COMPANY BROCHURE

2016VUOSIKOOSTE

2015

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Table of ContentsORIOLA-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 health care 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

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1.6NET SALES, EUR BILLION

2,353

NUMBER OF PERSONNEL 2,353, OF WHOM 78% IN SWEDEN AND

22% IN FINLAND AND THE BALTIC COUNTRIES.

311NUMBER 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

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MissionTHE 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.

ValuesWE ARE OPEN

• WE WORK TOGETHER

•WE TAKE INITIATIVE

•WE TAKE RESPONSIBILITY

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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.

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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.

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24/7

THE HEALTHCAREBUSINESSImproved patient safety and efficient and effective practices. Optimum use of healthcare staff time and savings in costs.

THE SERVICESBUSINESSTailored customer-specific services, a coherent service offering and superior customer experience.

ORIOLAKD’S TARGET

THE CONSUMERBUSINESSExpert service, comprehensive customer loyalty programme and attractive product range. Consistent service experience from local pharmacies to online services.

Healthcare is changing

Speciality pharma-ceuticals growth

Digitalization and increased spending on health and wellbeing

Oriola-KD’s different customer groups are at the core of its updated strategy. To customers, the new operating model will be evident in the form of an improved customer experience and other benefits.

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Services Business Area

PHARMACEUTICAL DISTRIBUTION AND VALUE ADDED SERVICESOriola-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 GOODSIn 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 GOODSTo 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 Chainsutilizes Oriola’s purchase and distribution services in Sweden.

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1.6 million members in Kronans Apotek Customer Club.

Consumer Business Area

100% SATISFIED CUSTOMERS, EVERY DAYOriola-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 BUSINESSThe 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.

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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 QUALITYOriola-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 CUSTOMERSOriola-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.

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Oriola-KD has a responsible role in the pharmaceutical

supply chain.

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PHARMACEUTICAL SAFETYPatient 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 SAFETYOriola-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 RESPONSIBILITYCompetent 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.

ORIOLA-KD CORPORATION

Orionintie 5P.O. Box 8

FI-02101 EspooFinland

www.oriola-kd.com