1

Oriola Corporation Financial Statements 201822 February 2019

2

Strong Invoicing and Net Sales

growth in constant currencies

Consumer online sales grew faster

than market

Hehku closingdecision and write-down

Inefficiencies burdened

Services financial performance

Strong cash flow

Dividend proposalEUR 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 Figurescontinuing operations

EUR millionEUR million EUR million

3

2018 adjusted EBIT at comparable EUR/SEK rateEUR 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

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2014 2015 2016 2017 2018

3 0123 211 3 364 3 336

3 518

723 780 820 798 848

752812 874 844 897

735 776 812 823 844

0

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

11.07.9

14.114.8 14.5

13.0

6.2

15.9 17.0

13.6

9.717.5

0

10

20

30

40

50

60

70

80

90

2014 2015 2016 2017 2018

801 844 859 872 929405 408 411 395 395

14.8 15.2 15.3

6.25.2

Adjusted EBIT, Quarters Adjusted EBIT

Adjusted EBIT Q4 2018 continuing operations

EUR millionEUR million

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

6.2 6.27.9

17.5

5.2

0

2

4

6

8

10

12

14

16

18

20

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

6.2 5.2

-1.4 1.0 -0.70.0

Q4 2017 Consumer Services Healthcare Group items Q4 2018

Business AreasJanuary – December 2018

Consumer• Comprehensive health and wellbeing offering for consumers

• Offers expert advice as well as an extensive selection of products in own Kronans Apotekpharmacies

• Consistent service experience throughout all service channels, from local pharmacies or shops to online services

6

17 %

83 %

4.4 BEUR

Pharmacy market in Sweden

Oriola/Kronans ApotekOthers

75 %

9 %

16 %

4.4 BEUR

RxOTC

TGSource: Apoteksförening

18.7.2018

Swedish Pharmacy retail marketPharmacies Market share

Pharmacies 2010Established net 2010 - 2017Established net 2018

Kronans Apotek

Lloyds Apoteket

Others

Apoteksgruppen

Apoteket

Apotek Hjärtat& CURA

Oriola/Kronans ApotekApoteketApotek Hjärtat & CURA

OthersLloyds ApoteketApoteksgruppen

Apotea

31%

32%

17%

9%

4%3%

4%

388

397387

396

48

79

326

187

Source: Apoteksförening 7

397

327

188

79

2

0

1

3

0

4

0 100 200 300 400 500

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 2018continuing operations Adjusted EBIT

EUR million

4.4 4.0

6.0 5.8

3.00

2

4

6

8

10

12

14

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

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

9LTK 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 2018continuing operations

Adjusted EBITEUR million

3.24.8

4.2

13.7

4.3

0

2

4

6

8

10

12

14

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

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

OriolaPharmacYAPharma Dos

OriolaApoteket ABApotekstjänst

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 LänsLandsting signed in 2018 and deliveries starting Q1 2019.

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Healthcare January – December 2018

Adjusted EBITEUR million

-0.2

0.2 0.0 0.0 -0.1

-2,0

0,0

2,0

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

Key Figures January – December 2018

Key Figures

EUR million 10-122018

10-122017

Change%

1-122018

1-122017

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 fromoperating activities 48.4 11.0 102.8 23.7

Net interest bearingdebt 63.6 110.2

Gearing % 35.1 55.7

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continuing operations

15

Cash flowincluding discontinued operations

Quarterly net cash flow from operating activities EUR million

Q4 2018 change in cashEUR million

-15

51

-24

11

33

18

3

48

-30

-20

-10

0

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 Operatingactivities

Investingactivities

Financingactivities

Cash Q4 2018

16

Net Interest-Bearing Debtincluding 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 1.7Cash 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

121110

84100

105

64

0

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, operations and functions

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New customer focused business areasConsumer 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