27 slides from Oriola Corp Class B's shareholder meeting presentation, Mar 19, 2024
Slide 1: Oriola's year 2023
Oriola’s year 2023 CEO Katarina Gabrielson
Slide 2: Content
Content Oriola in brief Strategy review Sustainability Financial review 2023 AGM 2024 | 19 March 2024 2
Slide 3: We create value through the entire healthcare value chain
We create value through the entire healthcare value chain • As an infrastructure critical company, we secure the distribution and availability of pharmaceuticals and health products • We have long experience and deep customer understanding, and we are a local player • Quality, safety and sustainabil
Slide 4: Strong position in the pharmaceuticals and health products in Finland and Sweden
Strong position in the pharmaceuticals and health products in Finland and Sweden KEY FIGURES 2023 Invoicing Net sales Adj. EBIT1 Employees 3.6 1.5 19.5 EUR EUR EUR 932 Espoo Helsinki Uppsala billion billion million Enköping Mölnlycke 1Excluding Swedish dose dispensing business AGM 2024 | 19 March 20
Slide 5: Strategy review: The leading specialist in wholesale of pharmaceuticals and health products
Strategy review: The leading specialist in wholesale of pharmaceuticals and health products
Slide 6: Market drivers creating opportunities
Market drivers creating opportunities • Preventive care is growing • Our products are suitable to as people are willing to sell and distribute via online• Individual pharma invest in high quality and channels solutions have higher • The share of people active lifestyle older than 80 years will • Opt
Slide 7: A stable and growing business environment
A stable and growing business environment • Growing pharmaceutical distribution Public and market, historical growth rate of ~6.5% private healthcare • Market size of EUR 8.5 billion, Finland Veterinarians Pharmacies and Sweden combined and clinics • Stable market in uncertain economic conditions Ph
Slide 8: Delivering customer value through integrated service offering
Pharma- ceutical companies Delivering customer Pharmacies value through integrated service offering Public and Customer private healthcare experience Distribution provides logistics Wholesale is our business in Advisory provides expert and dose traded goods and services to dispensing OTC offered to
Slide 9: Three strategic goals defining our future
Three strategic goals defining our future AGM 2024 | 19 March 2024 9
Slide 10: Our ambitious targets generate value
Our ambitious targets generate value Long-term financial targets and dividend policy GROWTH PROFITABILITY EQUITY DIVIDEND POLICY Annual sales growth at Adjusted EBIT Return on equity Oriola’s aim is to pay out an the rate of market, margin above 3% >20% increasing annual dividend minimum 4% of 2/3 o
Slide 11: Sustainability at the core of our business
Sustainability at the core of our business Committed to the UN Sustainable Development Goals (SDGs) AGM 2024 | 19 March 2024 11
Slide 12: Environment
Internal Environment • Carbon neutral in own operations (Scope 1 and 2) by 2025 and across the supply chain (Scope 1, 2 and 3) by 2030 • We are committed to set science-based targets • Increase recycling rate to 90% by 2025 (2023: 81%) AGM 2024 | 19 March 2024 12
Slide 13: Our carbon footprint
Our carbon footprint 73% decrease from the 2019 base year level The carbon footprint has been calculated in accordance with the Greenhouse Gas Protocol accounting principles and covers the whole company. AGM 2024 | 19 March 2024 13
Slide 14: Social
Internal Social • Foster a culture that ensures fair treatment, develops capable individuals, and empowers leaders LTIF in • Reach the long-term goal of zero 2023 accidents. 6.09 • Lost Time Incident Frequency (LTIF) rate 4.5 by 2026. AGM 2024 | 19 March 2024 14
Slide 15: Governance and society
Internal Governance and society • Ensure safe and accurate deliveries of pharmaceuticals and other health products. Picking • Picking quality of ordered pharmaceuticals quality in 99.0% by 2026 at group level. 2023 • Ensure transparent and responsible 99.8% operations and supply chain practices AGM
Slide 16: The leading specialist in wholesale of pharmaceuticals and health products
The leading specialist in wholesale of pharmaceuticals and health products AGM 2024 | 19 March 2024 16
Slide 17: Key strategic events
Key strategic events The sale of Svensk dos AB to Strategic investment in ERP and Apotekstjänst Sverige AB warehouse management • The agreed sales price in cash is SEK 110 • One common system enables to harmonise million (approximately EUR 9.5 million) business processes, strengthen data management
Slide 18: Financial review 2023: Strong growth in profitability excluding Swedish dose dispensing business
Financial review 2023: Strong growth in profitability excluding Swedish dose dispensing business
Slide 19: Pharmaceutical wholesale markets are growing
Pharmaceutical wholesale markets are growing Finland and Sweden market combined Market shares Sweden Finland 44% (45%) 44% (44%) 60 3 BSEK BEUR +9.8% +3.4% 56% 56% Oriola Others Source: IQVIA, LTK. Market size is 12 month rolling market value. SEK/EUR average exchange rate for 2023. CAGR 2022-2023.
Slide 20: Highlights from 2023
Highlights from 2023 • Strong year in the distribution business – new distribution agreements • Focus on developing commercial and supply chain excellence, and our culture • New commercial operating model implemented and accelerated commercial capabilities • Improved overall efficiency in operations
Slide 21: Solid performance throughout the year
Solid performance throughout the year Invoicing EUR million Net sales EUR million Adjusted EBIT EUR million In constant currency: In constant currency: Adj EBIT excl Dose Sweden +6% +2% +64% EUR 3 770 million EUR 1 569 million EUR 19.5 (11.9) million +1% -3% 3 507 3 568 3 588 1 539 1 494 3 327 3 345
Slide 22: Strong performance by Distribution
Strong performance by Distribution Adjusted EBIT EUR million Unaudited figures 19.5 1.6 -2.8 Adj. EBIT 16.7 in constant currency 2.4 FY 23 EUR 17.1 million 3.6 11.9 2022 excl. Distribution Wholesale Group items 2023 excl. Dose Sweden 2023 incl. Dose Sweden Dose Sweden Dose Sweden AGM 2024 | 19 March
Slide 23: Solid financial position
Solid financial position Group key figures, continuing operations (incl. Swedish dose dispensing business) 2023 2022 Change % Invoicing, EUR million 3 587.7 3 568.0 0.6 Net sales, EUR million1 1 493.8 1 539.1 -2.9 Adjusted EBIT, EUR million2, 3 16.7 19.1 -15.4 Adjusting items, EUR million -21.9 -10.
Slide 24: Board's dividend proposal
Board’s dividend proposal Dividend payout EUR per share The Board of Directors proposes to the AGM that a EPS dividend of EUR 0.07 per share be paid for 2023. 0.09 DPS 0.06 0.06 0.06 0.07 Record date: 21 March 0.04 0.04 Payment date: 11 April 0.03 -0.01 DIVIDEND POLICY Oriola aims to pay out an incr
Slide 25: New reporting segments
New reporting segments Net sales by segment1 % Wholesale 21% Distribution 79% Distribution segment Wholesale segment • Pharmaceutical logistics • Wholesale of traded goods and • Dose dispensing services over-the-counter (OTC) products Adj. EBIT by segment2 % • Parallel import • Special licensed medi
Slide 26: Outlook 2024
Outlook 2024 In 2024, the pharmaceutical distribution market is expected to continue to grow. A continuation of a weak consumer confidence might impact the wholesale market development. The recent overall inflationary environment and related cost pressures may have an impact on Oriola’s profitabilit
Slide 27: Thank you
Thank you