the corresponding figure

in the United Kingdom is 75 percent.

Doro’s offering

Care Electronics offers products for senior citizens.

According to forecasts by the UN and Eurostat, the share of people above the age of 80 is expected to double by 2050. Among the population in Doro’s markets, life expectancy and income levels are predicted to rise over the next few decades.

These factors represent Doro’s starting point for its focus on the senior market with smart, well- designed products that are easy to use for people with impaired vision or hearing and other limita- tions. These products are characterized by large figures, adjustable loudspeakers, strong contrast, easy-grip handsets, pre-programmed dialing buttons – all functions that are easy to use.

Two prime target groups

Two groups of products within Care Electronics are marketed:

Plus – products specially adapted to meet the specific needs of senior citizens with more severe physical disabilities.

Easy – simplified products adapted for individu- als with some form of functional impairment, who therefore seek simple, easy-to-use telephones and other communications equipment.

This grouping also forms the basis of Doro’s dis- tribution strategy, whereby the Easy product range is sold through large consumer electronics chains, while the Plus product range is sold through spe- cialized distributors focusing on individuals with special needs.

The Doro Audio + stamp indicates a higher degree of product adaptation and creates greater added value in distribution. Doro’s Audio Plus products meet rigorous requirements on interaction with other functional aids. Consequently, they work together with hearing aids, while also providing the greatest degree of sound adjustment for those not using hearing aids.

Most important sales channels

The most important sales channels for Care Elec- tronics are shops that sell consumer electronics, GSM specialists as well as specialists and advisors in care products.

Competitors include niche-players such as Geemarc and Emporia.

HandleEasy 330gsm

Easy GSM mobile phone with SMS Easy-to-read color display

•

Large buttons

•

Full SMS capability

•

MemoryPlus 335 Wireless object locator

Four sensors included

•

Repeating alarm signal

•

Reminds you to return transmitter to cradle

•

HandleEasy 328gsm

Easy mobile phone with phonebook Easy to use phonebook

•

Four direct memories

•

Easy-to-read display

•

Care Electronics

Home Electronics

Business Electronics

Business Electronics offers a broad range of products for professional users. All products are independent, meaning they can be used directly with offices’ exist- ing technical solutions.

Doro’s professional products are divided into three groups:

-Fixed network telephony, -IP-telephony (VoIP) -Professional headsets

For professional users, the ergonomic characteristics of products are very important and play a key role in purchase decisions. Doro has extensive experience in the development of telephone equipment to be used for many hours every day and on which users impose extensive demands regarding, for example, the possi- bilities to adjust sound levels. This helps reduce risks of work-related injuries that can otherwise be caused by monotonous exposure and long-term use.

The headset market is dominated by Plantronics of the US and Jabra/GN Netcom of Denmark. Doro ProSound entered its marketing phase in 2008 and consequently holds only a limited share of the market.

Products from Business Electronics are sold primarily through business wholesellers, telecom specialists, operators and office supply channels.

aub200h+sa

Easy-to-clean telephone Easy-to-clean surfaces

•

Headset outlet

• bm50 Baby monitor

Many combinations of channels

•

Interference-free

•

DECT-technology

Easy adjustment of sensitivity

•

Built-in lullabies

• Most of Home Electronic’s product range consists

of home telephones (corded or cordless) that are IP compatible, meaning they can be used for telephony services provided by Internet operators. The range also includes walkie-talkies (personal mobile radio) and baby monitors.

During 2008, sales of cordless telephones con- tinued to rise, while corded phones have decreased significantly. IP telephony remains small.

Doro is monitoring the development of CAT-iq tech- nology, which is expected to replace the current DECT standard for communications between handsets and base stations. The new digital technology allows more advanced handheld units to be connected to faster broadband services, making it possible to use triple play solutions combining television, broadband and telephony. CAT-iq is expected to reach the consumer market during 2010.

Doro’s Home Electronics range is marketed through several sales channels. These include major retail chains such as Carrefour, specialist chains such as Expert and Dixons, and shops focusing on new parents.

Doro’s offering

ProSound hs1180

Professional monaural headset Superior sound quality

•

Optimised for all-day use

•

ActiveGard

•

NeoBio™ 20

Digital cordless phone Backlit display and keypad

•

Caller ID log

•

Speakerphone

•

ip840c

Advanced VoIP telephone Hig resolution display

•

Built-in VPN client

•

Power over Ethernet (PoE)

•

Message from the CEO

During 2008 we took another step to grow Care Electronics.

Turmoil in global financial markets and the economic slump present us with both challenges and opportunities.

Turnaround continues despite stormy weather in 2008

In many respects, 2008 was a strong year for Doro. We strengthened the growth trend, primarily in Care Electron- ics, which begun in 2007. This despite the increasing impact of the global economic downturn towards the end of the year. I believe this confirmed the validity of our new focus, leveraging our products for senior citizens.

In 2008, total sales rose by 4.7 percent compared with 2007 to SEK 362.5 m and order intake in the last quarter was 28 percent above previous year. Our margins were impacted by increased costs for raw materials early in the year, negative exchange rates and low demands from the consumer segments in the last quarter 2008. Operating results (EBIT) amounted to SEK –8.2 m for the year.

Increasing success for Care Electronics

In 2008, the Care Electronics business unit, in particular, continued to reap new successes with easy-to-use mobile phones and other products designed to simplify life for senior citizens. We have little direct competition covering the full scope of our offer and this business area has grown to account for some 39 percent of Doro’s annual sales.

Most manufacturers of GSM handsets focus on packag- ing products in collaboration with network operators, and thereby on target groups offering high average revenue per unit (ARPU), generally younger users. We, instead, focus on the specific needs of seniors – a niche representing approximately 2 percent of the total GSM market. Our GSM phones feature clarity and usability with big buttons, large figures on the buttons and the display, as well as a grip-friendly design.

Careful research allows us to offer just those functions that seniors want and are able to use. In our geographi- cal markets, Doro is the category captain in this niche.

We have established strong marketing relationships with specialist distributors and major retail chains in Europe and recently also in the US. New products launched in this segment in 2008 included two new mobile phones:

HandleEasy 328gsm and 330gsm. Among our fixed-line phones for seniors, we launched the amplified cordless phone HearPlus 318w with enhanced ergonomic features.

In 2009, we are aiming to enlarge our GSM range and launch new categories of electronic products.

Home and Business Electronics

Although Care Electronics is catching up fast, Home Electronics was in 2008 still Doro’s largest business unit, generating 52 percent of Doro’s annual sales. Home Electronics’ sales declined by 26 percent compared with

2007, although the introduction of the NeoBio and Arc product lines – with the technology Digital Enhanced Cord- less Telecommuni-cations (DECT) – alleviated this decline somewhat towards the end of the year. In 2009, we plan to renew our offering.

We are able to leverage the strong relationships we

enjoy in the retail consumer electronics channel – relation-

ships reinforced by our niche Care offering – to develop

sales of other products, primarily those aimed at modern

relations in various sales channels and our niche offering to continue expanding.

Outlook

As we enter 2009, turmoil in global financial markets and the widespread economic slump present us with both chal- lenges and opportunities. The volatility of the USD in late 2008 has had an impact on our margins and cash flow.

The Board of Doro has implemented a new treasury policy setting the rules for a systematic hedge policy in line with Doro’s price commitment. This is expected to stabilize the effect of currency changes on margins in 2009.

Actions have been taken to grow our Care Electronics market shares in our key markets, the Nordics and Conti- nental Europe, as well as continue to establish the Doro brand in the US market. Our additional reactions to offset negative exchange rates were to increase prices and allow Care Electronics to surpass 50 percent.

In addition, we will adapt the operational expenses in order to secure a competitive cost structure in Doro.

To further leverage our investments and to capitalize on our experienced organization we have merged the business unit Home Electronics and Business Electronics. Home &

Business Electronics business units will be reported as one as of January 1, 2009.

With support of new Care Electronics products launched in the second quarter 2009, the current growth trend can continue despite expected sales decrease in Home & Business Electronics.

Doro currently has good order intake and has managed to raise prices to offset currency fluctuations. However, a forecast for 2009 is difficult to give at this point due to the prevailing uncertainty of the general business climate.

I’m proud that Doro is able to make life easier for people and businesses. This forms the core of our brand values. These values and our niche products are allowing us to develop fruitful collaborations in key distribution channels. I remain convinced that the road to profitable growth lies in nurturing the brand and the human values it represents.

Finally, I would like to thank my colleagues at Doro whose efforts over the past year have resulted in consider- able improvement despite turbulent external conditions.

Lund, March 2009

Jérôme Arnaud

Message from the CEO

families, such as cordless home phones and baby monitors.

In our third business area, Business Electronics, we develop products that provide value for money, are well designed and simplify life for users with functions tailored to their specific needs. Sales are focused through highly developed relations in specialist channels, such as com- panies that sell and install complete office telephone sys- tems. Although the launch of new VoIP products this year progressed more slowly than we envisaged, the increasing need for businesses to cut costs may present new opportu- nities in this area. Other new products launched during the year included a new DECT IP phone, ip880dect.

International expansion

In all of our markets, Doro works constantly to develop and reinforce relations with distributors, both specialists in, for example, care products and business systems, as well as GSM operators and consumer electronics retailers. In the UK, the refocused offering and the public relation around the brand resulted in a 16 percent increase in sales in 2008. We continue to advance our positions in Germany as well, with that market contributing significantly to growth in mainland Europe over the year.

We began our entry into the US market in 2008, with GSM phones for seniors as our product ambassadors. We are in the process of building up relations with a number of distribution channels and have, to date, signed distribu- tion agreement with Brightpoint. Although our efforts in this market are at an early stage, the response has been promising.

Strong relations vital

Being considered by consumers to be useful products for keeping in touch with their families or as items replaced as necessary, rather than as luxuries, Doro’s products are less susceptible to declining consumption than many areas of consumer electronics in times of relative economic hardship. Furthermore, with our relatively small size and slim structure, we have the flexibility to leverage our strong

“In 2008, the Care Elec-

tronics business unit, in

particular, continued to

reap new successes...”

Business concept

Vision

Our vision is to improve people’s everyday lives.

Doro wants communication to be easy. We shall live near our customers in order to always be able to un- derstand their needs and to thereby be able to create user-friendly, quality products that make communication between people simple and secure – regardless of their physical capabilities.

Business concept

Doro develops and markets telecom and consumer elec- tronics products that create benefits, entertainment and inspiration for a simpler and more enjoyable everyday life.

Strategy

Doro has begun to restructure its product range to be able to provide select customer segments with products spe- cially designed for them. Doro’s three business units Care, Home and Business Electronics are responsible for devel-

With focus on three customer segments we continue to offer

products that provide value for money, primarily GSM, fixed-line and VoIP telephones, to modern families, businesses and senior citizens.

opment and sales. Common to all Doro products is that they bear the imprint of the group’s combined know-how in functional design, technology and quality assurance.

Different offerings are aimed at each customer seg- ment via different sales channels.

Care Electronics’ products are sold partly through consumer electronics retailers and partly through special- ist channels, such as advisory services to the elderly and disabled.

Home Electronics’ products are sold primarily through electronics retailers, business wholesellers, operators and telecome specialists.

Business Electronics’ products are sold through dis- tributors and specialist business suppliers.

The future lies in market-leading products in profitable niches

In recent years, focused efforts have made Care Electron- ics Doro’s growth area, generating greater improvement and added value than the business units that previously dominated Doro’s business. Since the breakthrough year of 2007, this business unit has established strong customer and volume growth, forming a foundation for profitable development. This business unit represented 39 percent of Doro’s total sales. During 2008 it grew by 180 percent and Doro is continuing to develop adapted telephones and other equipment to meet this customer segment’s demand for clear and straightforward functions.

The Care Electronics business unit is also expanding into new markets, developing cooperation with special- ized distributors to the senior market. Such distributors enhance added value and operate in parallel to Doro’s tra- ditionally strong position with major consumer electronics chains, generating positive synergies for the distribution of Doro’s products.

Improved sales

Knowledge of the end-user

Improved product development

Better

products

Business concept

End-user insights

Cornerstones

Business units

Channel targeting Our philosophy

– the foundation of our approach Understanding is key

We believe that awareness and understanding of our end- users are fundamental requirements for our success. User insights help us to create products that are relevant and meet needs.

We collaborate with experts with cutting-edge insights in IT, media and telecom end-users perceptions and require- ments.

Doro’s product segmentation model is developed on an extensive research program.

Clear focus on customer segments

Having focus and accumulating competence, know-how and specialized skills in each customer segment we meet their requirements.

Care Electronics

Key words: Assistance and ease of use.

Target groups: Seniors and their relatives.

Home Electronics

Key words: Smart function and form.

Target group: Modern families.

Business Electronics

Key words: Ergonomic electronics for professional use.

Target group: Users in regular office environment, as well as more demanding surroundings.

Creating unique design with four Cornerstones

The Doro Cornerstones were introduced in 2006 as a framework for our product development, defining the key elements in the design of a Doro branded product.

• Design with harmony and character. Doro’s modern design shall invite use and recognition with distinct characteristics.

• Consumerized products. Doro’s products shall be characterized by smart functions based on the needs and wants of users.

• Total quality experience. Doro’s products shall be developed and marketed with a high level of quality, encompassing materials, design, user performance and durability.

• Inspirational at best value. Despite the fact that Doro is in a volume business, inspiration is vital to drive value.

Channel targeting – the best path to generate sales

We believe that our products should be sold in channels where our target groups expect to find them or where they seek expert guidance to the best buy.

Care Electronics

Sales channels: Specialized care retailers and care departments at operators.

Home Electronics

Sales channels: hypermarkets, consumer electronic retailers, specialists and operators.

Business Electronics

Sales channels: specialists, operators, business whole-

sellers and installers.

Quality, environment & people

Quality assurance

Doro places great importance on its quality assurance efforts. Regular checks and well functioning quality assurance efforts with clear internal and external processes are a prerequisite for in the daily operations, as well as being qualifications when entering new product areas. Well functioning quality assurance efforts with clear internal and external processes are a prerequisite for being able to enter new product areas.

Staying one step ahead of our competitors requires access to the right technologies, production resources and logistics. In recent years, Doro has concentrated its pro- duction sourcing to a limited number of suppliers in China.

Decisive in the selection of manufacturers is that they are able to maintain a consistent and high level of quality.

Careful inspections and quality checks

Before a contract is signed with a new manufacturer, regardless of the product area, Doro conducts a corporate assessment consisting of a careful inspection of both the company and its production facilities. All production series are subsequently tested, according to certain statistical methods, on site at the factory by our own personnel prior to transportation to either of Doro’s central warehouses in Malmö and Paris. A further quality check is made when the goods arrive at the warehouse.

In addition to these checks, a more extensive review of the quality status of all suppliers is conducted quarterly.

Doro ranks and assesses each manufacturer.

All suppliers are assessed in the following areas:

• Forecast level of goods returned by customers

• Fail rate at supplier inspection/Delivery inspection

• Delivery precision

• Lead times

This provides both Doro and the supplier with a shared perception regarding the level of quality assurance ef- forts. Doro also often assists in troubleshooting the actual production process. This provides very good insight into opportunities for the development of new products, but also opportunities to further improve the production of existing ones.

Doro requires that suppliers sign a special declaration regarding good corporate social responsibility. This dec- laration includes a large number of requirements regard- ing child labour, forced labor, the working environment, remuneration levels, working hours and the right to union membership. As of 2008, Doro is conducting third party audits to ascertain compliance of its policies. In the event

Quality, respect for the environment and people are corner stones in Doro’s success. We will continue to invest in these areas to secure the future of our Group.

of a breach of contract, Doro has the right to immediately discontinue all association with the supplier.

Environment

Doro markets and sells products whose use and recycling are covered by environmental directives and legislation.

Customers’ environmental commitment is growing steadily, continuously changing the requirements we make on our suppliers. Doro’s quality and environmental manager is responsible for ensuring that Doro follows applicable leg- islation and regulations. In addition, there is an individual responsible for environmental issues in each country where Doro operates to ensure that local environmental legisla- tion is followed. The more extensive regulations affecting Doro’s operations include the EU Waste of Electrical and Electronic Equipment (WEEE) directive that came into force in August 2005 and the Restriction on the Use of Certain Hazardous Substances (RoHS) directive that came into force on July 1, 2006.

Registration of chemicals, “REACH” (Registration, Evaluation, Authorization and restrictions of CHemicals) concerns importers or manufacturers of chemical sub- stances or chemical preparations. Doro as importer of articles that has reached their final technical specification and cosmetically design at a factory outside EU and that do not transmit any chemical substances during normal use do not have to register or report any amount of chemi- cals.

During August 2008 was also a new battery directive implemented. This directive follow very much the WEEE directive since it is the importer of batteries that have to take the cost of process the battery waste. As importer Doro also have to make sure that all battery cells imported are marked in accordance with the directive. This is fully implemented in our productions well in advance of the implementation of the directive.

Another new directive that will have a certain effect on Doro’s operations is the Energy Using Products (EUP) directive. For Doro, this will entail ensuring ecological design, low-energy production processes and low energy consumption in battery chargers and external power supply units.

In its own operations, Doro seeks to minimize its exter-

nal impact on the environment through the efficient use

of resources at all levels. Product and packaging logistics

are optimized through a continuous focus on planning and

review of volume requirements regarding packaging and

instructions. As far as can be justified by business consid-

erations, Doro uses environmentally certified suppliers and

transport companies.

Quality, environment & people

People

In 2008, the average number of employees at Doro amounted to 59 (61). Of the Group’s employees, 32 per- cent (33) are women.

Doro aims to keep paths for decision making short and has the objective that each individual should feel involved in, and responsible for, the development of the company.

In Doro’s simple and flat organization, responsibilities and authority are delegated, requiring that employees work with a large measure of freedom. One advantage of Doro’s organization is that salespeople, product developers and marketers live close to customers and suppliers – an aspect that is increasing in importance as joint develop- ment projects increase in number and are completed more quickly.

Retaining and developing key competencies is paramount if Doro is to be able to live up to its business concept of developing high-quality products with a modern design. Consequently, Doro has the stated objective of pro- viding employees with the space and resources necessary to develop, both in their current capacities and through opportunities for advancement. With operations in more than 30 countries, Doro has a large number of contact in- terfaces with suppliers, retailers and customers. Today, the exchange of experience and expertise within and among these companies is fairly well developed and the company plans to formalize training efforts, primarily regarding sales methods and product development.

Men, 68 Women, 32

Gender distribution 2008, %

Sales per employee (SEK m/person)

0 2 4 6 8

2006 SEK m

2007 2008

At a ceremony during the

International CES, Doro

CEO Jérôme Arnaud (left)

accepts the WonderVision

Award from the artist

Stevie Wonder and Mike

May, a leading advocate

for inclusiveness

in technology designs.

The Doro share

Doro has been listed on the OMX Nordic Exchange Stockholm since 1993 and is currently included in the Exchange’s Small Cap List.

At December 31, 2008, the company’s market capitalization amounted to SEK 87 m (101).

Price trend

Between January 1, 2008 and December 31, 2008, the price for a Doro share has declined from SEK 5.80 to SEK 5.00, a decline of 14 percent. Over the same period, the All Share Index of the OMX Nordic Exchange Stockholm declined by 42 percent. During the year, the highest price paid for Doro shares was SEK 7.05 and the lowest price paid was SEK 3.50.

Share capital

At December 31, 2008, the share capital in Doro AB amounted to SEK 17,407,631 divided among 17,407,631 shares, corresponding to a nominal value per share of SEK 1.00. Each share entitles the holder to one voting right and all shares convey equal rights to participa- tion in the assets and earnings of the company. Doro has no debentures or current options program.

Shareholders

At the close of 2008, Doro had 3,170 shareholders, com- pared with 3,305 shareholders at the end of the preceding year. The proportion of foreign shareholders at year-end amounted to 12 percent (12) and institutional ownership was approximately 2 percent (1). At the end of the year, senior executives had a combined holding of 488,245 shares in Doro. At the same time, the members of the Board of Doro held 1,256,000 shares. At the close of the year, Doro AB held no treasury shares.

Dividend policy

The 2006 Annual General Meeting adopted a new policy stating that the share redemption would be offered to all shareholders as funds allow. This policy replaces the divi- dend policy until further notice. The Board proposes that no dividend be paid for the 2008 fiscal year.

Price trend and volume Jan 2003 – Jan 2009

Price trend and volume Jan 2008 – Jan 2009

Share capital trend

In recent years, the share capital of the Parent Company has changed as shown below:

Change of Issue Increase in share Amount

Year Transaction share capital price, SEK

capital, SEK m paid, SEK m

1998 Directed issue 2,740,260 18.48 2.7 50.6

1998 New issue 1:7 1,212,894 27.00 1.2 32.7

2001 Directed issue 11,764,705 8.50 11.8 100.0

2005 New issue 7,141 1.00 0.0 0.0

2005 Reverse split, 5:1 –17,180,000

2006 New issue, 3:1 12,885,000 6.00 64.4 71.2

2006 Offset share issue 227,631 7.66 1.1 1.5

1

Issue prices not recalculated for new issues and reverse split.

0 1000 2000 3000 4000 5000

0 10 20 30 40 50

Number of shares traded (incl. aftermarket), ’000 The Doro share

OMX PI

2003 2004 2005 2006 2007 2008 2009

0 80 160 240 320 400

OMX PI

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

0

8 16 24 32 40

Number of shares traded (incl. aftermarket), ’000

The Doro share

Major shareholdings No. of % of No. of % of

as at December 31, 2008* shares shares votes votes

Originat AB 2,600,000 14.9 2,600,000 14.9

DO Intressenter AB 1,647,058 9.5 1,647,058 9.5

Gusgus AB 848,250 4.9 848,250 4.9

Johand AB 848,250 4.9 848,250 4.9

Mellby Gård Holdings 848,249 4.9 848,249 4.9

Dirbal AB 800,000 4.6 800,000 4.6

Handels och Investment AB Venture 800,000 4.6 800,000 4.6

Erik A i Malmö AB 732,250 4.2 732,250 4.2

Tedde Jeansson, SR 677,355 3.9 677,355 3.9

TJ Junior AB 650 028 3.7 650 028 3.7

Subtotal 10,451,440 60.0 10,451,440 60.0

*Source: Euroclear Sweden AB.

Share data 2008 2007 2006 2005 2004

Number of shares by the end of the year, thousands

17,408 17,408 17,408 4,295 4,294

Quota value, SEK 1.00 1.00 5.00 5.00 5.00

EPS after tax, SEK

–0.69 0.43 –7.59 –15.68 5,55

Cash flow per share, SEK –1.24 –1.22 –0.57 –10.12 –6,70

Reported shareholders’ equity, SEK 1.73 2.27 1.81 7.47 21.80

Market price by the end of the year, SEK 5.00 5.80 5.00 14.05 23.26

Dividend, SEK 0.00 0.00 0.00 0,00 0.00

P/E ratio

N/A 13.5 N/A N/A 10.0

Dividend yield, %

N/A N/A N/A N/A N/A

1 The average number of shares in 2006 was 10,814,669.

2 The P/E ratio is calculated as the market price on the closing date divided by the EPS after tax.

3 The dividend yield is calculated by dividing the dividend by the market price on the closing date.

Ownership structure No. of As % of all No. of As % of as at December 31, 2008 shareholders shareholders shares held all shares

Under 501 shares 2,327 73.4 237,728 1.4

501–1000 shares 399 12.6 328,394 1.9

1001–5000 shares 316 10.0 754,857 4.3

5001–10,000 shares 51 1.6 386,386 2.2

10,001–15,000 shares 11 0.3 143,258 0.8

15,001–20,000 shares 15 0.5 254,044 1.5

Over 20,000 shares 51 1.6 15,302,964 87.9

Total 3,170 100.0 17,407,631 100.0

The number of shareholders has decreased from 3,305 to 3,170. Of the total shares held, about 12 percent (12) are held by foreign shareholders and about

2 percent (1) by institutional holders.

Quarterly summary

2008 2007

SEK m Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Quarterly profit trend

Net sales 71 68 102 121 79 73 81 114

Operating costs –69 –71 –96 –129 –77 –71 –80 –108

Operating profit/loss before depreciation 2 –3 6 –8 2 1 1 6

Planned depreciation and write-downs –1 –1 –1 –2 –1 0 0 0

Operating profit/loss after depreciation 1 –4 5 –10 1 1 1 6

Net financial items 0 0 –1 0 0 –1 0 0

Profit/loss after financial items 1 –4 4 –11 1 0 1 6

Tax on profit for the year 0 0 0 –1 0 0 0 –1

Net profit/loss 1 –4 4 –12 1 0 1 6

Quarterly balance sheet for the Group

Intangible assets 10 11 12 14 9 9 9 10

Tangible assets 4 5 6 6 3 2 2 4

Financial assets 0 0 16 14 16 16 16 16

Stock 56 56 69 59 66 56 43 51

Current receivables 67 65 73 64 57 55 56 72

Cash and bank balances 9 6 2 13 13 6 5 8

Total assets 146 143 178 170 164 144 130 161

Shareholders’ equity 40 36 41 30 31 32 33 40

Interest-bearing liabilities 27 36 28 43 3 11 10 8

Non interest-bearing liabilities/provisions 79 71 109 97 130 101 87 114

Total shareholders’ equity and liabilities 146 143 178 170 164 144 130 161

Quarterly cash flow

Operating profit/loss after financial items 1 –4 4 –11 1 0 1 6

Depreciation according to plan 1 1 1 2 1 0 0 0

Paid income tax 0 0 0 0 0 0 0 0

Change in working capital –19 –7 2 6 –16 –25 1 1

Cash flow from current activities –17 –10 7 –3 –14 –25 2 7

Disposal of Group companies 0 0 0 0 0 9 0 0

Investments –2 –1 –4 –3 0 –1 0 –3

Cash flow from investment activities –2 –1 –4 –3 0 8 0 –3

Change in interest-bearing liabilities 19 16 –16 15 –2 9 –1 –2

Translation differences, other 0 0 1 1 –1 1 –1 2

Cash flow from financing activities 19 16 –15 16 –3 10 –2 0

Cash flow (Change in liquid assets) 0 5 –12 10 –17 –8 –1 4

Directors’ report

Doro AB is a publicly owned limited company (hereafter referred to as Doro). The company’s registered office is in Lund, Sweden, under the corporate registration number 556161-9429. The address of the head office is Magistrats- vägen 10, Lund, SE-226 43, Sweden. Doro has subsidiar- ies in France, Hong Kong, Norway, Sweden and the United Kingdom. The structure of the Group is outlined in Note 14.

Business activities

Doro markets a broad and innovative range of telecoms and consumer electronics products, primarily for the Euro- pean market. Doro provides user-friendly products of high quality and modern design for consumers and businesses.

Doro’s product range is divided into three business units: Care Electronics (easy-to-use mobile phones and other specialist products for senior citizens); Home Elec- tronics (cordless digital telephones, corded telephones, telephone answering machines, baby monitors etc.); and Business Electronics (headsets and office telephones including such equipment for special environments).

Global conditions

Doro operates mainly in the rapidly changing telephony products market for consumers and businesses in Europe developing differentiated products in some niches, such as for senior citizens.

Production mainly takes place in China. The company protects its products by owning the tools and through active participation in the design, development and quality assurance processes.

Large purchase volumes make Doro an attractive customer and entile competitive costs per unit for the company in terms of development and production. Large purchase volumes also strengthen Doro’s ability to negoti- ate with subcontractors.

Past year in summary:

net sales rose 5 percent, despite a tough market;

•

Care Electronics business unit continued to reap new

•

successes with easy-to-use products;

declining sales for Home and Business Electronics, which

•

operated in difficult market conditions;

distribution agreement with Brightpoint for the US market;

•

distribution agreement with IVS, one of Germany’s

•

leading retailers specializing in telecom equipment;

margins negatively affected by rapid appreciation of the

•

USD in the second half of 2008 and additional provi- sions for inventory and receivables, primarily related to the United Kingdom and Business Electronics;

continued negative cash flow, mainly due to negative

•

earnings and increased working capital; and

closure of its subsidiaries, Doro Danmark A/S in Denmark

•

and Doro Tele OY in Finland.

Earnings

Doro recorded net sales of SEK 363 m (346) in 2008, an increase of 5 percent compared to last year, volumes decreased by 1 percent.

The market for the main product, cordless phones, de- clined by 11 percent in volume compared to last year and represents 51 percent of total volume (61). Sales prices for DECT telephones have continued to fall and there is a general price pressure in the market.

The loss before tax and financial items amounted to SEK 8 m (profit: 9). The headcount decreased by 2 to 59 (61), due to efficiency measures. Doro closed its wholly- owned subsidiary Doro Danmark A/S, which had a positive impact of SEK 2 m in the Parent Company. The results have been included in the Group’s calculations.

The Group’s loss after tax for the year was SEK 11.5 m (profit: 7.5) for the year. A recalculation has been carried out for the Group’s deferred tax assets, which has resulted in a tax cost of SEK 1.4 m.

Treasury policy

A treasury policy was approved by the Board in December.

The purpose of this treasury policy is to clarify responsibili- ties and outline general rules and guidelines in connection with specific treasury related areas within Doro AB, in order to support the operations, reduce financial risks and utilize capital and cash flow efficiently.

Forecast net flows based on normal business volumes and current price lists (usually valid 3–6 months) are hedged on a rolling basis according to the following percentage rates for the next five months; 100%, 100%, 100%, 75% and 25%. The main net currency flows for Doro today are EUR (inflow) and USD (outflow) wherefore a key hedge position in Doro’s on-going business will be forward fixed contract to buy USD with EUR.

Organization for greater focus on products and customers

During 2008 we have continued our focus on our core business units:

Care Electronics;

•

Home Electronics; and

•

Business Electronics.

•

The organization has proven successful even in a tough market. Development times for new products have been reduced and we are better prepared for shifts in demand.

We have strengthened the management-based sales organization with shared service centers in Lund and Paris and purchasing logistics in Hong Kong.

Regions

Doro’s largest markets are Continental Europe (42 percent of sales), the Nordic region (38 percent) and the United Kingdom (16 percent). Doro also sells via distributors in other selected markets (4 percent).

Organization and staff

The overall objectives of the Group on staff issues are to recruit, train and retain skilled, committed staff. Annual career assessment talks are an important part of this work.

The Group Management team was reorganized in 2008 and

still consists of five individuals. Due to the new organization,

Directors’ report

some staff have been given new areas of responsibility.

The average number of employees was 59 (61).

Changes to the Board and Group Management

Former board member Anders Berg left the board and Peter Blom was elected as a new board member. The board now consists of Bo Kastensson, Peter Blom, Jonas Mårtensson, Tomas Persson and CEO Jérôme Arnaud.

Annette Borén was appointed CFO in October, Marketing Manager Fredrik Forssell left the company in November.

Sales Manager Kjell Reidar Mydske was appointed Sales and Marketing director. Ulrik Nilsson Head of Operations has been appointed a member of Group Management.

Board’s proposal for remuneration guidelines

The Board’s proposal for guidelines for remuneration to senior executives for 2009 primarily entails that salaries and other remuneration terms for management must be in line with market norms. In addition to a basic salary, management can also receive a flexible remuneration, which should have a pre-determined ceiling and be based on the results in relation to profit targets (and in certain cases other key figures). The maximum cost of bonus pay- ments for Group Management should not exceed SEK 5 m.

The total cost for fixed and flexible remuneration should be decided annually at a sum that includes the company’s en- tire remuneration costs, which allow for senior executives to allocate parts of their fixed and flexible salaries to other benefits, such as pensions. Pension plans for management should mainly be defined contribution plans.

Upon dismissal by the company, senior executives may be eligible for a redundancy payments, which should have a predetermined ceiling. If the employee resigns his/her position, no redundancy payment will be paid.

The board will have the right to deviate from the guidelines if there is considered to be just cause.

This proposal is in line with the resolution of the 2008 AGM.

Organizational structure

Doro has implemented an efficiency plan in recent years to achieve a lower cost level with improved efficiency and increased distribution capacity. Part of this focus involved the liquidation of Doro Danmark A/S and Doro Tele OY in Finland.

There are two ongoing merger processes; between Doro Finans and Doro AB and between Doro Nordic and Doro AB. There are currently two liquidations underway;

in Doro Audioline GmbH in Switzerland and Doro Atlantel Sp. z o.o. in Poland.

Product development and development costs

Doro carries out various projects together with different external partners for product development and design.

Most of the costs are usually absorbed by the manufactur- ing partner. In many cases, these costs are part of Doro’s acquisition values for products. Doro employs design companies from various countries and these costs are either fixed or variable. Doro also sometimes buys technol- ogy from various external companies. Doro invests in

Business units

Doro carries out business activities through three business units, which are currently divided as: Care Electronics, specializing in telecoms and electronics products for senior citizens, 39 percent (16) of sales.

Home Electronics, which is mainly home telephony and represented 52 percent (72) of sales for the year and Business Electronics, mainly office telephony, 8 percent (12) of sales.

Care Electronics almost trippled its sales in 2008 to SEK 143 million (51), while volumes rose by 101 per- cent. Care Electronics, which develops and distributes telecoms and electronics products specially adapted for senior citizens, has seen an accelerated sales trend over the year. The sales increase was mainly an effect of the increasing market penetration of our GSM offer, with functional design for senior citizens combined with geographical extension of the distribution. Care Electronics is the area in which Doro invests most.

Doro’s position in the market over the year has been strengthened and the company is aiming for a category captain position in this segment.

Home Electronics. The continued price fall led to sales dropping by 26 percent to SEK 189 m (255), while volumes decreased by 15 percent compared to last year. The two largest customers in the United Kingdom stopped more or less all intake during the end of the year leaving us with a significant overstock in that country.

Doro launched the new TH70/80 series, the corded 900 series and new baby monitors during the sec- ond half of the year. The new TH series are the first European DECT telephones to be certified by ENERGY STAR.

Business Electronics. Sales has declined by 25 percent to SEK 30 m (40) and volumes declined by 33 percent. This is due to the fact that volumes of analogue corded phones have declined by 36 percent and it has taken much longer than anticipated to set up new distribution for VoIP telephones.

Doro launched the new IP telephone Doro ip880dect, the WiFi phone Doro ip700wifi and the new easy to clean telephone Doro aub200h. In January 2009 Doro signed a distribution agreement with one of Europe’s leading distributors of IT products, Tech Data, to sell and market VoIP telephones and headsets for the French market.

Effective from the first quarter 2009, the business

units Home Electronics and Business Electronics have

been merged to form the business unit Home.

various moulding tools to protect the design of products.

These are activated until such time as the first product is ready for delivery. The development work is then written off over a maximum of two years depending on the type of product. The Group’s development costs for 2008 were SEK 10 m (5), of which SEK 6 m in intangible assets and SEK 4 m in tangible assets mainly due to the broadening of the GSM portfolio.

At the end of 2008 Doro had no patents registered but Doro does have the right to use various patents regulated by agreements. Doro has registered the brands Doro, Care Electronics, Phoneeasy, Ergonomic Sound, Airborne and Audioline. A number of product names, patterns and fig- ures are also protected.

Sales per product area

Doro operates in the following product areas: cordless tele- phones, corded telephones (including telephone answering machines, caller-id products), GSM telephones and other consumer-related electronics products. DECT telephones are the largest product area, accounting for 39 percent (61) of total sales followed by GSM telephones with 27 percent (4) and corded telephones with more than 22 percent (34) of total sales.

Investments

Investments are made in design, molding tools, control equipment, inventory, computers and software systems.

Investments amounted to SEK 10 m (5). See Accounting principles.

Legal processes

Doro is involved in two disputes. A detailed account is given in Note 21.

In the most important dispute Doro, made a claim totaling SEK 106 m upon Sojitz (Nissho Iwai) in Japan.

Doro lost in the first instance in July 2005. The court’s decision has been appealed against and the next decision is expected to take another year.

A dispute about stock has been won but not finalized.

The environment

Doro has no business activities that require environmental licences. Doro does not own any production units. Com- prehensive co-operation takes place with a number of factories where production services are purchased. During plant inspections, various environmental demands are set.

An increasing number of factories are working with differ- ent environmental programs and intend to apply for ISO 14000 certificates.

Quality

Regular, quarterly, follow-ups of suppliers’ quality take place with the help of the Doro score card. This focuses on the suppliers’ factories processes and stipulates escala- tion points in terms of reported quality shortfalls and how these are to be remedied. An evaluation takes place on site of possible new suppliers for all quality related processes, while a first evaluation linked to Doro’s “Code of Supplier

Conduct” is carried out. Product quality is also checked continually from individual batches.

Regulations

Doro’s “Quality and Regulatory Manager” checks on the company’s products to check that the meet the minimum prevailing legal requirements on actual markets and cor- respond to technical specifications and environmental in the relevant demands.

Ethics

Doro uses third parties to verify that suppliers are meet- ing their respective countries’ legislative requirements and Doro’s demands regarding employment terms and condi- tions. Regular inspections in this regard are also conducted at all plants.

Cash flow, investments and financial position

The cash flow from operations was negative in the amount of SEK 21 m (negative 30), mainly due to negative earn- ings and increased working capital. Investments for the year amounted to SEK 10 m (5). At the end of the period, Doro had liquid assets of SEK 13 m and unutilized credit facilities of SEK 15 m, giving the company a total of SEK 28 m at its disposal on December 31, 2008. The equity/assets ratio was 18 percent at year-end, compared with 25 percent at the start of the year.

Dividend and financial targets

The board set a results target at the time of the new share issue in 2006 for an operating margin of a minimum five percent over a business cycle. The previous targets of a maximum debt/equity ratio of 1.3 (interest-bearing debt/

equity) remain unchanged. The organic expansion will be funded from internally provided funds, while new share issues will finance larger acquisitions.

Financial overview

The Group issues regular financial reports providing regular quarterly data for the following:

income statement;

•

balance sheet;

•

cash flow statement;

•

shareholders’ equity;

•

quarterly summary; and

•

five-year summary.

•

Quarterly reports

The Board has determined the following publication dates for quarterly reports in 2009:

January–March 2009: May 6 January–June 2009: August 19 January–September 2009: November 11

The quarterly reports will be published on Doro’s website:

www.doro.com

Directors’ report