Oriola Corporation Financial Statements 2017

Transcription

1 Oriola Corporation Financial Statements 13 February

2 Oriola New contracts in Healthcare Sweden doubled the business area net sales Oriola expert services portfolio grew with Swedish ICTHS Health Support AB Sale of the Baltic businesses in October, focus on Finland and Sweden Oriola s and Kesko s joint venture Hehku established, first stores and online shop opened in January 2018 CEO change: Robert Andersson started on 12 February 2018 ERP and warehouse management system implementation in Finland was difficult delivery reliability at good level, efficiency and customer experience to improve

3 Oriola Key Figures continuing operations Invoicing Net sales Adjusted EBIT EUR million EUR million EUR million / adjusted EBIT at comparable EUR/SEK rate EUR 40.6 million 3

4 Adjusted EBIT January December continuing operations Adjusted EBIT, Quarters EUR million 18 EUR million 70,0 Adjusted EBIT ,0 50, ,0 30, ,0 10, Q4/2016 Q1/ Q2/ Q3/ Q4/ 0, Consumer Services Healthcare Group Items

5 Business Areas January December

6 Consumer Segment Focuses on the needs of consumers for products and services related to health and wellbeing Offers expert advice as well as an extensive selection of products in own pharmacies Consistent service experience throughout all service channels, from local pharmacies to online services Pharmacy market in Sweden (Apoteksförening) 18 % 16 % 4.2 BEUR 10 % 4.2 BEUR 82 % 74 % Oriola/Kronans Apotek Rx Others OTC TG

7 Consumer January December continuing operations Pharmacy market grew by 3.2% in Sweden, online sales grew by 58% to 7% of the market Net sales increased by 0.4% in SEK, online sales grew faster than market. Online sales 2% Profitability was weakened by cost of newly established pharmacies, online development and marketing Share of OTC and traded goods of net sales 26.6 (27.1)% Oriola s joint venture with Kesko, Hehku chain of comprehensive wellbeing, was launched in Finland The first stores and online shop were opened in 25 January Oriola s investment in was EUR 1.6 million and the adjusted EBIT impact EUR -1.1 million Adjusted EBIT EUR million Q4 5.3 Q1 8.0 Q2 7.6 Q3 4.4 Q

8 Swedish Pharmacy retail market Pharmacies Market share (Apoteksförening) 388 Apotek Hjärtat & CURA Apoteket % 3% 4% 4% 31% 397 Kronans Apotek Apoteksgruppen % Lloyds Apoteket % Others Pharmacies 2010 Established net Established net Oriola/Kronans Apotek Apoteket Apotek Hjärtat & CURA Apotea Others Lloyds Apoteket Apoteksgruppen

9 Digitalisation opens new business opportunities Oriola online sales grew faster than the market in in Sweden Cooperation with online medical center Doktor.se in Sweden Mobile apps supporting customers prescription medication Comprehensive wellbeing online shop hehku.fi in Finland

10 Hehku enters growing wellbeing market in Finland Hehku offers unique selection of products and services promoting wellbeing. First stores were opened in Helsinki and Vantaa as well as the online shop at 25 January Totally 30 new shops will be opened from Helsinki to Oulu in The new chain will create approximately new jobs, 200 in the first year. Medicines will become part of the concept when the regulation so allows

11 Services Focuses on long-term customer relationship and wide service offering Provides wholesale and logistics services with wide range of expert services for pharmaceutical companies and pharmacies Offers customized wholesale services of OTC and traded goods in Sweden Provides staffing services for Finnish pharmacies Finland Wholesale (ATY) Sweden Wholesale (Reveal and Oriola estimate) 54 % 2.3 BEUR 46 % 4.2 BEUR 36 % Oriola 64 % Oriola Others Others

12 Services January December continuing operations Market growth: Sweden 2.1% and Finland 1.2% Invoicing decreased by 1.3% with comparable currency, Q4 invoicing grew by 1.0% The decrease is mainly due to the end of the distribution agreement with Abbvie in the beginning of, Meda distribution started in May Expert services growth was strong ICTHS acquisition completed ERP and warehouse management system go-live in Finland, adjusted EBIT impact EUR -9 million (EUR -4 million in Q4) Roche distribution agreement in Finland was lost in the end of the year, limited assortment of Orion products in multichannel distribution in 2018 Adjusted EBIT EUR million Q4 7.7 Q1 8.0 Q2 3.6 Q3 3.2 Q

13 Investments in efficiency of logistics Capacity expansion in the Central Warehouse in Mölnlycke in May Facilitate our new cooperation with Meda Improvements to the ERP and warehouse management system in Finland continue Deliveries are working well but improvement of efficiency and customer experience is needed The start-up of the new automated warehouse is anticipated in the fourth quarter 2018 in Enköping, Sweden Phased start-up to minimise the risks ERP and EWM implementation being reevaluated

14 Unique services for pharma industry and pharmacies Expert services are growing through acquisitions Farenta 2016 ICTHS Health Support Services for pharmaceutical companies and pharmacies Research and development services Market access Regulatory Life Cycle Management Commercial services Staffing services

15 Healthcare Segment The Healthcare segment offers pharmaceutical distribution and dose dispensing services for public and private healthcare providers Services to veterinarians in Sweden Dose dispensing market ca. 200,000 patients in Sweden, 45,000 in Finland Oriola dose dispensing companies cover services for 69,000 persons in Sweden and Finland Market share dose dispensing (Oriola estimate) Finland Sweden 4 % 7 % Circa 30 MEUR 45 % Oriola Pharmac YA 39 % Circa 230 MEUR 25 % Oriola Apoteket AB Apotekstjänst 44 % Pharma Dos 36 %

16 Healthcare January December continuing operations Dose dispensing volume in Sweden doubled when Norrland service started in May Finnish Pharmaservice continued to perform well Dose fee in Swedish tenders under pressure - latest tenders with zero or negative dose fee First contract to supply pharmaceuticals to county council hospitals started in October with deliveries to Västmanland in Sweden The sales doubled in as a result of new contracts, but ramp-up costs weakened the result Amortisation related to acquisitions EUR -1.4 (-1.7) million Adjusted EBIT EUR million Q Q1 Q Q3 Q

17 We operate in regulated markets Sweden: Pharmacy Bill 2018, obligations to wholesale concerning deliveries to pharmacies and product returns Investigation (SOU 2016:95), parallel and direct import by pharmacies to be restricted? Public tenders in perpetual appeal process Finland: Sote - social and healthcare reform - impact to pharmaceutical supply chain still largely unknown Pharmacy regulation, studies ongoing Dose dispensing services underutilized Distribution system discussion ongoing

18 Key Figures January December

19 Cash flow including discontinued operations Quarterly net cash flow from operating activities EUR million 60 EUR million 1-12/ 1-12/ 2016 Change in working capital Net cash flow from operating activities Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/ Q2/ Q3/ Q4/ Net cash flow from investing activities Net cash flow from financing activities Net change in cash Cash and equivalents at the end of period

20 Net Interest-Bearing Debt including discontinued operations Net interest-bearing debt EUR million 31 Dec EUR million Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/ Q2/ Q3/ Q4/ Bank loans (syndicated & term) 31 Dec Commercial papers Advance payment from pharmacies Other Cash and cash equivalents Net interest-bearing debt Sold trade receivables Gearing, %

21 Key Figures continuing operations EUR million Change % Change % Invoicing , , Net sales , , Adjusted EBITDA Adjusted EBIT EBIT Profit for the period

22 Balance sheet and key ratios Including discontinued operations EUR million 31 Dec 31 Dec 2016 Goodwill Equity Interest-bearing debt Interest-bearing net debt Balance sheet total Equity ratio, % Return on equity (ROE), % Return on capital employed (ROCE), % Gearing, % Equity per share, EUR Earnings per share (EPS), EUR (cont. operations) Average number of shares, 1000 pcs 181, ,

23 Dividend Proposal EUR million 0,30 0,25 0,20 0,15 0,10 0,05 0,00 0,27 0,25 0,23 0,14 0,13 0,14 0,11 0,09 * 0,00 0, The Board proposes to the Annual General Meeting that dividend of EUR 0.09 per share will be paid. EPS, continuing operations Dividend

24 Outlook 2018 Adjusted EBIT of continuing operations on constant currency basis is estimated to increase from the level Pharmaceutical market growth forecast in Sweden 3.9% and in Finland 1.5%, however: Services Business Area development projects ongoing: Enköping DC and IT-systems in Finland impacting the 2018 efficiency Hehku chain expanding network of stores

25 Operating environment

26 Pharmaceutical markets are growing Source: IQVIA MSEK Market growth Sweden 10% MEUR Market growth Finland 8% % % % % % % % 3% 2% % % % 500 0% -1% % % Total Market (MSEK) Annual growth (%) Total Market (MEUR) Annual growth (%)

27 Megatrends support business growth Ageing population, increasing healthcare costs Increasing spending on health and wellbeing Digitalisation- opportunities and challenges Specialty pharmaceuticals growth needs supporting services

28 Online pharmacies are growing fast in Sweden Online trade is growing by 20 % each year while other retail is growing only 4 % Over 70 % of Swedes under 50 years have shopped online last month Every 5th Swede had bought at least one product in a month by smartphone, 1 in 8 had bought two or more products Declining prices and lower margins in campaigns

29 Sustainability

30 Sustainability in Oriola The Channel for Health Oriola started preparing reporting in 2016 First CDP report in Compliance and supply chain Transparent governance Ethical business and practices Safety and availability of products and services Responsibility in the supply chain Environment Energy efficiency Climate actions Waste reduction and safe handling People and Society Competent and contented staff Diversity and equality Stakeholder responsibilty

31 Environment Non-financial information Energy efficiency improvements in premises in Finland and Sweden underway Energy Consumption by Source (MWh) Delivery to 800 pharmacies in Finland, in Sweden Goods transports: CO 2 emissions, kg Pharmaceutical waste from distribution and collected from consumers Pharmaceutical waste (tonnes) % District heating Renewable electricity Electricity from mixed resources % Finland Sweden Finland Sweden

32 People Non-financial information Total FTE 31 December : 2619 Employees by country (FTE) Employees by gender (headcount) Employees by age groups (headcount) 27 % 0% 21 % 25 % 30 % 73 % 79 % 45 % Sweden Finland Other countries Female Male - under 30 years years - 50 years and over

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