Oriola Oyj — Interim / Quarterly Report 2021

Jul 20, 2021

ORIOLA CORPORATION’S HALF YEAR FINANCIAL REPORT 1 JANUARY – 30 JUNE 2021

ORIOLA CORPORATION’S HALF YEAR FINANCIAL REPORT 1 JANUARY – 30 JUNE 2021

Oriola Corporation stock exchange release 20 July 2021 at 8.30 a.m.

Oriola Corporation’s Half Year Financial Report 1 January–30 June 2021

April–June 2021 highlights

· Invoicing increased by 9.7% to EUR 984.5 (897.7) million. On a constant
currency basis invoicing increased by 5.9% and was EUR 950.6 million.
· Net sales increased by 7.3% to EUR 467.5 (435.8) million. On a constant
currency basis net sales increased by 3.3% and were EUR 450.0 million.
· Adjusted EBIT was EUR 4.1 (-0.3) million. On a constant currency basis the
adjusted EBIT was EUR 3.8 million.
· Profit for the period totalled EUR 0.9 (-1.6) million and earnings per share
were EUR 0.01 (-0.01).

January–June 2021 highlights

· Invoicing increased by 3.4% to EUR 1,927.0 (1,863.0) million. On a constant
currency basis invoicing decreased by 0.3% and was EUR 1,858.0 million.
· Net sales increased by 2.5% to EUR 917.7 (895.6) million. On a constant
currency basis net sales decreased by 1.5% and were EUR 882.1 million.
· Adjusted EBIT was EUR 4.4 (6.6) million. On a constant currency basis the
adjusted EBIT was EUR 3.9 million.
· Profit for the period totalled EUR -0.7 (3.5) million and earnings per share
were EUR -0.00 (0.02).
[][]
Key figures 2021 2020 Change 2021 2020 Change 2020
EUR million 4-6 4-6 % 1-6 1-6 % 1-12
Invoicing 984.5 897.7 9.7 1,927.0 1,863.0 3.4 3,764.9
Net sales 467.5 435.8 7.3 917.7 895.6 2.5 1,800.8
Adjusted EBIT[1] 4.1 -0.3 4.4 6.6 -34.3 21.0
EBIT 3.0 -0.2 2.5 7.2 -65.2 20.4
Adjusted EBIT % 0.9 -0.1 0.5 0.7 1.2
EBIT % 0.7 -0.1 0.3 0.8 1.1
Profit for the 0.9 -1.6 158.0 -0.7 3.5 -121.0 11.3
period
Earnings per share, 0.01 -0.01 158.1 -0.00 0.02 -121.0 0.06
EUR
Net cash flow from 28.2 8.8 14.0 8.3 58.3
operating
activities

Gearing, % 53.8 99.8 75.0
Equity ratio, % 18.0 13.3 14.8
Return on capital 1.1 3.6 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 Half year financial report.

Business outlook for 2021 remains unchanged

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 on the Q2 2021:

“Oriola’s second quarter was packed with action. While the COVID-19 pandemic
developments created still some temporary pressure, the market was recovering.
We focused determinedly on our priorities in performance improvements and
profitability while maintaining solid service levels in our operations.

The impacts of the pandemic in Oriola’s business started to ease both in Finland
and Sweden, especially towards the end of the quarter. Demand for
pharmaceuticals started to pick up, but did not yet reach the pre-pandemic
levels. Consumer activity in Sweden was also recovering with the exception of
traditionally high consumer density areas, like shopping centres, where Oriola’s
key pharmacies are located.

Oriola’s invoicing and net sales were up from the very low comparison period.
Invoicing increased by 5.9% and net sales by 3.3% in constant currency. Adjusted
EBIT increased to EUR 4.1 (-0.3) million.

For Consumer, market demand and customer traffic in pharmacies recovered
partially towards the end of the quarter. The net sales increased by 6.9% in
constant currency, driven by recovering market and continued growth in in our
strategically developing online channel. Adjusted EBIT increased to EUR 2.0
(0.3) million driven mostly by increased demand in physical pharmacies. General
cost increase impacted result negatively.

Pharma’s invoicing increased by 5.8% in constant currency with stable net sales,
driven by recovering pharmaceuticals market. Adjusted EBIT remained flat at EUR
2.2 (2.1) million. Positive volume development supported profit. Continued
operational inefficiencies caused by pharmaceuticals volume volatility and lower
performance in expert services impacted profit negatively.

Retail’s net sales increased by 3.1% in constant currency. This was driven by
growth of patient volumes in dose dispensing and increased sales volumes,
especially for parallel import and e-commerce customer companies in Sweden.
Adjusted EBIT increased to EUR 2.0 (-0.3) million, driven mainly by the
continued strength in dose dispensing business.

Oriola’s 2021 prioritities are set by Focus21, our short-term initiative that
steers the 2021 activities to reach business and performance goals for the year.
This initiative is central to Oriola’s leadership and is progressing well. In
Q2, it included e.g. continued significant simplification of our project
portfolio as well as operational efficiencies, such as closing down a service
centre in Ljusdal, Sweden. Additionally, in Q2 it included measures to steer our
long term development. For example, Oriola sold part of its shareholding in
Doktor.se for approximately SEK 340 million, capturing significant value
increase for the ownership. This also improved net cash flow by EUR 32.8 million
in the quarter, and increased equity significantly.

People at Oriola are relentlessly at work to achieve results. Our operational
performance has consistently improved and customer feedback is positive,
especially in Finland. Within the coming quarters, the pace of action will
continue to increase with Oriola’s new President & CEO Elisa Markula joining the
company on 9 August 2021. I am inspired by our upcoming co-operation with Elisa
and together we will steer a seamless handover with consistently strengthening
Oriola’s turnaround focus.”

Disclosure procedure

This stock exchange release is a summary of Oriola Corporation’s Half Year
Financial Report January­­–June 2021. 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 Tuesday, 20 July 2021 at 10.00 a.m. The event can be followed
as a live-webcast accessible through this link:  https://oriola.videosync.fi/q2
-2021. The event will be arranged only as a webcast.

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
www.oriola.com/

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