Oriola Oyj — Audit Report / Information 2011

Mar 5, 2012

Business ID: 1999215-0

Oriola-KD Corporation

Parent Company Cash Flow Statement (FAS)

EUR 1,000

		31 Dec 2011	31 Dec 2010
Cash flow from operating activities
Operating profit/loss		-4,163.1	27,575.2
Adjustments
Depreciation
Unrealised exchange rate profit/loss		-61.8	1,567.9
Other adjustments		-	-32,078.6
		-4,224.9	-2,935.5
Change in working capital	1)
Change in current receivables		3,796.9	933.7
Change in non-interest-bearing current liabilities		-47,291.3	72,012.4
		-43,494.4	72,946.1
Interest paid and other financial expenses		-9,416.4	-2,373.3
Dividends received		64,185.9	71,000.0
Interest received and other financial income	2)	14,081.4	6,653.8
Income taxes paid		-	525.0
Net cash flow from operating activities		21,131.6	145,816.0
Cash flow from investing activities
Investments in property, plant and equipment and intangible assets		-1.9	-
Proceeds from sales of property, plant and equipment and intangible assets		-	51,329.6
Investments in subsidiaries		-79.4	-66,059.1
Increase in other investments		-10.0	-
Proceeds from /repayment of long-term receivables net		-30,201.9	-1,763.4
Net cash flow from investing activities		-30,293.2	-16,492.9
Cash flow from financing activities
Dividends paid and return of equity		-27,209.0	-18,134.8
Net cash flow from financing activities		-27,209.0	-18,134.8
Net change in cash and cash equivalents		-36,370.6	111,188.3
Cash and cash equivalents at the beginning of the period	3)	176,118.4	64,930.1
Net change in cash and cash equivalents		-36,370.6	111,188.3
Cash and cash equivalents at the end of the period	3)	139,747.9	176,118.4

1) The changes in liabilities and receivables between the Finnish group companies are included in the change in working capital.
2) Interest paid by the group companies are included in the net cash flow from operating activities of the Oriola-KD Corporation.
3) Cash and cash equivalents include cash, deposits and money market investments.

---

Business ID: 1999215-0

Oriola-KD Corporation

Notes to the Financial Statements 2011

Oriola-KD Corporation is the parent company of Oriola-KD Group and is domiciled in Espoo.

Oriola-KD Corporation provides administrative services to the group companies. These administrative services are centralized to the parent company.

Copies of the consolidated financial statements of the Oriola-KD Group are available from the head office of Oriola-KD Corporation at the following address: Orionintie 5, FI-02200 Espoo, Finland.

Accounting principles for the financial statements 2011

The Oriola-KD Corporation’s financial statements are prepared in euros and according to Generally Accepted Accounting Principles in Finland (Finnish GAAP) and according to corporate legislation.

Tangible assets

The carrying value of land and water areas such as the carrying value of other tangible assets are based on historical costs. No write-downs have been done on land and water areas or on other tangible assets.

Items in foreign currencies

Monetary receivables and liabilities in foreign currencies have been measured using the exchange rates quoted by European Central Bank on the balance sheet date. The translation gains and losses are recognised in the income statement. Exchange rate gains and losses related to loans and receivables in foreign currencies are booked as financial income and expenses.

Pension liabilities

Statutory pension security under the Employees' Pensions Act (TyEL) is arranged through the Oriola Pension Fund for the Oriola-KD Corporation's employees. The obligation of the Oriola Pension Fund is fully covered.

Other operating costs

Other operating costs are mainly costs related to the ownership.

Income taxes

The income taxes include taxes based on the Oriola-KD Corporation's taxable profit. Deferred tax is calculated on temporary differences between carrying amount and taxable value.

---

Business ID: 1999215-0

Oriola-KD Corporation

Notes to the Income Statement

	31 Dec 2011	31 Dec 2010
1. OTHER OPERATING INCOME
EUR 1,000
Sales of business operations	-	32,069.4
Other service charges	1,877.9	3,098.9
Insurance reimbursement	-	1,238.1
Other operating income	5.6	3.5
Total	1,883.5	36,409.9
2. PERSONNEL
EUR 1,000
Cost of personnel
Salaries and bonuses	2,516.9	4,240.4
Pension costs	161.8	168.6
Other personnel expenses	65.8	154.7
Total	2,744.5	4,563.8
Voluntary personnel expenses are included in other operating costs.
Average number of personnel	27.0	26.0
Salaries and bonuses to the Management
President and CEO and Members of Bord of Directors	794.0	1,486.6
3. OTHER OPERATING COSTS
EUR 1,000
Mail, telephone and banking costs	150.9	93.1
Automatic data processing costs	555.7	474.3
Travelling and car	387.8	468.8
Representation	52.9	54.1
Administrative consultancy service	1,191.2	2,194.1
Other operating costs	963.6	1,025.8
Total	3,302.2	4,310.3
Audit costs included in other operating costs:
Audit fee	109.5	109.5
Tax services	56.2	31.2
Other fees	54.6	501.5
Total	220.3	642.2
4. FINANCIAL INCOME AND EXPENSES
EUR 1,000
Dividend income from group companies	64,185.9	71,000.0
Other interest and financial income
Interest income, group companies	5,516.4	6,349.7
Interest income from other companies	976.4	402.0
Other financial income	7,770.4	10,951.7
Interest and other financial expenses
Interest expense, group companies	-1,060.8	-1,564.4
Other interest expenses	-126.6	-995.7
Other financial expenses	-8,375.0	-9,763.7
Total	68,886.7	76,379.7
Financial income and expenses includes:
Interest income, total	6,492.8	6,751.8
Interest expenses, total	-1,187.4	-2,560.1
Exchange rate profit/loss, total	201.5	2,052.8
5. EXTRAORDINARY ITEMS
EUR 1,000
Group contributions received	-	1,565.3
Extraordinary items, total	-	1,565.3
6. INCOME TAXES
EUR 1,000
The income taxes include taxes based on the companies taxable profit for the financial year
Income taxes from ordinary operations for the financial period	147.8	-
Income taxes from previous financial periods	-	-961.1
Change in deferred tax	-	-
Total	147.8	-961.1

---

Business ID: 1999215-0

Oriola-KD Corporation

Notes to the Balance Sheet

7. TANGIBLE ASSETS

EUR 1,000

31 Dec 2011	Land and water areas	Other tangible assets	Tangible assets total
Historical cost 1 Jan 2011	149.2	5.6	154.7
Increases	-	2.3	2.3
Decreases	-	-0.4	-0.4
Historical cost 31 Dec 2011	149.2	7.5	156.7
Accumulated depreciation 1 Jan 2011	-	-	-
Accumulated write-downs 1 Jan 2011	-	-	-
Accumulated depreciations 31 Dec 2011	-	-	-
Carrying amount 31 Dec 2011	149.2	7.5	156.7
31 Dec 2010	Land and water areas	Other tangible assets	Tangible assets total
---	---	---	---
Historical cost 1 Jan 2010	149.2	5.6	154.7
Historical cost 31 Dec 2010	149.2	5.6	154.7
Accumulated depreciation 1 Jan 2010	-	-	-
Accumulated write-downs 1 Jan 2010	-	-	-
Accumulated depreciations 31 Dec 2010	-	-	-
Carrying amount 31 Dec 2010	149.2	5.6	154.7

---

Business ID: 1999215-0

Oriola-KD Corporation

Notes to the Balance Sheet

1. INVESTMENTS
   EUR 1,000

31 Dec 2011	Shares in group companies	Receivables from group companies	Other shares and receivables	Total
Historical cost 1 Jan 2011	314,255.7	91,899.3	-	406,155.0
Increases	79.4	33,469.0	10.0	33,558.3
Decreases	-	-3,267.1	-	-3,267.1
Historical cost 31 Dec 2011	314,335.0	122,101.2	10.0	436,446.3
Carrying amount 31 Dec 2011	314,335.0	122,101.2	10.0	436,446.3
31 Dec 2010	Shares in group companies	Receivables from group companies	Other shares and receivables	Total
Historical cost 1 Jan 2010	266,013.9	89,696.3	-	355,710.2
Increases	67,492.8	34,640.5	-	102,133.2
Decreases	-19,251.0	-32,437.4	-	-51,688.4
Historical cost 31 Dec 2010	314,255.7	91,899.3	-	406,155.0
Carrying amount 31 Dec 2010	314,255.7	91,899.3	-	406,155.0

---

Business ID: 1999215-0

Oriola-KD Corporation

Notes to the Balance Sheet

	31 Dec 2011	31 Dec 2010
9. RECEIVABLES
EUR 1,000
Receivables from group companies
Short-term receivables
Trade receivables	428.6	2,660.0
Accrued income and prepaid expenses	495.1	1,849.7
Total	923.6	4,509.7
Material items included in accrued receivables:
Other accrued receivables	94.5	128.9
Arrangement fee relating to loans	250.6	487.0
Accrued interest income	79.7	76.6
Exchange rate profit on hedges	153.6	84.2
Compensation not received	4.5	4.6
Total	582.9	781.3
10. EQUITY
EUR 1,000
Share capital 1 Jan	147,899.8	147,899.8
Share capital 31 Dec	147,899.8	147,899.8
Other funds 1 Jan	30,000.0	30,000.0
Other funds 31 Dec	30,000.0	30,000.0
Invested unrestricted equity reserve 1 Jan	21,037.5	21,037.5
Repayment of equity	-19,650.9	-
Invested unrestricted equity reserve 31 Dec	1,386.6	21,037.5
Profit/loss from previous years 1 Jan	133,464.5	45,118.0
Dividend paid	-7,558.1	-18,134.8
Profit/loss from previous years 31 Dec	125,906.5	26,983.2
Profit/loss for the financial year	64,575.7	106,481.4
Equity, total	369,768.5	332,401.8
Total number of shares	pc	EUR million
Serie A shares (20 votes/share)	47,148,710	46.1
Serie B shares (1 vote/share)	104,109,118	101.8
	151,257,828	147.9
11. LIABILITIES
EUR 1,000
Short-term liabilities
Liabilities to other Group companies
Trade payables	0.5	-
Interest-bearing liabilities	206,245.9	247,856.9
Accrued liabilities	1.6	8.1
Other short-term liabilities
Received prepayments	500.0	-
Trade payables	381.9	1,298.2
Other non-interest-bearing liabilities	177.5	295.4
Interest-bearing liabilities	-	4,899.5
Accrued liabilities	787.5	968.5
Short-term liabilities, total	208,094.9	255,326.7

---

Business ID: 1999215-0

Oriola-KD Corporation

Notes to the Balance Sheet

	31 Dec 2011	31 Dec 2010
Material items included in accrued liabilities:
Items related to personnel	567.6	811.2
Income taxes	147.8	-
Interest	-	88.3
Other accrued liabilities	72.1	69.0
Total	787.5	968.5
Short-term liabilities includes:
Ve Liabilities to group companies	206.2	247.9
Ko Non-interest-bearing liabilities to other companies	1.8	2.6
Ko Interest-bearing liabilities to other companies	-	4.9
Total	208.1	255.3
Other notes to the financial statement
	31 Dec 2011	31 Dec 2010
12. COMMITMENTS
EUR 1,000
Commitments on behalf of group companies
Guarantees	135,378.0	117,037.0
	135,378.0	117,037.0
13. CONTINGENCIES
EUR 1,000
Leasing commitments
Within one year	11.5	11.5
Over one year	3.4	14.9
Total	14.9	26.4

The contractual terms in the leasing contracts are ordinary.

14. OWNERSHIP IN OTHER COMPANIES

The ownerships of Oriola-KD Oyj and the Oriola-KD Group	Parent company ownership %	Group company ownership %	Share of votes %
Oriola Oy, Finland	100,00	100,00	100,00
AS Oriola, Estonia		100,00	100,00
UAB Oriola Vilnius, Lithuania		100,00	100,00
SIA Oriola Riga, Latvia		100,00	100,00
Aloiro AB, Sweden		100,00	100,00
Panpharmacy Oy, Finland		100,00	100,00
SIA Panpharmacy, Latvia		100,00	100,00
Oriola-KD Holding Sverige AB, Sweden	100,00	100,00	100,00
Oriola AB, Sweden		100,00	100,00
Kronans Droghandel Apotek AB, Sweden		80,00	80,00
Oriola-KD Holding Russia Oy, Finland	100,00	100,00	100,00
OOO Oriola, Russia		100,00	100,00
OOO Vitim & Co, Russia		100,00	100,00
OOO 03 Apteka, Russia		100,00	100,00