Oriola Corporation Insider information 3 October 2022 at 12.15 p.m.

Oriola and Euroapotheca have finalized the combining of Kronans Apotek and Apoteksgruppen into a new company

Oriola Corporation and Euroapotheca have finalized the combining of Kronans Apotek and Apoteksgruppen into a new jointly owned company. The transaction supports Oriola in its transformation as it focuses on being an infrastructure company of pharmaceuticals and healthcare distribution and providing services to pharmaceutical companies and pharmacies.

The new company is owned 50/50 percent equally by Oriola and Euroapotheca. The transaction is estimated to create annual run-rate synergies of approximately EUR 25 million on EBITDA level. The synergies are expected to realise in full by the end of the third year from closing.

The transaction is expected to have a negative impact of approximately EUR 30 million on the consolidated net profit of Oriola Group, including estimated translation differences and transaction related costs, in the fourth quarter of 2022. Customary closing adjustments, changes in currency exchange rates and the timing of the closing have an impact on the estimate. Oriola classified Kronans Apotek as assets held for sale during first quarter of 2022, therefore its assets are not depreciated. This had a positive impact of EUR 10.2 million until the end of second quarter, and the impact will be higher by the end of third quarter. This will offset part of the negative impact on Oriola Group.

For the parent company, there will be a negative impact of approximately EUR 100 million on net profit, decreasing the parent company's distributable funds by an equal amount. As announced, 9 February 2022, Oriola is to receive a one-off cash contribution of approximately EUR 24 million from Euroapotheca for reaching the 50/50 percent ownership in the new company.

The financial impact of the transaction will materialise and be specified in the fourth quarter of 2022 and reported in Oriola's full year financial report 2022.

Starting from the fourth quarter of 2022, Oriola will report the new company as an associated company under the equity method and present the associated company's result above the EBIT line in the consolidated financial statements.

Oriola Corporation

Further information

Mikael Wegmüller
VP, Communications and Sustainability
Tel. +358 040 776 2314
email: mikael.wegmuller@oriola.com

Distribution
Nasdaq Helsinki
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