Oriola-KD pro forma review 1 January - 31 December 2006
Oriola-KD Corporation listed on the Helsinki Exchanges on 3 July 2006.
Oriola-KD Corporation was entered in the Trade Register on 1 July 2006 as a result of the demerger of Orion Corporation. Trading in Class A and Class B shares in Oriola-KD Corporation commenced on the main list of the Helsinki Exchanges on 3 July 2006. The General Meeting of Shareholders of the demerged and dissolved Orion Corporation held in Helsinki on 16 October 2006 confirmed the final account of the company and discharged the Board of Directors and the President and CEO of the company from liability for the period of 1 January - 1 July 2006. The assets and liabilities of the demerged company were transferred to the two companies that arose from the demerger on 1 July 2006, the new Orion Corporation and Oriola-KD Corporation.
This pro forma review presents the figures of Oriola-KD Group (hereinafter Oriola-KD) for January-December 2006 according to the businesses and corporate structure following the demerger of Orion Corporation. The comparison figures from 2005 are based on published figures for Orion Corporation's Wholesale and Distribution Division extracted from financial data for Orion Corporation, which have been adapted to correspond to the businesses and structure subsequent to demerger. The figures of Oriola-KD for the period under review have been prepared in accordance with the recognition and valuation principles of the IFRS standards and are unaudited. Oriola-KD Corporation published its interim report for July-December on 1 February 2007.
Key figures
-Invoicing in the period under review was EUR 2,340.1 million (1-12/2005: EUR 2,392.2 million) and net sales were EUR 1,334.7 million (1-12/2005: EUR 1,330.7 million).
-Operating profit excluding one-off items was EUR 22.6 million (1-12/2005: EUR 25.8 million).
-Operating profit including one-off items was EUR 17.4 million (1-12/2005: EUR 25.8 million).
-Cash flow from operations was EUR 52.7 million (1-12/2005: EUR 39.5 million).
-Return on capital employed was 8.6 percent (1-12/2005 11.8 percent).
-Earnings per share were EUR 0.10 (1-12/2005: EUR 0.12).
-The Board proposes to the AGM that a dividend of EUR 0.06 per share be paid for 2006.
President and CEO Eero Hautaniemi: "Demerger and subsequent operation as an independent listed company have provided Oriola-KD with enhanced opportunities to focus on the development of its core businesses. The cost efficiency programme implemented in 2006 and our revised business structure have allowed us to introduce greater efficiency to our operations and improve our competitiveness. These measures eroded operating profit for 2006. In 2007, we will continue to pursue greater efficiency and active development of our core businesses. More efficient operations together with our strong cash flow, balance sheet and market position further combined with favourable long-term fundamentals in the healthcare market enable business development in line with strategy."
Future outlook
Oriola-KD's outlook for 2007 is based on external market forecasts, agreements with principals, cumulative orders and management's estimates.
Long term fundamentals and growth prospects are deemed favourable. Oriola-KD estimates that the pharmaceutical market in Finland and Sweden will grow by about 3-5 percent annually over the next few years, which is in line with the longer-term average growth rate of these markets.
The overall objective of the cost efficiency measures that were implemented in 2006 is to achieve total savings of some five million euros annually in the Group's operations in Finland and Sweden, with full impact as of 2007. The one-off expenses relating to the cost efficiency measures occurred in 2006.
Oriola-KD estimates that growth in the market for healthcare and dental equipment and supplies will outpace that of the pharmaceutical market in Finland and in Sweden. Oriola-KD projects growth outpacing that of the market in sales of healthcare equipment and supplies and in keeping with the market in dental trade sales. Invoicing in the healthcare logistics services in Sweden is estimated to fall from 2006 levels.
Oriola-KD's invoicing in 2007 is projected to exceed comparable invoicing in the previous year primarily as a result of new agreements with principals concluded in 2006 and market growth. Operating profit excluding one-off items in 2007 is projected to exceed comparable operating profit in the previous year primarily as a result of higher invoicing and cost efficiency measures implemented in 2006.
Espoo, 31 January 2007
Board of Directors of Oriola-KD Corporation
Oriola-KD Corporation
Eero Hautaniemi
President and CEO
Kimmo Virtanen
CFO
Further information:
Eero Hautaniemi
President and CEO
Tel. +358 10 429 2109
Email: eero.hautaniemi@oriola-kd.com
Kimmo Virtanen
CFO
Tel. +358 10 429 2069
Email: kimmo.virtanen@oriola-kd.com
Pellervo Hämäläinen
Vice President, Communications and IR
Tel. +358 10 429 2497
Email: pellervo.hamalainen@oriola-kd.com
Distribution:
Helsinki Exchanges
Main Media
Published by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com
The full report including tables can be downloaded from the following link:
Oriola-KD Pro forma -review 1 January - 31 December 2006
Presentation 1 January - 31 December 2006