Oriola Oyj — Earnings Release 2024

Mar 4, 2025

Oriola Corporation's Financial Statements Release 1 January-31 December 2024

Oriola Corporation's Financial Statements Release 1 January-31 December 2024

Oriola Corporation Stock Exchange Release 4 March 2025 at 8.30 a.m. EET

Oriola Corporation's Financial Statements Release 1 January-31 December 2024

Strategy implementation enhances financial performance

October-December 2024 highlights

· Invoicing increased by 2.1 % to EUR 983.5 (963.4) million.
· Net sales increased by 14.0% to EUR 440.7 (386.6) million.
· Adjusted EBIT was EUR 6.4 (5.4) million.
· EBIT was EUR 4.0 (5.2) million and included adjusting items of EUR -2.4 (
-0.2) million mainly related to the implementation costs of the ERP investment.
· Loss for the period totalled EUR -17.8 (-2.8) million and earnings per share
were EUR -0.10 (-0.02). The loss includes Oriola's share of the impairment of
goodwill in Kronans Apotek amounting to EUR 16.3 million.

Excluding Swedish dose business:

· At the end of April, the Swedish Competition Authority announced its
decision to prohibit the sale of Svensk dos AB due to negative effects on
competition in the market. The Swedish Patent and Market Court rejected
Apotekstjänst Sverige AB's appeal in November 2024 and consequently the Swedish
Competition Authority's decision from April 2024 remains in effect.
Apotekstjänst Sverige AB has appealed the decision to the Patent and Market
Court of Appeal. The final ruling is expected in March 2025. Oriola announced
the sale of Svensk dos AB to Apotekstjänst Sverige AB in October 2023.
· Net sales were EUR 436.8 (384.1) million.
· Adjusted EBIT was EUR 6.1 (6.2) million.

January-December 2024 highlights:

· Invoicing increased by 5.1% to EUR 3,771.8 (3,587.7) million.
· Net sales increased by 12.4% to EUR 1,679.7 (1,493.8) million.
· Adjusted EBIT was EUR 21.7 (16.7) million.
· EBIT was EUR 13.6 (-5.3) million and included adjusting items of EUR -8.1 (
-21.9) mainly related to the implementation cost of the ERP investment.
· Loss for the period totalled EUR -20.1 (-20.7) million and earnings per
share were EUR -0.11 (-0.11). The loss includes Oriola's share of the impairment
of goodwill in Kronans Apotek amounting to EUR 16.3 million.

· The Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.07 (0.07) per share be paid for 2024.

Excluding Swedish dose business:

· Net sales were EUR 1,665.7 (1,475.7) million.
· Adjusted EBIT was EUR 21.6 (19.5) million.
[][]
Key figures 2024 2023 Change 2024 2023 Change
EUR million 10-12 10-12 % 1-12 1-12 %
Invoicing 983.5 963.4 2.1 3,771.8 3,587.7 5.1
Net sales 440.7 386.6 14.0 1,679.7 1,493.8 12.4
Adjusted EBIT[1] 6.4 5.4 19.1 21.7 16.7 30.0
EBIT 4.0 5.2 -22.8 13.6 -5.3 358.3
Adjusted EBIT % 1.5 1.4 1.3 1.1
EBIT % 0.9 1.3 0.8 -0.4
Loss for the period -17.8 -2.8 -544.3 -20.1 -20.7 2.9
Earnings per share, -0.10 -0.02 -544.3 -0.11 -0.11 2.9
EUR
Net cash flow from 37.5 22.9 38.7 9.6
operating
activities
Gearing, % -28.0 -12.1
Equity ratio, %[ ] 15.4 18.5
Return on capital 5.4 -1.6
employed (ROCE), %

1 Adjusting items are specified in note Adjusting items on page 20.

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 the “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 under Key financial
indicators in this Financial Statements Release.

Outlook for 2025

In 2025, the pharmaceutical distribution market is expected to continue to grow.
Value growth is expected to be driven by high-value pharmaceuticals and products
requiring advanced logistics. The uncertainty in the geopolitical environment
remains, and the availability issues of certain pharmaceuticals are expected to
continue.

Consumer confidence is expected to remain weak, which may have an impact on the
wholesale market. Typically in economic uncertainty, consumers tend to shift
purchases to low-price categories.

For 2025, Oriola expects the adjusted EBITDA excluding the Swedish dose
dispensing business to increase from the previous year (2024: EUR 33.3 million).
The expectation of improved adjusted EBITDA is based on growing markets and
strategy execution.

From the start of 2025, Oriola introduces adjusted EBITDA (earnings before
interest, taxes, depreciation and amortisation) as a new alternative performance
measure. EBITDA is widely used by management and investors when assessing the
profitability of a company and cash flow generation. Oriola publishes adjusted
EBITDA for all quarters of 2024 separately.

CEO Katarina Gabrielson:

For Oriola, 2024 was a good year and I am pleased with our accomplishments and
financial development, marked by sales growth and improved profitability.
Throughout the year we progressed well with our refined strategy. We
strengthened customer-centricity to build strong partnerships, expanded our
wholesale business and introduced new data-driven services. Additionally, we
announced a new operating model aimed to accelerate strategy execution. In 2024,
our organic net sales growth reached 3%, driven by both distribution and
wholesale. Excluding the Swedish dose dispensing business, our adjusted EBIT
exceeded previous year's level, amounting to EUR 21.6 million.

In Q4, Oriola's organic net sales growth was 3% while reported net sales grew by
14% to EUR 441 million. Adjusted EBIT excluding the Swedish dose dispensing
business was EUR 6.1 (6.2) million and reported adjusted EBIT was EUR 6.4 (5.4)
million.

The Distribution segment's organic net sales growth was 2% in Q4. Market volumes
continued to grow, although we saw significant fluctuation of volumes within the
quarter, partly due to VAT and reimbursement changes in Finland. Sales growth
and lower freight costs improved the segment's profitability, while operating
expenses were above last year due to high volumes in December. Adjusted EBIT
increased by 22% to EUR 5.9 million. In 2024, a strategic focus area within
distribution was to enhance customer-centricity through close relationships with
customers, applying a structured approach and increasing dialogue with them.
Thanks to these efforts, we retained all strategic accounts and have new
customers onboarding at the start of 2025.

In Q4, net sales in the Wholesale segment grew by 5% supported by growth both in
Finland and Sweden. Profitability improved by 10% with adjusted EBIT reaching
EUR 2.0 million. During the year - in line with our refined strategy - we built
the base to grow the wholesale business in Finland by developing our
capabilities and competences as well as by expanding our offering. This took
somewhat longer than anticipated but we achieved gradual increase and in the end
a strong Q4 with double-digit growth in key sales channels. In advisory
services, the recently launched data-driven service that provides market
insights to support pharmaceutical companies in their decision-making, quickly
gained traction among our customers.

Our strategic investment to renew Oriola's ERP (enterprise resource planning)
and WMS (warehouse management systems) has proceeded according to plan. By the
end of 2024 we completed the design phase and we will continue to work
diligently as the first deployment in Sweden approaches.

We are proud of our societal role in ensuring safe and accurate deliveries of
pharmaceuticals and other health products. Our commitment is to deliver
pharmaceuticals within 24 hours of ordering and we measure our success by the
picking quality of deliveries, which in 2024 reached 99.8%. We have decreased
Scope 1 and 2 carbon emissions by 90% from the base year 2019. Going forwards,
as part of our commitment to set science-based targets, we will expand our
emissions reporting especially for Scope 3 carbon emissions. Wholesale and
distribution typically create large amounts of waste, which is why enhancing
recycling is a critical initiative for us. In 2024, our recycling rate improved
to 85% (81%).

During 2024, the joint venture company Kronans Apotek continued to develop its
broad network of almost 500 pharmacies and enhance its e-commerce sales. With a
total market share of 21%, ranking third in size in the Swedish market and
experiencing double-digit growth in the digital sales channel, the company is
well-positioned to further improve its profitability and competitiveness in
2025. Oriola expects Kronans Apotek to reach profitability level representing
industry benchmark by 2027. The integration process has been more complex and
slower than expected, especially related to the ERP integration and organisation
setup. Kronans Apotek is a key strategic partner for Oriola, and we will
actively support its value creation as a major shareholder.

At the end of the year, we announced plans to renew our operating model and
subsequently made new appointments to our management team. The aim of these
initiatives is to further enhance customer focus, drive sales growth and
strengthen our competitiveness in a changing business environment. I am
confident that we are well-positioned to accelerate the execution of our refined
strategy, and together with our people, explore new growth opportunities and
enhance value creation to our customers and stakeholders. I would like to take
this opportunity and thank everyone at Oriola for their dedication and hard work
over the past year. I also extend my gratitude to our customers, partners and
shareholders for their continued support and trust in us.

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation's Financial
Statements Release 2024. 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 at 10.00 a.m.

Oriola's CEO Katarina Gabrielson and CFO Mats Danielsson will present the full
-year results at a live webcast meeting today at 10.00 a.m. Join the meeting:
https://oriola.events.inderes.com/q4
-2024 (https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Foriola.e
vents.inderes.com%2Fq4-2024&data=05%7C02%7Ctua.stenius
-ornhjelm%40oriola.com%7Cac7bb319868b45afb47408dd3f86f2bc%7Ccfb694d1e04b4bb5a2b59
b4f232dce87%7C0%7C0%7C638736571009917326%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGki
OnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%
7C%7C%7C&sdata=4GeUq6z7z1jOOt5P70wWmaRotL7u60KWxp%2FZXjCD0I4%3D&reserved=0)

Next financial reports

Oriola Corporation will publish its Annual Report 2024 during week 11 (latest 12
March 2025) and the Interim Report for January-March 2025 on Tuesday 29 April
2025.

Further information:

Mats Danielsson
CFO
email: mats.danielsson@oriola.com

Mikael Wegmüller
VP, Communications and Sustainability
email: mikael.wegmuller@oriola.com

Distribution:
Nasdaq Helsinki Ltd
Key media

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