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Oriola-KD Corporation's Financial Statements for 1 January - 31 March 2011
28.4.2011
Oriola-KD Corporation Stock Exchange Release 28 April 2011 at 8.30 a.m.
This review presents financial information on the continuing operations of the
Oriola-KD Group (hereinafter Oriola-KD) for January-March 2011. The interim
report for 1 January-31 March 2011 has been prepared in accordance with the
calculation principles of the IAS 34 standard. Oriola-KD adopted new IAS/IFRS
standards in 2011: IAS 32 (amendment), IAS 24 (revised) and IFRIC 14
(amendment). The figures are unaudited.
Key figures for 1 January - 31 March 2011
* Net sales increased by 27.5 per cent to EUR 530.1 million (Q1/2010: EUR
415.7 million).
* Operating profit increased to EUR 5.0 million (Q1/2010: EUR 1.3 million).
* Net profit was EUR 2.1 million (Q1/2010: EUR 0.4 million)
* Earnings per share were EUR 0.01 (Q1/2010: EUR 0.00)
* Net cash flow from operations was EUR -22.5 million (Q1/2010: EUR 30.1
million).
* Return on equity was 2.4 per cent (Q1/2010: 0.6 per cent).
* No change in the outlook for the future: Oriola-KD's net sales is expected
to be higher and operating profit from continuing operations excluding one-
off items clearly better than in 2010.
President and CEO Eero Hautaniemi: "Oriola-KD's net sales and operating profit
for the first quarter increased on the corresponding period of the previous
year. Business operations in Finland and the Baltic countries developed
favourably. Competition in the retail business in Sweden and in business
operations in Russia continued to be stiff and the profitability of these
business operations did not reach a satisfactory level."
Financial performance
Oriola-KD's net sales in January-March 2011 were EUR 530.1 million (EUR 415.7
million) and operating profit was EUR 5.0 million (EUR 1.3 million). Profit
after financial items came to EUR 3.0 million (EUR 0.5 million) and net profit
to EUR 2.1 million (EUR 0.4 million). Earnings per share were EUR 0.01 (EUR
0.00).
Oriola-KD's financing expenses in January-March 2011 were EUR 2.0 million (EUR
0.9 million). Taxes amounted to EUR 0.9 million (EUR 0.1 million). Taxes
corresponding to the result for January-March 2011 are entered under this
figure.
Return on equity was 2.4 per cent (0.6 per cent) in January-March 2011.
Balance sheet, financing and cash flow
Oriola-KD's balance sheet total on 31 March 2011 stood at EUR 1,227.7 million
(EUR 1,106.8 million). Cash assets were EUR 136.3 million (EUR 56.5 million),
equity was EUR 362.1 million (EUR 264.7 million) and the equity ratio was 30.2
per cent (24.6 per cent).
Interest-bearing debt at the end of March 2011 was EUR 153.1 million (EUR 214.3
million), interest-bearing net debt was EUR 16.9 million (EUR 157.8 million) and
the gearing ratio was 4.7 per cent (59.6 per cent). Interest-bearing debt
consists of long-term debt financing, advance payments from pharmacies in
Finland and the estimated discounted value of the minority share of the Swedish
pharmacy company that Oriola-KD is obliged to acquire. Oriola-KD has hedged the
interest rate risk of the long-term debt financing.
Oriola-KD's committed long-term credit facilities of EUR 103.6 million and EUR
42.4 million in short-term credit account facilities with banks stood unused at
the end of the review period. Oriola-KD's EUR 150 million commercial paper
programme was not in use at the end of the review period. The terms of the
financial covenants were met with a wide margin at the end of March 2011.
Net cash flow from operations in January-March 2011 was EUR -22.5 million (EUR
30.1 million), of which changes in working capital accounted for EUR -26.2
million (EUR 31.6 million). In the Swedish pharmaceutical wholesale business,
the trade receivables sales programme was continued during 2011.
Net cash flow from investments was EUR -3.3 million (EUR -228.5 million). Cash
flow after investments was EUR -25.8 million (EUR -198.4 million) in January-
March 2011.
Investments
Gross investments for January-March 2011 came to EUR 5.6 million (EUR 170.0
million). They include operational investments, mostly in the growth of pharmacy
operations, in improving the efficiency of wholesale operations and in
information systems.
Personnel
On 31 March 2011, Oriola-KD had a payroll of 4,921 (4,465) employees, 11 per
cent (12 per cent) of whom worked in Finland and the Baltic countries, 26 per
cent (28 per cent) in Sweden, and 63 per cent (60 per cent) in Russia. Personnel
numbers include the members of staff in active employment.
Business segments
In accordance with its organisational structure and internal reporting, Oriola-
KD's business segments are, as of 1 January 2011, Pharmaceutical Trade Finland
and Baltics, Pharmaceutical Trade Sweden and Pharmaceutical Trade Russia. In
2011, the figures of Pharmaceutical Trade Finland and Baltics are reported as
one business segment in line with Oriola-KD's organisation and internal
reporting.
Pharmaceutical Trade Finland and Baltics
The net sales of Pharmaceutical Trade Finland and Baltics in January-March 2011
were EUR 102.5 million (EUR 112.6 million) and its operating profit was EUR 5.6
million (EUR 4.8 million). Invoicing of pharmaceutical wholesale in Finland in
January-March came to EUR 240.5 million (EUR 236.7 million) and net sales to EUR
81.8 million (EUR 93.7 million). Net sales of pharmaceutical wholesale in the
Baltic countries were EUR 9.3 million (EUR 8.3 million) and net sales of the
Consumer Health business, i.e. consumer health products sold under Oriola-KD's
own brands or exclusive sales rights, was EUR 11.5 million (EUR 10.8 million).
The pharmaceutical market declined by 1.7 per cent (increase of 1.8 per cent) in
Finland in January-March 2011. Oriola-KD's market share in the Finnish
pharmaceutical wholesale market was 46.1 per cent (46.5 per cent) in January-
March 2011 (source: IMS Health). Eli Lilly joined Oriola-KD's pharmaceutical
distribution in Finland as of 1 January 2011. Eli Lilly accounts for about 2 per
cent of the value of pharmaceutical wholesale in Finland (source: IMS Health).
Pharmaceutical Trade Finland and Baltics had 486 (502) employees at the end of
March 2011.
Pharmaceutical Trade Sweden
Pharmaceutical Trade Sweden's net sales in January-March 2011 were EUR 265.3
million (EUR 181.0 million) and operating profit was EUR 2.3 million (operating
loss EUR 1.4 million). The operating loss in 2010 included EUR 2.2 million in
preparation costs associated with the launch of pharmacy operations. Competition
in the Swedish pharmaceutical retail business was stiff and the profitability
did not reach a satisfactory level. Invoicing of the pharmaceutical wholesale
business in Sweden was EUR 371.5 million (EUR 290.0 million) and net sales were
EUR 156.4 million (EUR 136.2 million). Net sales of the pharmaceutical retail
business in Sweden were EUR 123.6 million (EUR 50.8 million). The pharmaceutical
retail business has been consolidated with the Oriola-KD figures as of 19
February 2010.
The Swedish pharmaceutical market grew by 3.1 per cent (0.9 per cent) in
January-March 2011. Oriola-KD's market share in the Swedish wholesale market was
39.9 per cent (40.6 per cent) and in the Swedish pharmaceutical retail market
some 14 per cent in January-March 2011 (source: IMS Health). Abbot joined
Oriola-KD's pharmaceutical distribution in February 2011 and its market share of
the value of the Swedish wholesale pharmaceutical sales was some 3 per cent.
Oriola-KD's wholesale company has operated under Oriola brand as of 1 January
2011.
Oriola-KD had a total of 191 (171) pharmacies in Sweden at the end of March
2011.
Pharmaceutical Trade Sweden had 1,304 (1,247) employees at the end of March
2011, of whom 1,022 (991) were employed in retail and 282 (256) in wholesale.
Oriola-KD centralised its pharmacy distribution to the Enköping distribution
centre and pharmaceutical warehousing and pharmaceutical supplier cooperation to
Mölnlycke at the end of March 2011, which will reduce the number of personnel
from the start of the second quarter by about 40.
Pharmaceutical Trade Russia
Pharmaceutical Trade Russia's net sales in January-March 2011 were EUR 162.4
million (EUR 122.1 million) and operating loss was EUR 1.6 million (operating
loss EUR 0.4 million). The net sales of the pharmaceutical wholesale business
were EUR 139.5 million (EUR 110.6 million) and of retail EUR 33.3 million (EUR
23.6 million). The figures of the 03 Apteka pharmacy chain have been
consolidated with Oriola-KD's figures as of 31 August 2010.
The Russian ruble-denominated growth in the commercial pharmaceutical market in
Russia was some 9 per cent in January-March 2011 (source: Pharmexpert). Oriola-
KD's net sales increased by some 29 per cent (some 6 per cent) in Russian rubles
in January-March 2011.
At the end of March 2011, Oriola-KD had 258 (180) pharmacies in the Moscow area,
of which 185 (180) operated under the Stary Lekar brand and 73 under the 03
Apteka brand.
In March 2011 Oriola-KD opened a new regional logistics centre in Stavropol
taking the number of regional logistics centres, in addition to the main
logistics centre in Moscow, up to twelve. Oriola-KD's wholesale company OOO
Moron was renamed OOO Oriola on 28 March 2011.
Pharmaceutical Trade Russia had 3,131 (2,716) employees at the end of March
2011, of whom 1,582 (1,263) were employed in retail and 1,549 (1,452) in
wholesale.
In 2011, the operational focus will be on strengthening the organisation, retail
growth and improving wholesale efficiency.
Related parties
Related parties in the Oriola-KD Group are deemed to comprise the parent company
Oriola-KD Corporation, the subsidiaries and associated companies, the members of
the Board and the President and CEO of Oriola-KD Corporation, other members of
the Group Management Team of the Oriola-KD Group, the immediate family of the
aforementioned persons, the companies controlled by the aforementioned persons,
and the Oriola Pension Foundation. The Group has no significant business
transactions with related parties, except for pension expenses arising from
defined benefit plans with the Oriola Pension Foundation. Oriola-KD Corporation
has given internal loans mainly to the holding companies of the Swedish and
Russian businesses. Oriola-KD Corporation has given no significant sureties on
behalf of Group companies, with the exception of a parent company guarantee for
a loan given to Kronans Droghandel Apotek AB.
Oriola-KD Corporation shares
Trading volume of Oriola-KD Corporation's class A and B shares in January-March
2011:
Trading volume Q1/2011 Q1/2010
class A class B class A class B
Trading volume, million 0.9 22.9 2.5 19.3
Trading volume, EUR million 3.3 77.4 12.5 95.7
Highest price, EUR 3.83 3.74 5.47 5.49
Lowest price, EUR 3.20 3.15 4.21 4.16
Closing quotation, end of period, EUR 3.73 3.40 4.88 4.87
Oriola-KD Corporation's market capitalisation on 31 March 2011 was EUR 529.8
million (EUR 737.1 million).
In the review period, the traded volume of Oriola-KD Corporation shares,
excluding treasury shares, corresponded to 15.8 per cent (14.4 per cent) of the
total number of shares. The traded volume of class A shares amounted to 2.0 per
cent (5.2 per cent) of the average stock, and that of class B shares, excluding
treasury shares, 22.0 per cent (18.7 per cent) of the average stock.
The company holds 96,822 class B treasury shares. These account for 0.06 per
cent of all shares in the company and 0.009 per cent of all votes.
On 31 March 2011, the company had 151,257,828 shares (151,257,828), of which
47,163,160 were class A shares (47,667,359) and 104,094,668 were class B shares
(103,590,469). Pursuant to article 3 of the Articles of Association, a
shareholder can demand that class A shares be converted to class B shares.
During the period 1 January - 31 March 2011, no class A shares were converted
into class B shares (0 shares).
The Board of Directors of Oriola-KD has specified the earning criteria for the
earning period 2011 in the share based incentive scheme for the Group's key
personnel for the years 2010-2012. Payments for the 2011 earning period will be
based on Oriola-KD's earnings per share (EPS) and return on equity (ROE). No
payments for the earnings period 2010 were made based on the 2010-2012 share
based incentive scheme.
Risks
Oriola-KD's Board of Directors has approved the company's risk management
policy, in which the risk management operating model, principles,
responsibilities and reporting are specified. The Group's risk management seeks
to identify, measure and manage risks that may threaten Oriola-KD's operations
and the achievement of goals set. The roles and responsibilities relating to
risk management have been determined in the Group.
Oriola-KD's risks are classified as strategic, operational and financial. Risk
management is a key element of the strategic process, operational planning and
daily decision-making at Oriola-KD.
Oriola-KD has identified the following principal strategic and operational risks
in its business:
* growth in number of pharmacies outperforms growth in the market, leading to
intense competition
* competition for market share in pharmaceutical wholesale in a consolidating
market
* ensuring cost efficiency, flexibility and quality
* development of processes and infrastructure required by strategic expansion
* requirements and restrictions on pharmaceutical retail and wholesale imposed
by the authorities, especially price control
* commitment of key employees.
The major financial risks for Oriola-KD involve currency exchange rates,
liquidity, interest rates and credit. Expansion of operations into new business
areas and new markets has increased the financial risks. Currency risks are the
most significant financial risks in Russia and Sweden, as any changes in the
value of the Russian ruble or the Swedish krona will have an impact on Oriola-
KD's financial performance and equity.
Goodwill and intangible rights are subject to annual impairment testing, which
may have a negative effect on Oriola-KD's financial performance.
Near-term risks and uncertainty factors
The competition situation and changes in the price control system for
pharmaceuticals have a material impact on Oriola-KD's near-term outlook in
Russia. The development of the Swedish pharmaceutical retail and wholesale
markets are subject to uncertainties. The number and speed of establishment of
new pharmacies have a significant effect on Oriola-KD's profitability in Sweden.
Events after the review period
Decisions of the Annual General Meeting 2011
The Annual General Meeting held on 6 April 2011 adopted the financial statements
and discharged the members of the Board of Directors and the President and CEO
from liability for the financial year ending 31 December 2010.
The AGM resolved that based on the balance sheet adopted for the financial year
ending 31 December 2010, EUR 0.05 per share shall be paid as dividend and EUR
0.13 per share shall be distributed from the reserve of invested unrestricted
equity as repayment of equity. The payment date of the dividend and the return
of equity is 19 April 2011.
The AGM authorised the Board of Directors to decide on the distribution of
additional dividend from the retained earnings and/or distribution of assets
from the reserves of unrestricted equity or both up to EUR 0.10 per share in
total. The authorisation is in effect until the next annual general meeting.
The AGM confirmed that the Board of Directors consists of eight members. Mr.
Harry Brade, Mr. Per Båtelson, Mr. Pauli Kulvik, Ms. Outi Raitasuo, Mr. Olli
Riikkala and Mr. Mika Vidgrén were re-elected to the Board of Directors, and Mr.
Jukka Alho and Mr. Ilkka Salonen were elected as new members to the Board of
Directors. Mr. Olli Riikkala was re-elected Chairman of the Board of Directors.
The AGM confirmed that the fee for the term of office of the Chairman of the
Board of Directors is EUR 48,400, for the Vice Chairman of the Board EUR 30,250
and for the other members of the Board of Directors EUR 24,200 each. Of the
annual fee, 60 per cent shall be paid in cash and 40 per cent in the company's
class B shares.
PricewaterhouseCoopers Oy, who has put forward authorised public accountant Mr.
Heikki Lassila as principal auditor, was re-elected as the auditor of the
company for the financial year 2011. The auditor's fees shall be paid according
to invoice approved by the company.
The AGM authorised the Board of Directors to decide on repurchasing of up to
fifteen million (15,000,000) of the company's own class B shares, which
currently represents approximately 9.92 per cent of all shares in the company.
Shares may be repurchased also in a proportion other than in which shares are
owned by the shareholders, using funds belonging to the company's unrestricted
equity. The authorisation to repurchase own shares is in force for a period of
not more then eighteen (18) months from the decision of the AGM.
The AGM also authorised the Board of Directors to decide on a share issue
against payment in one or more issues, including the right to issue new class B
shares or assign class B treasury shares held by the company. The authorisation
covers a combined maximum of fifteen million (15,000,000) class B shares of the
company, representing currently approximately 9.92 per cent of all shares in the
company. The authorisation given to the Board of Directors includes the right to
derogate from the shareholders' pre-emptive subscription right. The
authorisation is in effect for a period of eighteen (18) months from the
decision of the AGM.
Decisions of the constitutive meeting of the Board of Directors
In its constitutive meeting after the AGM, the Board of Directors of Oriola-KD
Corporation elected Ms. Outi Raitasuo as Vice Chairman of the Board of
Directors. The Board of Directors appointed from among its members the following
members to the Board's Audit Committee and Remuneration Committee:
Audit Committee:
Chairman Ms. Outi Raitasuo, Mr. Harry Brade, Mr. Ilkka Salonen, Mr. Mika Vidgrén
Remuneration Committee:
Chairman Mr. Olli Riikkala, Mr. Per Båtelson, Mr. Pauli Kulvik
The members to the company's Nomination Committee are elected later in
accordance with the charter of the Nomination Committee.
The Board of Directors has assessed the independence of its members, and
determined that all members of the Board of Directors are independent of the
company and its significant shareholders.
Outlook
Oriola-KD's outlook for 2011 is based on external market forecasts, supplier and
customer agreements and management assessments. In the period 2011-2014, the
pharmaceutical market is expected to grow by some 3 per cent in Finland, 2-3 per
cent in Sweden, and 11-13 per cent in Russia, measured in local currencies
(source: IMS Health). The Russian pharmaceutical market is expected to show
growth below the longer term trend in 2011 and the tough competition to
continue. The visibility in the Russian pharmaceutical market development is
still poor. Competition in the Swedish retail market is expected to continue to
be stiff as a result of the deregulation.
Oriola-KD's net sales is expected to be higher and operating profit from
continuing operations excluding one-off items clearly better than in 2010.
TABLES
Consolidated Statement of
Comprehensive Income (IFRS), 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Continuing operations
Net sales 530.1 415.7 1,929.4
Cost of goods sold -449.6 -363.2 -1,668.2
--------------------------------------------------------------------------------
Gross profit 80.4 52.6 261.2
Other operating income 0.8 1.1 4.8
Selling and
distribution expenses -64.6 -45.7 -214.7
Administrative expenses -11.6 -6.7 -41.5
--------------------------------------------------------------------------------
Operating profit 5.0 1.3 9.8
Financial income 2.4 1.1 13.0
Financial expenses -4.4 -1.9 -18.3
--------------------------------------------------------------------------------
Profit before taxes 3.0 0.5 4.5
Income taxes*) -0.9 -0.1 -0.9
--------------------------------------------------------------------------------
Profit for the period
from continuing operations 2.1 0.4 3.5
Discontinued operations
Profit for the period
from discontinued operations - 2.6 98.6
--------------------------------------------------------------------------------
Profit for the period
including discontinued operations 2.1 2.9 102.1
Other comprehensive income
Net investment in
a foreign operation 0.4 5.8 5.1
Cash flow hedge 0.9 - 1.2
Income tax relating to
other comprehensive income -0.1 -1.2 -1.0
Translation difference 5.9 13.7 20.0
--------------------------------------------------------------------------------
Total comprehensive income
for the period
including discontinued operations 9.3 21.2 127.4
Attribution of profit for the
period
from continuing operations
--------------------------------------------------------------------------------
To parent company shareholders 2.1 0.4 3.5
--------------------------------------------------------------------------------
To non-controlling interest - - -
--------------------------------------------------------------------------------
Attribution of profit for the
period
including discontinued operations
--------------------------------------------------------------------------------
To parent company shareholders 2.1 2.9 102.1
--------------------------------------------------------------------------------
To non-controlling interest - - -
--------------------------------------------------------------------------------
Attribution of total comprehensive
income for the period
(including discontinued operations)
--------------------------------------------------------------------------------
To parent company shareholders 9.3 21.2 127.4
--------------------------------------------------------------------------------
To non-controlling interest - - -
--------------------------------------------------------------------------------
Earnings per share for the period
from continuing operations
Basic earnings per share, EUR 0.01 0.00 0.02
Diluted earnings per share, EUR 0.01 0.00 0.02
Earnings per share for the period
(including discontinued operations)
Basic earnings per share, EUR 0.01 0.02 0.68
Diluted earnings per share, EUR 0.01 0.02 0.68
*) The tax expense for the period
corresponds to the taxes calculated
from the
profit for the financial year.
Consolidated Balance Sheet (IFRS),
EUR million
ASSETS 31 Mar 2011 31 Mar 2010 31 Dec 2010
--------------------------------------------------------------------------------
Non-current assets
Property, plant and equipment 68.7 63.8 68.0
Goodwill 271.5 252.2 266.1
Other intangible assets 81.4 69.6 79.3
Investments in associated companies 0.0 32.8 0.0
Other non-current assets 11.3 7.3 10.6
Deferred tax assets 3.6 4.2 3.3
--------------------------------------------------------------------------------
Non-current assets total 436.6 429.9 427.2
Current assets
Inventories 323.0 325.7 287.5
Trade and other receivables 331.8 294.7 290.1
Cash and cash equivalents 136.3 56.5 187.8
--------------------------------------------------------------------------------
Current assets total 791.1 676.9 765.4
ASSETS TOTAL 1,227.7 1,106.8 1,192.6
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES 31 Mar 2011 31 Mar 2010 31 Dec 2010
--------------------------------------------------------------------------------
Equity
Share capital 36.2 36.2 36.2
Other funds 52.9 50.9 52.1
Retained earnings 272.9 177.7 264.5
Equity of the parent
company shareholders 362.1 264.7 352.7
Non-controlling interests - - -
--------------------------------------------------------------------------------
Equity total 362.1 264.7 352.7
Non-current liabilities
Deferred tax liabilities 22.4 22.8 22.2
Pension obligations 5.8 5.3 5.7
Provisions - 0.0 -
Interest-bearing non-current liabilities 125.3 114.1 124.5
--------------------------------------------------------------------------------
Non-current liabilities total 153.5 142.1 152.5
Current liabilities
Trade payables and other current liabilities 684.3 599.8 633.6
Interest-bearing current liabilities 27.9 100.2 53.7
--------------------------------------------------------------------------------
Current liabilities total 712.1 700.0 687.4
EQUITY AND LIABILITIES TOTAL 1,227.7 1,106.8 1,192.6
--------------------------------------------------------------------------------
Consolidated
Statement
of Changes in
Equity (IFRS)
Equity
of the Non-
Trans- parent cont-
lation Re- company rolling
Share Hedge Other diffe- tained share- inte-
EUR million capital fund funds rences earnings holders rest Total
--------------------------------------------------------------------------------
Equity
1 Jan 2010 36.2 0.0 50.9 -30.4 186.8 243.4 10.8 254.2
--------------------------------------------------------------------------------
Change in non-
controlling interest - - - - - 0.0 -10.8 -10.8
Share-based payments - - - - 0.1 0.1 - 0.1
Net profit for the
period - - - - 2.9 2.9 - 2.9
Other comprehensive
income:
Net investment in
a foreign operation - - - 5.8 - 5.8 - 5.8
Income tax relating
to
other comprehensive
income - - - -1.2 - -1.2 - -1.2
Translation
difference - - - 13.7 - 13.7 - 13.7
--------------------------------------------------------------------------------
Equity
31 Mar 2010 36.2 0.0 50.9 -12.1 189.8 264.7 - 264.7
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Equity
1 Jan 2011 36.2 1.2 50.9 -6.3 270.8 352.7 - 352.7
--------------------------------------------------------------------------------
Share-based payments - - - - 0.1 0.1 - 0.1
Net profit for the
period - - - - 2.1 2.1 - 2.1
Other comprehensive
income:
Net investment in
a foreign operation - - - 0.4 - 0.4 - 0.4
Cash flow hedge - 0.9 - - - 0.9 - 0.9
Income tax relating
to
other comprehensive
income - - - -0.1 - -0.1 - -0.1
Translation
difference - - - 5.9 - 5.9 - 5.9
--------------------------------------------------------------------------------
Equity
31 Mar 2011 36.2 2.1 50.9 0.0 273.0 362.1 - 362.1
--------------------------------------------------------------------------------
Consolidated Cash Flow Statement * 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
(IFRS), EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Operating profit 5.0 4.2 17.1
Depreciation 3.5 2.5 11.5
Change in working capital -26.2 31.6 73.4
Cash flow from financial
items and taxes -5.5 -9.9 -18.1
Other adjustments 0.6 1.6 4.8
Net cash flow from operating
activities -22.5 30.1 88.7
Net cash flow from investing
activities -3.3 -228.5 -104.7
Net cash flow from financing
activities -25.8 117.2 61.2
Net change in cash and cash
equivalents -51.6 -81.2 45.2
Cash and cash equivalents
at the beginning of the period 187.8 133.7 133.7
Foreign exchange rate differences 0.1 4.0 8.9
Net change in cash and cash
equivalents -51.6 -81.2 45.2
Cash and cash equivalents
at the end of the period 136.3 56.5 187.8
--------------------------------------------------------------------------------
*) Includes net cash flow of
Healthcare
Trade until 31 May 2010 and net
cash
flow of Dental Trade until 28
October 2010.
Change in Property, Plant and
Equipment, 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Carrying amount at the beginning of
the period 68.0 53.3 53.3
Increases through acquisitions of
subsidiary shares - 8.8 9.7
Increases 2.9 2.3 14.3
Decreases -0.2 -0.4 -5.2
Depreciation -2.2 -1.8 -7.6
Foreign exchange rate differences 0.2 1.5 3.4
--------------------------------------------------------------------------------
Carrying amount at the end of the
period 68.7 63.8 68.0
--------------------------------------------------------------------------------
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Key Figures 2011 2010 2010
--------------------------------------------------------------------------------
Equity ratio, % 30.2% 24.6% 30.8%
Equity per share, EUR 2.40 1.75 2.33
Return on capital employed (ROCE)
from continuing operations, % 3.8% 1.2% 2.1%
Return on capital employed (ROCE)
incl. discontinued operations, % 3.8% 23.3%
Return on equity from
continuing operations, % 2.4% 0.6% 1.2%
Return on equity incl.
discontinued operations, % 4.5% 33.7%
Net interest-bearing debt, EUR
million 16.9 157.8 -9.5
Gearing, % 4.7% 59.6% -2.7%
Earnings per share from
continuing operations, EUR 0.01 0.00 0.02
Earnings per share incl.
discontinued operations, EUR 0.02 0.68
Average number of shares, 1000 pcs 151,161 151,167 151,164
Derivatives, Commitments
and Contingent Liabilities
31 March 2011
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised as
cash flow hedges
Interest rate swaps 2.1 - 111.9
Derivatives measured at
fair value through profit or loss
Foreign currency forward and swap
contracts 0.3 - 86.1
31 March 2010
Positive fair Negative fair Nominal values of
EUR million value value contracts
Derivatives recognised
as cash flow hedges
Foreign currency forward and swap
contracts - - -
Derivatives measured at
fair value through profit or loss
Foreign currency forward and swap
contracts 0.1 - 17.2
Contingencies for Own Liabilities,
EUR million 31 Mar 2011 31 Mar 2010 31 Dec 2010
-------------------------------------------------------------------------------
Guarantees given 121.7 119.5 125.4
Mortgages on land and buildings 2.0 2.0 2.0
Mortgages on company assets 2.4 2.2 2.3
Other guarantees and liabilities 0.5 0.1 0.5
-------------------------------------------------------------------------------
Total 126.5 123.8 130.3
-------------------------------------------------------------------------------
Leasing-liabilities (operating liabilities) 0.8 0.4 0.9
Rent contingencies 62.4 56.0 66.5
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Net Sales by Operating Segments,
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 102.5 112.6 448.3
Pharmaceutical Trade Sweden 265.3 181.0 908.7
Pharmaceutical Trade Russia 162.4 122.1 572.4
Net sales to other segments -0.1 0.0 0.0
--------------------------------------------------------------------------------
Continuing operations total 530.1 415.7 1,929.4
Discontinued operations - 34.4 65.3
Net sales to other segments - -1.1 -1.6
--------------------------------------------------------------------------------
Group Total 530.1 449.0 1,993.1
Operating Profit by Operating
Segments, 1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
EUR million 2011 2010 2010
--------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 5.6 4.8 21.4
Pharmaceutical Trade Sweden 2.3 -1.4 12.5
Pharmaceutical Trade Russia -1.6 -0.4 -18.1
Group Administration and Others -1.2 -1.6 -6.0
--------------------------------------------------------------------------------
Continuing operations total 5.0 1.3 9.8
Discontinued operations - 2.9 99.3
--------------------------------------------------------------------------------
Group Total 5.0 4.2 109.0
Continuing operations
Average number of personnel 4,922 4,152 4,512
Number of personnel at the end of the period 4,921 4,465 4,954
Group total
Average number of personnel 4,922 4,543 4,675
Number of personnel at the end of the period 4,921 4,850 4,954
Net Sales by Operating Segments,
EUR million Q1/2011 Q4/2010 Q3/2010 Q2/2010 Q1/2010
------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 102.5 111.5 111.1 113.1 112.6
Pharmaceutical Trade Sweden 265.3 246.8 239.5 241.4 181.0
Pharmaceutical Trade Russia 162.4 169.6 147.8 132.8 122.1
Net sales to other segments -0.1 -0.0 -0.0 -0.0 -0.0
------------------------------------------------------------------------
Continuing operations total 530.1 527.8 498.5 487.3 415.7
Discontinued operations - - - 30.9 34.4
Net sales to other segments - - - -0.5 -1.1
------------------------------------------------------------------------
Group Total 530.1 527.8 498.5 517.7 449.0
Operating Profit by Operating Segments,
EUR million Q1/2011 Q4/2010 Q3/2010 Q2/2010 Q1/2010
-------------------------------------------------------------------------------
Pharmaceutical Trade
Finland and Baltics 5.6 5.3 6.2 5.2 4.8
Pharmaceutical Trade Sweden 2.3 3.3 4.9 5.6 -1.4
Pharmaceutical Trade Russia -1.6 0.1 -15.7 -2.0 -0.4
Group Administration and Others -1.2 -1.4 -1.2 -1.9 -1.6
-------------------------------------------------------------------------------
Continuing operations total 5.0 7.3 -5.8 6.9 1.3
Discontinued operations - 37.9 1.3 57.1 2.9
-------------------------------------------------------------------------------
Group Total 5.0 45.2 -4.5 64.0 4.2
1 Jan - 31 Mar 1 Jan - 31 Mar 1 Jan - 31 Dec
Net Sales by Market, EUR million 2011 2010 2010
-----------------------------------------------------------------------------
Finland 92.6 105.0 417.6
Sweden 263.7 179.4 902.8
Russia 162.4 122.1 572.4
Baltic countries 8.7 8.3 30.5
Other countries 2.6 0.9 6.2
-----------------------------------------------------------------------------
Continuing operations total 530.1 415.7 1,929.4
Net Sales by Market, EUR million Q1/2011 Q4/2010 Q3/2010 Q2/2010 Q1/2010
------------------------------------------------------------------------
Finland 92.6 103.5 102.6 106.5 105.0
Sweden 263.7 245.1 238.7 239.5 179.4
Russia 162.4 169.6 147.8 132.8 122.1
Baltic countries 8.7 7.8 7.0 7.3 8.3
Other countries 2.6 1.9 2.2 1.2 0.9
------------------------------------------------------------------------
Continuing operations total 530.1 527.8 498.5 487.3 415.7
Espoo, 27 April 2011
Oriola-KD Corporation's Board of Directors
Oriola-KD Corporation
Eero Hautaniemi
President and CEO
Kimmo Virtanen
Executive Vice President and CFO
Further information:
Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com
Kimmo Virtanen
Executive Vice President and CFO
tel. +358 (0)10 429 2069
e-mail: kimmo.virtanen@oriola-kd.com
Pellervo Hämäläinen
Vice President, Communications and IR
tel. +358 (0)10 429 2497
e-mail: pellervo.hamalainen@oriola-kd.com
Distribution
NASDAQ OMX Helsinki Ltd
Principal media
Published by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com
[HUG#1509724]
