Oriola-KD is a Finnish stock-listed company that operates in pharmaceutical wholesale and retail in Sweden, Finland, Estonia, Latvia and Lithuania. It has over 2,300 employees and provides pharmaceutical distribution, pharmacy services through over 300 pharmacies, and other healthcare services. Oriola-KD aims to be the leading pharmaceutical channel in Northern Europe by offering reliable delivery of medications and healthcare products, as well as digital services and expertise to consumers, pharmacies, hospitals and pharmaceutical companies. It focuses on customer satisfaction and responsibility across its supply chain.
2. 2
Table of Contents
ORIOLA-KD IN BRIEF......................................................... 2
KEY FIGURES..................................................................... 3
MISSION / VISION / VALUES.............................................. 4
VALUE CHAIN.................................................................... 5
STRATEGY.......................................................................... 6
CONSUMER BUSINESS AREA ........................................... 8
SERVICES BUSINESS AREA.............................................. 10
HEALTHCARE BUSINESS AREA.........................................12
RESPONSIBILITY..............................................................14
Oriola-KD is a Finnish stock-listed company. Oriola-KD has a solid
position in consumer and services business in the pharmaceutical
markets in Sweden, Finland and Baltic countries. Oriola-KD
improves people’s wellbeing by ensuring that pharmaceuticals
and consumer health products are delivered in a safe and
customer-friendly manner.
In its own pharmacies Oriola-KD offers expert advice on health and wellbeing, and
an extensive and high-quality selection of products. The company offers operators
in the healthcare sector an extensive selection of services. Oriola-KD provides an
effective and reliable link between pharmaceutical companies and consumers in
Sweden, Finland, Estonia, Latvia and Lithuania.
Oriola-KD Corporation was founded in 2006. The roots of the company, however,
can be traced back over a 100 years. Oriola-KD has a strong position on the Finnish
and Swedish pharmaceutical markets. In 2015 Oriola’s market share of the Finnish
pharmaceutical wholesale business was about 46 per cent, while in Sweden the
share was about 39 per cent in the pharmaceutical wholesale business and about
19 per cent in the retail business (Source: The Swedish Pharmacy Association, IMS
Health and Oriola-KD).
Oriola-KD Corporation is listed on the NASDAQ Helsinki Ltd exchange.
Oriola-KD unites consumers and
pharmaceutical companies in a unique way.
Oriola-KD in Brief
3. 3
1.6
NET SALES, EUR BILLION
2,353
NUMBER OF PERSONNEL 2,353,
OF WHOM 78% IN SWEDEN AND
22% IN FINLAND AND
THE BALTIC COUNTRIES.
311
NUMBER OF PHARMACIES, OF
WHICH 309 ARE KRONANS APOTEK
PHARMACIES IN SWEDEN AND 2 ARE
PHARMACIES IN LATVIA.
ORIOLA-KD OPERATES
IN SWEDEN, FINLAND
AND THE BALTIC
COUNTRIES.
Our Customers
CONSUMERSPHARMACIES &
HOSPITAL PHARMACIES
PUBLIC AND PRIVATE
HEALTHCARE
PHARMACEUTICAL
COMPANIES
VETERINARIANS GROCERIES DENTISTS
4. 4
Mission
THE CHANNEL FOR HEALTH
We improve people’s wellbeing by
ensuring the reliable and customer-friendly
delivery of pharmaceuticals and consumer
health products.
Vision
ORIOLA-KD IS THE
PHARMACEUTICAL CHANNEL IN
NORTHERN EUROPE.
We want to be the preferred channel
in Northern Europe connecting pharma
ceutical manufactures and consumers
by providing pharmaceutical manufacturers
and other consumer health product
producers a reliable access to the markets
and by providing consumers excellent
and reliable service.
Values
WE ARE OPEN
•
WE WORK TOGETHER
•
WE TAKE INITIATIVE
•
WE TAKE RESPONSIBILITY
5. 5
ONE FACE TOWARDS
PHARMACEUTICAL INDUSTRY
IN TOUCH WITH THE
LOCAL CONSUMER
We improve people’s wellbeing by ensuring that pharmaceuticals and consumer
health products are delivered in a safe and customer-friendly manner.
6. 6
The pharmaceutical market is undergoing a radical
change. The roles of the various operators are chang-
ing, new kinds of market participants are emerging
and consolidation is occurring in the market. Pharma
ceutical companies are specialising and are focusing
on their core businesses. Digitalisation has an impact
on all operators and the need for electronic services
is growing. These changes are increasing the demand
for new services.
The percentage of the population made up of
elderly people is rapidly growing, which is leading to
increasing healthcare needs. This change is creating
new business opportunities for both the public and
private healthcare sectors.
Oriola-KD helps consumers to improve their well-
being. In its own pharmacies Oriola-KD offers expert
advice on health and wellbeing and an extensive and
high-quality selection of products. Oriola-KD offers
an extensive range of services for operators in the
Strategy in a Changing Business Environment
healthcare sector in Sweden, Finland and the Baltic countries. The company unites
consumers and pharmaceutical companies in a unique way. Oriola-KD provides
pharmaceutical companies with an effective route to the market and promotes
people’s wellbeing by ensuring that pharmaceuticals, consumer health products
and services are delivered in a safe and customer-friendly manner.
ORIOLA-KD IS MEETING THE BUSINESS ENVIRONMENT CHALLENGES BY:
• expanding traditional pharmaceutical distribution into services for
pharmaceutical companies and the retail trade
• offering pharmaceutical companies a single point access to Nordic
pharmaceutical markets
• developing online services in its service business and as part of the strategy
for its consumer business
• offering pharmaceutical services to the healthcare sector, including hospitals
• offering an excellent customer experience and product assortment
• improving efficiency to enhance competitiveness.
People have become more interested in their own health and are living longer. They are also spending more
money on health and wellbeing. Consumers are now more demanding, are willing and able to use techno-
logy and are used to services that are available 24/7. The retail business is becoming increasingly digital, and
electronic services are becoming a necessity.
7. 7
24/7
THE HEALTHCARE
BUSINESS
Improved patient safety and
efficient and effective practices.
Optimum use of healthcare staff
time and savings in costs.
THE SERVICES
BUSINESS
Tailored customer-specific
services, a coherent service
offering and superior
customer experience.
ORIOLAKD’STARGET
THE CONSUMER
BUSINESS
Expert service, comprehensive
customer loyalty programme
and attractive product range.
Consistent service experience
from local pharmacies to online
services.
Healthcareis
changing
Specialitypharma-
ceuticalsgrowth
Digitalizationand
increasedspendingon
healthandwellbeing
Oriola-KD’s different customer groups are at the core of its updated strategy.
Tocustomers,thenewoperatingmodelwillbeevidentintheformofanimproved
customer experience and other benefits.
8. 8
Services Business Area
PHARMACEUTICAL DISTRIBUTION
AND VALUE ADDED SERVICES
Oriola-KD provides services for healthcare actors who
want to succeed in the Nordic and Baltic countries.
We have knowledge of the market from producer to
consumer. We will help our customers to serve their
customers better. With us our customers can grow,
increase profitability and reach their goals.
Oriola-KD provides a logistics network that covers
all of company’s operating countries: Sweden, Finland,
Estonia, Lithuania and Latvia. Oriola-KD provides
high quality and ensures that products are delivered
unchanged from own warehouses to pharmacies, hos-
pitals and veterinaries. Oriola-KD delivers all products
within 24 hours from the time an order is placed to
both restricted areas and to big cities around the year.
Oriola-KD provides various value added services,
Oriola+ services, for pharmaceutical companies and
pharmacies such as distribution of clinical trials med-
icines and medical samples, international sourcing
and repackaging, storage and distribution services for
marketing materials and other solutions for different
customer needs. Digital services and integration
solutions are an increasing part of Oriola-KD’s service
portfolio.
PURCHASE AND DISTRIBUTION SERVICES
OF OTC AND TRADED GOODS
In Sweden Oriola-KD offers competitive sourcing and
supply chain to pharmacy chains. Cooperation enab-
les large purchasing volumes at competitive prices.
The service covers both purchase and distribution of
traded goods and OTC pharmaceuticals.
MARKETING AND SALES SERVICES
OF TRADED GOODS
To support pharmacy sales, Oriola-KD provides a wide
range of traded goods and sales and marketing services
in Finland and in the Baltic countries. The product
portfolio includes, among others, vitamins, dietary
supplements, pharmaceutical cosmetics and wound
care products. The product selection includes leading
healthcare and wellbeing product brands, such as
exclusive brands Avène, Gefilus, Lysi and Oriola’s own
brand Pharmacare. The product selection also includes
a variety of products sold in grocery stores.
The Services business
offers tailored services
to pharmaceutical
companies, pharmacies,
hospital pharmacies,
veterinarians and
grocery stores.
Oriola-KD is a reliable and well-known partner for healthcare actors in Sweden, Finland and
the Baltic countries. Oriola-KD focuses on long-term customer relationships and wide service offering
covering pharmaceutical distribution, branded products and other tailored services.
3 Swedish
Pharmacy
Chains
utilizes Oriola’s
purchase and
distribution services
in Sweden.
11. 11
1.6 million
members
in Kronans Apotek
Customer Club.
Consumer Business Area
100% SATISFIED CUSTOMERS, EVERY DAY
Oriola-KD has a nationwide pharmacy chain Kronans
Apotek with about 310 pharmacies in Sweden and two
pharmacies in Latvia. Our strengths are skilled person-
nel and an in-depth knowledge of consumer needs.
We offer customers better health and wellness. Our
vision is to have 100% satisfied customers, every day.
We aim to provide a differentiated, modern retail
customer experience combined with expert advice
and enabled by digital services. We offer an extensive
assortment of high quality beauty and wellbeing prod-
ucts on top of a full pharmacy assortment. Our service
connects mobile, e-commerce and physical retail for
the benefit of consumers, complementing it with a
redefined loyalty program.
GROWING DIGITAL BUSINESS
The digital business is important part of Oriola-KD’s
business and the importance of the digital services will
grow. In Sweden, Oriola-KD has www.kronansapotek.se
webshop. The assortment represents Kronans Apotek’s
full product assortment, traded goods, OTC and pre-
scription medicines. For the Finnish healthcare profes-
sionals, Oriola-KD offers the www.oriolashop.fi online
shop with a wide assortment of health and beauty
products. In Latvia, Oriola-KD has an online pharmacy,
www.internetaptieka.lv. The product assortment con-
sists of OTC and traded goods. Consumers can order
products to be delivered directly home or to a chosen
delivery address. Consumers can also select to pick
up products ordered online from two InternetAptieka
pharmacies in Riga, owned by Oriola-KD.
We offer customers
better health and wellness.
Oriola-KD focuses on the needs of consumers in health and wellbeing related products and services.
Oriola-KD offers expert advice on health and wellbeing as well as an extensive and high-quality
selection of products in its own pharmacies and online.
13. 13
200,000
patients
in the Swedish dose
dispensing market.
Healthcare Business Area
Oriola-KD´s goal is to build the healthcare business
on Oriola-KD’s knowledge of market and customers,
providing new services for healthcare organizations
like clinics and hospitals.
DOSE DISPENSING IMPROVES LIFE QUALITY
Oriola-KD acquired the Swedish company Svensk Dos,
specialized in dose dispensing of pharmaceuticals, in
February 2016. Svensk Dos provides dose dispensed
medicines to 25,000 patients via extradition locations
and nursing homes in the region of Skåne and direct
to the Swedish Prison and Probation Service all over
Sweden.
An automated dose dispensing service is safe and
saves money. In Sweden, hospitals are becoming in-
creasingly interested in the service. There are 200,000
dose dispensing customers in Sweden but there
is still growth potential in the Swedish market. In
Finland, so far just under 40,000 customers are using
an automated dose dispensing service.
The percentage of the population made of elder-
ly people is rapidly growing. Many elderly people are
active and they appreciate the safety and straightfor-
wardness of dose dispensing.
Automated dose dispensing improves the pa-
tient’s life quality. The patient can always trust that he
or she gets the right medication, and the process is
simple and safe. There are also benefits for the socie-
ty: there is less waste and the prices remain lower.
E-COMMERCE FOR HEALTHCARE CUSTOMERS
Oriola-KD launched a new webshop designed for
Healthcare organizations such as veterinary clinics,
dental clinics and primary care units in Sweden in
April 2016. Through the webshop Healthcare’s Swe-
dish customers can access their unique account and
easily order pharmaceuticals, medical devices and
traded goods directly to the their clinic or pick up at
any Kronans Apotek pharmacy in Sweden.
There are many growing business opportunities in the healthcare market, such as hospital pharmaceutical
care, dose dispensing and home distribution of pharmaceuticals. Oriola-KD is investigating opportunities
for expansion into these new business areas.
The Healthcare
business offers services
to hospitals, healthcare
centres and other
healthcare operators.
15. 15
PHARMACEUTICAL SAFETY
Patient and pharmaceutical safety is the most impor-
tant requirement governing Oriola-KD’s operations.
Pharmaceutical manufacturers’ products must be deliv-
ered to patients safely, efficiently and on time, regard-
less of circumstances. Professional customer service,
pharmaceutical advice and a comprehensive product
range of a high quality are the key factors ensuring
success in Oriola-KD pharmacies.
The pharmaceutical sector is a strictly regulated
industry. Oriola-KD complies with the applicable legisla-
tion, regulations and standards in its countries of oper-
ation while at the same time pursuing the Group’s own
targets and observing its standards and procedures.
Oriola-KD has obtained the required authorisations
and environmental permits. Oriola-KD follows ethically
sound business practices.
ENVIRONMENTAL SAFETY
Oriola-KD aims to consider the environment in all its
activities and to minimise adverse environmental effects.
The most significant environmental impacts of the com-
pany’s business are associated with property upkeep,
transport of pharmaceuticals, and packaging waste.
Oriola-KD seeks to decrease the amount of pack-
aging waste from the distribution of pharmaceuticals
Responsibility
Oriola-KD has a responsible role in the pharmaceutical supply chain. Oriola-KD handles and
delivers pharmaceutical manufacturers’ products safely, efficiently and on time, and provides appropriate
pharmaceutical advice of a high quality in its own pharmacies.
Oriola-KD
handles and
delivers
pharmaceutical
manufacturers’
products safely,
efficiently and on
time, and provides
appropriate phar-
maceutical advice of
a high quality in its
own pharmacies.
by transporting medicines to pharmacies in recyclable
plastic containers in Finland and Sweden. Transporta-
tion emissions have been reduced through manag-
ing and optimising the logistics of pharmaceutical
distribution. Energy efficiency is especially considered
in projects concerning new properties, and the use of
energy is minimised.
Another important area in Oriola-KD’s environ-
mental responsibility is sorting and disposing of
pharmaceutical and other hazardous waste using the
methods approved by the authorities. At Kronans
Apotek pharmacies in Sweden, customers can return
pharmaceutical waste free of charge to collection
points at the pharmacies. Oriola-KD processes all med-
icines returned by pharmacies in a controlled manner
and disposes of them appropriately.
SOCIAL RESPONSIBILITY
Competent and contented staff constitutes the key
success factor for Oriola-KD. Continuous development
of competence and good personnel management
are therefore particularly important. Oriola-KD wishes
to create an environment for its personnel in which
working towards common targets can be performed
safely and efficiently.