2013-02-07 07:30:00 CET
2013-02-07 07:31:17 CET
REGULATED INFORMATION
Oriola-KD Oyj - Financial Statement Release
Oriola-KD Corporation's Financial Statements Release 2012
Oriola-KD Corporation Stock Exchange Release 7 February 2013 at 8.30 a.m.
Financial performance in 2012
* Net sales increased by 15.3 per cent to EUR 2,474.4 million (EUR 2,146.0
million).
* Operating profit excluding one-off items was EUR 27.9 million (EUR 13.2
million).
* A one-off item of a receivable write-off of EUR 1.1 million associated with
the bankruptcy of Swedish cash transport company Panaxia AB was recognised
in the third quarter.
* Operating profit was EUR 26.8 million (operating loss EUR 20.2 million
including a EUR 33.4 million impairment charge related to the Russian Stary
Lekar brand).
* Net cash flow from operations was EUR 46.1 million (EUR 28.1 million).
* Profit for the period was EUR 17.2 million (EUR -24.1 million) and earnings
per share were EUR 0.11 (EUR -0.16).
* Return on equity was 5.6 per cent (-7.4%).
Financial performance October-December 2012
* Net sales increased by 26.7 per cent to EUR 707.8 million (EUR 558.8
million).
* Operating profit was EUR 10.7 million (EUR 5.8 million).
* Profit for the period was EUR 11.6 million (EUR 4.0 million) and earnings
per share were EUR 0.08 (EUR 0.03).
Board's profit distribution proposal to the Annual General Meeting
* The Board proposes to the Annual General Meeting that a dividend of EUR
0.05 per share (EUR 0.05 per share) is paid for 2012, and that EUR 0.04 per
share (EUR 0.03 per share) is distributed from the reserves of unrestricted
equity as repayment of equity, totalling EUR 0.09 per share (EUR 0.08 per
share) in distributed assets.
Key figures 2012 2011 2012 2011
EUR million 1-12 1-12 Change % 10-12 10-12 Change %
-----------------------------------------------------------------------------
Net sales 2,474.4 2,146.0 15.3% 707.8 558.8 26.7%
Operating profit excluding
one-off items 27.9* 13.2** 111.5% 10.7 5.8 84.8%
Operating profit 26.8 -20.2 10.7 5.8 84.8%
Profit for the period 17.2 -24.1 11.6 4.0 187.8%
Earnings per share, EUR 0.11 -0.16 0.08 0.03 187.8%
Earnings per share, EUR*** 0.08 0.02 395.6%
*) operating profit excluding a one-off item of a receivable write-off of EUR
1.1 million in Sweden.
**) operating profit excluding a EUR 33.4 million impairment charge related to
the Russian Stary Lekar brand.
***) earnings per share with adjustments for financial income with no cash flow
effect related to the acquisition of the minority share in the Swedish retail
company, the impact of the tax rate reduction in Sweden, and a one-off item of a
receivable write-off associated with Panaxia AB (2011 does not include the
impairment charge related to the Russian Stary Lekar brand).
Outlook for 2013
* Oriola-KD estimates that net sales and operating profit excluding one-off
items will increase from 2012 level. Growth of the net sales of
Pharmaceutical Trade Russia will slow down in the first part of the year and
operating profit will be weaker than the previous year, as a result of
challenges related to the implementation of the warehouse management system
started in January 2013.
President and CEO Eero Hautaniemi's comments regarding the financial statements
release:"Oriola-KD's net sales increased by 15.3 per cent to EUR 2,474.4 million and
operating profit excluding one-off items came to EUR 27.9 million in 2012.
Pharmaceutical Trade Sweden's operating profit excluding one-off items improved
by EUR 5.6 million to EUR 16.2 million and Pharmaceutical Trade Russia's
operating profit excluding one-off items improved by EUR 10.3 million to EUR
-2.3 million. The wholesale business in Finland performed positively. In the
Swedish retail business, the growth in the relative share of sales of traded
goods, the OTC assortment and parallel imports increased the gross margin, and
costs related to the implementation of IT systems no longer affected operating
profit in 2012. In the Swedish wholesale business the low level of invoicing and
preparation costs of EUR 0.7 million associated with the start-up of the OTC
products and traded goods purchasing and logistics service for pharmacy chains
reduced operating profit significantly compared with the previous year. Delivery
of purchasing and logistics services to five pharmacy chains started according
to plan at the beginning of October. The profitability of operations in Sweden
strengthened in both businesses in the segment during the fourth quarter. The
profitability of the Russian retail business improved as a result of the actions
to boost the efficiency of operations and the growth in sales of individual
pharmacies. The operating loss of the Russian wholesale business decreased as a
result of increased regional and hospital sales, intensified operations and
improved delivery reliability. According to plan, both of the Group's businesses
in Russia made a positive operating profit during the final quarter of 2012. We
will systematically continue our planned measures to boost profitability."
Oriola-KD Group's financial statements release 1 January-31 December 2012
The text section of this financial statements release focuses on the annual
financial statements. A comparison in accordance with the International
Financial Reporting Standards (IFRS) has been carried out on the figures for the
corresponding period in 2011, unless otherwise stated. The figures for the
entire year presented in this financial statements release have been audited.
The figures in the tables have been rounded independently.
The Group's net sales and result for January-December 2012
The Oriola-KD Group's (hereinafter Oriola-KD) net sales in 2012 were EUR
2,474.4 million (EUR 2,146.0 million), and the operating profit excluding one-
off items was EUR 27.9 million (EUR 13.2 million). Pharmaceutical Trade Sweden's
operating profit excluding one-off items improved from EUR 10.6 million to EUR
16.2 million and Pharmaceutical Trade Russia's operating loss excluding one-off
items decreased from EUR 12.6 million to EUR 2.3 million. Operating profit was
EUR 26.8 million including a one-off item recognised in the third quarter of a
EUR 1.1 million receivable write-off associated with the bankruptcy of cash
transport company Panaxia AB in Sweden (operating loss EUR 20.2 million
including an EUR 33.4 million impairment charge related to the Russian Stary
Lekar brand). Profit after financial items came to EUR 21.5 million (EUR -28.9
million), profit for the financial year was EUR 17.2 million (EUR -24.1 million)
and earnings per share came to EUR 0.11 (EUR -0.16). Oriola-KD's financial
expenses were EUR 5.3 million (EUR 8.7 million), including a EUR 0.7 million
accrual cost of an arrangement fee for a loan repaid in connection with the
renewal of bank loans during the first quarter, and EUR 3.5 million of financial
income with no cash flow effect related to the acquisition of the minority share
in the Swedish retail company that was recognised in the fourth quarter. Taxes
amounted to EUR 4.3 million (EUR 4.8 million positive). The reduction of the tax
rate in Sweden lowered the Group's effective tax rate.
Return on equity was 5.6 per cent (-7.4%) in 2012. Return on equity was boosted
by the improved profitability of the businesses, the EUR 3.5 million in
financial income with no cash flow effect related to the acquisition of the
minority share in the Swedish retail company that was recognised and the
reduction of the tax rate in Sweden. Return on equity was reduced by the one-off
item of a receivable write-off of EUR 1.1 million associated with Panaxia AB.
The Group's net sales and result for October-December 2012
Fourth-quarter net sales came to EUR 707.8 million (EUR 558.8 million) and
operating profit to EUR 10.7 million (EUR 5.8 million). Pharmaceutical Trade
Sweden's operating profit improved from EUR 2.6 million to EUR 4.6 million and
Pharmaceutical Trade Russia's operating profit improved from EUR 0.2 million to
EUR 3.1 million. Profit after financial items came to EUR 12.3 million (EUR 4.2
million) including EUR 3.5 million in financial income related to the
acquisition of the minority share in the Swedish retail company. Profit for the
period came to EUR 11.6 million (EUR 4.0 million) and earnings per share were
EUR 0.08 (EUR 0.03).
Reporting segments
Oriola-KD's reporting segments are Pharmaceutical Trade Finland and Baltics,
Pharmaceutical Trade Sweden and Pharmaceutical Trade Russia. Oriola-KD has
formed its reporting segments by combining its operating segments. The
Pharmaceutical Trade Finland and Baltics reporting segment comprises the Finnish
pharmaceutical wholesale, the Consumer Health and the Pharmaceutical Trade
Baltics operating segments. The Pharmaceutical Trade Sweden reporting segment
comprises the Swedish pharmaceutical retail and Swedish pharmaceutical wholesale
operating segments. The Pharmaceutical Trade Russia reporting segment comprises
the Russian pharmaceutical retail and Russian pharmaceutical wholesale operating
segments.
Pharmaceutical Trade Finland and Baltics
January-December 2012
The net sales of Pharmaceutical Trade Finland and Baltics in 2012 were EUR
460.5 million (EUR 414.8 million) and operating profit was EUR 21.6 million (EUR
20.6 million). Invoicing of the pharmaceutical wholesale business in Finland in
2012 was EUR 1,040.2 million (EUR 970.0 million) and net sales were EUR 380.7
million (EUR 335.9 million). Net sales of the pharmaceutical wholesale business
in the Baltic countries were EUR 36.1 million (EUR 34.1 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 44.2 million (EUR
45.3 million). The Finnish pharmaceutical market grew 3.0 per cent (1.0%) in
2012 . Oriola-KD's market share in the Finnish pharmaceutical wholesale market
was 47.0 per cent (45.1%) in 2012.
The wholesale business in Finland performed positively. Competition in the
Consumer Health business increased from the previous year. All operating
countries within Pharmaceutical Trade Baltics made an operating profit. Oriola-
KD signed a new distribution agreement with Abbott in Finland, which entered
into force on 1 January 2012. Abbot's market share is roughly 3 per cent.
(source: IMS Health) During the first quarter of 2012, a new picking automation
line was taken into use at Oriola-KD's main distribution centre in Espoo, and
during the third quarter, the quality and efficiency of the picking automation
line was increased to the target level.
The strategic focus areas of the Finnish wholesale business during 2013 are the
improvement of quality and logistics and the development of innovative value
added services for pharmaceutical companies and pharmacies.
October-December 2012
The net sales of Pharmaceutical Trade Finland and Baltics in the fourth quarter
of 2012 came to EUR 118.3 million (EUR 105.7 million) and operating profit came
to EUR 5.4 million (EUR 4.4 million). Invoicing of the pharmaceutical wholesale
business in Finland in the fourth quarter came to EUR 270.2 million (EUR 244.9
million) and net sales came to EUR 97.6 million (EUR 86.3 million). Net sales of
the pharmaceutical wholesale business in the Baltic countries were EUR 10.1
million (EUR 8.7 million), and net sales of the Consumer Health business were
EUR 10.7 million (EUR 10.9 million).
Pharmaceutical Trade Finland and Baltics had 476 (492) employees at the end of
2012.
Pharmaceutical Trade Sweden
January-December 2012
The net sales of Pharmaceutical Trade Sweden in 2012 were EUR 1,061.3 million
(EUR 1,042.0 million) and operating profit excluding one-off items was EUR 16.2
million (EUR 10.6 million). Operating profit excluding one-off items improved as
a result of increased profitability in the retail business. In the Swedish
retail business, the growth in the relative share of sales of traded goods, the
OTC assortment and parallel imports increased the gross margin, and costs
related to the implementation of IT systems no longer affected operating profit
in 2012. In the Swedish wholesale business the low level of invoicing and
preparation costs of EUR 0.7 million associated with the start-up of the OTC
products and traded goods purchasing and logistics service for pharmacy chains
reduced operating profit significantly compared with the previous year. Net
sales of the retail business were EUR 502.5 million (EUR 483.0 million).
Invoicing of the pharmaceutical wholesale business was EUR 1,401.4 million (EUR
1,424.5 million) and net sales were EUR 636.7 million (EUR 616.5 million).
Operating profit including one-off items was EUR 15.2 million (EUR 10.6
million). A one-off item of a receivable write-off of EUR 1.1 million associated
with the bankruptcy of cash transport company Panaxia AB and collected cash in
hand from the pharmacies that was not received as a consequence was recognised
in the third quarter.
The Swedish pharmaceutical market declined by 1.7 per cent (grew 2.0%) in 2012.
The tight competition in the Swedish pharmacy market has led to the bankruptcy
of 9 competing pharmacies, and the opening of new pharmacies, which was launched
in 2010, slowed down in 2012. In 2012, Oriola-KD had a 13.4 per cent (13.5%)
market share in the Swedish pharmaceutical retail market and 35.8 per cent
(38.1%) in the Swedish pharmaceutical wholesale market. (source: IMS Health) The
increase in sales of parallel imports and generic medicines in Sweden reduced
Oriola-KD's market share in the pharmaceutical wholesale business.
In 2012, Oriola-KD opened a net number of 10 new pharmacies in Sweden, bringing
the total to 219 (209) at the end of 2012. Relative sales of the traded goods
and OTC assortment were approximately 25 per cent of total sales in 2012.
Oriola-KD acquired Kooperativa Förbundet ekonomisk föreningen's (KF) 20 per cent
minority share in the Swedish retail company Kronans Droghandel Apotek AB for
approximately EUR 12.3 million in November 2012 and as a result now holds 100
per cent of the stock of Kronans Droghandel Apotek AB. Cooperation with KF
concerning the MedMera customer loyalty cards and Oriola-KD right to open new
pharmacies in KF locations will continue as before after the acquisition of the
minority share.
In June 2012, Oriola-KD's Swedish wholesale company Oriola AB signed agreements
with Apoteksgruppen, DocMorris, Medstop and Vårdapoteket on the purchasing,
warehousing and pharmacy distribution of OTC products and traded goods. The
combined purchases under the agreements are expected to come to approximately
EUR 130 million annually as of 2013. Oriola AB is also responsible for the
purchasing, warehousing and pharmacy distribution of Kronans Droghandel Apotek
AB's OTC products and traded goods. The purchasing and logistics service started
up according to plan at the beginning of October; the financial benefits of the
service will be felt in full as of the second half of 2013. The purchasing and
logistics service is expected to increase the profitability of the wholesale and
retail businesses as a result of greater delivery volumes and improved
purchasing conditions.
In 2013, the strategic focus of the retail business will include improving
pharmacy competitiveness, increasing the sales of traded goods and OTC products
and opening some 15 new pharmacies. The strategic focus of the wholesale
business in 2013 will include improving quality and efficiency, developing the
distribution and value added services offered to pharmaceutical companies and
developing new logistics services and purchasing operations for pharmacy chains.
October-December 2012
The net sales of Pharmaceutical Trade Sweden in the fourth quarter of 2012 came
to EUR 292.4 million (EUR 258.6 million) and operating profit to EUR 4.6 million
(EUR 2.6 million). The profitability of operations strengthened in both
businesses in the segment. Net sales of the retail business were EUR 126.3
million (EUR 121.4 million). Invoicing of the wholesale business was EUR 385.4
million (EUR 340.9 million) and net sales were EUR 204.0 million (EUR 150.6
million).
Pharmaceutical Trade Sweden had 1,324 (1,223) employees at the end of 2012, of
whom 1,064 (988) were employed in retail and 260 (235) were employed in
wholesale.
Pharmaceutical Trade Russia
January-December 2012
Pharmaceutical Trade Russia's net sales in 2012 were EUR 952.7 million (EUR
689.4 million) and operating loss was EUR 2.3 million (operating loss EUR 46.0
million including the EUR 33.4 million impairment charge related to the Stary
Lekar brand and operating loss excluding impairment charge EUR 12.6 million).
The profitability of the retail business improved as a result of the growth in
sales of individual pharmacies due to actions to boost efficiency and changes in
pricing. Net sales of the wholesale business in Russia were 831.1 million (EUR
590.9 million) and net sales of the retail business were EUR 148.6 million (EUR
132.3 million). In the wholesale business, net sales of the regional
distribution centres outside Moscow increased by some 64 per cent in 2012, and
in addition to this, sales of pharmaceuticals to hospitals more than doubled on
the previous year. The operating loss of the wholesale business decreased as a
result of increased regional and hospital sales, increased efficiency and
improved delivery reliability. Both businesses achieved positive EBITDA in 2012.
Payment times have increased in the wholesale business in Russia, which has led
to increased credit loss risks. According to its customer credit policy, Oriola-
KD books a credit loss write-off when a trade receivable is more than 180 days
overdue and there is no separate guarantee associated with the trade receivable.
In 2012, the wholesale business booked a total of EUR 2.7 million (EUR 1.9
million) credit loss write-offs relating to the trade receivables. Oriola-KD
actively continues the collection of overdue trade receivables. In order to
minimise credit loss risks, the Russian wholesale business has shortened its
term of payment for its customers, clarified the trade receivables collection
process and strengthened its collection department.
The ruble-denominated growth in the Russian pharmaceutical market was about
22.7 per cent (12.4%) in 2012 (source: Pharmexpert). Oriola-KD's retail business
grew 9.7 per cent (26.0%) and wholesale business 37.3 per cent (15.8%) in
Russian rubles in 2012. Oriola-KD's net sales increased by 35.0 per cent (24.9%)
in total in Russian rubles in the year under review.
In 2013 the retail business will focus on developing the pharmacy portfolio,
improving the competitiveness of individual pharmacies and strengthening the
product assortment. At the end of 2012, Oriola-KD had 240 (249) pharmacies in
the Moscow area, of which 169 (181) operated under the Stary Lekar brand and 71
(68) under the 03 Apteka brand. In total, 13 (32) pharmacies were opened and 22
(37) were closed in 2012. In June 2012, Oriola-KD completed its project to close
down unprofitable pharmacies. The retail business's EBITDA was positive
throughout 2012, despite the very competitive environment.
In 2013 the wholesale business will continue to expand regional and hospital
sales and invest in improving the efficiency of logistics operations. The
wholesale business has twelve regional logistics centres in addition to the
Moscow main logistics centre.
October-December 2012
Pharmaceutical Trade Russia's fourth-quarter net sales in 2012 came to EUR
296.9 million (EUR 194.5 million), of which retail accounted for EUR 41.3
million (EUR 35.7 million) and wholesale EUR 265.2 million (EUR 164.9 million).
Pharmaceutical Trade Russia's operating profit was EUR 3.1 million (EUR 0.2
million). The operating result of both businesses was positive in the final
quarter of 2012.
At the end of 2012, Pharmaceutical Trade Russia had 3,056 (3,139) employees, of
whom 1,309 (1,464) were employed in retail and 1,747 (1,675) in wholesale.
The Group's balance sheet, financing and cash flow
Oriola-KD's balance sheet total on 31 December 2012 stood at EUR 1,318.5 million
(EUR 1,273.3 million). Cash assets were EUR 88.1 million (EUR 153.8 million),
equity was EUR 314.9 million (EUR 299,3 million) and the equity ratio was 24.9
per cent (24.4%).
Oriola-KD's group goodwill of EUR 276.7 million has been allocated in impairment
testing to the cash-generating units consisting of the Group's operating
segments. EUR 116.7 million of the goodwill was allocated to the Swedish
pharmaceutical retail business, EUR 27.8 million to the Swedish pharmaceutical
wholesale business, EUR 88.6 million to the Russian pharmaceutical wholesale
business and EUR 43.6 million to the Russian pharmaceutical retail business.
During the second quarter of 2012, goodwill related to Russia was allocated in
relation to future cash-flow forecasts to the Russian cash-generating units:
Russian pharmaceutical retail and Russian pharmaceutical wholesale.
Interest-bearing debt at the end of 2012 was EUR 94.8 million (EUR 173.0
million), interest-bearing net debt was EUR 6.7 million (EUR 19.2 million) and
the gearing ratio was 2.1 per cent (6.4%). A non-recourse trade receivables
sales programme related to monthly trade receivables from Swedish county
councils was launched in the retail business in Sweden. The programme amounted
to EUR 22.7 million at the end of 2012. The non-recourse trade receivables sales
programme was continued during 2012 in the Swedish pharmaceutical wholesale
business. Pharmaceutical Trade Sweden had sold a total of EUR 72.1 million (EUR
61.1 million) in trade receivables by the end of 2012. Interest-bearing debt
consisted mainly of the use of the issued commercial paper programme and advance
payments from pharmacies in Finland. Oriola-KD acquired the minority share of
the Swedish pharmacy company with cash during the fourth quarter of 2012; the
obligation to acquire the minority share was previously reported as interest-
bearing debt.
Oriola-KD's committed long-term credit facility of EUR 100.0 million and EUR
43.3 million of short-term credit account limits with banks were unused at the
end of 2012. A total of EUR 43.8 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. 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.
Net cash flow from operations in 2012 was EUR 46.1 million (EUR 28.1 million),
of which changes in working capital accounted for EUR 23.1 million (EUR 11.8
million). The trade receivables sales programme that was launched in Sweden
boosted the net cash flow from operations by EUR 22.7 million. Net cash flow
from investing activities was EUR -34.9 million (EUR -27.1 million) including
the EUR 12.3 million acquisition of the minority share in Kronans Droghandel
Apotek AB.
In the second quarter of 2012, Oriola-KD paid in dividend EUR 0.05 per share
(EUR 0.05 per share) for the financial year 2011, in total EUR 7.6 million (EUR
7.6 million for the financial year 2010), and returned equity EUR 0.03 per share
(EUR 0.13 per share), in total EUR 4.5 million (EUR 19.7 million).
Investments
Gross investments for 2012 came to EUR 22.6 million (EUR 28.8 million) and
consisted of investments related to the opening of new pharmacies, information
systems and improvements in logistics efficiency. Due to the investment plan for
the logistics centre in Moscow, Oriola-KD will recognise approximately EUR 2.0
million in accelerated depreciation in 2013.
Personnel and Group Management Team
On 31 December 2012, Oriola-KD had a payroll of 4,856 (4,854) employees, 10 per
cent (11%) of whom worked in Finland and the Baltic countries, 27 per cent (25%)
in Sweden, and 63 per cent (64%) in Russia. Personnel numbers include the
members of staff in active employment.
Changes to the Oriola-KD Group Management Team: Lars Birkeland, M.Sc. (Econ.)
(b. 1964) was appointed new Managing Director of Kronans Droghandel Apotek AB 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 as of 1 March
2012. As of 1 March 2012, Henry Fogels has been in charge of Oriola-KD's
wholesale business in Russia. Kimmo Virtanen was appointed Vice President of
Oriola-KD's pharmaceutical wholesale businesses in Finland, Sweden and the
Baltics and Managing Director of Oriola Oy as of 15 May 2012. Tuomas Itkonen,
M.Sc. (Econ.) (b. 1968) was appointed CFO of Oriola-KD Corporation on 1 November
2012.
Jukka Niemi, Vice President, Pharmaceutical Wholesale, Finland and Baltics
resigned from the Group and from his position as Managing Director of Oriola Oy
on 1 May 2012.
On 31 December 2012 Oriola-KD's Group Management Team was composed of:
* Eero Hautaniemi, President and CEO
* Lars Birkeland, Vice President, pharmaceutical retail, Sweden
* Henry Fogels, Vice President, pharmaceutical wholesale, Russia
* Thomas Gawell, Vice President, pharmaceutical wholesale, Sweden
* Tuomas Itkonen, CFO
* Konstantin Minin, Vice President, pharmaceutical retail, Russia
* Teija Silver, Vice President, HR
* Kimmo Virtanen, Executive Vice President and Vice President, pharmaceutical
wholesale, Finland, Sweden and the Baltics
Changes in the Group structure in 2012
On 30 November 2012, Oriola-KD Holding Sverige AB acquired a 20 per cent
minority share in Kronans Droghandel Apotek AB. The company will continue to be
reported as a part of the Pharmaceutical Trade Sweden segment. Following the
acquisition Oriola-KD now owns 100 per cent of Kronans Droghandel Apotek AB.
The Group carried out the following internal mergers of subsidiaries:
Panpharmacy Oy was merged with Oriola Oy in Finland and OOO Valis Pharma was
merged with OOO Vitim & Co in the Russian retail business. These changes had no
impact on the Group's result.
Related parties
Related parties in the Oriola-KD Group are deemed to comprise the members of the
Board of Directors 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 Fund. The Group has no
significant business transactions with related parties, except for pension
expenses arising from defined benefit plans with the Oriola Pension Fund.
Oriola-KD Corporation shares
Trading volume of the Oriola-KD Corporation's class A and B shares in 2012:
Trading volume Jan-Dec 2012 Jan-Dec 2011
class A class B class A class B
Trading volume, million 5.7 29.5 2.9 71.8
Trading volume, EUR million 11.5 57.3 8.2 188.2
Highest price, EUR 2.44 2.25 3.83 3.74
Lowest price, EUR 1.77 1.70 1.70 1.57
Closing quotation, end of period, EUR 2.27 2.23 1.89 1.72
Oriola-KD Corporation's market capitalisation on 31 December 2012 was EUR 339.2
million (EUR 268.7 million).
In the review period, the traded volume of Oriola-KD Corporation shares,
excluding treasury shares, corresponded to 23.3 per cent (49.4%) of the total
number of shares. The traded volume of class A shares amounted to 12.0 per cent
(6.1%) of the average stock, and that of class B shares, excluding treasury
shares, 28.4 per cent (69.0%) of the average stock.
At the end of December 2012, the company had a total of 151,257,828 shares
(151,257,828), of which 47,148,710 were class A shares (47,148,710) and
104,109,118 were class B shares (104,109,118). 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 2012, no Class A shares
were converted into Class B shares (14,450 class A shares were converted into
Class B shares).
Oriola-KD Corporation has a share incentive scheme for the Group's key personnel
that is in use over the years 2010-2012. On 19 December 2012, Oriola-KD
Corporation's Board of Directors decided on a new share incentive scheme for the
Group's senior management for the years 2013-2015. The company's Board of
Directors determines the earnings criteria for the earning period and the
targets to be set for these at the start of each earning period. The bonus for
the 2013 earning period is based on the Oriola-KD Group's earnings per share
(EPS) and return on capital employed (ROCE). Oriola-KD Corporation is also
planning to set up a share savings plan for 70 of the Group's key employees. The
Board of Directors of Oriola-KD Corporation is aiming to make the final decision
regarding the plan in spring 2013.
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.
In addition to the above mentioned members, the Board appointed Harry Brade to
the Remuneration Committee at its meeting held on 29 August 2012. 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.
Composition of Oriola-KD's Nomination Committee
On 4 Ocotber 2012, the Board of Directors of Oriola-KD Corporation appointed the
following persons as members of the company's Nomination Committee: Into Ylppö
(Chairman), Harry Brade, Matti Kavetvuo, Pekka Pajamo, Olli Riikkala and Timo
Ritakallio.
According to the rules of procedure of the Nomination Committee approved by the
Board of Directors, the committee is a body established by the Board of
Directors whose duty is to prepare and make a recommendation to the Board of
Directors on a proposal to be submitted to the Annual General Meeting regarding
the composition and compensation of the Board of Directors. A member of the
Committee does not need to be a member of the Board of Directors. The purpose of
this deviation from the Corporate Governance Code is to enable election of major
shareholders in the company to the Nomination Committee and thus to ensure that
their opinions are heard well before the Annual General Meeting.
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.
During the third quarter of 2012, Oriola-KD updated the principal strategic and
operational risks in its business:
* Amendments to pharmaceutical market regulations may weaken Oriola-KD's
profitability.
* In the Swedish retail business, the free establishment of pharmacies has led
to a rapid increase in the number of pharmacies. The number of pharmacies
may continue to grow, which means that the fierce competition could
continue.
* In the Russian retail business, tough competition resulting from the large
number of pharmacies may lead to a further decrease in the gross margin and
a rapid turnover rate of key personnel.
* Extra capacity ensuing from a change in the Swedish wholesale market will
intensify competition, which may weaken the profitability of operations. The
share of single channel distribution in the pharmaceutical wholesale market
may decline rapidly, which may weaken the profitability of operations and
lead to the restructuring of wholesale operations.
* As a result of the tough competition in the Russian wholesale business, the
gross margin may decline further, which will lead to a continued need to
intensify operations and restructure wholesale operations over the long
term. The payment behaviour that is typical to the Russian market, combined
with the regional expansion of operations may increase credit risks.
* Strategic development projects involve operational risks
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 units, in particular, is sensitive to changes in the
discount rate or cash-flow forecasts.
Near-term risks and uncertainty factors
A decrease in gross margin resulting from intense competition and an increase in
credit risks concerning customers may have an impact on the profitability of the
wholesale business in Russia. Oriola-KD's strategic development projects in the
wholesale business in Russia and the operations in Sweden involve operational
risks which may have an effect on Oriola-KD's profitability.
Profit distribution proposal
Oriola-KD's parent company is Oriola-KD Corporation, whose distributable assets
based on the balance sheet on 31 December 2012 were EUR 225.3 million (EUR
221.9 million). Oriola-KD Corporation's profit for the financial year 2012 was
EUR 15.5 million (EUR 64.6 million).
The Board proposes to the Annual General Meeting that a dividend of EUR 0.05 per
share (EUR 0.05 per share) is paid for 2012, and that EUR 0.04 per share (EUR
0.03 per share) is distributed from the reserves of unrestricted equity as
repayment of equity, totaling EUR 0.09 per share (EUR 0.08 per share) in
distributed assets.
Annual General Meeting
Oriola-KD Corporation's Annual General Meeting will be held on 20 March 2013 at
5.00 p.m. at the Helsinki Fair Centre. The matters specified in article 10 of
the Articles of Association and other proposals of the Board of Directors, if
any, will be dealt with at the meeting. The Board of Directors will decide on
the notice of the Annual General Meeting and the proposals contained in it at a
later date. The notice of the Annual General Meeting will be published in the
Helsingin Sanomat newspaper on 27 February 2013 at the latest.
Publication of the annual report
Oriola-KD Corporation will publish its annual report for 2012 on 27 February
2013 at the latest.
Next interim report
Oriola-KD Corporation will publish its results for the first quarter of 2013 on
Thursday 25 April 2013 at about 8.30 am.
Corporate governance statement
The company has issued a Corporate Governance Statement prepared in accordance
with Recommendation 54 of the Finnish Corporate Governance Code 2012. The
Corporate Governance Statement is not part of the report of the Board of
Directors. The statement is available at www.oriola-kd.com.
Outlook
Oriola-KD's outlook for 2013 is based on external market forecasts, agreements
with pharmaceutical companies and pharmacies, and management assessments. In the
period 2012-2016, the pharmaceutical market is expected to grow on average per
year by 0.3 per cent in Finland, 0.5 per cent in Sweden, and 11.1 per cent in
Russia, measured in local currencies (source: IMS Health).
Oriola-KD estimates that net sales and operating profit excluding one-off items
will increase from 2012 level. Growth of the net sales of Pharmaceutical Trade
Russia will slow down in the first part of the year and operating profit will be
weaker than the previous year, as a result of challenges related to the
implementation of the warehouse management system started in January 2013.
Events after the review period
A new warehouse management system was taken into use at the main logistics
center in Moscow in January 2013, which is expected to improve the efficiency of
logistics starting from the second half of the year. Growth of the net sales of
Pharmaceutical Trade Russia will slow down in the first part of the year and
operating profit will be weaker than the previous year, as a result of
challenges related to the implementation of the warehouse management system
started in January 2013. Oriola-KD signed a letter of intent on a 10-year lease
agreement to transfer a new main logistics centre in Moscow region and on the
logistics centre's automation solution. According to the plan, the final lease
agreement will be signed during the first quarter of 2013 and the new automated
main logistics centre will be in use during the first half of 2014.
The logistics centre in Irkutsk was closed down temporarily due to damage caused
by a fire that broke out in neighbouring premises and the efforts required to
extinguish this fire. The net sales of the logistics centre in Irkutsk account
for about 2 per cent of the net sales of the Russian wholesale business. The
logistics centre is expected to resume operations during the second quarter of
the year.
In Finland, the Ministry of Social Affairs and Health will be cutting the
wholesale prices of patented pharmaceuticals by 5 per cent from the beginning of
February 2013.
On 29 January 2013, the Nomination Committee of Oriola-KD Corporation presented
to the Board of Directors its recommendation that the Board propose the
following to the 2013 Annual General Meeting concerning the composition of the
Board of Directors:
* The number of members of the Board of Directors shall be six.
* The present members of the Board of Directors, Jukka Alho, Harry Brade, Per
Båtelson, Outi Raitasuo and Mika Vidgrén, shall be re-elected.
* Karsten Slotte shall be elected as a new member of the Board of Directors.
* Jukka Alho shall be elected as Chairman of the Board of Directors.
Olli Riikkala, Chairman of the Board as well as Pauli Kulvik and Ilkka Salonen,
members of the Board shall leave the office of Board of Directors after the
2013 Annual General Meeting.
The Nomination Committee also announced as its recommendation that the following
remunerations shall continue to be paid to the members of the Board of
Directors:
* Chairman of the Board: annual fee of EUR 48,400 and telephone as a fringe
benefit.
* Vice Chairman of the Board: annual fee of EUR 30,250
* Chairman of the Audit Committee: annual fee of EUR 30,250
* Other members of the Board: annual fee of EUR 24,200
* Attendance fees shall be paid as follows: Board of Directors meetings, EUR
800 per meeting to the Chairman and EUR 400 per meeting to members.
Committee meetings, EUR 800 per meeting to the committee Chairman and EUR
400 per meeting to members.
* Of the annual fee, 60 per cent shall be paid in cash and 40 per cent shall
be used to acquire Oriola-KD Corporation's class B-shares for the members of
the Board of Directors on the NASDAQ OMX Helsinki Stock Exchange. The shares
shall be purchased within two weeks of the release of the company's interim
report for January 1 - March 31, 2013. The shares shall be acquired directly
on behalf of the members of the Board of Directors, i.e. without the company
becoming the owner of the shares first, which is an approved manner to
acquire Oriola-KD shares according to the applicable insider rules.
* Travel expenses shall be reimbursed in accordance with the company's travel
policy.
Tables
The financial statements for 1 January-31 December 2012 have been prepared in
accordance with the recognition policies of the IAS 34 standard. Oriola-KD
adopted new IAS/IFRS standards in 2012: IFRS 7 (amendment) and IAS 12
(amendment). The changes in the standards had no impact on Oriola-KD's result.
The figures have been audited.
Consolidated
Statement of
Comprehensive Income 1 Oct - 31 1 Oct - 30
(IFRS), 1 Jan - 31 Dec 1 Jan - 31 Dec Dec dec
EUR million 2012 2011 2012 2011
-------------------------------------------------------------------------------
Net sales 2,474.4 2,146.0 707.8 558.8
Cost of goods sold -2,117.8 -1,830.1 -608.9 -475.1
-------------------------------------------------------------------------------
Gross profit 356.6 315.9 98.9 83.7
Other operating
income 2.3 2.6 0.5 0.7
Selling and
distribution expenses -276.2 -250.9 -75.1 -64.3
Administrative
expenses -54.8 -54.4 -13.6 -14.3
-------------------------------------------------------------------------------
Operating Profit
before One-off items
* 27.9 13.2 10.7 5.8
One-off items** -1.1 -33.4 - -
-------------------------------------------------------------------------------
Operating Profit 26.8 -20.2 10.7 5.8
Financial income 22.7 10.4 7.1 2.9
Financial expenses -28.0 -19.1 -5.6 -4.5
-------------------------------------------------------------------------------
Profit before taxes 21.5 -28.9 12.3 4.2
Income taxes *** -4.3 4.8 -0.7 -0.2
-------------------------------------------------------------------------------
Profit for the period 17.2 -24.1 11.6 4.0
Other comprehensive
income
Cash flow hedge -0.9 -1.3 -0.2 -0.0
Income tax relating
to
other comprehensive
income -0.2 0.4 0.3 -0.5
Translation
difference 11.5 -1.2 -2.6 11.9
-------------------------------------------------------------------------------
Total comprehensive
income
for the period 27.5 -26.3 9.1 15.5
Attribution of Profit
for the period
-------------------------------------------------------------------------------
To parent company
shareholders 17.2 -24.1 11.6 4.0
-------------------------------------------------------------------------------
Attribution of total
comprehensive
income for the period
-------------------------------------------------------------------------------
To parent company
shareholders 27.5 -26.3 9.1 15.5
-------------------------------------------------------------------------------
Earnings per share
for the period
Basic earnings per
share, EUR 0.11 -0.16 0.08 0.03
Diluted earnings per
share, EUR 0.11 -0.16 0.08 0.03
*) Including
depreciation, EUR
million -18.8 -16.1 -5.1 -5.0
**) Receivable write-
off in Sweden Q3/2012
and Stary Lekar
-brand impairment in
Russia Q2/2011, EUR
million -1.1 -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 Dec 2012 31 Dec 2011
---------------------------------------------------------------------
Non-current assets
Property, plant and equipment 81.4 74.0
Goodwill 276.7 266.8
Other intangible assets 52.3 52.1
Other shares and shareholdings 0.0 0.0
Other non-current assets 9.5 9.4
Deferred tax assets 5.5 7.6
---------------------------------------------------------------------
Non-current assets total 425.4 410.0
Current assets
Inventories 389.8 379.8
Trade and other receivables 415.2 329.7
Cash and cash equivalents 88.1 153.8
---------------------------------------------------------------------
893.1 863.3
Non-current assets held for sale 0.0 0.0
---------------------------------------------------------------------
Current assets total 893.1 863.4
ASSETS TOTAL 1,318.5 1,273.3
---------------------------------------------------------------------
EQUITY AND LIABILITIES 31 Dec 2012 31 Dec 2011
---------------------------------------------------------------------
Equity of the parent
company shareholders
Share capital 36.2 36.2
Funds 26.0 31.2
Retained earnings 252.8 231.9
---------------------------------------------------------------------
Equity total 314.9 299.3
Non-current liabilities
Deferred tax liabilities 14.8 15.1
Pension obligations 6.9 6.3
Borrowings 0.4 127.0
Other non-current liabilities 1.0 0.0
---------------------------------------------------------------------
Non-current liabilities total 23.1 148.4
Current liabilities
Trade payables and other current liabilities 886.1 779.7
Borrowings 94.3 46.0
---------------------------------------------------------------------
Current liabilities total 980.5 825.7
EQUITY AND LIABILITIES TOTAL 1,318.5 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
-------------------------------------------------------------------------------
Comprehensive
income for the
period
Net profit for
the period - - - - - -24.1 -24.1
Other
comprehensive
income:
Cash flow
hedge - -1.3 - - - - -1.3
Income tax
relating to
other
comprehensive
income - - - - 0.4 - 0.4
Translation
difference - - - - -1.2 - -1.2
-------------------------------------------------------------------------------
Comprehensive
income for the
period total - -1.3 - - -0.9 -24.1 -26.3
-------------------------------------------------------------------------------
Owners related
transactions
Dividends paid
and return of
equity - - - -19.7 - -7.6 -27.2
-------------------------------------------------------------------------------
Owners related
transactions
total - - - -19.7 - -7.6 -27.2
-------------------------------------------------------------------------------
Equity
31 Dec 2011 36.2 -0.0 30.0 1.2 -7.2 239.1 299.3
-------------------------------------------------------------------------------
Comprehensive
income for the
period
Net profit for
the period - - - - - 17.2 17.2
Other
comprehensive
income:
Cash flow
hedge - -0.9 - - - - -0.9
Income tax
relating to
other
comprehensive
income - 0.2 - - -0.4 - -0.2
Translation
difference - - - - 11.5 - 11.5
-------------------------------------------------------------------------------
Comprehensive
income for the
period total - -0.7 - - 11.0 17.2 27.5
-------------------------------------------------------------------------------
Owners related
transactions
Dividends paid
and return of
equity - - -4.5 - - -7.6 -12.1
Share-based
payments - - - - - 0.2 0.2
Owners related
transactions
total - - -4.5 - - -7.3 -11.9
-------------------------------------------------------------------------------
Equity
31 Dec 2012 36.2 -0.7 25.5 1.2 3.9 248.9 314.9
-------------------------------------------------------------------------------
Consolidated Cash Flow Statement 1 Jan - 31 Dec 1 Jan - 31 Dec
(IFRS), EUR million 2012 2011
-----------------------------------------------------------------------------
Operating profit 26.8 -20.2
Depreciation 18.8 16.1
Impairment - 33.4
Change in working capital 23.1 11.8
Cash flow from financial
items and taxes -20.3 -15.1
Other adjustments -2.3 2.1
Net cash flow from operating activities 46.1 28.1
Net cash flow from investing activities -34.9 -27.1
Net cash flow from financing activities -77.3 -35.0
Net change in cash and cash equivalents -66.2 -34.1
Cash and cash equivalents
at the beginning of the period 153.8 187.8
Foreign exchange rate differences 0.4 0.1
Net change in cash and cash equivalents -66.2 -34.1
Cash and cash equivalents
at the end of the period 88.1 153.8
-----------------------------------------------------------------------------
Change in Property, Plant and Equipment, 1 Jan - 31 Dec 1 Jan - 31 Dec
EUR million 2012 2011
-----------------------------------------------------------------------------
Carrying amount at the beginning of the period 74.0 68.0
Increases 16.6 16.2
Decreases -0.5 -0.6
Depreciation -11.1 -9.6
Transferred to assets of disposal
group classified as held for sale - -0.0
Foreign exchange rate differences 2.4 0.1
-----------------------------------------------------------------------------
Carrying amount at the end of the period 81.4 74.0
-----------------------------------------------------------------------------
1 Jan - 31 Dec 1 Jan - 31 Dec
Key Figures 2012 2011
-----------------------------------------------------------------------------
Equity ratio, % 24.9 24.4
Equity per share, EUR 2.08 1.98
Return on capital employed (ROCE), % 6.1 -4.0
Return on equity (ROE), % 5.6 -7.4
Net interest-bearing debt, EUR million 6.7 19.2
Gearing, % 2.1 6.4
Earnings per share, EUR 0.11 -0.16
Average number of shares, 1000 pcs 151,248 151,161
Derivatives, Commitments
and Contingent Liabilities
31 December 2012
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised
as cash flow hedges
Interest rate swaps - -1.0 46.6
Derivatives measured at
fair value through profit
and loss
Foreign currency forward
and swap contracts 3.2 - 139.3
Interest rate swaps - -0.0 116.5
Interest rate risk relating to cash flow from Oriola AB's selling of trade
receivables has been hedged with interest rate swaps.
Internal loans given to Swedish subsidiaries have been hedged using foreign
currency swap contracts.
31 December 2011
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised
as cash flow hedges
Interest rate swaps - -0.0 112.2
Derivatives measured at
fair value through profit
and loss
Foreign currency forward
and swap contracts 0.2 - 30.5
Contingencies for Own Liabilities,
EUR million 31 Dec 2012 31 Dec 2011
-------------------------------------------------------------------------------
Guarantees given 23.4 9.2
Mortgages on land and buildings 2.0 2.0
Mortgages on company assets 2.4 2.4
Other guarantees and liabilities 0.8 0.7
-------------------------------------------------------------------------------
Total 28.7 14.2
-------------------------------------------------------------------------------
Leasing-liabilities (operating liabilities) 2.8 0.6
Rent contingencies 66.9 61.9
The most significant reported guarantees are
bank guarantees against trade payables in
wholesale companies in Russia and Sweden.
Oriola-KD Oyj has also granted parent company
guarantees of EUR 11.7 million (EUR 17.0
million) against subsidiaries' trade payables.
End of the year 2011 reported Oriola-KD Oyj parent company guarantee of EUR
112.4 million against Kronans Droghandel Apotek AB's
external loan has expired during the first
quarter of 2012.
1 Jan - 31 Dec 1 Jan - 31 Dec
Number of personnel 2012 2011
-------------------------------------------------------------------------------
Average number of personnel 4,818 4,968
Number of personnel at the end of the period 4,856 4,854
SEGMENT INFORMATION
1 Jan - 31 Dec 1 Jan - 31 Dec
Net Sales, EUR million 2012 2011
-------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 460.5 414.8
Pharmaceutical Trade Sweden 1,061.3 1,042.0
Pharmaceutical Trade Russia 952.7 689.4
Net sales to other segments -0.0 -0.2
-------------------------------------------------------------------------------
Group total 2,474.4 2,146.0
1 Jan - 31 Dec 1 Jan - 31 Dec
Operating Profit, EUR million 2012 2011
-------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 21.6 20.6
Pharmaceutical Trade Sweden 15.2 10.6
Pharmaceutical Trade Russia -2.3 -46.0
Group Administration and Others -7.7 -5.5
-------------------------------------------------------------------------------
Group total 26.8 -20.2
Operating Profit excl. One-off items, 1 Jan - 31 Dec 1 Jan - 31 Dec
EUR million 2012 2011
-------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 21.6 20.6
Pharmaceutical Trade Sweden 16.2 10.6
Pharmaceutical Trade Russia -2.3 -12.6
Group Administration and Others -7.7 -5.5
-------------------------------------------------------------------------------
Operating Profit excl. One-off items 27.9 13.2
One-off items * -1.1 -33.4
-------------------------------------------------------------------------------
Group total 26.8 -20.2
*) EUR -1.1 million receivable write-off in
Pharmaceutical Trade Sweden Q3/2012 and EUR
-33.4 million Stary Lekar -brand impairment in
Pharmaceutical Trade Russia Q2/2011
Quarterly Net
Sales, EUR
million Q4/2012 Q3/2012 Q2/2012 Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Pharmaceutical
Trade
Finland and
Baltics 118.3 108.7 116.6 116.8 105.7 101.8 104.8 102.5
Pharmaceutical
Trade Sweden 292.4 254.1 255.9 258.9 258.6 249.6 268.6 265.3
Pharmaceutical
Trade Russia 296.9 223.3 217.3 215.2 194.5 170.3 162.2 162.4
Net sales to
other segments 0.2 -0.0 -0.1 -0.0 -0.0 -0.0 -0.1 -0.1
-------------------------------------------------------------------------------
Group total 707.8 586.1 589.7 590.8 558.8 521.6 535.5 530.1
Quarterly
Operating
Profit, EUR
million Q4/2012 Q3/2012 Q2/2012 Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Pharmaceutical
Trade
Finland and
Baltics 5.4 6.3 5.0 4.8 4.4 5.9 4.7 5.6
Pharmaceutical
Trade Sweden 4.6 3.7 3.4 3.4 2.6 3.8 1.9 2.3
Pharmaceutical
Trade Russia 3.1 -2.0 -2.2 -1.1 0.2 -5.5 -39.1 -1.6
Group
Administration
and Others -2.3 -1.5 -2.0 -1.8 -1.4 -0.9 -1.9 -1.2
-------------------------------------------------------------------------------
Group total 10.7 6.4 4.3 5.4 5.8 3.4 -34.4 5.0
Quarterly
Operating
Profit,
excl. One-off
items, EUR
million Q4/2012 Q3/2012 Q2/2012 Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Pharmaceutical
Trade
Finland and
Baltics 5.4 6.3 5.0 4.8 4.4 5.9 4.7 5.6
Pharmaceutical
Trade Sweden 4.6 4.8 3.4 3.4 2.6 3.8 1.9 2.3
Pharmaceutical
Trade Russia 3.1 -2.0 -2.2 -1.1 0.2 -5.5 -5.7 -1.6
Group
Administration
and Others -2.3 -1.5 -2.0 -1.8 -1.4 -0.9 -1.9 -1.2
-------------------------------------------------------------------------------
Group total
excl. One-off
items 10.7 7.5 4.3 5.4 5.8 3.4 -1.0 5.0
One-off items
* - -1.1 - - - - -33.4 -
-------------------------------------------------------------------------------
Group total 10.7 6.4 4.3 5.4 5.8 3.4 -34.4 5.0
*) EUR -1.1
million
receivable
write-off in
Pharmaceutical
Trade Sweden
Q3/2012 and
EUR -33.4
million Stary
Lekar -brand
impairment in
Pharmaceutical
Trade Russia
Q2/2011
1 Jan - 31 Dec 1 Jan - 31 Dec
Net Sales by Market, EUR million 2012 2011
---------------------------------------------------------------
Finland 422.4 379.4
Sweden 1,028.8 1,013.0
Russia 952.7 689.4
Baltic countries 34.6 32.6
Other countries 35.9 31.5
---------------------------------------------------------------
Group total 2,474.4 2,146.0
Quarterly Net
Sales by
Market, EUR
million Q4/2012 Q3/2012 Q2/2012 Q1/2012 Q4/2011 Q3/2011 Q2/2011 Q1/2011
-------------------------------------------------------------------------------
Finland 107.8 99.7 107.6 107.4 96.1 93.6 96.5 93.1
Sweden 282.6 244.7 249.3 252.2 250.7 241.8 262.1 258.4
Russia 296.9 223.3 217.3 215.2 194.5 170.3 162.2 162.4
Baltic
countries 9.4 8.6 8.1 8.4 8.3 8.0 7.7 8.7
Other
countries 11.0 10.0 7.4 7.5 9.1 8.0 6.9 7.5
-------------------------------------------------------------------------------
Group total 707.8 586.1 589.7 590.8 558.8 521.6 535.5 530.1
Further information:
Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com
Tuomas Itkonen
CFO
tel. +358 (0)46 876 5207
e-mail: tuomas.itkonen@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
Key media
Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com
[HUG#1676123]
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