Oriola-KD Corporation January-September 2010 Eero Hautaniemi President and CEO 28 October 2010
Key Figures January-September 2010 1-9/ 2010 1-9/ 2009 Change % Q3/ 2010 Q3/ 2009 Change % 1401.5 1125.8 + 24% 498.5 379.2 Net sales, continuing, Me + 31% Operating profit, continuing, Me 6.8 31.9 -79% -4.5 10.7 -142% Operating profit, excl. one-offs, Me 18.5 31.9 -42% 7.2 10.7 -33% 3.2 30.2 -89% -5.8 10.8 -153% Profit before taxes, Me Profit from period, continuing, Me 2.4 23.9 -90% -5.0 8.6 -158% Profit from period, discontinued, Me 56.3 4.8 1076% -95% 0.1 1.4 58.7 28.7 105% -4.9 10.0 Profit from period, total, Me -150% -159% 0.02 0.16 -90% -0.03 0.06 Earning/ share, continuing, Euro Earnings/ share, total, Euro 0.39 0.20 96% -0.04 0.07 -153% 2.0% 15.5 % (Including Healthcare Trade 1-5/ 2010 and 1-9/ 2009) ROCE, continuing, % ROE, continuing, % 1.1% 18.9 % (Including Healthcare Trade 1-5/ 2010 and 1-9/ 2009) The figures related to financial performance refer to continuing operations and do not include the Healthcare Trade, unless otherwise stated. The retail chain acquired in Sweden has been consolidated with the Oriola-KD figures as of 19 February 2010. The retail chain 03 Apteka acquired in Russia has been consolidated with the Oriola-KD figures as of 31 August 2010. 2 28.10.2010
Cash Flow and Investments January-September 2010 Me Change in working capital • 75 32.1 Me (-26.2 Me) 43.2 50 Net cash flow from investments • -166.3 Me (-29.6 Me) 25 – Acquisition of pharmacy chain in Sweden 6.4 – Acquisition of 25 per cent holding in the Russian companies 0 – Acquisition of 03 Apteka pharmacy chain in Russia – Sale of Healthcare Trade - 25 – Operative investments - 23.2 - 50 Gross investments 186.1 Me (31.5 Me) • – Acquisition of pharmacy chain in Sweden, 161.5 Me - 75 – Acquisition of 03 Apteka pharmacy chain in Russia, 11.9 Me – Operative investments, 12.7 Me - 100 Oriola-KD paid 18.1 Me in dividends for 2009 • - 125 - 123.1 1 - 9 / 2 0 0 9 1 - 9 / 2 0 1 0 Net cash flow from operating activities Cash flow after investm ents 3 28.10.2010
Balance Sheet 30 September 2010 Me 350 Total assets 1144.3 Me (855.5 Me) • 302 Equity ratio 27.1% (26.4% ) • 300 • Net gearing 32.5% (44.2% ) 250 Interest-bearing net debt 98.4 Me (97.1 Me ) • 220 188 200 The terms of the financial covenants were met • 149 by a wide margin at the end of September 150 2010 91 90 100 52 Oriola-KD’s long-term revolving credit limit • facilities of 102.8 Me and 41.9 Me in short- 50 term credit account facilities stood unused at - 20 the end of the review period 0 - 50 • Oriola-KD had drawn 36.5 Me from the 3 0 .9 .20 0 9 3 0 .9 .20 1 0 150.0 Me commercial paper programme Cash and cash equivalents I nterest- bearing debt Net w orking capital Equity 4 28.10.2010
Personnel 30 Septem ber 2010 Personnel by country Personnel by segment 2 % 8 % ( 3 % ) ( 1 1 % ) Change, % Operating segments 30.9.2009 30.9.2010 +2% Pharmaceutical Trade Finland 417 410 2 7 % ( 7 % ) Pharmaceutical Trade Sweden +433% 273 1455 Pharmaceutical Trade Russia 3011 +11% 3336 6 3 % -16% 103 Pharmaceutical Trade Baltics 123 ( 7 9 % ) 3817 +39% TOTAL 5311 Finland Sw eden Russia Baltic 5 28.10.2010
Operating segments 6 28.10.2010
Net Sales and Operating Profit for Continuing Operations 1-9/ 2010 – 1-9/ 2009 Q3/ 2010 – Q3/ 2009 Net sales, Me EBIT, Me Net sales, Me EBIT, Me 1-9/ 10 1-9/ 09 1-9/ 10 1-9/ 09 Q3/ 10 Q3/ 09 Q3/ 10 Q3/ 09 Pharmaceutical Trade 314.2 379.3 15.3 13.7 103.8 120.6 5.9 4.9 Finland Pharmaceutical Trade 4.9* 9.1* 661.9 389.0 -2.8 239.5 132.1 -0.4 (6.6) (10.9) Sweden Pharmaceutical Trade -18.1* * -15.7* * 402.8 332.5 22.8 147.8 118.6 6.6 (-8.2) (-5.7) Russia Pharmaceutical Trade 23.0 25.4 0.7 0.6 7.4 8.0 0.3 0.2 Baltics Dental Trade* - - 1.3 0.8 - - 4.4 2.6 -4.5* * * 6.8* * * Total 1401.5 1125.8 31.9 498.5 379.2 10.7 (7.2) (18.5) * ) I ncluding 1.7 Me one-off costs * * ) I ncluding 10.0 Me one-off costs * * * ) Including 11.7 Me one-off costs 7 28.10.2010
Pharmaceutical Trade Finland January-September 2010 Net sales Me 3 7 9 .3 400 3 1 4 .2 300 Pharmaceutical market declined • -0.9% (0.0% )* 200 1 2 0 .6 Oriola-KD’s market share of • 1 0 3 .8 pharmaceutical wholesale 46.5% 100 (46.9% )* 0 Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 During the review period, changes • % Me Operating profit from the stock owned by Oriola- 8 20 KD to consignment stock, agreed 1 5 .3 with pharmaceutical companies, 1 3 .7 15 6 reduced net sales 5 .7 % 4 .9 % 4 10 4 .1 % 5 .9 3 .6 % 4 .9 5 2 0 0 Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 * ) Source: IMS Health 8 28.10.2010
Pharmaceutical Trade Sweden January-September 2010 Net sales Me 800 6 6 1 .9 Net sales of retail 282.4 Me (0.0 Me) as • of 19 February 2010 600 • Net sales of wholesale 414.1 Me (389.0 Me) 3 8 9 .0 400 One-off costs • – Operating profit includes a third-quarter one-off provision on a 2 3 9 .5 EUR 1.7 million receivable in the wholesale concerning a pharmaceutical company bankruptcy 1 3 2 .1 200 • The costs of preparations for pharmacy business in Sweden in the period 1 January 2010 – 19 February 0 2010 came to EUR 2.2 million (Jan – Sep 2009: EUR Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 8.0 million) % Me Operating profit 15 3 • Planned depreciation of EUR 1.0 million was 1 0 .9 * * recognised for January – September on the fair 2 .8 % value allocation of the acquisition 9 .1 10 2 6 .6 * * 4 .9 • Pharmaceutical market grew by 1.1% (2.6% )* 1 .6 % 1 5 Oriola-KD’s market share of wholesale 40.5% (41.4% ) • -0 .4 -2 .8 and in retail 14% * 0 0 Number of pharmacies 176 • - 0 .3 % -1 - 5 - 0 .7 % Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 * ) Source: I MS Health * * ) Operating profit excluding one-off costs (used when calculating the operating margin) 9 28.10.2010
Pharmaceutical Trade Russia January-September 2010 Net sales Me 500 Net sales grew some 9 per cent in Russian rubles • (40 per cent) 4 0 2 .8 – Net sales of retail 72.9 Me (71.1 Me) 400 – Net sales of wholesale 369.5 Me (302.5 Me) 3 3 2 .5 – The 03 Apteka pharm aceutical retail business acquired has been consolidated with the Oriola-KD figures as of 31 August 2010 300 The Russian pharmaceutical market grew in Russian rubles • some 3 per cent in January-September 2010 (some 20 per 200 1 4 7 .8 cent) 1 1 8 .6 – Very intense competition – Price control system 100 • The operating loss includes EUR 10.0 million one-off costs 0 – Write-off provision on a EUR 2.1 million trade receivable concerning a pharmaceutical chain bankruptcy Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 – 7.9 million write-off by booking purchase-related discounts into the stock value % Me Operating profit 30 9 • One month’s share of the annual EUR 0.4 million depreciation 2 2 .8 was recognised for September based on the fair value 5 .5 % allocation of the acquisition 20 6 .9 % 6 • Number of pharmacies 251 (170) 6 .6 3 10 - 8 .2 * - 5 .7 * • The organisation in Russia will be further strengthened in the 0 0 latter part of the year, with the aim of developing the operating activities and achieving business growth in line with - 3 .9 % the strategy -3 - 10 - 2 .0 % -1 5 .7 -6 - 20 -1 8 .1 Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 * ) Operating profit excluding one-off costs (used when calculating the operating margin) 10 28.10.2010
Pharmaceutical Market in Russia January-June 2008-2010 Publicly funded m arket Para pharm aceuticals Com m ercial m arket 1 - 6 2 00 8 1 - 6 2 00 9 1 - 6 2 01 0 Source: DSM Group 11 28.10.2010
Pharmaceutical Trade Baltics January-September 2010 Operating profit Net sales Me Me 1 30 4 2 5 .4 3 .2 % 4 .0 % 2 3 .0 0 .7 3 0 .6 20 2 .9 % 0,5 2 2 .3 % 0 .3 8 .0 7 .4 10 0 .2 1 0 0 0 Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 12 28.10.2010
Dental Trade January-Septem ber 2010 The Dental trade business of • Oriola-KD Corporation and Lifco Me Operating profit* AB: n were combined in 2007 5,0 4 ,4 4,0 2 ,6 3,0 2,0 1 ,3 0 ,8 1,0 0,0 Q3 / 2 0 0 9 Q3 / 2 0 1 0 1 - 9 / 20 0 9 1 - 9 / 20 1 0 * ) Profit after taxes (Oriola-KD’s minority share) 13 28.10.2010
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