Slide 1: Oriola Corporation Interim Report January – March 2020
Oriola Corporation Interim Report January – March 2020
Slide 2: Q1 2020 highlights
Q1 2020 highlights • Strong invoicing and net sales growth continued, partially driven by COVID-19 pandemic • Increase in profit mainly driven by good sales • Additional costs due to pandemic demand peak • Logistics Finland continued solid performance • Ramp-up of distribution centre in Sweden delay
Slide 3: COVID-19 pandemic impact
COVID-19 pandemic impact • Extra safety measures for our employees starting from February • Historically high order levels of pharmaceuticals and cold and pain products from pharmacy customers in Finland and Sweden in March • Safeguarding availability of medicines in line with our purpose “Health fo
Slide 4: Key figures
Key figures continuing operations Invoicing Net sales Adjusted EBIT1 EUR million EUR million EUR million 4 000 3 733 1 800 1 721 70 3 518 1 589 1 552 3 500 3 364 3 336 1 600 1 528 60 58.7 1 400 3 000 50 1 200 2 500 40 39.0 1 000 2 000 34.4 800 30 1 500 897 600 399 20.5 20 1 000 400 500 820 797 848 8
Slide 5: Adjusted EBIT
Adjusted EBIT Adjusted EBIT1 Adjusted EBIT development1 EUR million EUR million 10 10 8 8 0.8 -0.3 6 6 0.0 2.6 9.1 4 4 6.9 6.9 5.6 2 3.7 2 3.7 2.1 0 0 2019 Consumer Pharma Retail Group 2020 Q1 items Q1 2019 2019 2019 2019 2020 Q1 Q2 Q3 Q4 Q1 1The figures for Q1-Q3 2019 have been restated due to an e
Slide 6: Operating environment & Oriola
& Oriola Operating environment
Slide 7: Consumer markets
Consumer markets Online share of Swedish Market shares Pharmacy 388 market Pharmacy387 market 397 16% 14% 396397 12% 326327 4.6 BEUR 4.6 BEUR 10% 187188 8% 6% 79 79 4% 48 Oriola/Kronans Apotek 17% (17%) Rx 74% (74%) 2% Apoteket 31% (31%) OTC 9% (9%) 0% Apotek Hjärtat & CURA 31% (31%) TG 17% (17%) 20
Slide 8: Wholesale markets
Wholesale markets Pharmaceutical market growth in Q1: Finland 10.9% and Sweden 14.7% Finland Wholesale Sweden Wholesale 2.8 BEUR 4.5 BEUR Oriola 43% (45%) Oriola 46% (40%) Others 57% (55%) Others 54% (60%) Market shares are Q1 figures and Source: LTK and Oriola estimate Source: IQVIA and Oriola esti
Slide 9: Retail markets
Retail markets Market share dose dispensing TG/OTC products supply for pharmacies in Sweden Sweden Oriola 43% (44%) Others 57% (56%) 25% from the total market of EUR 1.2 billion Market share is Q1 figure and market size rolling 12 month figure Total 225,000 patients Staffing services in Finland Finl
Slide 10: Business Area reviews Q1 2020
Business Area reviews Q1 2020
Slide 11: Three customer-centric business areas
Three customer-centric business areas Consumer business area Pharma business area Retail business area Retail services and products for consumer Tailored logistics, expert and advisory A wide range of health and wellbeing health and wellbeing in Sweden in services for pharmaceutical companies, produ
Slide 12: Consumer Q1 2020
Consumer Q1 2020 • Net sales increased by 10.3% to 207.2 M€ Adjusted EBIT1 EUR million in constant currency • High sales in March, driven by the 6 increased demand due to COVID-19 5 pandemic 4 • Kronans Apotek’s online sales continued to 3 grow (+45% vs the market +48%) 4.9 5.4 2 • Share of OTC and
Slide 13: Pharma Q1 2020
Pharma Q1 2020 • Net Sales increased by 22.4% to 244.2 M€, Adjusted EBIT EUR million and in constant currency by 24.2% • Sales development driven by 6 the pharmaceutical market growth, 5 changes in pharmaceuticals distribution 4 agreements and COVID-19 pandemic related demand increase 3 5.2 4.7 • Pr
Slide 14: Retail Q1 2020
Retail Q1 2020 • Net sales increased by 8.6% to Adjusted EBIT EUR million 121.2 M€, and increased by 10.9% in constant currency 2.0 • Growth driven by number of dose dispensing patients in Sweden and increased demand for healthcare 0.2 0.3 0.2 products at the end of Q1 0.0 -0.6 -0.8 • Strong sales i
Slide 15: Financial review Q1 2020
& Oriola Financial review Q1 2020
Slide 16: Invoicing and net sales
Invoicing and net sales Invoicing Invoicing Net sales EUR million EUR million 1 000 500 900 450 800 400 700 350 600 300 500 942 917 979 965 250 460 894 448 429 447 400 979 200 397 300 150 200 100 100 50 0 0 2019 2019 2019 2019 2020 2019 2019 2019 2019 2020 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q1/2020 Invoi
Slide 17: Adjusted EBIT
Adjusted EBIT Adjusted EBIT1 Adjusted EBIT development1 EUR million EUR million 10 10 8 8 0.8 -0.3 6 6 0.0 2.6 9.1 4 4 6.9 6.9 5.6 2 3.7 2 3.7 2.1 0 0 2019 Consumer Pharma Retail Group 2020 Q1 items Q1 2019 2019 2019 2019 2020 Q1 Q2 Q3 Q4 Q1 1The figures for Q1-Q3 2019 have been restated due to an e
Slide 18: Profit for the period and earnings per share
Profit for the period and earnings per share Profit for the period1 Earnings per share1 EUR million EUR 6 0,08 0,06 4 0,04 5.1 2 4.5 0,02 1.7 2.0 0.03 0.02 0 -0.2 0.01 0.01 0,00 0.00 -2 -0,02 2019 2019 2019 2019 2020 2019 2019 2019 2019 2020 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 1The figures for Q1-Q3 2019
Slide 19: Cash flow
Cash flow Quarterly net cash flow from operating activities Q1 YTD 2020 change in cash EUR million EUR million 80 140 60 120 100 40 70 51.4 20 48 80 -0.5 -4.0 27 18 13 60 117.7 0 3 -1 40 -25 70.8 -20 20 -40 0 2018 2018 2018 2019 2019 2019 2019 2020 Cash Q4 2019 Operating Investing Financing Cash Q1
Slide 20: Net Interest-Bearing Debt
Net Interest-Bearing Debt Net interest-bearing debt EUR million 31 Mar 31 Mar 31 Dec EUR million 2020 2019 2019 250 Bank loans 56.3 58.6 57.8 (syndicated Bank & term) 200 Commercial papers 88.9 53.0 35.0 Advance payment from 15.4 15.3 13.2 150 pharmacies Lease liabilities 79.3 100.2 84.3 100 199 Cas
Slide 21: Q1 2020 Key take-aways
Q1 2020 Key take-aways Strong invoicing Peak volumes COVID-19 Digital and online and net sales caused additional pandemic effects gaining importance growth continued costs on business in the market environment 24.4.2020 21
Slide 22: Outlook for 2020
Outlook for 2020 Adjusted EBIT on a constant currency basis is estimated to increase from the 2019 level Oriola’s business outlook for 2020 is based on external market forecasts, agreements with pharmaceutical companies and pharmacies, and management assessments. 24.4.2020 22
Slide 23: Thank you! Our next events
Thank you! Our next events: 17/7/2020 Half year financial report 1-6/2020 23/10/2020 Interim Report 1-9/2020 IR contact: Katja Graff, Treasury & IR Manager, +358 10 429 013 katja.graff@oriola.com