Oriola-KD Corporation 1 ORIOLA-KD’S CAPITAL MARKETS DAY IN STOCKHOLM 9 SEPTEMBER 2015
Oriola-KD Corporation 2
9.30 - 10.20 Oriola-KD’s updated strategy and new operating model Eero Hautaniemi, President and CEO
10.20-11.00 Consumer Business Area Lars Birkeland, Vice President, Consumer Business
11.00-11.15 Coffee break
11.15-11.45 Services Business Area Kimmo Virtanen, Executive Vice President, Services Business
11.45-12.15 Healthcare Business Area Thomas Gawell, Vice President, Healthcare Business
12.15-12.30 Break
12.30-12.45 New long-term financial targets Sari Aitokallio, CFO
12.45-13.00 Wrap-up
13.00-14.00 Lunch & Discussion
14.00-15.00 Pharmacy visit
Agenda
Oriola-KD Corporation 4
Pharmaceutical Market Undergoing Many Changes
• Moderate market growth supported by change in demographics
• Sales of specialty products growing faster than the total market
• Growing share of pharmaceuticals routed through hospitals
• Increased volume of generics in all markets
• Growing importance of OTC, traded goods and services
• Increasing spending on health and wellbeing in general
• Digitalization: mHealth and E-health important future trends
• Consolidation of pharma companies continues with fast pace
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Global Sales Estimated to Grow 3-6 % p.a. Until 2019
• Total global spending on drugs will reach USD 1.3 trillion by 2019
• 2014 growth supported by new expensive prescription medicines
Source: IMS Health
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Moderate Market Growth in Oriola-KD’s Main Markets
Estonia Lithuania Latvia
Baltics growth rate
Sales Sales
US
D m
illi
on
US
D m
illi
on
US
D m
illi
on
Source: IMS Health, 1) IMS Health, September 2014
Growth rate Growth rate
SWEDEN
2015 - 2019 CAGR 1-4 %
FINLAND
2015 – 2019 CAGR 2-5 %
BALTIC COUNTRIES
2013 – 2018 CAGR 3-5% (1
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Sales of Specialty Products Growing Faster than Total Market
Traditional Specialty
Historical value growth CAGR 2005-2014
Val
ue
mar
ket
shar
e 2
01
4
Source: IMS Health
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Fastest Growing Corporations are Focused on Specialty
TOP GLOBALLY TOP SPECIALTY TOP GENERICS
Source: IMS Health, Oriola-KD
Oriola-KD distribution, Finland Oriola-KD distribution, Sweden
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Growing Share of Pharmaceuticals Routed Through Hospitals
• Many European
countries distribute products through the hospital channel due to: • Medical need • controlling
prescribing, • avoiding
wholesaler & pharmacy margins
• ability to negotiate discounts
Source: IMS Health
Historical value growth CAGR 2005-2014
Val
ue
mar
ket
shar
e 2
01
4
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Increased Share of Total Volume for Generics in All Markets
Depending on market, ~90% of volume is off-patent Source: IMS Health
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Generics Volume Growth is Expected to Outpace Market
• Volume growth is driven by: • Increasing number of patients • “Catch-up” in many markets • Impact of policy shift
• Regulated prices is expected to decrease in most markets
Evolution of therapy volume, price of treatment and overall treatment cost in 7 therapy areas, Rx
retail market from Q1 2005-Q4 2014, Normalized to population growth
Source: IMS Health
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Increasing Spending on Health and Wellbeing
• Consumer Health
represents over 10% of the total Pharmaceutical business globally
• At EUR 81 billion OTC continues to grow while Pharma growth improves
Source: IMS Health
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Digitalization Drives Changes Across the Entire Value Chain
Sweden and Finland Other Markets
Pharmaceutical wholesale and retail sector
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M&A Continues with a Fast Pace With Potential Impact on Distribution Channels
• Pharmaceutical
companies are focusing on key strategic areas
Source: IMS Health
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Downward Pressure on Pricing and Margins Due to Regulatory Measures
The pharmaceutical wholesale prices cut by 5%
5% price reduction re-applied
A 48M€ cost reduction announced
The prices for off-patent pharmaceuticals reduced in the generics price model
Prices reduced by 7,5 % for over 15 years old pharmaceuticals without generic competition
Price cut for over 300 pharmaceuticals as they pass the 15 years’ line (TLV)
2002
2006
2014
2016 2013
2015
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Channel distribution
Market Regulation Varies Between Countries
Single channel / DTP distribution Multichannel wholesale, pre-wholesale has an important role
Sales outside of pharmacies mainly not allowed
Sales outside of pharmacies partially allowed
Allowed for prescription (Rx) and prescription-free (OTC) pharmaceuticals
Varies by country
Not allowed Allowed
Free establishment Regulated establishment Pharmacy establishment
Pharmacy chain
operations
Pharmacy online sales
Sales of OTC
Allowed
SWEDEN FINLAND BALTICS
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Competing with Very Big Global Companies
North America, Brazil and 13 countries in Europe
North America and 13 (25) countries in Europe
Global sourcing, distribution, and services
in partnership with
25 countries in Europe
5 countries in Europe
€150 B
€110 B €110 B
€22 B
€1.6 B
SALES MARKET AREA COMPETITORS
( (
Source: Compay filings
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Solid Position in the Present Market Area
MARKETS COVERED BY THE BIG THREE:
One present
Two present
All three
market
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Retail
Pharmacy transformation toward retailing
Differentiate by great customer experience & assortments
Strategic Responses to Changes in Business Environment
Boundaries
Consolidation
Digitalization
Healthcare
Margins
Consolidation creates stronger,
multinational companies
Operate across borders and
provide pharma companies single point access to
Nordics
Drives changes across the entire
value chain
Enhance digital capabilities in
service design & delivery.
Deploy digital consumer strategy & solutions
Healthcare B2B and Homecare
B2C markets are growing
Enter the market in hospital
services and niche markets
Competition and regulation keeps putting pressure
on margins
Efficiency programs to
improve competitiveness
Boundaries in pharma value
chain are shifting
Shifting from traditional
wholesale to pharma company & retail services
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Demand-supply chain management
Logistics operations
Services Kimmo Virtanen
Consumer Lars Birkeland
Healthcare Thomas Gawell
Pharma distribution Pre-wholesale
Oriola+ services
Hospital services Dose dispensing
B2B delivery
Services for pharmacies
Brands
Pharmacies
eBusiness Consumers
Pharmacies
Groceries
Public & Private Healthcare
Dentists
Pharma companies
New Operating Model Will Allow Oriola-KD to Provide Better Services for Customers
Veterinarians
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Indicative Distribution of Net Sales and Operation Profit
~38 % ~62 %
~53 % ~47 %
Net Sales 2014 EUR 1,612.3 Million
Operating profit excluding non recurring items 2014 EUR 59.1 Million
Consumer Business Area Services Business Area
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Investments to Improve Operational Efficiency
• To support the new strategy Oriola-KD will invest
EUR 20 million into Group’s IT systems and the logistics centre in Finland • Improving operational efficiency • Strengthens company’s market position • Will be realized over 2015 – 2018
• Further investments into Swedish supply chain
channel efficiency under investigation
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Group Goals for 2015 - 2020
• Developing the new channels to better fulfill
customer needs, including digital solutions • Leverage the synergies in the group across the markets to
grow consumer business • Transforming the traditional wholesale business towards a
pharmaceutical services provider • Entering the growing niche markets in B2B healthcare
• Implementing common solutions, common processes and improving our value chain efficiency: supply chain, logistics, and information management
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Summary
• Oriola-KD has solid position in consumer and
services business in the pharmaceutical markets in Sweden, Finland and Baltic countries
• With the new strategy and operating model • We can even better respond to market changes and our
customers’ needs • Provide better services to customers • Improve efficiency by streamlining operations and
unifying processes
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Consumer Lars Birkeland
Pharmacies
eBusiness Consumers
Pharmacies
Groceries
Public & Private Healthcare
Dentists
Pharma companies
Strong Position in Consumer Market
Veterinarians
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• Line between retailers and pharmacies is fading • Pharmacies transforming toward retail • Assortments extended
• Growth and ageing population drives demand for RX • Continued downward pressure on pricing and margins of RX driven by
austerity measures • Role of county councils and TLV drives structural changes in RX • OTC and traded goods penetration still underdeveloped in Sweden • Digital drives changes across value chain
• Customers expectations and requirements change rapidly • Digital buzz drives innovation • New players enter the market
Market Trends
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5.3
2.4
1.60.3
+85
65-84
45-64
<45
0
2,000
4,000
6,000
8,000
45-4
9
50-5
4
55-5
9
60-6
4
65-6
9
70-7
4
75-7
9
80-8
4
85+
5.7
2.5
1.80.3
9.7
10.0
10.110.3
2014E 2016E 2018E 2020E
Demographics Drives RX Demand in Sweden
...and the elderly use
significantly more pharmaceuticals
Population (millions)
Defined Daily Dose (DDD) Rx use /1,000 inhabitants/day (2013)
Population (in millions and CAGR)
...and getting older...
’13-’20 growth (CAGR)
+0.8%
+0.6%
+1.8%
+0.5%
<45
45-64
65-84
85+
The Swedish population is
growing...
2020E 2013
Source: SCB. The National Board of Health and Welfare
Price drivers • Relatively benign patent expiry
profile going forward • New launches of high priced
drugs support average prices • Eroding prices through LIF
agreement, effect to the industry limited given pharmacy remuneration model
• Unpredictable price cuts on individual products
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34
36
40
41
49
50
52
59
63
71
77
83
89
92
96
116
145
Spain
Portugal
UK
Nether.
Denmark
Sweden
Greece
Norway
Ireland
Luxem.
Austria
Italy
France
Finland
Germany
Belgium
Switz.
OTC Spending in Sweden Below EU Average OTC penetration in different European markets
Average: EUR 71
OTC spending per capita (EUR)
GDP-adjusted average: EUR 84
Source: IMS OTC Global Analysis, February 2013. Sweden adjusted to include OTC sales in non-pharmacy channel (unadjusted figure is EUR 41).
Top line drivers going forward • Strong self medication trend
• Sales initiatives and promotion
• Expanded and improved customer offerings
• Regulatory changes to paracetamol retailing expected to benefit pharmacy sales and customer flows
• Favorable demographics for pharmaceuticals benefit also OTC
Margin drivers • Assortment management an
underused lever – significant margin potential from “generic OTC” promotion
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17% 17%18%
20%
21%
23% 23%24% 25% 24% 24%
2004 2006 2008 2010 2012 2014
International Examples Clearly Illustrate The Potential in Traded Goods
(UK)
10% 12% 13% 13% 15%
2010 2011 2012 2013 2014
21%24%
50%
Tyskland Norge Boots (UK)
Source: Swedish and Norwegian Pharmacy Association, KPMG, Alliance Boots.
Traded goods sales as % of pharmacy sales
Development in Sweden
since de-regulation
Strong traded goods development in Norway following de-regulation
2014 2014 2014
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0
50
100
150
200
0,100
0,105
0,110
0,115
0,120
Q2'
12
Q3'
12
Q4'
12
Q1'
13
Q2'
13
Q3'
13
Q4'
13
Q1'
14
Q2'
14
Q3'
14
Q4'
14
Q1'
15
EU
R m
illio
n
SEK
/EU
R
Price Reductions and Currency Rate are Main Drivers for Parallel Import
0
200
400
600
800
70%
75%
80%
85%
90%
95%
100%
105%
110%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
EUR
mill
ion
SEK
/EU
R n
orm
aliz
ed
Source IMS MIDAS Data and Oanda
Sweden PI sales
SEK/EUR normalized 2003=100%
Sweden PI sales
SEK/EUR
Price cuts effect PI sales PI sales trend is mirror effect of currency fluctuation
7.5% price cut
7.5% price cut
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0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Rx OTC Traded goods
Pharmacy market development in Sweden (SEKbn)
2%
7%
12%
‘04-’14 CAGR
OTC
30 - 80 %
RX
12 - 22 %
Traded goods
35 - 80 %
Growth potential Gross margin
range
Strong development potential in Swedish traded goods channel - international benchmarks supports further growth
Swedish OTC spending per capita still significantly below western Europe average
Growing and ageing Swedish population
Overall Strong Underlying Market Dynamics
Source: Swedish eHealth Agency , Swedish Pharmacy Association and Apoteket Omstrukturering AB
CAGR 3 %
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Stable Position in Swedish Retail Market
Market Share June 30, 2015
Pharmacies June 30, 2015
Apotek Hjärtat & Cura
Apoteket
Apoteksgruppen
LloydsApotek
Others
380
377
304
166
79
Apoteket
Apotek Hjärtat & CURA
Apoteksgruppen
LloydsApotek
Established net 1-6/2015
Source: Apoteksförening and Oriola-KD
37
-1
-4
Oriola-KD Corporation 37
Kronans Apotek Brand and Concept Evolution
ORIGINAL CONCEPT 2010-11 UPGRADE 2012-13 NEW CONCEPT 2014
Business focus: • RX driven & health care • Traditional assortment Brand promise interpretation: ”Pharmaceuticals since 1907” Establishment focus: close to health care centers
Business development: • Extension of branded skin and
health products • Journey towards “shoppers” started
Business focus: • Embracing wellbeing and beauty
for future growth • Guarding position in RX Brand promise: ”Your wellbeing – our concern” Establishment focus: Modern shopping centers and urban areas
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Strong Market Position
Strong positon in RX, Health & Beauty
• Additional services regarding
Asthma, KOL, Diabetes Over 1.5 million
members in the customer club
Wide assortment and services
• Premium Skin Care • Premium Beauty
Increased assortment in Health
• Additional categories
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Case: New Care & Beauty Concept
New premium concept, 4-500 sqm, emphasizing skin care and beauty , with warm exclusive look and feel, rx and traditional pharmacy products towards the rear
Dedicated floor/wall space for premium brands
Treatment room for skin care treatments and consultations
New interiors and surfaces for campaigns and impulse
All skin care and beauty brands presented in dedicated brand
spaces
Introducing leading premium beauty brands for the first time in
pharmacy channel such as Biotherm, Clarins, Clinique,
Dermalogica
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New Concepts Support Growth Potential in OTC and Traded Goods
Share of OTC and TG from total sales Oriola-KD, Swedish retail business
OTC & TG total Traded goods OTC
• Increased sales of the new and expensive prescription medicines have effected relative share of OTC/TG sales in 2015
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Optimize IT to continually adapt to
the needs of a “Digital Business”
• Innovate & adapt
VISION
START
Store
Digital
Analytics
Core IT
Business
• Building the foundation
Digital metrics
Digital experience
Continue to refine seamless digital shopping
experience
Streamline digital experiences with enhanced personalization and real-
time business optimization
Seamlessly, leverage data, in real time, across
multiple channels and touch points
Sales force
Digital store experience
Digitally enabled employees
Evaluation of current data capture
Innovation and cross-channel cooperation Digital
organization Success metrics
New analytic tools
Real-time analytics and insights
Seamless online and mobile experience
Integrated social channels
Personalization
Information model
Modular IT infrastructure
Solid vendor network
Agile and customer centric projects
Lead a Seamless Digital Business
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Oriola-KD’s eCommerce Portals
KronansApotek.se • Full range online pharmacy
to be launched in Sweden September 2015
OriolaShop.fi • Web shop for healthcare
professionals in Finland with wide assortment of traded goods
InternetAptieka.lv • Online pharmacy in Latvia
with product assortment of OTC and traded goods
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Other sector
Competition in Digital Beyond Market and Sector
Sweden and Finland Other Markets
Pharmaceutical wholesale and retail sector
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• Digital presence will be enhanced and strengthened to • improve brand image • leverage physical and digital • support existing and new business • increase profit and productivity
• Digital transformation requires • a change from a product- or feature–focused approach to a consumer- and
shopper-focused approach across channels • establishing integrated processes • organizational structures, goals and incentives around value positions that
cut across all channels
• This is done through • understanding customer behavior • designing the customer experience from the outside-in • developing rewarding and social media experience • seamlessly combining the physical and digital experience
Digital Consumer Strategy Strengthens Brand Positioning, Customer Loyalty and Profitability
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• The Consumer business area focuses on the needs of consumers’ health and wellbeing related products and services.
• Ensuring professional customer handling in our own pharmacies and in
the digital channel • Building a health and well-being concept and widening the product range • A comprehensive selection of RX medicines • Developing pharmacy chain and customer loyalty program • Growing the online business in all operating areas
Going Forward
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Services Kimmo Virtanen
Pre-wholesale Pharma distribution
Oriola+ services
Services for pharmacies
Brands
Consumers
Pharmacies
Groceries
Public & Private Healthcare
Dentists
Pharma companies
Pharmaceutical Distribution, Branded Products and Tailored Services
Veterinarians
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• Value chain boundaries & roles are shifting • Continued shift in business model away from full line wholesale toward services and
integrated retail
• Consolidation creates stronger pharmaceutical companies with more purchasing and bargaining power • Distribution margins under pressure
• Centralization impacts B2B decision making • Pharma companies streamline local operations, and move toward centralized
country clusters • Commercial negotiations & contracts move partly beyond country level • More demand for services in local markets
Market Trends
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Channel distribution
Market Regulation Varies Between Countries
Single channel / DTP distribution Multichannel wholesale, pre-wholesale has an important role
Sales outside of pharmacies mainly not allowed
Sales outside of pharmacies partially allowed
Allowed for prescription (Rx) and prescription-free (OTC) pharmaceuticals
Varies by country
Not allowed Allowed
Free establishment Regulated establishment Pharmacy establishment
Pharmacy chain
operations
Pharmacy online sales
Sales of OTC
Allowed
SWEDEN FINLAND BALTICS
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Solid Position in Selected Markets MARKET SHARE
TG/OTC for pharmacies in Sweden
39%
Sweden
46.3%
Finland
MARKET SIZE (BEUR) AND GROWTH
0
1
2
3
2015-2019 CAGR 1-4 %
2014
0
1
2
3
SWEDEN
2014
32%
0
1
2
3
2014
Source: IMS Health, Apoteksförening and Oriola-KD
2015-2019 CAGR 2-5 %
FINLAND
2013-2018 CAGR 3-5 %
BALTICS
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Reliable and Well-Known Partner for Healthcare Actors
Pre-Wholesale Retail Distribution
Man
ufa
ctu
rers
Dentists Grocery stores
Hospitals
Rx
OTC Pharmacies
Veterinaries Traded Goods
Small retail
Con
sum
ers & P
atients
Oriola-KD Corporation 53
Long-Term Customer Relationships and Wide Service Offering
Services in
Sweden
Services in
Finland
Services in
Baltics
Services for Pharmacies
Brands
Logistic Services Warehousing & Pre-wholesale Pharma distribution
Oriola+ Services: Additional Logistics Services Information Services Sales and Marketing Services Professional Services
Services for Pharma Companies Services for Retail
Services for Pharmacies
Unlicensed Medicines
Own Brands
Exclusive Products
Other Products
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Case: Close Partnership with Orion Includes Wide Range of Value Adding Services
Warehousing and distribution
Sales and Marketing Services
Oriolashop.fi for non-medicinal products
Professional services Information services
Additional logistics services
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Case: Centralized Sourcing Services for Pharmacies in Sweden
• Cooperation with pharmacy chains
enables large purchasing volumes with competitive pricing • Pharmacies in the cooperation represent 32
% of the OTC and traded goods sales in Sweden (Source: Apoteksföreningen, June 2015)
• Purchase and distribution of traded goods and OTC pharmaceuticals
• Pharmacy chains are in charge of assortment decisions
Competitive sourcing and supply chain
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Case: Marketing and Distribution of MSD Products in Baltic Countries
• MSD sales and marketing personnel in Baltic coutries outsourced to Oriola-KD
• Distribution of MSD products to all Baltic countries centrally from Lithuania by Oriola-KD
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Oriola-KD’s product selection includes leading healthcare and wellbeing brands
Strong Brands in Selected Categories
Lysi Gefilus Apteekkarin
Dexal
Pharmacare
Avène
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• Oriola 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 you serve your customers better. • With us you can grow, increase profitability and reach your goals.
Value Proposition
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• The Services business area offers tailored services to pharmaceutical companies, pharmacies and other customer groups.
• Creating loyalty and winning new customers • Growing services and creating common service concepts • Improving digital customer experience • Growing the sales of branded products • Investment programs to logistics and IM capabilities to improve
competitiveness
Going Forward
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Healthcare Thomas Gawell
Hospital services Dose dispensing
B2B delivery
Consumers
Pharmacies
Groceries
Public & Private Healthcare
Dentists
Pharma companies
Growing Business Opportunities in Healthcare Market
Veterinarians
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• Healthcare market is growing in hospital care and specialty pharma • Most specialty products are delivered to patients in hospital setting • Market growing for expensive products – increasing part of the total
volume • Manufacturers are seeking to bypass the traditional distribution – direct-to-
hospital • The lines between in-patient care and out-patient care are slowly being
erased, Homecare is the future • Some niche markets are growing fast, e.g. veterinarian clinics & adjacent
pet food market
Market Trends
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Market segments
Fragmented Swedish Market with Several Small Actors
Actor Revenue 2014 (2013*) BSEK
Hospital Services Dose Veterinary Dental Specialty
Home delivery
18.6
11.7
6.8 () (pharmacies)
() (pharmacies)
1.5 (Secondary care)
0.1*
0.6
0.1
0.1*
0.1*
1.4* () (Utilities)
2.1* () (Utilities)
n/a
Source: Companay filings, Oriola-KD
Oriola-KD Corporation 64
Dose dispensing • ~185 000 patients, annual medicine costs over 2 x average patient • County councils pay 0,1 - 0,5 EUR per patient/day for packaging • Secondary care dose dispensing growing
Vet market: pets & agricultural • Veterinarians, pet-owners and farmers demand online, digital and home
deliveries • Market consolidation through M&A’s by PE-companies • Vet clinic chain “tenders” worth ~7,2 MEUR coming up for competition in 2016
B2B Hospital services • Distribution, production (extempore) and pharma specific services for public &
private customers
B2B Specialty / Medical device market • County councils procure products & distribution of medical devices (e.g.
Dialysis) and nutrition • Growing segment
Relevant Market Segments For Healthcare in Sweden
~230 M€
~95 M€
~60 M€
N/A
Source: IMS Health, Public procurement material, Press releases, Oriola-KD
Market size estimate
Oriola-KD Corporation 65
In-Patient Market – Several Contracts up for Renewal
County Councils 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Gotland 3 + 2 years
Blekinge In house
Kalmar 3 + 2 years
Kronoberg 3 + 2 years
Skåne 4 + 2 years
Västmanland 3 + 3 years
Östergötland 4 + 2 years
Västra Götaland & Halland 4 + 3 years
Jönköping In house
Dalarna 3 + 0 years
Värmland 3 + 2 years
Gävleborg 3 + 2 years
Stockholm 4 + 2
Uppsala 3 + 3 years
Västerbotten 5 + 2 years
Västernorrland 5 + 2 years
Norrbotten 5 + 2 years
Jämtland 5 + 2 years
Södermanland 3 + 1 years
Örebro 3 + 2 years
Apotek Hjärtat Apoteket AB Apotek Hjärtat & Apoteket AB Apoteket AB & APL Apoteket AB, ApoEx & APL
In house
Market size
• Annual service contract value of ~SEK 0.5bn and pharma products turnover of approximately ~7bn
Other potential
• Private hospitals
• The Armed Forces
• Correctional facilities
• Veterinary hospitals
Source: Public procurement material, Press releases
Oriola-KD Corporation 66
• The Healthcare business area offers services to hospitals, healthcare centres and other healthcare sector operators
• Several potential business opportunities in the Swedish healthcare
market: • Hospital pharmaceutical care • Dose dispensing • Home distribution of pharmaceuticals
Going Forward
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• Business growth at the rate of the market
• Annual EPS growth over 5 per cent without non-recurring items
• Return on capital employed of over 20 per cent
• Adjusted gearing ratio of 30-60 per cent*
• Dividend policy • Oriola-KD's aim is to pay out an increasing annual dividend of at least 50 per cent of its
earnings per share *Non-recourse trade receivables are added to the net debt
New Long-Term Financial Targets
Oriola-KD Corporation 69
• Pharmaceutical market growth is expected to continue • Finland 2-5 % (CAGR 2015 – 2019) • Sweden 1-4 % (CAGR 2015 -2019)
Business Growth at the Rate of the Market
CAGR 1,5 %
Invoicing, Wholesale Sweden and Finland Net-Sales, Retail Sweden
Source: IMS Health
CAGR 11,4 %
Oriola-KD Corporation 70
Annual EPS Growth Over 5 % Without Non-Recurring Items
Invoicing, Wholesale Finland
Operating profit % (of invoicing), Wholesale Sweden Operating profit % (of invoicing), Wholesale Finland Invoicing, Wholesale Sweden
Invoicing, Wholesale Sweden and Finland Net-Sales, Retail Sweden
Operating profit % (of net-sales), Retail Sweden
Oriola-KD Corporation 71
• To support the new strategy Oriola-KD will invest EUR 20 million into Group’s IT systems and the logistics centre in Finland • Improving operational efficiency • Strengthens company’s market
position • Will be realized over 2015 – 2018
• Further investments into Swedish supply chain channel efficiency under investigation
Return on Capital Employed of Over 20 %
Return on Capital Employed
* Continuing operations
Oriola-KD Corporation 72
• Adjusted gearing: The non-recourse trade receivables are added to the Net Debt.
• In order to mitigate refinancing risk Oriola-KD’s external funding is diversified into different sources and maturities.
• Majority of the sold receivables are related to trade receivables from Swedish county councils and Apoteket AB.
Adjusted Gearing 30 – 60 %
Interest bearing Net Debt Sold receivables Adjusted gearing
Adjusted Net Debt
Oriola-KD Corporation 73
• Oriola-KD's aim is to pay out an
increasing annual dividend of at least 50 per cent of its earnings per share
Dividend Policy
0,11 0,15 0,11
0,29
0,08 0,09
0,00
0,05
0,10
0,15
0,20
0,25
0,30
0,35
0,40
2011 2012 2013 2014
EUR
1)
1)
Dividend Return of Equity Earnings per Share
1) Earnings per share including discontinued operations was EUR -1.42 (0.04)
Dividend and Earnings per Share