Oriola Oyj — Earnings Release 2018

Nov 1, 2018

Oriola Corporation’s Interim Report 1 January–30 September 2018

Oriola Corporation’s Interim Report 1 January–30 September 2018

Oriola Corporation stock exchange release 1 November 2018 at 8.30 a.m.

Oriola Corporation’s Interim Report 1 January–30 September 2018

Financial performance July–September 2018, continuing operations

· Invoicing increased by 2.6% (increased 1.3%) to EUR 844.2 (823.1) million,
on a constant currency basis invoicing increased by 8.9% and was EUR 896.0
million

· Net sales decreased by 2.0% (decreased 1.4%) to EUR 369.9 (377.6) million,
on a constant currency basis net sales increased by 4.5% and were EUR 394.5
million
· Adjusted EBITDA was EUR 24.7 (16.7) million, at constant currencies the
adjusted EBITDA was EUR 26.0 million
· Adjusted EBIT was EUR 17.5 (9.7) million, at constant currencies the
adjusted EBIT was EUR 18.4 million
· Profit for the period totalled EUR 12.2 (8.0) million and earnings per share
was EUR 0.07 (0.04)

Financial performance January–September 2018, continuing operations

· Invoicing increased by 5.0% (decreased 1.6%) to EUR 2,589.2 (2,464.8)
million, on a constant currency basis invoicing increased by 10.0% and was EUR
2,711.0
million

· Net sales increased by 2.2% (decreased 3.8%) to EUR 1,157.5 (1,132.5)
million, on a constant currency basis net sales increased by 7.4% and were EUR
1,215.9 million
· Adjusted EBITDA was EUR 53.5 (54.5) million, at constant currencies the
adjusted EBITDA was EUR 56.3 million
· Adjusted EBIT was EUR 31.7 (33.7) million, at constant currencies the
adjusted EBIT was EUR 33.6 million
· Profit for the period totalled EUR 21.1 (23.8) million and earnings per
share was EUR 0.12 (0.13)

Business outlook for 2018

Oriola’s guidance is unchanged: Adjusted EBIT of continuing operations on
constant currency basis is estimated to increase from the 2017 level.

President and CEO Robert Andersson:

“In the third quarter, Oriola’s net sales continued to grow, but profitability
was impacted by performance challenges. Invoicing increased by 2.6% (8.9% on a
constant currency basis) but net sales decreased by 2.0% (increased 4.5% on a
constant currency basis). Adjusted EBIT was EUR 17.5 million. The amount
includes a positive EUR 9 million settlement with the provider of the new
logistics and warehouse IT system, announced in August.

Service Business Area invoicing increased by 4.1% in the third quarter, 10.1% on
a constant currency basis, driven by pharmaceutical price and volume increase
mainly in Sweden. Due to new logistics and warehouse IT system implementation in
Finland and DC-project in Enköping, we experienced inefficiencies, and
operations costs were high in both countries. We will continue to focus on
improving logistics efficiency in both countries. The Enköping distribution
center will open during the first quarter of 2019.

On a constant currency basis Consumer Business Area net sales grew 4.2% in the
third quarter compared to corresponding period last year, despite of the strong
competition in traded goods and OTC, and margin pressure in prescription
medicines. Our online sales continued to grow (58%) stronger than the market.
Comprehensive wellbeing chain Hehku opened one new store and now consists of 19
stores and an online shop in Finland.

In the third quarter Business Area Healthcare continued its good development.
Net sales grew on a constant currency basis by 39.4% compared to corresponding
period last year. Oriola dose dispensing services won a major new contract in
Sweden in September. The contract covers Stockholm and Gotland area dose
dispensing and will bring approximately 35,000 new patients from the beginning
of February 2019. This will increase Oriola’s total number of dose dispensing
patients to more than 100,000, out of which more than 80,000 patients are in
Sweden.

Oriola is in the middle of a transformation process. In September we announced
our new organisation, which will be more customer focused and efficient. From 1
January 2019 our Business Areas will be Consumer, Pharma and Retail. As part of
this change we are creating a new Group function called Operations, which covers
logistics, dose manufacturing and indirect sourcing, and supports all Business
Areas. I’m confident that with this change we can develop our business and
become more customer oriented. This transformation supports a more holistic way
to drive and develop our unique offering in the growing health and wellbeing
market. By building a strong Oriola culture we ensure synergies, improve our
operational excellence and cost efficiency throughout the whole organisation.”

Key figures, 2018 2017 Change 2018 2017 Change 2017
continuing
operations
EUR million 7-9 7-9 % 1-9 1-9 % 1-12
Invoicing 844.2 823.1 2.6 2,589.2 2,464.8 5.0 3,336.3
Net sales 369.9 377.6 -2.0 1,157.5 1,132.5 2.2 1,527.7
Adjusted 24.7 16.7 48.2 53.5 54.5 -1.8 67.6
EBITDA
Adjusted 6.7 4.4 4.6 4.8 4.4
EBITDA %
Adjusted 17.5 9.7 81.2 31.7 33.7 -6.1 39.9
EBIT 1)
EBIT 16.5 10.7 54.5 30.0 33.9 -11.5 37.8
Adjusted 4.7 2.6 2.7 3.0 2.6
EBIT %
EBIT % 4.5 2.8 2.6 3.0 2.5
Profit for 12.2 8.0 52.3 21.1 23.8 -11.2 25.9
the period
Earnings per 0.07 0.04 52.3 0.12 0.13 -11.2 0.14
share, EUR,
continuing
operations
Earnings per - -0.00 - 0.00 0.00
share, EUR,
discontinued
  operations
Net cash 3.3 -24.0 54.4 12.7 23.7
flow from
operating
activities
2)
Gross 32.4 37.0 46.1
capital
expenditure

Total assets 929.1 950.8 922.4
2)
Net interest 105.0 120.5 110.2
-bearing
debt
2)
Gearing, % 55.3 59.8 55.7
2)
Net debt / 1.7 1.6 1.7
12-month
EBITDA 2)

Equity per 1.05 1.11 1.09
share, EUR
2)
Equity 20.8 22.0 21.8
ratio, % 2)
Return on 14.8 16.3 13.0
equity
(ROE), %
2)
Return on 12.5 13.9 11.7
capital
employed
(ROCE), % 2)
Average 181,353 181,357 181,328
number of
shares,
1000 pcs 3)

Average 2,697 2,727 2,686
number of
personnel
Number of 2,688 2,896 2,619
personnel at
the end of
the period

1)
Adjustment
items are
specified in
table
"Adjusting
items
included
in EBIT"
2) Includes
discontinued
operations
3) Treasury
shares held
by the
company not
included

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation’s Interim Report
January­­–September 2018. The complete report is attached to this release in pdf
format and is also available on Oriola’s website at
www.oriola.com (http://file//fifufs01/yhteiset$/Konserniraportointi/Osavuosikatsa
ukset/2018/Q2%202018/www.oriola.com).

Analyst and investor meeting

Oriola Corporation will organise a meeting for investors, analysts and the press
on Thursday, 1 November 2018 at 10.00 a.m. at Hotel Scandic Simonkenttä, meeting
room Ateljee 3, Simonkatu 9, 00100 Helsinki, Finland.

Next financial report

Oriola Corporation will publish its financial statements release for January
-December 2018 on 22 February 2019.

Further information:

Robert Andersson, President and CEO
tel. +358 10 429 2109, email: robert.andersson@oriola.com

Helena Kukkonen, CFO
tel. +358 10 429 2112, email: helena.kukkonen@oriola.com

Distribution:

Nasdaq Helsinki Ltd
Key media

Released by:

Oriola Corporation
Orionintie 5, 02200 Espoo
www.oriola.com

Attachments: