Slide 1: Oriola Corporation Financial statements January-December 2021
Oriola Corporation Financial statements January-December 2021
Slide 2: Full year & Q4 2021 key points
Full year & Q4 2021 key points Profitability continued to improve • Rigorous turnaround actions during the second half of the year • Positive market demand invoicing increased by 6.5% (in constant currency) • Full year adjusted EBIT 26.3 million, 25% higher than in 2020 • Q4 Adjusted EBIT increase
Slide 3: Q4: Invoicing +7.6% and net sales +7.0%
Q4: Invoicing +7.6% and net sales +7.0% constant currency +6.5% and +5.9% Invoicing1 Net sales2 EUR million EUR million 2019 2020 2021 2019 2020 2021 +8% +7% 500 1 000 400 800 300 600 1 062 499 894 965 942 942 898 984 917 915 970 979 987 460 450 448 436 468 429 439 466 447 466 400 200 397 979 200 10
Slide 4: Q4 2021: Adjusted EBIT increased to EUR 11.6 million
Q4 2021: Adjusted EBIT increased to EUR 11.6 million – above 2020 and 2019 Adjusted EBIT Adjusted EBIT development1 EUR million EUR million 2019 2020 2021 11.6 10.4 12 -1.0 10 9.1 4.0 10 8.0 0.6 8 6.9 8 0.0 6.3 6 5.6 6 11.6 3.7 4.1 4 4 8.0 2.1 2 2 0.3 0 0 -0.3 2020 Consumer Pharma Retail Group 2021
Slide 5: Key figures FY 2021
Key figures FY 2021 continuing operations Invoicing Q1-Q4 Net sales Q1-Q4 Adjusted EBIT Q1-Q4 EUR million EUR million EUR million +5% +5% 4 000 3 959 2 000 3 765 1 882 50 3 733 3 518 1 801 3 336 1 721 1 062 979 987 1 528 1 552 499 40 39.0 929 466 3 000 872 1 500 447 6.0 34.4 395 +25% 395 5.0 915 970
Slide 6: Operating environment
& Oriola Operating environment
Slide 7: Pharmacy market value and volume grew in Q4 in Sweden
Pharmacy market value and volume grew in Q4 in Sweden Pharmacy market value development in Sweden in Q4: +4.1% and +2.3%% in YTD Pharmacy volume grew in Sweden in Q4 Online pharmacy market size in Sweden Total online pharmacy market grew by 19% in BSEK Jan-Dec 2021 (59%) and its share of the total M
Slide 8: Pharmaceutical market value and volume grew in Q4
Pharmaceutical market value and volume grew in Q4 Volume increased Y/Y in Q4 and was slightly above pre-pandemic levels Pharmaceutical market value development YTD: Finland +3.0% and Sweden +3.1% Finland Wholesale Sweden Wholesale Pharmaceutical Pharmaceutical market in value Q4: 2.9 BEUR 50 BSEK ma
Slide 9: Retail markets were growing in Q4
Retail markets were growing in Q4 Market share dose dispensing TG/OTC market value development +9.0% in Sweden in Q4 and +5.4% YTD Sweden Total market ~ 250,000 Oriola 41% (43%) patients Oriola’s market share of TG/OTC products Others 59% (57%) supply for pharmacies in Sweden in Q4 24% (25%) from th
Slide 10: Business Area reviews Q4 2021
Business Area reviews Q4 2021
Slide 11: Consumer Q4: Increased sales and improved profitability
Consumer Q4: Increased sales and improved profitability • Consumer activity and demand grew Y/Y Adjusted EBIT EUR million • The net sales increased by 3.5% to EUR 210.0 2019 2020 2021 million, (on a constant currency basis net sales increased 6 5.4 by 2.0%), driven by 5 4.9 5.0 5.0 4.3 4.4 • Continu
Slide 12: Pharma Q4: Increased sales, focus on securing deliveries
Pharma Q4: Increased sales, focus on securing deliveries • Market demand growing in both countries Adjusted EBIT • Invoicing increased by 8.4% to EUR 827.6 million, EUR million 2019 2020 2021 (on a constant currency basis invoicing increased by 7.3%) 6 • Net sales increased by 9.0% to EUR 271.8 mill
Slide 13: Retail Q4: Continued strong performance
Retail Q4: Continued strong performance • Net sales increased by 2.8% to EUR 127.4 Adjusted EBIT million, (on a constant currency basis net sales EUR million 2019 2020 2021 increased by 1.5%), driven by • Growth of patient volumes in dose dispensing 5 4.6 • Increased demand for health and wellbeing
Slide 14: Sustainability achievements in 2021
Sustainability achievements in 2021 Health for life Recognitions 99,8 % pharmaceutical delivery Climate Disclosure quality & accuracy in Finland Project (CDP), B Covid-19 vaccine handling EcoVadis, silver and deliveries Among top 15% performing Safeguarding our personnel health companies worldwide i
Slide 15: Turnaround continues
Turnaround continues
Slide 16: Short-term action plan to improve profitability during 2022
Short-term action plan to improve profitability during 2022 – impacts fully visible in 2023 1. Cost savings Simplified • Increased transparency and customer focus via country-based structure: annual cost savings EUR 7 million - from the first quarter of 2022 onwards operating model Reduction of • Im
Slide 17: Financials Q4 and full year 2021
Financials Q4 and full year 2021
Slide 18: Q4: Profit for the period and EPS up 29% Y/Y
Q4: Profit for the period and EPS up 29% Y/Y Profit for the period Earnings per share EUR million EUR 2019 2020 2021 2019 2020 2021 8 0.08 6.8 6 0.06 5.1 5.3 4.5 4.1 4 3.7 0.04 0.04 0.03 0.03 0.02 0.02 1.7 2.0 0.02 2 0.02 0.9 0.01 0.01 0.01 0 0.00 -0.2 -0.00 -0.01 -0.01 -2 -1.7 -1.6 -0.02 Q1 Q2 Q3 Q
Slide 19: Q4: Operating cash flow declined, driven by change in working capital
Q4: Operating cash flow declined, driven by change in working capital Quarterly net cash flow from operating activities Q4 YTD 2021 change in cash EUR million EUR million 2019 2020 2021 80 250 70 60 9.6 200 46 42 40.0 40 28 -108.5 27 150 20 13 9 4 100 0 168.2 -0 50 109.1 -20 -14 -16 -25 -40 0 Q1 Q2
Slide 20: Q4: Net Interest-Bearing Debt declined Y/Y
Q4: Net Interest-Bearing Debt declined Y/Y Net interest-bearing debt Net interest-bearing debt items EUR million EUR million 2019 2020 2021 200 Net interest-bearing debt item 31 Dec 2021 31 Dec 2020 Bank loans 65.3 117.9 (syndicated Bank & term) 150 Commercial papers 49.8 78.6 Advance payment from p
Slide 21: Equity ratio and gearing improved in 2021
Equity ratio and gearing improved in 2021 Equity ratio Gearing % % 2019 2020 2021 2019 2020 2021 25 150 129.4 19.9 20.1 125 20 18.0 102.3 97.1 99.8 15.0 14.9 15.1 15.5 14.8 100 91.8 94.7 15 14.1 14.0 86.8 13.3 76.1 75.0 12.4 75 64.1 10 53.8 50 46.5 5 25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 21
Slide 22: Dividend proposal
Dividend proposal • The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.04 per share would be paid for 2021 Dividend policy: Oriola’s aim is to pay out an increasing annual dividend of at least 50 per cent of its earnings per share. 17.7.2019 22
Slide 23: Earnings per share and dividend per share from 2017
Earnings per share and dividend per share from 2017 EUR Earnings per share 0.14 Dividend per share % Payout ratio 0.09 0.09 0.09 0.06 0.06 0.06 0.04 0.04 1 0.03 2017 2018 2019 2020 2021 63.9% 151.7% 203.5 % 48.2 % 63.9 %1 ¹ Proposal by the Board of Directors 23
Slide 24: Outlook
Outlook
Slide 25: Outlook for 2022
Outlook for 2022 The adjusted EBIT is estimated to increase from the 2021 level. The COVID-19 pandemic continues and severity as well as duration of the pandemic remain unclear in Oriola’s operating environment. Furthermore, the recent overall inflationary increases and related cost pressures may ha
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Slide 27: Oriola's Kronans Apotek and Apoteksgruppen to merge
Oriola’s Kronans Apotek and Apoteksgruppen to merge Synergy in focus
Slide 28: New company highlights
New company highlights • Oriola’s Kronans Apotek and Apoteksgruppen to merge to capture significant synergies and increase scale and presence in Sweden. • The combination is expected to create the third-largest player in the Swedish pharmacy market by illustrative combined revenue of about EUR 1,141
Slide 29: New Company in brief
New Company in brief • Over 470 pharmacies and full online pharmacy operations • Over 2,300 employees (FTE) Oriola Euroapotheca • The New Company is expected to focus strongly on 50% 50% expanding e-commerce Illustrative combined key financials (based on 2020 figures) • Net sales: EUR 1,140 million
Slide 30: Financial implications to Oriola
Financial implications to Oriola • In the transaction, Oriola Consumer’s enterprise valuation is approximately EUR 400 million. Apoteksgruppen is valued at approximately EUR 300 million. • Oriola’s net debt and liabilities to decrease by EUR 134 million due to transferring liabilities to the New Com
Slide 31: Significant step in Oriola's transformation
Significant step in Oriola’s transformation Following the completion of the transaction, Oriola will: • Focus on wholesale and distribution of pharmaceuticals • Provide a wide portfolio of health and wellbeing products, dose dispensing as well as expert and staffing services • Actively seek to incre
Slide 32: Thank you!
Thank you! Our next events: 15/3/2022 Oriola Corporation’s Annual General Meeting 28/4/2022 Interim Report 1-3/2022 5/5/2022 Oriola Capital Markets Day