ORIOLA-KD CORPORATION January September 2016 Eero Hautaniemi, - - PowerPoint PPT Presentation

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ORIOLA-KD CORPORATION January September 2016 Eero Hautaniemi, - - PowerPoint PPT Presentation

Dec 15, 2022 120 likes •355 views

ORIOLA-KD CORPORATION January September 2016 Eero Hautaniemi, President and CEO 20 October 2016 1 Oriola-KD Corporation Oriola-KD Key Figures I nvoicing Net Sales Adjusted Operating profit 3 262 3 500 1 800 1 522 1 620 1 612 1 626

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SLIDE 1

Oriola-KD Corporation 1

ORIOLA-KD CORPORATION

January – September 2016

Eero Hautaniemi, President and CEO 20 October 2016

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SLIDE 2

Oriola-KD Corporation 2

Oriola-KD Key Figures

Adjusted Operating profit Net Sales I nvoicing All figures for Continuing operations

1-9/ 2016 net sales at comparable EUR/ SEK rate EUR 1 218 million 1-9/ 2016 adjusted operating profit at comparable EUR/ SEK rate EUR 45.7 million

2 951 3 074 3 060 3 262

1-9 2 404 1-9 2 547

500 1 000 1 500 2 000 2 500 3 000 3 500 2012 2013 2014 2015 2016

EUR million

1 522 1 620 1 612 1 626

1-9 1 205 1-9 1 217

200 400 600 800 1 000 1 200 1 400 1 600 1 800 2012 2013 2014 2015 2016

EUR million

29,1 37,0 59,1 60,8

1-9 45,5 1-9 45,7

10 20 30 40 50 60 70 80 90 2012 2013 2014 2015 2016

EUR million

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SLIDE 3

Oriola-KD Corporation 3

Adjusted operating Profit January – Septem ber 2 0 1 6

Adjusted Operating profit Adjusted Operating profit, w aterfall

17,5 15,3 13,9 14,8 17,0

2 4 6 8 10 12 14 16 18 20

2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

EUR million

45.5 45.7

  • 0.1

1.3 0.3

  • 1.2

EUR million

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SLIDE 4

Oriola-KD Corporation 4

Reporting segm ents January – Septem ber 2 0 1 6

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Oriola-KD Corporation 5

Solid Position in Selected Markets

MARKET SHARE

TG/ OTC for pharm acies in Sw eden 4 0 % Sw eden W holesale 4 6 % Finland W holesale

MARKET SI ZE ( BEUR) AND GROW TH

1 2 3 4 2 0 1 5 -2 0 2 0 CAGR 4 .2 %

2 0 1 5

1 2 3 SW EDEN

2 0 1 5

3 1 % 2 0 1 5 -2 0 2 0 CAGR 1 .1 % FI NLAND 1 8 % Sw eden Retail

Source: IMS Health, ATY, Apoteksförening and Oriola-KD 1 9 % Q3 / 2 0 1 5 3 2 % Q3 / 2 0 1 5 4 6 % Q3 / 2 0 1 5 3 9 % Q3 / 2 0 1 5

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Oriola-KD Corporation 6

  • Focus on the needs of consumers in health and wellbeing

related products and services.

  • Offers expert advice on health and wellbeing as well as an

extensive and high-quality selection of products in own pharmacies.

  • Consistent service experience throughout all service channels,

from local pharmacies to online services.

317

PHARMACIES

Of which 3 1 5 are Kronans Apotek Pharmacies in Sweden and 2 are pharmacies in Latvia

Consum er Segm ent

NET SALES

Sw eden Latvia Finland

Application for Sw edish prescription m edicine custom ers launched in Septem ber

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SLIDE 7

Oriola-KD Corporation 7

Pharm acy chains in Sw eden

Market Share Pharm acies

Apoteket Apotek Hjärtat & CURA Apoteksgruppen LloydsApoteket Pharmacies 2010 Established net 2010 - 2015 Established net 2016

Source: Apoteksförening and Oriola-KD

The share of

  • nline sales 4%
  • 2

10 6 8 4 100 200 300 400 500

389 382 315 177 80

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Oriola-KD Corporation 8

  • On a constant currency basis the net sales

increased by 3.6 per cent

  • Third quarter result impacted by

establishment costs and less successful campaigns.

  • Market share declined due to weaker

growth in Rx, OTC and Traded goods developed well.

  • Share of OTC and traded goods of net sales

increased to 27.2 (26.2) per cent

  • Net increase of six pharmacies in Sweden

in January-September 2016

  • Parallel imports’ share of the Swedish

pharmaceutical market was approximately 11.3 (10.6) per cent (source: IMS Health)

Consum er January – Septem ber 2 0 1 6

Adjusted Operating profit

10,3 7,6 7,7 8,9 9,5

0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0

2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

  • Milj. EUR
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SLIDE 9

Oriola-KD Corporation 9

  • Focuses on long-term customer relationships and a wide service
  • ffering
  • Provides logistics services and wide range of value adding

services for Pharmaceutical companies and pharmacies

  • Purchase and distribution services of OTC and traded goods in

Sweden

  • Sales and marketing services of large assortment of traded

goods in Finland and in the Baltic countries

  • Staffing Services for Finnish pharmacies

Services Segm ent

Services for healthcare actors w ho w ant to succeed in the Nordic and Baltic countries.

We provide high quality and ensure that products are delivered unchanged from Oriola’s warehouses to the pharmacies, hospitals and veterinaries.

Purchase and distribution services Logistic services Value adding services Sales and marketing services I NVOI CI NG

Sw eden Finland Baltics

Staffing services

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Oriola-KD Corporation 10

Farenta in a Nutshell

  • A complete professional service
  • ffering for pharma companies

starting from clinical trials to consumer services

  • Unique career development

possibilities for pharmacists

  • Connecting customers,

employees and patients every day life with digital channels

  • High seasonal demand for

staffing services

EMPLOYEES NET SALES

( 2 0 1 5 )

CUSTOMERS RESEARCH NETW ORK

400

Pharmacies: 350 Pharmaceutical companies: 113

14.6

EUR MI LLI ON Finland: 160 pharmacies Poland: 170 pharmacies

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Oriola-KD Corporation 11

  • On a constant currency basis the

invoicing increased by 5.9 per cent.

  • Profitability developed well in all
  • perating countries.
  • Efficiency in Sweden improved back

to normal.

  • Farenta acquisition complements

services offering to pharma companies and pharmacies.

  • Negative cash flow from operations

due to contractual changes

Services January – Septem ber 2 0 1 6

Adjusted Operating profit

8,8 9,1 8,5 8,0 9,0

0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0

2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

  • Milj. EUR
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Oriola-KD Corporation 12

Oriola-KD invests in the services and efficiency

  • The investments in 2016-2018 will be

approximately EUR 35 million annually

  • Without M&A
  • Investments in the logistics efficiency
  • Group operative IT-platform 2015-2018
  • Automation in the Distribution Centre in

Finland 2015-2016

  • Expansion and automation of the

Distribution Centre and warehouse in Sweden 2016-2018

  • Investments in digital services
  • Investments in the pharmacy chain in

Sweden

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Oriola-KD Corporation 13

  • Built on Oriola-KD’s

knowledge of market and customers

  • Providing new services for

healthcare organizations like clinics and hospitals

  • The Healthcare segment offers services to hospitals,

healthcare centres and other healthcare operators in Sweden.

  • Many growing business opportunities, such as

hospital pharmaceutical care, dose dispensing and home distribution of pharmaceuticals.

  • Finnish healthcare sector in transformation.

HEALTHCARE BUSI NESS GOALS

~ 26,000 60

EMPLOYEES

Healthcare Segm ent

DOSE DI SPENSI NG SERVI CES

Svensk dos in Sweden and PharmaService in Finland are part of Oriola-KD Group and specialized in dose dispensing services.

50

NET SALES

( 2 0 1 5 )

EUR MI LLI ON

PATI ENTS

28

EUR MI LLI ON

14

~ 20,000

Typically 8 5 years old

DOSE POACHES ANNUALLY

26 MI LLI ON 22 MI LLI ON

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SLIDE 14

Oriola-KD Corporation 14

Dose Dispensing

MARKET SHARE

14% 10% 54% 22% 50% 42% 4% 4% FI NLAND

Source: Oriola-KD

SW EDEN

Pharm ac Finland Oy University Pharm acy ( YA) Pharm ados Oy Apoteket AB Apotekstjänst DOSE MARKET

~ 4 0 ,0 0 0

PATI ENTS

~ 2 0 0 ,0 0 0

PATI ENTS

1 0 %

ANNUAL GROW TH I N AVERAGE

8 %

ANNUAL GROW TH I N SKÅNE AREA ( ESTI MATE)

Apoteket AB

Svensk Dos as of February 2 0 1 7

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SLIDE 15

Oriola-KD Corporation 15

  • Dose dispensing developed through

acquisitions of Svensk dos in February 2016 and Pharmaservice in July 2016.

  • New digital platform for veterinarians

launched in Sweden and capabilities to serve hospitals developed.

  • Contract with Evidensia in Sweden.
  • Amortisation cost EUR 1.1 million in

Jan-Sep 2016, estimated EUR 1.5 million in 2016.

Healthcare January – Septem ber 2 0 1 6

Adjusted Operating profit

  • 0,6
  • 0.6

0,0

  • 2

2 4 6 8

2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

EUR million

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Oriola-KD Corporation 16

Active development of digital business Continue developing the Healthcare channel Successful execution of the efficiency improving strategic development initiatives

Key Focus Areas in 2 0 1 6

2 0 1 6

  • New mobile app in

Kronans Apotek

  • New Oriola4Care – platform

in Sweden

  • Acquisition of Svensk dos
  • Acquisition of

Pharmaservice

  • Hospital and Vet deals in

Sweden

  • Investments in IT
  • Investments in

automation in Enköping, Mölnlycke and Mankkaa

  • Closing of Oulu DC
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Oriola-KD Corporation 17

Key Figures January – Septem ber 2 0 1 6

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Oriola-KD Corporation 18

EUR m illion

1 -9 / 2 0 1 6 1 -9 / 2 0 1 5

Change in working capital

  • 49.6

4.5 Net cash flow from

  • perating activities

14.3 55.1 Net cash flow from investing activities

  • 64.8
  • 13.1

Net cash flow from financing activities

  • 2.1
  • 34.0

Net change in cash

  • 52.6

8.0 Cash and cash equivalents at the end of period 69.5 99.5

Cash flow

Quarterly net cash flow from operating activities

8 13 26 16 31

  • 27

22

19

  • 30
  • 20
  • 10

10 20 30 40

EUR million

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Oriola-KD Corporation 19

EUR m illion

3 0 Sep 2 0 1 6 3 0 Sep 2 0 1 5

Syndicated bank loans 67.6 74.4 Commercial papers 45.0 3.0 Advance payment from pharmacies 34.4 33.2 Other 4.2 17.7 Cash and cash equivalents 69.5 99.5 Net interest-bearing debt 8 1 .7 2 8 .9 Sold trade receivables 115.2 111.2 Gearing, % 42.5 16.6

Net I nterest-Bearing Debt

Net I nterest-Bearing Debt

102 63 42 29 7

51

66 82

20 40 60 80 100 120

Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 EUR million

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Oriola-KD Corporation 20

EUR m illion 7 -9 2 0 1 6 7 -9 2 0 1 5 Change % 1 -9 2 0 1 6 1 -9 2 0 1 5 Change % 1 -1 2 2 0 1 5 Net sales 395.8 377.1 5.0 1217.3 1205.5 1.0 1,626.3 Adjusted EBITDA 23.5 23.1 2.1 65.0 62.4 4.2 83.4 EBITDA 29.7 24.0 23.9 70.3 62.1 13.2 85.1 Adjusted Operating profit 17.0 17.5

  • 2.6

45.7 45.5 0.4 60.8 Operating profit 16.8 18.4

  • 8.5

44.7 45.3

  • 1.2

62.6 Profit for the period 12.3 13.8

  • 11.2

32.0 32.1

  • 0.3

44.5

Key Figures

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Oriola-KD Corporation 21

EUR m illion 3 0 Sep 2 0 1 6 3 0 Sep 2 0 1 5 3 1 Dec 2 0 1 5 Goodwill 282.0 250.5 256.5 Equity 192.3 173.4 194.6 Interest-bearing debt 151.2 128.3 128.6 Interest-bearing net debt 81.7 28.9 6.6 Balance sheet total 929.3 928.7 946.9 Equity ratio, % 21.5 19.4 21.1 Return on equity (ROE), % 22.7 31.1 29.1 Return on capital employed (ROCE), % 18.3 20.4 19.9 Gearing, % 42.5 16.6 3.4 Equity per share, EUR 1.06 0.96 1.07 Earnings per share (EPS), EUR 0.18 0.18 0.25 Average number of shares, 1000 pcs 181,374 176,204 177,502

Balance Sheet and Key Ratios

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Oriola-KD Corporation 22

Sustainability in Oriola-KD

Responsible employer Responsible partner Environmental Responsibility

Over

4 ,0 0 0

em ployees w hereof

1 ,5 0 0 pharm acists

Safe and reliable delivery of pharmaceuticals Sustainable delivery chain Financial Responsibility Responsible business

  • perations

Capital em ployed

3 2 0 m €

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Oriola-KD Corporation 23