Oriola Corporation Financial Statements 2018 22 February 2019 1 - - PowerPoint PPT Presentation

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Oriola Corporation

Financial Statements 2018

22 February 2019

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Strong Invoicing and Net Sales growth in constant currencies Consumer online sales grew faster than market Hehku closing decision and write-down Inefficiencies burdened Services financial performance Strong cash flow Dividend proposal EUR 0.09 per share Oriola 70 year anniversary in Finland Enköping DC ramp-up starting in Q1/19

Oriola Q4 2018

Competition, seasonality and investments affected Consumer profit negatively

Invoicing Net sales Adjusted EBIT

Oriola Key Figures

continuing operations

EUR million EUR million EUR million

3 2018 adjusted EBIT at comparable EUR/SEK rate EUR 39.1 million Q1 Q2 Q3 Q4

1 566 1 578 1 589 1 528 1 552

388 398 388 367 388 395 406 407 387 399 378 366 383 378 370

200 400 600 800 1 000 1 200 1 400 1 600 1 800 2014 2015 2016 2017 2018

3 012 3 211 3 364 3 336 3 518

723 780 820 798 848 752 812 874 844 897 735 776 812 823 844

500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 2014 2015 2016 2017 2018

57.8 59.8 59.9 39.9 36.9

13.1 12.8 16.5 11.0 7.9 14.1 14.8 14.5 13.0 6.2 15.9 17.0 13.6 9.7 17.5

10 20 30 40 50 60 70 80 90 2014 2015 2016 2017 2018

801 844 859 872 929 405 408 411 395 395 14.8 15.2 15.3 6.2 5.2

Adjusted EBIT, Quarters Adjusted EBIT

Adjusted EBIT Q4 2018

continuing operations

EUR million EUR million

4 Q4/2018 adjusted EBIT at comparable EUR/SEK rate EUR 5.5 million

6.2 6.2 7.9 17.5 5.2

2 4 6 8 10 12 14 16 18 20 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

6.2 5.2

• 1.4

1.0

• 0.7

0.0

Q4 2017 Consumer Services Healthcare Group items Q4 2018

Business Areas January – December 2018

Consumer

• Comprehensive health and wellbeing offering for consumers
• Offers expert advice as well as an extensive selection of products in own Kronans Apotek

pharmacies

• Consistent service experience throughout all service channels, from local pharmacies or

shops to online services

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17 % 83 % 4.4 BEUR

Pharmacy market in Sweden

Oriola/Kronans Apotek Others 75 % 9 % 16 % 4.4 BEUR Rx OTC TG

Source: Apoteksförening

18.7.2018

Swedish Pharmacy retail market

Pharmacies Market share

Pharmacies 2010 Established net 2010 - 2017 Established net 2018 Kronans Apotek Lloyds Apoteket Others Apoteksgruppen Apoteket Apotek Hjärtat & CURA Oriola/Kronans Apotek Apoteket Apotek Hjärtat & CURA Others Lloyds Apoteket Apoteksgruppen Apotea 31% 32% 17% 9% 4% 3% 4% 388 397 387 396 48 79 326 187 Source: Apoteksförening

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397 327 188 79 2 1 3 4

100 200 300 400 500

50 188 327 395 389 79

• Pharmacy market grew by 9.7% in Sweden.

Online sales grew by 38% to 8% of the market

• Net sales increased by 5.1% in constant

currency

• Kronans Apotek’s online sales grew faster than

market (+63%) and was 2.8% of total sales

• Share of OTC and traded goods of net sales

25.6 (26.6)%. Share of RX increasing with lower margins

• Hehku result impacted Adjusted EBIT by EUR
• 4.6 million (Q4: EUR -0.9 million) and FX

impacted Adjusted EBIT by EUR -1.7 million (Q4: EUR -0.2 million)

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Consumer January – December 2018

continuing operations

Adjusted EBIT

EUR million

4.4 4.0 6.0 5.8 3.0

2 4 6 8 10 12 14 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

Finland Wholesale Sweden Wholesale

Services

40 % 60 % 4.3 BEUR

• Focuses on long-term customer relationship and wide service offering for BtoB customers
• Provides wholesale and logistics services with wide range of expert services for

pharmaceutical companies, pharmacies, vets and grocery trade

• Offers customized wholesale services of OTC and traded goods in Sweden
• Provides wide range of health and wellbeing products and staffing services for Finnish

pharmacies

43 % 57 % 2.6 BEUR Oriola Oriola Others Others

9 LTK and Oriola estimate Reveal and Oriola estimate

• Pharmaceutical market growth: Sweden 8.7%

and Finland 8.5%

• Net Sales increased by 4.2% and in constant

currency by 8.5%

• Profitability continued to be impacted by high

cost level in operations and delay in efficiency improvements.

• Full EUR 9 million settlement payment received

from IT system provider

• In Finland ERP related additional impact was

EUR 7 million (Q4 EUR 1.0 million)

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Services January – December 2018

continuing operations

Adjusted EBIT

EUR million

3.2 4.8 4.2 13.7 4.3

2 4 6 8 10 12 14 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

Healthcare

• Pharmaceutical distribution and dose dispensing services for public and private healthcare providers
• Dose dispensing market ca. 203,000 patients in Sweden, and 52,000 in Finland
• Oriola dose dispensing cover services for 72,000 persons in Sweden and Finland, out of which more

than 52,000 patients are in Sweden

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Market share dose dispensing

40 % 47 % 8 % 5 % 32 MEUR

Finland

25 % 36 % 39 % 245 MEUR

Sweden

Oriola Pharmac YA Pharma Dos Oriola Apoteket AB Apotekstjänst Oriola estimate

• Net Sales grew by 30.1%, and in constant

currency by 37.2%

• Growth continues to be driven by Swedish

market

• Number of dose dispensing customers

exceeded 72,000

• Major new contract with Stockholms Läns

Landsting signed in 2018 and deliveries starting Q1 2019.

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Healthcare January – December 2018

Adjusted EBIT

EUR million

• 0.2

0.2 0.0 0.0

• 0.1
• 2,0

0,0 2,0 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4

Key Figures January – December 2018

Key Figures

EUR million 10-12 2018 10-12 2017 Change % 1-12 2018 1-12 2017 Change % Invoicing 929.1 871.6 6.6 3,518.4 3,336.3 5.5 Net sales 394.7 395.2

• 0.1

1,552.2 1,527.7 1.6 Adjusted EBITDA 12.0 13.1

• 8.2

65.5 67.6

• 3.0

Adjusted EBIT 5.2 6.2

• 16.4

36.9 39.9

• 7.7

EBIT

• 8.0

3.9

• 304.4

22.0 37.8

• 41.9

Profit for the period

• 8.5

2.1

• 495.8

12.7 25.9

• 51.1

Cash flow from

• perating activities

48.4 11.0 102.8 23.7 Net interest bearing debt 63.6 110.2 Gearing % 35.1 55.7

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continuing operations

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Cash flow

including discontinued operations

Quarterly net cash flow from operating activities

EUR million

Q4 2018 change in cash

EUR million

• 15

51

• 24

11 33 18 3 48

• 30
• 20
• 10

10 20 30 40 50 60 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018

17.0 65.8 102.8

• 41.5
• 12.3

Cash Q4 2017 Operating activities Investing activities Financing activities Cash Q4 2018

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Net Interest-Bearing Debt

including discontinued operations

Net interest-bearing debt

EUR million 31 Dec 2018 31 Dec 2017 Bank loans (syndicated & term) 59.0 60.6 Commercial papers 57.0 50.0 Advance payment from pharmacies 12.4 15.0 Other 1.0 1.7 Cash and cash equivalents 65.8 17.0 Net interest-bearing debt 63.6 110.2 Sold trade receivables 140.5 94.8 Gearing % 35.1 55.7

EUR million

101 84 121 110 84 100 105 64

20 40 60 80 100 120 140 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018

Year 2019

Outlook 2019

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Adjusted EBIT on constant currency basis is estimated to increase from the 2018 level.

20by20 Excellence programme

• New programme to ensure efficiency, high-quality operations

and reduce costs

• Annualised savings EUR 20 million compared to 2018 cost

level with full effect by end of 2020

• Improving profitability
• Indirect and direct purchasing savings
• Product and service portfolio optimisation
• Logistics efficiency in both countries
• Lean and simplified processes throughout the company
• The Group-wide programme will cover all business areas,
• perations and functions

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New customer focused business areas

Consumer Retail services and products for consumer health and wellbeing. Pharma Tailored logistics and expert and advisory services to pharmaceutical companies, and a wide range of pharmaceutical products for pharmacies, hospital pharmacies and veterinaries. Retail Wide range of health and wellbeing products for pharmacies, veterinaries, private and public healthcare operators and retailers, as well as services for pharmacies, including dose services and staffing.

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Health for life