2012-04-26 07:30:00 CEST
2012-04-26 07:30:39 CEST
REGULATED INFORMATION
Oriola-KD Oyj - Interim report (Q1 and Q3)
Oriola-KD Corporation's Interim Report for 1 January - 31 March 2012
Oriola-KD Corporation Stock Exchange Release 26 April 2012 at 8.30 a.m.
Key figures for 1 January - 31 March 2012
* Net sales increased by 11.5 per cent to EUR 590.8 million (1-3/2011: EUR
530.1 million).
* Operating profit was EUR 5.4 million (1-3/2011: EUR 5.0 million)
* Net cash flow from operations was EUR -27.1 million (1-3/2011: EUR -22.5
million).
* Net profit was EUR 1.5 million (1-3/2011: EUR 2.1 million) and earnings per
share were EUR 0.01 (1-3/2011: EUR 0.01).
* Return on equity was 2.0 per cent (1-3/2011: 2.4 per cent).
* Outlook for 2012 unchanged: Oriola-KD's net sales are expected to increase
10-15 per cent and operating profit excluding one-off items is expected to
come to EUR 23-33 million in 2012.
President and CEO Eero Hautaniemi's comments regarding the interim report:"Oriola-KD's net sales increased 11.5 per cent to EUR 590.8 million and
operating profit was EUR 5.4 million in January-March 2012. Operating profit
increased as a result of Pharmaceutical Trade Sweden's higher operating profit
compared with the previous year and Pharmaceutical Trade Russia's lower
operating loss compared with the previous year. The Swedish retail business
profitability improved mainly due to the increased share of OTC, traded goods
and parallel import sales and the efficiency program started during second half
of 2011. Sales of Wholesale Russia outside Moscow increased by 85 per cent and
the increase of hospital sales was strong. Strong sales growth combined with
increased efficiency decreased operating loss of Wholesale Russia. We will
systematically continue to work on our projects to boost efficiency in order to
improve profitability in 2012."
Financial performance
The Oriola-KD Group's (hereinafter Oriola-KD) net sales in January-March 2012
were EUR 590.8 million (EUR 530.1 million) and operating profit was EUR 5.4
million (1-3/2011: EUR 5.0 million). First-quarter operating profit increased as
a result of Pharmaceutical Trade Sweden's higher operating profit compared with
the previous year and Pharmaceutical Trade Russia's lower operating loss
compared with the previous year.
Profit after financial items came to EUR 2.7 million (EUR 3.0 million) and net
profit was EUR 1.5 million (EUR 2.1 million). Oriola-KD's financial expenses
increased to EUR 2.7 million (EUR 2.0 million), due to a EUR 0.7 million accrual
cost of an arrangement fee for a loan repaid in connection with the renewal of
bank loans. Taxes amounted to EUR 1.2 million (EUR 0.9 million). Taxes
corresponding to the result for January-March 2012 are entered under this
figure. Earnings per share were EUR 0.01 (EUR 0.01).
Return on equity was 2.0 per cent (2.4 per cent) in January-March 2012.
Balance sheet, financing and cash flow
Oriola-KD's balance sheet total on 31 March 2012 stood at EUR 1,217.6 million
(EUR 1,227.7 million). Cash assets were EUR 71.3 million (EUR 136.3 million),
equity was EUR 302.9 million (EUR 362.1 million) and the equity ratio was 25.4
per cent (30.2 per cent).
Of Oriola-KD's group goodwill of EUR 277.5 million, EUR 136.8 million has been
allocated in impairment testing to the cash-generating unit of the Russian
retail and wholesale companies, EUR 113.2 million to the cash-generating unit of
the Swedish pharmaceutical retail business and EUR 27.4 million to the cash-
generating unit of the Swedish pharmaceutical wholesale business.
Interest-bearing debt at the end of March 2012 was EUR 123.4 million (EUR 153.1
million), interest-bearing net debt was EUR 52.1 million (EUR 16.9 million) and
the gearing ratio was 17.2 per cent (4.7 per cent). Interest-bearing debt
consists mainly of use of the issued commercial paper programme, advance
payments from pharmacies in Finland and the estimated discounted value of the
minority share of the Swedish pharmacy company that Oriola-KD is obliged to
acquire.
In February 2012, Oriola-KD renewed all long-term external loan agreements by
signing a multi-currency revolving credit agreement with four banks amounting to
EUR 100.0 million that will mature in April 2014. The loan agreement includes
financial covenants that are based on Oriola-KD's ratio of net debt to EBITDA
and on the gearing ratio. The terms of the financial covenants were met with a
wide margin at the end of March 2012.
Oriola-KD's new committed long-term revolving credit facility of EUR 100.0
million and EUR 42.6 million in short-term credit account facilities with banks
were unused at the end of March 2012. A total of EUR 85.7 million (EUR 0.0
million) of Oriola-KD's EUR 150.0 million commercial paper programme was in use
at the end of the review period.
Net cash flow from operations in January-March 2012 was EUR -27.1 million (EUR
-22.5 million), of which changes in working capital accounted for EUR -33.1
million (EUR -26.2 million). In the Swedish pharmaceutical wholesale business,
the trade receivables sales programme was continued during January-March 2012.
Net cash flow from investments was EUR -4.6 million (EUR -3.3 million).
Investments
Gross investments for January-March 2012 came to EUR 4.3 million (EUR 5.6
million) and consisted of investments relating to the establishment of new
pharmacies, information systems and improvements in logistics efficiency.
Personnel and management team
On 31 March 2012, Oriola-KD had a payroll of 4,783 (4,921) employees, 11 per
cent (11 per cent) of whom worked in Finland and the Baltic countries, 26 per
cent (26 per cent) in Sweden, and 63 per cent (63 per cent) in Russia. Personnel
numbers include the members of staff in active employment.
Lars Birkeland (b. 1964), M.Sc. (Econ.) was appointed Managing Director of
Kronans Droghandel Apotek AB and a member of the Oriola-KD Group Management Team
as of 9 January 2012.
Konstantin Minin (b. 1974), Doctor, who was previously Commercial Director of
Oriola-KD's Stary Lekar and 03 Apteka pharmacy chains in Russia was appointed
Vice President, Pharmaceutical Retail Russia and a member of the Oriola-KD Group
Management Team as of 1 March 2012. As of 1 March 2012, Henry Fogels has been in
charge of the wholesale business in Russia and continues as a member of the
Oriola-KD Group Management Team.
Reporting segments
Oriola-KD's reporting segments are Pharmaceutical Trade Finland and Baltics,
Pharmaceutical Trade Sweden and Pharmaceutical Trade Russia.
Pharmaceutical Trade Finland and Baltics
The net sales of Pharmaceutical Trade Finland and Baltics in January-March 2012
were EUR 116.8 million (EUR 102.5 million) and its operating profit was EUR 4.8
million (EUR 5.6 million). Invoicing of the pharmaceutical wholesale business in
Finland in January-March 2012 came to EUR 256.2 million (EUR 240.5 million) and
net sales to EUR 96.6 million (EUR 81.8 million). Net sales of pharmaceutical
wholesale in the Baltic countries were EUR 8.8 million (EUR 9.3 million) and net
sales of the consumer health business, i.e. consumer health products sold under
Oriola-KD's own brands or exclusive sales rights, were EUR 11.5 million (EUR
11.5 million). First-quarter operating profit declined mainly as a result of
personnel costs related to the start-up of pharmaceutical wholesale Finland's
new picking automation line and the decrease in the net sales in the Baltics.
The Finnish pharmaceutical market grew 3.9 per cent in January-March 2012
(decreased 1.7 per cent). Oriola-KD's market share in the Finnish pharmaceutical
wholesale market was 47.1 per cent (46.1 per cent) in January-March 2012.
Oriola-KD signed a new distribution agreement with Abbott in Finland, which
entered force 1.1.2012. Abbott's market share is about 3 per cent (source: IMS
Health).
Pharmaceutical Trade Finland and Baltics had 503 (486) employees at the end of
March 2012. During the first quarter a new picking automation line was started
up at Oriola-KD's main distribution centre in Espoo. This is expected to improve
the efficiency of logistics from the second quarter in 2012.
Pharmaceutical Trade Sweden
Pharmaceutical Trade Sweden's net sales in January-March 2012 were EUR 258.9
million (EUR 265.3 million) and its operating profit was EUR 3.4 million (EUR
2.3 million). Invoicing of the wholesale business in Sweden was EUR 338.5
million (EUR 371.5 million) and net sales were EUR 147.4 million (EUR 156.4
million). Net sales of the retail business in Sweden were EUR 124.8 million (EUR
123.6 million). First-quarter operating profit improved on the previous year as
a result of good performance by the retail business.
The Swedish pharmaceutical market grew by 2.0 per cent in January-March 2012
(3.1 per cent). Oriola-KD's market share in the Swedish pharmaceutical wholesale
market was 36.9 per cent (39.9 per cent) and in the retail market 13.5 per cent
(approx. 14 per cent) in January-March 2012. (source: IMS Health)
In 2012 the retail business will focus on improving pharmacies' competitiveness,
purchasing, expanding the selection of traded goods and OTC assortment and
opening some 15 new pharmacies. Three (2) pharmacies were opened during the
first quarter and at the end of March there were 212 (191) pharmacies in total.
The rapid establishment of new pharmacies in Sweden over the years 2010 and
2011 has reduced pharmacies average sales and as a result Oriola-KD has further
intensified its operations at pharmacies and reduced the costs of individual
pharmacies. The share of Oriola-KD's total sales made up by traded goods and OTC
assortment increased by about one percentage unit in January-March 2012 compared
with the corresponding period in 2011 and this improved the first-quarter gross
margin. The IT system taken in use in 2011 has performed well.
In the wholesale business, the focus areas are improving the distribution
services provided to pharmaceutical companies and developing logistics services
provided to pharmacy chains. The profitability of the wholesale business was
weakened by a low invoicing figure in January-March 2012 which was a result of
the increase in the share of parallel imports and generic medicines in the
Swedish market. In addition to distribution services provided to pharmaceutical
companies, Oriola-KD also sells logistics services to pharmacy chains in Sweden.
Pharmaceutical Trade Sweden had 1,232 (1,304) employees at the end of March
2012, 991 (1,022) of whom were employed in retail and 241 (282) in wholesale.
Pharmaceutical Trade Russia
Pharmaceutical Trade Russia's net sales in January-March 2012 were EUR 215.2
million (EUR 162.4 million) and operating loss was EUR 1.1 million (operating
loss EUR 1.6 million). Net sales of the wholesale business in Russia were 184.5
million (EUR 139.5 million) and net sales of the retail business were EUR 37.3
million (EUR 33.3 million). The operating loss decreased as a result of a growth
in sales and actions to boost efficiency.
The Russian ruble-denominated growth in the pharmaceutical market in Russia was
18.7 per cent in January-March 2012 (approx. 9%) (source: Pharmexpert). Oriola-
KD's net sales increased 31 per cent (29 per cent) in Russian rubles in January-
March 2012.
In the wholesale business, net sales of the regional distribution centres
outside Moscow increased by some 85 per cent in January-March 2012, and in
addition to this there was strong growth in sales of pharmaceutical to
hospitals, which was launched during the second half of 2011. The efficiency of
the distribution centres in Moscow and of regional distribution centres improved
during the first quarter. The stock of the wholesale business declined by almost
a third during the first quarter.
Unprofitable operations will continue to be cut during 2012, logistics
operations will be intensified and operational reliability will be improved by
developing internal operating processes. Projects have been started in Russia to
implement a new warehouse management system at the start of 2013 and to
investigate opportunities to establish a new automated main logistics centre in
Moscow. The wholesale business has twelve regional logistics centres in addition
to its main logistics centre in Moscow.
Retail business sales grew and the number of pharmacies decreased during the
first quarter. At the end of March 2012, Oriola-KD had 243 (258) pharmacies in
the Moscow area, of which 174 (185) operated under the Stary Lekar brand and 69
(73) under the 03 Apteka brand. Three pharmacies were opened and nine pharmacies
were closed during January-March 2012. Traded goods sales and sales per pharmacy
grew at Oriola-KD's pharmacies and the cost structure became more efficient.
First-quarter profitability was weakened by the low gross margin in January-
February and the costs arising from the closures of unprofitable pharmacies. In
the retail business the focus in 2012 will be on developing the pharmacy
portfolio, improving the competitiveness of individual pharmacies and
strengthening the product assortment.
Pharmaceutical Trade Russia had 3,048 (3,131) employees at the end of March
2012, of whom 1,381 (1,582) were employed in retail and 1,666 (1,549) in
wholesale.
Related parties
Related parties in the Oriola-KD Group are deemed to comprise the members of the
Board and the President and CEO of Oriola-KD Corporation, the other members of
the Group Management Team of the Oriola-KD Group, the immediate family of the
aforementioned persons, the companies controlled by the aforementioned persons,
and the Oriola Pension Foundation. The Group has no significant business
transactions with related parties, except for pension expenses arising from
defined benefit plans with the Oriola Pension Foundation.
Oriola-KD Corporation shares
Trading volume of the Oriola-KD Corporation's class A and B shares in January-
March 2012:
Trading volume January-March 2012 January-March 2011
A-sarja B-sarja A-sarja B-sarja
Trading volume, million 1.7 10.9 0.9 22.9
Trading volume, EUR million 3.5 21.2 3.3 77.4
Highest price, EUR 2.20 2.15 3.83 3.74
Lowest price, EUR 1.85 1.73 3.20 3.15
Closing quotation, end of period, EUR 1.92 1.87 3.73 3.40
Oriola-KD Corporation's market capitalisation on 31 March 2012 was EUR 285.2
million (EUR 529.8 million).
In the review period, the traded volume of Oriola-KD Corporation shares,
excluding treasury shares, corresponded to 8.4 per cent (15.8 per cent) of the
total number of shares. The traded volume of class A shares amounted to 3.7 per
cent (2.0 per cent) of the average stock, and that of class B shares, excluding
treasury shares, 10.5 per cent (22.0 per cent) of the average stock.
At the end of March 2012, the company had a total of 151,257,828 shares
(151,257,828), of which 47,148,710 were class A shares (47,163,160) and
104,109,118 were class B shares (104,094,668). The company has 96,822 treasury
shares, all of which are class B shares. These account for 0.06 per cent of the
company's shares and 0.009 per cent of the votes.
Under Article 3 of the Articles of Association, a shareholder may demand
conversion of class A shares into class B shares. During the period 1 January -
31 March 2012, no class A shares were converted into class B shares (0 shares).
On 10 February 2010, Oriola-KD Corporation's Board of Directors decided on a new
share incentive scheme for the Group's key personnel for the years 2010-2012. No
bonuses have been paid under the incentive scheme for the 2010 and the 2011
earning periods. The Board of Directors of Oriola-KD has specified the earning
criteria for the earning period 2012. Any payment for the 2012 earning period
will be based on the attainment of business-specific strategic targets.
Decisions of the 2012 Annual General Meeting
The Annual General Meeting of Oriola-KD Corporation, held on 26 March 2012,
adopted the 2011 financial statements and discharged the members of the Board of
Directors and the President and CEO from liability for the financial year ending
31 December 2011. According to the decisions of the AGM, the company paid a
dividend of EUR 0.05 per share and distributed EUR 0.03 per share as repayment
of equity on 12 April 2012.
The AGM re-elected Jukka Alho, Harry Brade, Per Båtelson, Pauli Kulvik, Outi
Raitasuo, Olli Riikkala (Chairman), Ilkka Salonen and Mika Vidgrén as Board
members. The AGM confirmed a term of office fee of EUR 48,400 for the Chairman,
EUR 30,250 for the Vice Chairman, and EUR 24,200 for the other members of the
Board. The Chairman receives an attendance fee of EUR 800 per meeting and the
other Board members EUR 400 per meeting. In accordance with the decision of the
AGM, 40 per cent of the term of office fee was used to acquire Oriola-KD
Corporation's class B shares for the Board members on the NASDAQ OMX Helsinki
Stock Exchange on 13 April 2012, and 60 per cent of the fee was paid in cash on
20 April 2012.
PricewaterhouseCoopers Oy was re-elected as auditor for the company, with APA
Heikki Lassila as principal auditor.
The AGM authorised the Board to decide on repurchasing up to fifteen million of
the company's own class B shares. Shares may be repurchased also in a proportion
other than in which shares are owned by the shareholders. The authorisation is
in force for eighteen months following the decision of the AGM.
The AGM authorised the Board to decide on a share issue against payment in one
or more issues, including the right to issue new class B shares or to assign
class B shares held by the company. The authorisation covers a combined maximum
of fifteen million class B shares of the company and includes the right to
derogate from the shareholders' pre-emptive subscription right. The
authorisation is in force for eighteen months following the decision of the AGM.
At its constitutive meeting held immediately after the AGM, the Board of
Directors of Oriola-KD Corporation elected Outi Raitasuo as Vice Chairman of the
Board. The Board appointed from among its members Outi Raitasuo (Chairman),
Harry Brade, Ilkka Salonen and Mika Vidgrén to the Board's Audit Committee, and
Olli Riikkala (Chairman), Per Båtelson and Pauli Kulvik to the Board's
Remuneration Committee. The Board of Directors has assessed the independence of
its members and determined that all members are independent of both the company
and its major shareholders.
Risks
Oriola-KD's Board of Directors has approved the company's risk management policy
in which the risk management operating model, principles, responsibilities and
reporting are specified. The Group's risk management seeks to identify, measure
and manage risks that may threaten Oriola-KD's operations and the achievement of
goals set. The roles and responsibilities relating to risk management have been
determined in the Group.
Oriola-KD's risks are classified as strategic, operational and financial. Risk
management is a key element of the strategic process, operational planning and
daily decision-making at Oriola-KD.
Oriola-KD has identified the following principal strategic and operational risks
in its business:
* growth in the number of pharmacies outperforms growth in the market, leading
to intense competition
* competition for market share in pharmaceutical wholesale in a consolidating
market
* ensuring cost efficiency, flexibility and quality
* development of processes and infrastructure required by strategic expansion
* requirements and restrictions on pharmaceutical retail and wholesale imposed
by the authorities, especially price control
* commitment of key employees.
The major financial risks for Oriola-KD involve currency rate, liquidity,
interest rate and credit risks. Currency risks are the most significant
financial risks in Russia and Sweden, as any changes in the value of the Russian
ruble or the Swedish krona will have an impact on Oriola-KD's financial
performance and equity.
Goodwill and intangible rights are subject to impairment testing at least once
every year. Changes in cash flow forecasts based on strategic plans, or in the
discount rate or perpetuity growth rate, can cause a goodwill write-off, which
would weaken Oriola-KD's result. The impairment test of the goodwill of the
Russian cash-generating unit, in particular, is sensitive to changes in the
discount rate or cash-flow forecasts.
Near-term risks and uncertainty factors
Intense competition and the number of new pharmacies to be established will have
an impact on the profitability of Oriola-KD's pharmacy business in Sweden and
Russia. Changes in the exchange rate of the Russian ruble, a potential increase
in credit risks concerning customers and changes in the competitive environment
may have an impact on the profitability of the wholesale business in Russia.
Events after the review period
Jukka Niemi, member of the Oriola-KD Group Management Team and Vice President,
Pharmaceutical Wholesale, Finland and Baltics will resign from the Group and
from his position as Managing Director of Oriola Oy on 1 May 2012.
Outlook
Oriola-KD's outlook for 2012 is based on external market forecasts, supplier and
customer agreements and management assessments. In the period 2012-2016, the
pharmaceutical market is expected to grow by 0.5 per cent in Finland, 1 per cent
in Sweden, and 11.5 per cent in Russia, measured in local currencies (source:
IMS Health 04/2012). Competition is expected to remain very tough in the Russian
pharmaceutical retail and wholesale business and the Swedish pharmaceutical
retail business.
Oriola-KD's outlook for 2012 is unchanged: Oriola-KD's net sales are expected to
increase 10-15 per cent and operating profit excluding one-off items is expected
to come to EUR 23-33 million in 2012.
Tables
The interim report for 1 January-31 March 2012 has been prepared in accordance
with the recognition policies of the IAS 34 standard. Oriola-KD adopted new
IAS/IFRS standards in January-March 2012: IFRS 7 (amendment) and IAS 12
(amendment). The changes in the standards had no impact on Oriola-KD's result.
The figures are unaudited.
Consolidated Statement of
Comprehensive Income (IFRS), 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
EUR million 2012 2011 2011
-------------------------------------------------------------------------------
Continuing operations
Net sales 590.8 530.1 2,146.0
Cost of goods sold -504.8 -449.6 -1,830.1
-------------------------------------------------------------------------------
Gross profit 86.0 80.4 315.9
Other operating income 0.5 0.8 2.6
Selling and
distribution expenses -67.2 -64.6 -248.6
Administrative expenses -13.8 -11.6 -56.8
-------------------------------------------------------------------------------
Operating Profit/Loss before
Impairment * 5.4 5.0 13.2
Impairment ** - - -33.4
-------------------------------------------------------------------------------
Operating Profit/Loss 5.4 5.0 -20.2
Financial income 2.0 2.4 10.7
Financial expenses -4.7 -4.4 -19.4
-------------------------------------------------------------------------------
Profit/Loss before taxes 2.7 3.0 -28.9
Income taxes *** -1.2 -0.9 4.8
-------------------------------------------------------------------------------
Profit/Loss for the period 1.5 2.1 -24.1
Other comprehensive income
Cash flow hedge 0.0 0.9 -1.3
Income tax relating to
other comprehensive income 0.8 -0.1 0.4
Translation difference 13.4 6.4 -1.2
-------------------------------------------------------------------------------
Total comprehensive income
for the period 15.7 9.3 -26.3
Attribution of Profit/Loss for
the period
-------------------------------------------------------------------------------
To parent company shareholders 1.5 2.1 -24.1
-------------------------------------------------------------------------------
Attribution of total
comprehensive
income for the period
-------------------------------------------------------------------------------
To parent company shareholders 15.7 9.3 -26.3
-------------------------------------------------------------------------------
Earnings per share for the period
from continuing operations
Basic earnings per share, EUR 0.01 0.01 -0.16
Diluted earnings per share, EUR 0.01 0.01 -0.16
*) Including depreciation, EUR
million -4.4 -3.5 -16.1
**) Stary Lekar -brand
impairment, EUR million - - -33.4
***) The tax expense for the
period
corresponds to the taxes
calculated from the
profit for the financial period.
Consolidated Balance Sheet
(IFRS),
EUR million
ASSETS 31 Mar 2012 31 Mar 2011 31 Dec 2011
-------------------------------------------------------------------------------
Non-current assets
Property, plant and equipment 75.1 68.7 74.0
Goodwill 277.5 271.5 266.8
Other intangible assets 52.1 81.4 52.1
Other shares and shareholdings 0.0 0.0 0.0
Other non-current assets 9.4 11.3 9.4
Deferred tax assets 7.0 3.6 7.6
-------------------------------------------------------------------------------
Non-current assets total 421.2 436.6 410.0
Current assets
Inventories 354.3 323.0 379.8
Trade and other receivables 370.8 331.8 329.7
Cash and cash equivalents 71.3 136.3 153.8
-------------------------------------------------------------------------------
796.3 791.1 863.3
Non-current assets held for sale 0.0 - 0.0
-------------------------------------------------------------------------------
Current assets total 796.4 791.1 863.4
ASSETS TOTAL 1,217.6 1,227.7 1,273.3
-------------------------------------------------------------------------------
EQUITY AND LIABILITIES 31 Mar 2012 31 Mar 2011 31 Dec 2011
-------------------------------------------------------------------------------
Equity of the parent
company shareholders
Share capital 36.2 36.2 36.2
Funds 26.7 52.9 31.2
Retained earnings 240.0 272.9 231.9
-------------------------------------------------------------------------------
Equity total 302.9 362.1 299.3
Non-current liabilities
Deferred tax liabilities 15.5 22.4 15.1 Pension obligations 6.4 5.8 6.3
Borrowings 15.2 125.3 127.0
Other non-current liabilities - - 0.0
-------------------------------------------------------------------------------
Non-current liabilities total 37.0 153.5 148.4
Current liabilities
Trade payables and other current
liabilities 769.4 684.3 779.7
Borrowings 108.2 27.9 46.0
-------------------------------------------------------------------------------
Current liabilities total 877.7 712.1 825.7
EQUITY AND LIABILITIES TOTAL 1,217.6 1,227.7 1,273.3
-------------------------------------------------------------------------------
Consolidated
Statement
of Changes in
Equity (IFRS)
Equity of the parent company
shareholders
Trans-
lation Re-
Share Hedge Contingency Other diffe- tained Equity
EUR million capital fund fund funds rences earnings total
-------------------------------------------------------------------------------
Equity
1 Jan 2011 36.2 1.2 30.0 20.9 -6.3 270.8 352.7
-------------------------------------------------------------------------------
Share-based
payments - - - - - 0.1 0.1
Net profit/loss
for the period - - - - - 2.1 2.1
Other
comprehensive
income:
Cash flow hedge - 0.9 - - - - 0.9
Income tax
relating to
other
comprehensive
income - - - - -0.1 - -0.1
Translation
difference - - - - 6.4 - 6.4
-------------------------------------------------------------------------------
Equity
31 Mar 2011 36.2 2.1 30.0 20.9 0.0 273.0 362.1
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Equity
1 Jan 2012 36.2 -0.0 30.0 1.2 -7.2 239.1 299.3
-------------------------------------------------------------------------------
Dividends paid
and return of
equity - - -4.5 - - -7.6 -12.1
Share-based
payments - - - - - 0.1 0.1
Net profit/loss
for the period - - - - - 1.5 1.5
Other
comprehensive
income:
Cash flow hedge - 0.0 - - - - 0.0
Income tax
relating to
other
comprehensive
income - - - - 0.8 - 0.8
Translation
difference - - - - 13.4 - 13.4
-------------------------------------------------------------------------------
Equity
31 Mar 2012 36.2 - 25.5 1.2 7.0 233.1 302.9
-------------------------------------------------------------------------------
Consolidated Cash Flow
Statement 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
(IFRS), EUR million 2012 2011 2011
-------------------------------------------------------------------------------
Operating profit /loss 5.4 5.0 -20.2
Depreciation 4.4 3.5 16.1
Impairment - - 33.4
Change in working capital -33.1 -26.2 11.8
Cash flow from financial
items and taxes -3.0 -5.5 -15.1
Other adjustments -0.8 0.6 2.1
Net cash flow from
operating activities -27.1 -22.5 28.1
Net cash flow from
investing activities -4.6 -3.3 -27.1
Net cash flow from
financing activities -51.3 -25.8 -35.0
Net change in cash and
cash equivalents -83.0 -51.6 -34.1
Cash and cash equivalents
at the beginning of the
period 153.8 187.8 187.8
Foreign exchange rate
differences 0.5 0.1 0.1
Net change in cash and
cash equivalents -83.0 -51.6 -34.1
Cash and cash equivalents
at the end of the period 71.3 136.3 153.8
-------------------------------------------------------------------------------
Change in Property, Plant
and Equipment, 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
EUR million 2012 2011 2011
-------------------------------------------------------------------------------
Carrying amount at the
beginning of the period 74.0 68.0 68.0
Increases 3.3 2.9 16.2
Decreases -0.3 -0.2 -0.6
Depreciation -2.6 -2.2 -9.6
Transferred to assets of
disposal
group classified as held
for sale - - -0.0
Foreign exchange rate
differences 0.6 0.2 0.1
-------------------------------------------------------------------------------
Carrying amount at the
end of the period 75.1 68.7 74.0
-------------------------------------------------------------------------------
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Key Figures 2012 2011 2011
-------------------------------------------------------------------------------
Equity ratio, % 25.4 30.2 24.4
Equity per share, EUR 2.00 2.40 1.98
Return on capital
employed (ROCE) 4.8 3.8 -4.0
Return on equity 2.0 2.4 -7.4
Net interest-bearing
debt, EUR million 52.1 16.9 19.2
Gearing, % 17.2 4.7 6.4
Earnings per share 0.01 0.01 -0.16
Average number of shares,
1000 pcs 151,161 151,161 151,161
Derivatives, Commitments
and Contingent
Liabilities
31 Mar 2012
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives measured at
fair value through profit
or loss
Foreign currency forward
and swap contracts 0.5 - 191.6
Interest rate swaps - -0.0 113.1
31 Mar 2011
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised
as cash flow hedges
Interest rate swaps 2.1 - 111.9
Derivatives measured at
fair value through profit
or loss
Foreign currency forward
and swap contracts 0.3 - 86.1
Internal loan of 1 billion Swedish kronas given to Kronans Droghandel Apotek
AB has been hedged using foreign currency swap contracts.
Contingencies for Own
Liabilities,
EUR million 31 Mar 2012 31 Mar 2011 31 Dec 2011
-------------------------------------------------------------------------------
Guarantees given 27.7 121.7 138.6
Mortgages on land and
buildings 2.0 2.0 2.0
Mortgages on company
assets 2.4 2.4 2.4
Other guarantees and
liabilities 0.7 0.5 0.7
-------------------------------------------------------------------------------
Total 32.8 126.6 143.7
-------------------------------------------------------------------------------
Leasing-liabilities
(operating liabilities) 3.4 0.8 0.6
Rent contingencies 63.9 62.4 61.9
Parent company guarantee of 1 billion Swedish kronas given by Oriola-KD Oyj to
secure Kronans Droghandel Apotek AB's external loan has expired during first
quarter.
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Number of personnel 2012 2011 2011
-------------------------------------------------------------------------------
Average number of
personnel 4,835 4,922 4,968
Number of personnel at
the end of the period 4,783 4,921 4,854
SEGMENT INFORMATION
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Net Sales, EUR million 2012 2011 2011
------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 116.8 102.5 414.8
Pharmaceutical Trade Sweden 258.9 265.3 1,042.0
Pharmaceutical Trade Russia 215.2 162.4 689.4
Net sales to other segments 0.0 -0.1 -0.2
------------------------------------------------------------------------------
Group total 590.8 530.1 2,146.0
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Operating Profit/Loss, EUR
million 2012 2011 2011
------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 5.6 20.6
Pharmaceutical Trade Sweden 3.4 2.3 10.6
Pharmaceutical Trade Russia -1.1 -1.6 -46.0
Group Administration and Others -1.8 -1.2 -5.5
------------------------------------------------------------------------------
Group total 5.4 5.0 -20.2
Operating Profit/Loss excl.
One-off costs 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
and Impairment, EUR million 2012 2011 2011
------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 5.6 20.6
Pharmaceutical Trade Sweden 3.4 2.3 10.6
Pharmaceutical Trade Russia -1.1 -1.6 -12.6
Group Administration and Others -1.8 -1.2 -5.5
------------------------------------------------------------------------------
Operating Profit/Loss excl.
One-off costs
and Impairment total 5.4 5.0 13.2
One-off costs and impairment - - -33.4 *
------------------------------------------------------------------------------
Group total 5.4 5.0 -20.2
*) Stary Lekar -brand
impairment EUR -33.4 million in
Pharmaceutical Trade Russia
Quarterly Net Sales, EUR million Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 116.8 105.7 101.8 104.8 102.5
Pharmaceutical Trade Sweden 258.9 258.6 249.6 268.6 265.3
Pharmaceutical Trade Russia 215.2 194.5 170.3 162.2 162.4
Net sales to other segments -0.0 -0.0 -0.0 -0.1 -0.1
-------------------------------------------------------------------------------
Group total 590.8 558.8 521.6 535.5 530.1
Quarterly Operating Profit/Loss, EUR
million Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 4.4 5.9 4.7 5.6
Pharmaceutical Trade Sweden 3.4 2.6 3.8 1.9 2.3
Pharmaceutical Trade Russia -1.1 0.2 -5.5 -39.1 -1.6
Group Administration and Others -1.8 -1.4 -0.9 -1.9 -1.2
-------------------------------------------------------------------------------
Group total 5.4 5.8 3.4 -34.4 5.0
Quarterly Operating Profit/Loss,
excl. One-off costs and Impairment,
EUR million Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 4.8 4.4 5.9 4.7 5.6
Pharmaceutical Trade Sweden 3.4 2.6 3.8 1.9 2.3
Pharmaceutical Trade Russia -1.1 0.2 -5.5 -5.7 -1.6
Group Administration and Others -1.8 -1.4 -0.9 -1.9 -1.2
-------------------------------------------------------------------------------
Group total excl.
One-off costs and Impairment 5.4 5.8 3.4 -1.0 5.0
One-off costs and impairment * - - - -33.4 -
-------------------------------------------------------------------------------
Group total 5.4 5.8 3.4 -34.4 5.0
*) Stary Lekar -brand impairment EUR
-33.4 million in Pharmaceutical Trade
Russia
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Net Sales by Market, EUR million 2012 2011 2011
------------------------------------------------------------------------------
Finland 107.4 93.1 379.4
Sweden 252.2 258.4 1,013.0
Russia 215.2 162.4 689.4
Baltic countries 8.4 8.7 32.6
Other countries 7.5 7.5 31.5
------------------------------------------------------------------------------
Continuing operations total 590.8 530.1 2,146.0
Quarterly Net Sales by Market, EUR
million Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Finland 107.4 96.1 93.6 96.5 93.1
Sweden 252.2 250.7 241.8 262.1 258.4
Russia 215.2 194.5 170.3 162.2 162.4
Baltic countries 8.4 8.3 8.0 7.7 8.7
Other countries 7.5 9.1 8.0 6.9 7.5
-------------------------------------------------------------------------------
Continuing operations total 590.8 558.8 521.6 535.5 530.1
Espoo, 25 April 2012
Oriola-KD Corporation's Board of Directors
Oriola-KD Corporation
Eero Hautaniemi
President and CEO
Kimmo Virtanen
Executive Vice President and CFO
Further information:
Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com
Kimmo Virtanen
Executive Vice President and CFO
tel. +358 (0)10 429 2069
e-mail: kimmo.virtanen@oriola-kd.com
Joni Ihantola
Vice President, Treasury and IR
tel. +358 (0)10 429 4386
e-mail: joni.ihantola@oriola-kd.com
Distribution:
NASDAQ OMX Helsinki Ltd
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Released by:
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Corporate Communications
Orionintie 5
FI-02201 Espoo
www.oriola-kd.com
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