Oriola Oyj — Earnings Release 2021

Feb 18, 2022

Oriola Corporation’s Financial Statements Release 1 January – 31 December 2021

Oriola Corporation’s Financial Statements Release 1 January – 31 December 2021

Oriola Corporation Stock Exchange Release 18 February 2022 at 8.30 a.m.

Oriola Corporation’s Financial Statements Release 1 January – 31 December 2021

Q4 2021: Turnaround progressing – profitability continued to improve

October–December 2021 highlights

· Invoicing increased by 7.6% to EUR 1,062.0 (986.6) million. On a constant
currency basis invoicing increased by 6.5% and was EUR 1,050.9 million.
· Net sales increased by 7.0% to EUR 499.0 (466.2) million. On a constant
currency basis net sales increased by 5.9% and were EUR 493.7 million.
· Adjusted EBIT was EUR 11.6 (8.0) million. On a constant currency basis the
adjusted EBIT was EUR 11.7 million.
· Profit for the period totalled EUR 5.3 (4.1) million and earnings per share
were EUR 0.03 (0.02).

January–December 2021 highlights

· Invoicing increased by 5.2% to EUR 3,959.1 (3,764.9) million. On a constant
currency basis invoicing increased by 2.7% and was EUR 3,868.3 million.
· Net sales increased by 4.5% to EUR 1,882.4 (1,800.8) million. On a constant
currency basis net sales increased by 1.9% and were EUR 1,835.9 million.
· Adjusted EBIT was EUR 26.3 (21.0) million. On a constant currency basis the
adjusted EBIT was EUR 25.6 million.
· Profit for the period totalled EUR 11.3 (11.3) million and earnings per
share were EUR 0.06 (0.06).
· The Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.04 (0.03) per share would be paid for 2021.

Key figures 2021 2020 Change 2021 2020 Change
EUR million 10-12 10-12 % 1-12 1-12 %
Invoicing 1,062.0 986.6 7.6 3,959.1 3,764.9 5.2
Net sales 499.0 466.2 7.0 1,882.4 1,800.8 4.5
Adjusted EBIT1 11.6 8.0 45.1 26.3 21.0 25.5
EBIT 8.1 6.8 18.7 20.5 20.4 0.5
Adjusted EBIT % 2.3 1.7 1.4 1.2
EBIT % 1.6 1.5 1.1 1.1
Profit for the 5.3 4.1 29.5 11.3 11.3 0.5
period
Earnings per share, 0.03 0.02 29.5 0.06 0.06 0.5
EUR
Net cash flow from 42.2 45.7 40.0 58.3
operating
activities

Gearing, % 46.5 75.0
Equity ratio, % 20.1 14.8
Return on capital 4.6 5.0
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.

Outlook for 2022

The adjusted EBIT is estimated to increase from the 2021 level.

The COVID-19 pandemic continues and severity as well as duration of the pandemic
remain unclear in Oriola’s operating environment. Furthermore, the recent
overall inflationary increases and related cost pressures may have a significant
impact on Oriola’s profitability.

The outlook is based on current group structure.

CEO Elisa Markula:

“For Oriola, year 2021 was the beginning of a transformation. We defined
turnaround activities and initiated the first actions. Consequently, Oriola
improved its full year adjusted EBIT to EUR 26.3 million, which is 25% higher
than in 2020. Increased profitability was driven by rigorous turnaround actions
during the year and positive market demand during the second half of the year.

In the fourth quarter the adjusted EBIT increased to EUR 11.6 million, which was
45% above 2020. The biggest contributor was Retail thanks to the good
performance in dose dispensing and the sales increase of health and wellbeing
products. In addition, Consumer improved its profitability driven by increased
sales both in physical pharmacies and in e-commerce. In Pharma, underlying
performance in distribution business was improving but partly set off by lower
sales in Expert Services.

During the second half of the year Oriola’s performance was accelerated thanks
to new turnaround actions. We executed strict cost control and improved
operational efficiency at Mankkaa and Enköping distribution centres.
Furthermore, we implemented the new country-based operating model to reduce
complexity and fulfil customers’ needs better. This organisational restructuring
will bring us an annual cost saving of at least EUR 7 million. These savings
will materialise from the first quarter of 2022 onwards. We will continue the
planned turnaround measures consisting of four key elements: cost savings,
efficient net working capital management, excellent customer relationship
management and commercial excellence. The impact of these actions will gradually
become visible during 2022.

Year 2021 ended with the new pandemic wave challenging again our operations due
to the increased absence rates of our personnel. As a critical supplier of the
pharmaceuticals, we have done our utmost to secure deliveries to the pharmacies
and hospitals as well as to the Swedish consumers through our pharmacies. I want
to thank all our employees for taking the extra mile as well as customers and
business partners for the good cooperation during these extraordinary times.”

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation’s Financial
Statements Release January–December 2021. The complete report is attached to
this release in pdf format and is also available on Oriola’s website at
www.oriola.com.

Analyst and investor meeting

Oriola Corporation will organise a live-webcast meeting for investors, analysts
and the press on Friday, 18 February 2022 at 10.00 a.m. The event can be
followed as a live-webcast accessible through this link:
https://oriola.videosync.fi/financial-statements-2021.

Publication of the Financial Statements

Oriola Corporation will publish its 2021 Financial Statements by 22 February
2022.

Further information:

Elisa Markula
CEO
Tel. +358 10 429 2109
Email: elisa.markula@oriola.com

Sari Pohjonen
CFO
Email: sari.pohjonen@oriola.com

Distribution:
Nasdaq Helsinki Ltd
Key media

Released by:
Oriola Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo
www.oriola.com

Attachments: