oriola-kd corporation · 1 oriola-kd corporation oriola-kd corporation january – september 2016...

Oriola-KD Corporation 1

ORIOLA-KD CORPORATION January – September 2016

Eero Hautaniemi, President and CEO

20 October 2016


Oriola-KD Key Figures

Adjusted Operating profit Net Sales Invoicing

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

0

500

1 000

1 500

2 000

2 500

3 000

3 500

2012 2013 2014 2015 2016

EU

R m

illio

n

1 522 1 620 1 612 1 626

1-9 1 205

1-9 1 217

0200400600800

1 0001 2001 4001 6001 800

2012 2013 2014 2015 2016

EU

R m

illio

n

29,1 37,0

59,1 60,8

1-9 45,5

1-9 45,7

0102030405060708090

2012 2013 2014 2015 2016

EU

R m

illio

n


Adjusted operating Profit January – September 2016

Adjusted Operating profit Adjusted Operating profit, waterfall

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

17,0

02468

101214161820

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

EUR

milli

on

45.5 45.7 -0.1 1.3 0.3

-1.2

EUR

milli

on


Reporting segments January – September 2016


Solid Position in Selected Markets MARKET SHARE

TG/OTC for pharmacies in Sweden

40%

Sweden Wholesale

46%

Finland Wholesale

MARKET SIZE (BEUR) AND GROWTH

0

1

2

3

4

2015-2020 CAGR 4.2 %

2015

0

1

2

3

SWEDEN

2015

31%

2015-2020 CAGR 1.1 %

FINLAND

18%

Sweden Retail

Source: IMS Health, ATY, Apoteksförening and Oriola-KD

19% Q3/2015

32% Q3/2015

46% Q3/2015

39% Q3/2015

http://www.apoteksgruppen.se/


• 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 315 are Kronans Apotek Pharmacies in Sweden

and 2 are pharmacies in Latvia

Consumer Segment

NET SALES

Sweden

Latvia

Finland

Application for Swedish prescription medicine customers launched in September


Pharmacy chains in Sweden Market Share Pharmacies

Apoteket

Apotek Hjärtat & CURA

Apoteksgruppen

LloydsApoteket

Pharmacies 2010 Established net 2010 - 2015

Established net 2016

Source: Apoteksförening and Oriola-KD

The share of online sales 4%

-2

10

6

8

0

4

0 100 200 300 400 500

389

382

315

177

80


• 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)

Consumer January – September 2016

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

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

Milj

. EU

R


• Focuses on long-term customer relationships and a wide service offering

• 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 Segment

Services for healthcare actors who want 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

INVOICING

Sweden

Finland

Baltics

Staffing services

http://www.apoteksgruppen.se/


Farenta in a Nutshell

• A complete professional service offering 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 (2015)

CUSTOMERS

RESEARCH NETWORK

400 Pharmacies: 350 Pharmaceutical companies: 113

14.6 EUR MILLION

Finland: 160 pharmacies Poland: 170 pharmacies


• On a constant currency basis the invoicing increased by 5.9 per cent.

• Profitability developed well in all operating 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 – September 2016


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

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

Milj

. EU

R


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


• 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 BUSINESS GOALS

~26,000

60 EMPLOYEES

Healthcare Segment DOSE DISPENSING SERVICES

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

50

NET SALES (2015)

EUR MILLION

PATIENTS

28 EUR MILLION 14

~20,000 Typically 85 years old

DOSE POACHES ANNUALLY

26 MILLION 22 MILLION


Dose Dispensing MARKET SHARE

14%

10%

54%

22%

50% 42%

4% 4%

FINLAND

Source: Oriola-KD

SWEDEN

Pharmac Finland Oy

University Pharmacy (YA)

Pharmados Oy

Apoteket AB

Apotekstjänst

DOSE MARKET

~40,000 PATIENTS

~200,000 PATIENTS

10% ANNUAL GROWTH IN AVERAGE

8% ANNUAL GROWTH IN SKÅNE AREA (ESTIMATE)

Apoteket AB Svensk Dos as of February 2017


• 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 – September 2016


-0,6 -0.6 0,0

-2

0

2

4

6

8

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

EU

R m

illio

n


Active development of digital business

Continue developing the Healthcare channel

Successful execution of the efficiency improving strategic development initiatives

Key Focus Areas in 2016

2016

• 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


Key Figures January – September 2016


EUR million 1-9/2016 1-9/2015

Change in working capital -49.6 4.5 Net cash flow from operating 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

010203040

EUR

milli

on


EUR million 30 Sep 2016

30 Sep 2015

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 81.7 28.9 Sold trade receivables 115.2 111.2 Gearing, % 42.5 16.6

Net Interest-Bearing Debt Net Interest-Bearing Debt

102

63

42

29

7

51

66

82

0

20

40

60

80

100

120

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

EU

R m

illio

n


EUR million 7-9 2016

7-9 2015

Change %

1-9 2016

1-9 2015

Change %

1-12 2015

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


EUR million 30 Sep 2016

30 Sep 2015

31 Dec 2015

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


Sustainability in Oriola-KD

Responsible employer

Responsible partner

Environmental Responsibility

Over

4,000 employees whereof 1,500 pharmacists

Safe and reliable delivery of

pharmaceuticals

Sustainable delivery chain

Financial Responsibility

Responsible business

operations

Capital employed

320 m€

oriola-kd corporation · 1 oriola-kd corporation oriola-kd corporation january – september 2016...

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