Oriola Oyj — Earnings Release 2020

Feb 18, 2021

Oriola Corporation’s Financial Statement Release January 1– December 31, 2020

Oriola Corporation’s Financial Statement Release January 1– December 31, 2020

Oriola Corporation stock exchange release 18 February 2021 at 15.00 p.m.

Oriola Corporation’s Financial Statement Release January 1– December 31, 2020

January–December 2020 highlights

· The COVID-19 pandemic had a significant impact on Oriola’s operating
environment and operations. Pharmaceutical volumes declined in both the Finnish
and the Swedish market.
· The distribution and the availability of pharmaceuticals secured well in
both markets.
· Invoicing increased by 0.9% (increased 6.1%) to EUR 3,764.9 (3,733.1)
million. On a constant currency basis invoicing increased by 0.1% and was EUR
3,738.6 million.
· Net sales increased by 4.6% (increased 10.9%) to EUR 1,800.8 (1,721.3)
million. On a constant currency basis net sales increased by 3.8% and were EUR
1,787.1 million.
· Adjusted EBIT was EUR 21.0 (20.5) million. On a constant currency basis the
adjusted EBIT was EUR 20.8 million.
· Profit for the period totalled EUR 11.3 (8.0) million and earnings per share
were EUR 0.06 (0.04).
· The Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.03 (0.09) per share is paid for 2020. In addition, it is
proposed that the Annual General Meeting would authorise the Board of Directors
to decide at its discretion on the payment of dividend up to a maximum of EUR
0.03 per share.

October–December 2020 highlights

· The pandemic continued to negatively impact Oriola’s operating environment.
Pharmaceutical volumes continued to decline.
· Strong online sales in Consumer, 107% vs. market growth of 66%.
· Invoicing increased by 0.8% (increased 5.4%) to EUR 986.6 (978.9) million.
On a constant currency basis invoicing decreased by 1.7% and was EUR 962.1
million.
· Net sales increased by 4.4% (increased 13.2%) to EUR 466.2 (446.7) million.
On a constant currency basis net sales increased by 1.5% and were EUR 453.5
million.
· Adjusted EBIT was EUR 8.0 (2.1) million driven by many parts of the
business, for example dose dispensing. On a constant currency basis the adjusted
EBIT was EUR 7.9 million.
· Profit for the period totalled EUR 4.1 (-0.2) million and earnings per share
were EUR 0.02 (-0.00).

Business outlook for 2021

The adjusted EBIT on a constant currency basis stays on the same level or
increases from the 2020 level.

The COVID-19 pandemic is expected to continue during 2021. Severity and duration
of the pandemic remain unclear in Oriola’s operating environment. Oriola’s
business outlook for 2021 is based on external market forecasts, agreements with
pharmaceutical companies and pharmacies, and management assessments.

President and CEO Juko Hakala:

"2020 was an exceptional year for Oriola, with the COVID-19 pandemic impacting
our operations significantly from March onwards. Pharmaceutical volumes declined
during the year in both of our markets, resulting from the pandemic-related
restrictions and allocation of healthcare resources. Our second quarter result
was lost due to the first wave of the pandemic. During the year, society and
also Oriola learned to adapt to the new situation, and prepare for the second
wave of the pandemic.

In the fourth quarter of 2020, Oriola’s invoicing remained stable and net sales
grew slightly. Our profitability improved in many parts of our business,
amounting to a fourth quarter adjusted EBIT of EUR 8.0 (2.1) million, making it
the highest quarter in 2020.

The fourth quarter net sales[1] of Consumer grew by 2.6% to EUR 195.8 (190.8)
million, driven by strong online sales. Adjusted EBIT increased to EUR 4.4 (1.1)
million. The strategically important online channel grew by 107% compared to the
same period last year. Oriola's brick-and-mortar pharmacies were also successful
in the review period.

In Pharma, the fourth quarter net sales[1] increased by 0.7% to EUR 243.9
(242.2) million. Adjusted EBIT was EUR 4.1 (4.2) million. Changes in
distribution agreements as well as additional operational costs related to the
pandemic burdened Pharma's profitability.

The net sales[1] of Retail grew by 5.3% to EUR 120.1 (114.1) million in the
fourth quarter. Adjusted EBIT improved to EUR 0.7 (-0.8) million. The profit
improvement was primarily driven by the continued positive development of dose
dispensing. The result of the business area was still impacted by the additional
operational costs related to the pandemic.

In this exceptional year, we secured the distribution and the availability of
pharmaceuticals well in both markets. This achievement was made possible by our
employees, who have gone the extra mile and worked hard during 2020. This has
been vital for the entire society, in line with our purpose "Health for life".
In 2021, we are committed to continue our strategic programmes. Profitability
and reliable operations remain our key priorities.”

[1 ]On a constant currency basis.

[][]
Key figures 2020 2019 Change 2020 2019 Change
EUR million 10-12 10-12 % 1-12 1-12 %
Invoicing 986.6 978.9 0.8 3,764.9 3,733.1 0.9
Net sales 466.2 446.7 4.4 1,800.8 1,721.3 4.6
Adjusted EBIT[1] 8.0 2.1 286.8 21.0 20.5 2.6
EBIT 6.8 0.8 764.5 20.4 15.3 33.0
Adjusted EBIT % 1.7 0.5 1.2 1.2
EBIT % 1.5 0.2 1.1 0.9
Profit for the 4.1 -0.2 11.3 8.0 40.7
period
Earnings per share, 0.02 -0.00 0.06 0.04 40.7
EUR
Net cash flow from 45.7 27.3 58.3 84.4
operating
activities

Gearing, % 75.0 76.1
Equity ratio, % 14.8 15.5
Return on capital 5.0 4.1
employed (ROCE), %

[1] Adjusting items
are specified in
note 12. Adjusting
items.

In order to reflect the underlying business performance and to enhance
comparability between financial periods Oriola discloses certain performance
measures of historical performance, financial position and cash flows, as
permitted in “Alternative performance measures” guidance issued by the European
Securities and Markets Authority (ESMA). These measures should not be considered
as a substitute for measures of performance in accordance with the IFRS. The
calculation methods of these measures are provided in note 11. Alternative
performance measures in the notes to this Financial Statements Release.

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation’s Financial
Statements Release January­­–December 2020. The complete report is attached to
this release in pdf format and is also available on Oriola’s website
at https://www.oriola.com/

Analyst and investor meeting

Oriola Corporation will organise a live-webcast meeting for investors, analysts
and the press on Friday, 19 February 2021 at 10.00 a.m. The event can be
followed as a live-webcast accessible through this
link: https://oriola.videosync.fi/financial-statements
-2020 (https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Foriola.v
ideosync.fi%2Ffinancial-statements
-2020&data=04%7C01%7CKatja.Graff%40oriola.com%7Cf73a6b9224ac4f4245b608d8c77cdc16%
7Ccfb694d1e04b4bb5a2b59b4f232dce87%7C0%7C0%7C637478687129048399%7CUnknown%7CTWFpb
GZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C2000&
sdata=%2FNjrn1D7JG%2FppOltUt7LP6RqZ09KpI5alXn6IbGUvIo%3D&reserved=0).

Publication of the Financial Statements

Oriola Corporation will publish its 2020 Financial Statements by 23 February
2021.

Further information:

Juko Hakala, President and CEO
tel: +358 10 429 2109 email: juko.hakala@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

https://www.oriola.com/

Attachments: