Presentation: Sale of Oriola-KD Russian operations 8 December 2014
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Oriola-KD Corporation sold its Russian businesses to a Russian pharmacy chain for RUB 3,700 million (EUR 56 million). The sale allowed Oriola-KD to classify the Russian businesses as discontinued operations and recognize an estimated loss of EUR 26 million. Oriola-KD will now focus on continuing operations in Sweden, Finland, and the Baltics, which have shown stable performance and positive development.
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Presentation: Sale of Oriola-KD Russian operations 8 December 2014
- 1. Oriola-KD Corporation 8.12.2014 Sale of Oriola-KD Russian operations Tuomas Itkonen CFO December 8, 2014
- 2. Oriola-KD Corporation 2 •Oriola-KD Corporation sells its Russian businesses to Russian pharmacy chain CJSC Apteki 36.6 •The cash and debt free selling price is RUB 3,700 million, equivalent to approximately EUR 56 million. Whole consideration has been received as cash. •Oriola-KD classifies Russian businesses in accordance with IFRS 5 as a discontinued operation, and recognizes estimated loss of EUR 26 million. Oriola-KD Corporation sells its Russian businesses
- 3. Oriola-KD Corporation 3 Discontinued Russian Operations
- 4. Oriola-KD Corporation Discontinued Russian Operations •Wholesale operations •Nationwide distributor covering major regions of Russia. •Central distribution center and head office in Moscow, 12 regional branches. •Retail operations •At the end of September 2014, 229 pharmacies operating under two major brands Stary Lekar and 03 Apteka.
- 5. Oriola-KD Corporation 5 •Decision to sale Russian businesses was based on estimated outlook on •Overall development trend of Russian pharmaceutical markets. •Current and future competitive environment in both pharmaceuticals wholesale and retails markets. •Updated estimate on future profitability development potential of the Russian businesses. Continued poor performance of Russian operations Operating profit excluding non-recurring items
- 6. Oriola-KD Corporation 6 Oriola-KD Continuing Operations
- 7. Oriola-KD Corporation 7 Oriola-KD continuing operations Employees (Sep 30, 2014) 2.300 employees •Sweden 78 % •Finland & Baltics 22 % Retail business (Sep 30, 2014) 303 pharmacies •Operating under Kronans Apotek –brand in Sweden Wholesale business 3 central warehouses •Central warehouses in Mölnlycke, Espoo, and Vilnius Net sales 2013 EUR 1.6 billion •Sweden 74 % •Finland & Baltics 26 %
- 8. Oriola-KD Corporation 8 Stable Performance in Finland and Baltics •Strong position in Finnish pharmaceutical wholesale market. •Efficient and reliable logistics. •High-quality added-value services. Pharmaceutical Trade Finland and Baltics Operating profit percentage for Finland and Baltics 1-9 2014 4,7 % Operating profit Operating profit january – september
- 9. Oriola-KD Corporation 9 •Strong pharmacy and product portfolio. •Continued strong profitability development. Positive development in Swedish retail business Swedish pharmaceutical retail Kronans Apotek pharmacies 30 September 2014 303 Operating profit excluding non-recurring items Operating profit % excluding non-recurring items
- 10. Oriola-KD Corporation 10 •Positive development of operating profit driven by increased volumes and actions targeting to improve operational efficiency. Strong development of Swedish wholesale business Swedish pharmaceutical wholesale Operating profit excluding non-recurring items Operating profit % excluding non-recurring items Parallel imports share of the Swedish pharmaceutical 30 September 2014 14,5 %
- 11. Oriola-KD Corporation 11 Oriola-KD Continuing Operations Financials July – September 2014
- 12. Oriola-KD Corporation 12 Oriola-KD Continuing Operations EBIT (excluding non-recurring items) EBITDA (excluding non-recurring items) Net Sales Pro Forma
- 13. Oriola-KD Corporation 13 Oriola-KD Continuing Operations Profit for the period Dividend and Earnings per Share Dividend Repayment of Capital Earnings per Share Pro Forma
- 14. Oriola-KD Corporation 14 EUR milloin 2014 Q3 2013 Q3 Change % 2014 1-9 2013 1-9 Change % Net sales 389,8 411,6 -5,3% 1 194,6 1 209,9 -1,3% EBITDA excl. non-recurring items 22,0 17,8 23,6% 60,5 38,5 57,1% EBITDA 21,9 15,8 38,7% 59,5 32,5 83,0% Operating profit excl. non-recurring items 16,3 12,5 30,6% 44,0 25,5 72,6% Operating profit 16,3 10,5 54,7% 42,9 19,4 120,7% Profit for the period 8,3 4,9 69,4% 25,5 9,6 166,3% Oriola-KD Continuing Operations Pro Forma
- 15. Oriola-KD Corporation 15 Outlook for 2014 •Revised outlook on December 8th, 2014 •Oriola-KD estimates that net sales from continuing operations will be at the level of 2013 and operating profit excluding non- recurring items from continuing operations will increase from 2013 level. •Previous outlook on October 23rd, 2014 •Oriola-KD estimates that net sales and operating profit excluding non-recurring items will decrease from 2013 level.
- 16. Oriola-KD Corporation Thank You