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Financial review
This report is translated, non-official version of Oriola Corporation’s
Financial review 2024 presented in the ESEF-format.
Table of contents
Report of the Board of Directors .......... 40
Shares and shareholders ........................................... 47
Risk review ...................................................................... 49
Profit distribution proposal ......................................50
Outlook for 2025 ..........................................................50
Sustainability Statement ........................................... 51
Information on shares ..................................115
Share-related key figures ....................................... 115
Financial indicators and
performance measures ................................117
Financial indicators 2020–2024 ............................ 117
Alternative performance measures ....................119
Financial statements 2024 ........................120
Consolidated statement of
comprehensive income (IFRS) ............................... 121
Consolidated statement of
financial position (IFRS) ...........................................122
Consolidated statement of cash flows (IFRS) ..123
Consolidated statement of
changes in equity (IFRS) ..........................................124
Notes to the consolidated financial
statements ....................................................................125
1. Basic information on the company ................ 125
2. Basis of presentation ............................................ 125
3. Use of estimates and judgement ...................126
4. Operating result .................................................... 126
4.1. Segment reporting .....................................126
4.2. Net sales and other
operating income ........................................128
4.3. Operating expenses ..................................129
4.4. Employee benefits .....................................130
5. Working capital .....................................................133
5.1. Trade and other receivables ...................133
5.2. Inventories .....................................................134
5.3. Trade payables and other liabilities .....134
5.4. Provisions .......................................................134
6. Tangible and intangible assets and
other non-current assets.........................................135
6.1. Property, plant and equipment ............135
6.2. Goodwill and other intangible assets .. 136
6.3. Other non-current assets .........................138
7. Leases ........................................................................139
7.1. Leases in the statement of
financial position .........................................140
7.2. Leases in the statement of
comprehensive income .............................140
8. Capital structure ...................................................141
8.1. Financial income and expenses ............141
8.2. Financial assets and liabilities ................ 141
8.3. Financial risk management .....................145
8.4. Equity, shares and authorisations ..........148
8.5. Earnings per share, dividend
and other equity distribution ................151
9. Income taxes ..........................................................152
9.1. Taxes recognised in the comprehensive
income for the period ................................152
9.2. Deferred tax assets and liabilities .........152
10. Group structure ..................................................154
10.1. Subsidiaries ...................................................155
10.2. Related party transactions ...................... 155
10.3. Discontinued operations ..........................156
10.4. Investments in joint ventures .................158
11. Unrecognised items ...........................................159
11.1. Commitments and
contingent liabilities .................................. 159
11.2. Future lease payments ............................159
11.3. Litigation ....................................................... 159
11.4. Events after the balance sheet date .....159
12. Other notes ...........................................................159
12.1. Application of new and amended IFRS
standards and IFRIC interpretations .... 159
Parent company financial statements ...............160
Parent company income statement (FAS) ...160
Parent company balance sheet (FAS) ............160
Parent company cash flow statement (FAS) ...161
Notes to the parent company financial
statements (FAS) ...................................................162
The Board of Directors’ proposal
for the profit distribution
and Auditor’s Note ........................................ 167
Auditor’s report
.................................................168
Sustainability assurance report
..........172
Auditor’s assurance report on
ESEF Financial Statements
........................174
Basis for preparation
The accounting principles are presented in
the relevant parts of the notes to the financial
statements in order to make the report more
user-friendly. The basis for preparation part of
the note is highlighted.
Use of estimates and judgement
If the accounting area presented in the note
involves estimates and judgement, those
estimates and judgements are described
separately in the relevant note. The description
of the use of estimate and judgement in the
note is highlighted.
40
Business review Governance
Financial review Sustainability Statement Oriola Annual Report 2024 |
Report of the Board of Directors
Oriola offers advanced distribution, expert and advisory services
for pharmaceutical companies and a wide range of health and
wellbeing products for pharmacies, veterinarians, other healthcare
operators and retail operators in the Finnish and Swedish markets.
Additionally, Oriola offers dose dispensing services for pharmacies
and healthcare operators.
Reporting segments
From the beginning of 2024 Oriola’s reporting segments are
Distribution and Wholesale.
Distribution segment consists of pharmaceutical logistics and dose
dispensing services in Finland and Sweden. Oriola has signed an
agreement in October 2023 to sell the dose dispensing business in
Sweden.
Wholesale segment consists of wholesale of traded goods and
over-the-counter (OTC) products, parallel import and special
licensed medicines, as well as advisory services in Finland and
Sweden.
Business review
Operating environment
Oriola has identified solid long-term drivers supporting market
growth such as ageing population, wellbeing and healthcare,
online pharmaceuticals and growth of speciality products.
The value of the pharmaceutical distribution market
continued a steady growth driven by good demand for high-
value pharmaceuticals. The challenges in the availability of
pharmaceuticals have continued in Europe. Cost inflation has
slowed down, with more normalised energy and fuel prices.
Pharmaceutical wholesale - market share
Market environment - Pharmaceuticals
The pharmaceutical distribution markets in Finland and Sweden
are valued at around EUR 8.8 billion and have historically been
relatively stable during uncertain economic times. In the past three
years, the average annual growth rate has been about 6% in value
terms.
In Sweden, the value of the pharmaceutical distribution market at
wholesale prices, measured in Swedish krona, grew by 7.0% (9.8%)
in 2024 (source: IQVIA). In Finland, the market value grew by 5.0%
(3.4%) (source: LTK).
According to Oriola’s estimate, Oriola’s share of the pharmaceutical
wholesale market in Sweden was approximately 43% (44%) and in
Finland approximately 45% (44%) in 2024.
Market environment - Health products
The consumer health markets in Finland and Sweden are valued
at around EUR 1.5 billion. The historical market growth has been
3.4% (2019-2024 CAGR%) while growth is expected to be 2.7 % for
2024-2029. In Sweden, OTC (over-the-counter) products in general
are expected to witness positive value growth over the forecast
period. Vitamins, dietary supplements and sports nutrition will
benefit from the overarching health and wellness trend supporting
positive volume and constant value growth over the forecast
period. In Finland, consumer interest is rising notably in areas
such as digestive health and stress relief/relaxation. The market is
anticipated to become increasingly polarised, featuring a price-
sensitive consumer segment focused on value products, alongside
another segment seeking premium quality ingredients, ease of use,
and innovation. Some products in the middle ground may migrate
towards these two extremes. E-commerce is a well-established and
growing sales channel for consumer health products in Sweden,
while in Finland the expansion of e-commerce is still ahead.
(Source: Euromonitor).
The consumer confidence indicator in Finland remained weak and
in Sweden, the indicator fell below historical average.
In the dose dispensing business, Oriola offers pharmaceuticals
and dose dispensing for private and public healthcare sector
operators. The total market size for dose dispensing in Finland is
approximately 116,000 (110,000) patients of which Oriola serves
approximately 36,000 (30,000).
Dose dispensing - market share
Oriola Others
Finland
~116,000
patients
31%
69%
Oriola Others
Finland
Sweden
3.1 BEUR
+5.0%
45%
55%
60 BSEK
+7.0%
43%
57%
41
Business review Governance
Financial review Sustainability Statement Oriola Annual Report 2024 |
The Group’s financial performance
Invoicing and net sales
Invoicing increased by 5.1% (increased 0.6%) to EUR 3,771.8
(3,587.7) million.
In 2024, Oriola recognised a loss of EUR 24.8 (loss of 4.8) million
fromSwedish Pharmacy Holding AB in the consolidated statement
of comprehensive income. The loss included Oriola’s share of the
impairment of goodwill in Kronans Apotek amounting to EUR 16.3
million. The impairment is related to the integration of Kronans
Apotek and their transition to one common ERP system, which have
required more time than anticipated.
Net financial expenses decreased to EUR 7.3 (7.6) million mainly
due to lower debt and interest level. Loss for the period was EUR
-20.1 (-20.7) million. Income taxes were EUR -1.5 (-3.1) million, which
corresponds to an effective tax rate of -8.1% (-17.4%). Earnings per
share were EUR -0.11 (-0.11).
For more information on the Group’s financial performance, please
see the section Financial indicators 2020-2024.
Distribution segment
Distribution segment consists of pharmaceutical logistics and dose
dispensing services in Finland and Sweden.
Key figures
EUR million 2024 2023 Change %
Net sales 1,364.7 1,189.0 14.8
Adjusted EBIT 19.0 14.5 30.6
Adjusted EBIT % 1.4 1.2
EBIT 20.4 -6.9 394.9
Net sales grew by 14.8% to EUR 1,364.7 (1,189.0) million. The
rise in net sales was supported by growth in the pharmaceutical
distribution market and a customer changing from consignment
agreement to Oriola’s inventory in the third quarter. Organic net
sales growth was 2.5%.
Adjusted EBIT increased to EUR 19.0 (14.5) million. Profitability
improvement was supported by lower freight costs and operating
expenses compared with the previous year. The lower freight
costs were related to operational improvement and lower fuel
prices. Operating expenses were lower due to efficiencies in
operations and cost reductions in the Swedish dose dispensing
business. Also, the move of clinical trials under the management of
advisory services in the Wholesale segment had a negative impact
on adjusted EBIT. The adjusted EBIT excluding the impact of the
Swedish dose dispensing business was EUR 18.9 (17.4) million.
Adjusting items totalled EUR 1.4 (-21.5) million and were related to
compensation from a court appeal of a tender process in the dose
dispensing business. EBIT was EUR 20.4 (-6.9) million.
Wholesale segment
Wholesale segment consists of wholesale of traded goods and
over-the-counter (OTC) products, parallel import and special
licensed medicines, as well as advisory services in Finland and
Sweden.
Net sales increased by 12.4% (decreased 2.9%) to EUR 1,679.7
(1,493.8) million.
Profitability
Adjusted EBIT increased by 30.0% (decreased 15.4%) to EUR 21.7
(16.7) million. Adjusting items totalled EUR -8.1 (-21.9) million and
were related to i) the implementation cost of the ERP investment
in Group administration (EUR -7.7 million), ii) a service level
agreement settlement in Wholesale segment (EUR -0.9 million),
III) compensation from a court appeal of a tender process in dose
dispensing business in Distribution segment (EUR 1.4 million) and
iv) costs due to the sale of dose dispensing business in Sweden in
Group administration (EUR -0.8 million). Improved profitability was
mainly driven by the Distribution segment. The Group’s adjusted
EBIT excluding the impact of the Swedish dose dispensing business
was EUR 21.6 (19.5) million. EBIT was EUR 13.6 (-5.3) million.
3 345
3 507
3 568
3 588
3 772
0
5 00
1 000
1 500
2 000
2 500
3 000
3 500
4 000
2020 2021 2022 2023 2024
2020 2021 2022 2023 2024
Invoicing
EUR million
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
3,345
3,507
3,568
3,588
3,772
Adjusted EBIT
EUR million
6,6
14,9
19,7
16,7
21,7
0
5
10
15
20
25
2020 2021 2022 2023 2024
2020 2021 2022 2023 2024
21.7
16.7
19.7
14.9
6.6
42
Business review Governance
Financial review Sustainability Statement Oriola Annual Report 2024 |
Key figures
EUR million 2024 2023 Change %
Net sales 315.6 305.7 3.3
Adjusted EBIT 9.5 8.9 5.7
Adjusted EBIT % 3.0 2.9
EBIT 8.5 8.6 -1.9
Net sales grew by 3.3% to EUR 315.6 (305.7) million. The rise in net
sales was supported by growth in the wholesale business in Swe-
den and Finland, and advisory services.
Adjusted EBIT increased to EUR 9.5 (8.9) million. The profitability
improvement was related to a rise from moving clinical trials and
digital services under the management of advisory services (around
EUR 2 million). Adjusting items totalled EUR -1.0 (-0.3) million and
were related to a service level agreement settlement. EBIT was EUR
8.5 (8.6) million.
Balance sheet, cash flow and financing
Oriola’s total assets at the end of December 2024 were EUR 875.6
(934.7) million. Equity attributable to the equity holders was EUR
133.4 (171.3) million. The loss for the financial year was EUR -20.1
(-20.7) million, of which the joint venture Kronans Apotek’s share
was EUR -24.8 (-4.8) million. The loss from the joint venture includes
Oriola’s share of the impairment of goodwill amounting to EUR
16.3 million. Additionally, the equity was decreased by the dividend
of EUR 12.7 million distributed to the shareholders in April 2024.
In2024, Oriola recognised a decrease of EUR 2.6 million in the fair
value of shareholdings in Doktor.se due to the realised transactions
at lower price. Oriola’s ownership of shares in Doktor.se has not
changed during the financial year.
Cash and cash equivalents totalled EUR 113.5 (138.4) million.
Netcash flow from operating activities in 2024 was EUR 38.7
(9.6) million, of which changes in working capital accounted for
EUR21.4(-13.2) million. Increase in trade payables and decrease in
trade receivables have impacted working capital positively. Strong
fluctuation in working capital is typical to Oriola’s industry.
Netcashflow from investing activities was EUR -2.8 (-3.5) million.
Netcash flow from financing activities was EUR -60.7 (-28.3) million.
In 2024, loans from financial institutions were repaid by EUR 57.9
million and liabilities related to commercial paper issues were
reduced by EUR 14.5 million. A new term loan of EUR 30 million was
raised. The effect of the payment of dividends on the net cash flow
from financing was EUR 12.7 million.
At the end of December 2024, interest-bearing debt was EUR
76.1 (117.7) million. The non-current interest-bearing liabilities
amounted to EUR 39.7 (7.1) million and current interest-bearing
liabilities amounted to EUR 36.4 (110.7) million. During the year
a term-loan of SEK 290 million and EUR 30 million were repaid. A
new term loan of EUR 30 million was raised. Non-current interest-
bearing liabilities consist of loans from financial institutions
totalling EUR 30.0 (1.0) million and non-current lease liabilities
totalling EUR9.7 (6.1) million. Current interest-bearing liabilities
mainly consist of commercial paper issues of EUR 24.8 (39.3)
million, advance payments from Finnish pharmacies totalling EUR
7.9 (10.4)million, loans from financial institutions totalling EUR
1.0 (58.1)million and current lease liabilities totalling EUR 2.7 (2.8)
million. Interest-bearing net debt was EUR -37.4 (-20.6) million
andgearing -28.0% (-12.1%).
The non-recourse trade receivables sales programmes are in use
in Sweden. At the end of December 2024, a total of EUR 94.1 (97.1)
million in trade receivables had been sold. The average interest
rate on the interest-bearing liabilities excluding lease liabilities
was 3.01% (3.76%). Interest rate risk relating to the cash flow from
selling of trade receivables has been partly hedged with interest
rate swaps.
In December 2024, Oriola rearranged its current term loan of EUR
30 million. The old loan was repaid in full and a new term loan of
EUR 30 million was raised with maturity of three years and one (1)
+ one (1) year extension options. The loan agreement is subject to
financial covenants stating that at the end of each quarter the ratio
of Net Debt to EBITDA shall be less than 3.50 and the ratio of Net
Debt to Consolidated Equity shall be less than 100%. Management
believes that it will meet the quarterly covenants within 12 months
after the reporting date. Interest risk of the loan has been hedged
with an interest rate swap.
In June 2021, Oriola signed an unsecured revolving credit facility
agreement for a total of EUR 140 million. In May 2024, the revolving
credit facility was reduced from EUR 140 million to EUR 70 million.
The revolving credit facility will mature in June 2026. Thefacility
iscommitted. The margin of the revolving credit facility is linked
toOriola’s financial covenants and the performance of sustainabili-
ty targets. The committed long-term revolving credit facility of EUR
70.0 million and the credit limits totalling EUR40.0million were
unused at the end of December 2024.
At the end of December 2024, Oriola’s equity ratio was 15.4%
(18.5%). Return on capital employed was 5.4% (-1.6%) and
returnon equity -13.2% (-10.4%).
For more information on the Group’s balance sheet and cash
flow and related key figures, see the section Financial indicators
2020–2024.
Net cash flow from operating activities
EUR million
37
23
10
19
-43
50
40
30
20
10
0
-10
-20
-30
-40
-50
18
-5
-11
Q1 Q2 Q3 Q4
2023
Q1 Q2 Q3 Q4
2024
43
Business review Governance
Financial review Sustainability Statement Oriola Annual Report 2024 |
Investments and depreciation
Gross investments excluding right-of-use assets in 2024 totalled
EUR 2.9 (3.5) million andconsisted mainly of investments in
warehouse management systems and equipment. Capital
expenditure related to ERP investment was EUR 0.1 million in 2024.
Depreciation, amortisation and impairment amounted to EUR 13.6
(35.4) million. An impairment of EUR 1.9 million was related to ERP
investment previously capitalised on unfinished intangible assets.
In 2023, Oriola recognized an impairment loss of goodwill totalling
EUR 21.4 million in dose dispensing cash generating unit.
Oriola invests in ERP and warehouse management
On 10 January 2024, Oriola announced that it will be investing in its
infrastructure as part of its refined strategy with the aim to enhance
efficiency and operational excellence. Enhanced efficiency is one of
the goals set by Oriola to drive the strategy forward.
The investment comprises the renewal of Oriola’s ERP (enterprise
resource planning) and warehouse management in 2025−2027.
The aim of the project is to have one common system which
will enable to harmonise business processes, strengthen data
management and enhance customer experience. The value of
the total investment is about EUR 35 million. The new ERP and
warehouse management system will replace the current two
separate systems in Sweden and Finland. The project started in
the beginning of 2024 and the new system will be deployed in
phases during 2025−2027. The first deployment will be in Sweden
followed by the deployment in Finland.
IFRS Interpretations Committee’s agenda decision on the
accounting treatment of implementation costs for a Software
as a Service (SaaS) in a cloud computing arrangement limits the
capitalisation of the costs and amortisation over their useful life.
Oriola’s ERP arrangement is a cloud computing arrangement
where Oriola does not control the asset, and for that reason cannot
capitalise costs incurred in customising or configuring the software.
Such costs are expensed as incurred. Costs arising from developing
interfaces to existing on premise systems, will be capitalised. ERP
investment related costs are reported as adjusting items.
ERP investment related costs recognised in the income statement
in 2024 were in total EUR 7.7 million. Capital expenditure was EUR
0.1 million. Investment related costs were not recognised in the
income statement in 2023.
Joint venture Swedish Pharmacy Holding AB
(Kronans Apotek)
Oriola has 50% shareholding in Swedish Pharmacy Holding AB,
which controls pharmacy chain Kronans Apotek in Sweden.
Oriola reports its share of the net result in the Swedish Pharmacy
Holding AB under the EBIT line in the consolidated statement of
comprehensive income.
Key figures
EUR million 2024 2023 Change %
Net sales 1,151.1 1,126.9 2.1
EBITA -5.9 0.7 -935.5
EBITDA % -0.5 0.1
Adjusted EBIT -8.0 -2.0 -308.1
Adjusted EBIT % -0.7 -0.2
Net interest-bearing debt 96.9 93.0 4.1
In 2024, Swedish Pharmacy Holding AB reported net sales of
EUR1,151.1 (1,126.9) million. EBITA (Earnings before interest, taxes
and amortisation) was EUR -5.9 (0.7) million. Adjusted EBIT was EUR
-8.0(-2.0)million. Adjusting items totalled EUR -39.3 (-6.0) million
including EUR -6.7 million one-off costs related to the integration of
the two companies and a goodwill impairment of EUR -32.6 million.
The impairment is related to integration of Kronans Apotek and
the transition to one common ERP system, which have required
more time than anticipated. Synergies during the reporting period
totalled to EUR 4.6 (13.5) million. At the end of December 2024,
netinterest-bearing debt was EUR 96.9 (93.0) million.
During 2024 the joint venture company Kronans Apotek continued
to develop its broad network of almost 500 pharmacies and
enhance its e-commerce sales. With a total market share of 21%,
ranking third in size in the Swedish market and experiencing
double-digit growth in the digital sales channel, the company
is well-positioned to further improve its profitability and
competitiveness in 2025. Oriola expects Kronans Apotek to reach
profitability level representing industry benchmark by 2027. The
integration process has been more complex and slower than
expected, especially related to the ERP integration and organisation
setup.
Kronans Apotek is an important strategic partner for Oriola, and
Oriola will actively support Kronans Apotek’s value creation as a
major shareholder.
Changes in the Group structure
In the beginning of 2024, ICTHS Health Support AB was merged to
its parent company Oriola Sweden AB.
Assets held for sale
Oriola announced on 13 October 2023 that it has signed an
agreement to sell all shares in Svensk dos AB to Apotekstjänst
Sverige AB and is thereby exiting the dose dispensing business in
Sweden as part of Oriola’s strategic decision to strengthen focus
on wholesale business. Oriola has not seen a foreseeable recovery
of the business due to the current tender market structure and
dynamics. Svensk dos AB has been classified as held for sale since
October 2023.
The Swedish Competition Authority (Konkurrensverket) announced
on 30 April 2024 its decision on prohibiting Oriola’s sale of Svensk
dos AB to Apotekstjänst Sverige AB due to negative effects on the
competition in the market. The Swedish Patent and Market Court
rejected Apotekstjänst Sverige AB’s appeal in November 2024 and
consequently the Swedish Competition Authority’s decision from
April 2024 remains in effect. Apotekstjänst Sverige AB has appealed
the decision to the Patent and Market Court of Appeal. The final
ruling is expected in March 2025. Oriola is still committed to selling
Svensk dos AB.
44
Business review Governance
Financial review Sustainability Statement Oriola Annual Report 2024 |
In dose dispensing business, Svensk dos AB offers pharmaceuticals
and dose dispensing for private and public healthcare sector
operators. The net sales of dose dispensing Sweden were EUR
21.7(25.3)million and EBIT was EUR 1.5 (-6.1) million. In 2023 EBIT
includes a goodwill impairment loss of EUR 3.3 million.
Personnel
Oriola’s primary key resource is competent, engaged and actively
participating employees. Active participation of employees in
developing a positive and inclusive operative environment enables
the company to serve as a role model for future work.
At the end of December 2024, the number of employees in full-
time equivalents (FTE) was 816 (801), of which 409 (412) worked
inFinland and 407 (389) in Sweden. The decrease in the number
ofpersonnel was due to organizational changes in the Swedish
dose business. The average number of employees (FTE) in 2024
was812 (800).
The total amount of wages, salaries and bonuses in 2024 was EUR
42.5 million (EUR 39.8 million in 2023 and EUR 45.3 million in 2022).
For more information about the employee benefits please
referto note 4.4. Employee benefits in the Consolidated
FinancialStatements.
Short-term Incentive Plan
The Short-term Incentive Plan (STI) is based on the achievement
of the company’s financial targets and personal targets. The
Board of Directors decides annually on the earnings criteria
and the determination of the STI based on the proposal of the
Compensation and Human Resources Committee.
Share-based incentive programmes
Oriola has a share-based long-term incentive plan for the
company’s key employees, including the President & CEO and the
Oriola Management Team.
The incentive plan comprises a Performance Share Plan (the “PSP”)
and a share-based bridge plan to cover the transition phase to the
new LTI structure (the “Bridge Plan”). In addition, the long-term
incentive scheme comprises a Restricted Share Plan (also “RSP”)
as a complementary long-term share-based retention plan for
individually selected key employees in specific situations.
The Performance Share Plan (equity settled)
The Performance Share Plan for the years 2022-2025 consists of
annually commencing individual performance share plans, each
of which is subject to separate decision of the Board of Directors.
Eachplan comprises a performance period followed by the
payment of the potential share rewards in listed class B shares of
Oriola.
The length of the performance period of the first plan, PSP 2022, is
four calendar years. At the end of the financial year PSP 2022 has
10 participants. The performance measures based on which the
potential share rewards under PSP 2022 will be paid are earnings
per share (EPS) and an environment-related target (CO2). PSP 2022
comprises a performance period covering the calendar years 2022-
2025, and the share rewards potentially payable thereunder will
be paid during the first half of 2026. The payment of the rewards
is conditional on the achievement of the performance targets
which the Board of Directors has set for the plan and the individual
participant’s continued employment or service relationship with
Oriola. If all the performance targets for the PSP 2022 are fully
achieved, the aggregate maximum number of shares to be paid
based on this plan is approximately 2,254,000 class B shares
(referring to gross earning, from which the applicable payroll tax is
withheld).
The second plan, PSP 2024, is for three calendar years 2024-2026.
At the end of the financial year PSP 2024 has 16 participants. The
performance measures for this plan are cumulative adjusted EBIT,
earnings per share (EPS) and ESG-target (Delivery accuracy of
pharma). Possible share rewards are payable during the first half
of 2027. The aggregate maximum number of shares payable as a
reward based on this plan is approximately 2,283,305 class B shares
(referring to gross earnings, from which the applicable payroll tax
is withheld).
The Bridge Plan
In 2024, a total of 11,714 B treasury shares owned by the company
were conveyed without consideration to the key employees who
participated in the Bridge Plan 2022-2023 in accordance with the
terms and conditions of the plan.
The Restricted Share Plan
The Restricted Share Plan for the years 2022-2025 consists of
annually commencing individual restricted share plans which
aresubject to a separate decision of the Board of Directors.
Eachplan comprises a restriction period with an overall length
of three years, extending to first half of the fourth year of the
individual plan. During the plan period, the company may grant
fixed share rewards to individually selected key employees.
Thegranted share rewards are paid to the selected participants in
one or several tranches latest by the end of the restriction period.
The share rewards are paid in listed class B shares. The first plan,
RSP 2022, commences effective as of the beginning of 2022.
Theaggregate maximum number of shares payable as a reward
isapproximately 225,400 class B shares (referring to gross earning,
from which the applicable payroll tax is withheld).
For all programs, if the individual’s employment with
OriolaCorporation terminates before the payment of the reward,
the individual is, as a main rule, not entitled to any reward.
Thevalue of the reward payable to each individual participant
based on the plans is limited by a maximum cap linked to a
multiplier of the individual’s annual salary. Oriola applies a share
ownership requirement to the CEO and the members of Oriola
Management Team. They are expected to retain ownership at least
half of the shares received under the incentive plans until thevalue
of his/her ownership in the company, in the case of theCEO,
corresponds to at least his/her annual gross base salary, and in
thecase of the other the members of the Oriola Management
Team, to at least half of his/her annual gross base salary.
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Share savings plan
The share savings plan for the key personnel that Oriola has
hadsince 2013 was terminated in 2022 and a total of 22,138
OriolaCorporation’s class B treasury shares were conveyed
in 2023without consideration to the key personnel who
participatedin the plan.
Governance
Separate Corporate Governance Statement 2024 and
Remuneration Report 2024 can be found in Annual Report 2024.
Annual General Meeting 2024
The Annual General Meeting of Oriola, held on 19 March 2024,
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 2023. According
to thedecision of the Annual General Meeting, a dividend of
EUR0.07per share was paid on the basis of the balance sheet
adopted for the financial year ending 31 December 2023.
Auditor
Authorised Public Accountants KPMG Oy Ab, who has put forward
authorised public accountant Ms Kirsi Jantunen as principal auditor,
was re-elected as the auditor of the company. The auditor’s fees
shall be paid according to an invoice approved by the company.
Board of Directors
The AGM confirmed that the Board of Directors is composed of
seven members. Ms Nina Mähönen, Mr Yrjö Närhinen, Ms Ellinor
Persdotter Nilsson, Mr Harri Pärssinen and Mr Heikki Westerlund
were re-elected to the Board of Directors and Ms Petra Axdorff and
Ms Ann Carlsson Meyer were elected as new members of the Board
of Directors. Mr Heikki Westerlund was re-elected as Chairman of
the Board of Directors.
Board remuneration
The AGM confirmed that the fee for the term of office of the
Chairman of the Board of Directors is EUR 70,000, the fee for the
term of office of the Vice Chairman of the Board of Directors and for
the Chairman of the Board’s Audit Committee is EUR 40,000 and the
fee for the term of office of other members of the Board of Directors
is EUR 33,500. Of the annual fee, 60 per cent is paid in cash and 40
per cent is used to acquire Oriola Corporation’s class B shares for
the Board members on the Nasdaq Helsinki Stock Exchange. The
Chairman of the Board of Directors receives an attendance fee
of EUR 1,000 per meetings of the Board of Directors held in the
Chairman’s home country and EUR 2,000 for meetings of the Board
of Directors held elsewhere and the other members of the Board
of Directors receive attendance fees of EUR 500 per meeting for
meetings held in the home country of the respective member of
the Board of Directors and EUR 1,000 for meetings held elsewhere.
Attendance fees are correspondingly also paid to the Chairman
and members of company committees. Travel expenses are
compensated in accordance with the travel policy of the company.
Authorisations
The Annual General Meeting authorised the Board to decide on
a share issue against payment in one or more issues, including
the right to issue new shares or to assign treasury shares held by
the company. The authorisation covers a combined maximum
of 5,500,000 class A shares and 12,500,000 class B shares of the
company and includes the right to derogate from the shareholders’
pre-emptive subscription right. The authorisation is in force for
eighteen (18) months following the decision of the Annual General
Meeting.
The Board was also authorised to decide on a share issue against
payment of class B shares 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 18,000,000 class B shares of the company including the right
to derogate from the shareholders’ pre-emptive subscription
right. The authorisation is in force for a maximum of eighteen (18)
months following the decision of the Annual General Meeting.
The Annual General Meeting authorised the Board to decide on a
share issue of class B shares without payment to the Company and
on a directed share issue of class B shares in order to execute the
share-based incentive plan for Oriola Group’s executives and the
share savings plan for Oriola Group’s key personnel. The maximum
number of new class B shares to be issued under this authorisation
is 250,000, which represents of 0.14% of all shares in the Company.
The authorisation is in force for eighteen (18) months from the
decision of the Annual General Meeting.
The Annual General Meeting authorised the Board to decide on
repurchasing up to 18,000,000 of the company’s own class B shares.
Shares may be repurchased also in a proportion other than in
which shares are owned by the shareholders. The authorisation
is in force for a maximum of eighteen (18) months following the
decision of the Annual General Meeting.
All decisions of the Annual General Meeting 2024 are available on
the company’s website www.oriola.com.
Shareholder’s Nomination Board
The Shareholders’ Nomination Board consists of six members
appointed by the shareholders. In addition, the Chairman
of the Board of Directors acts as an expert member of
the Nomination Board.
The largest shareholders of Oriola Corporation elected on
6 June 2024 the following persons as members of
the Nomination Board:
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Financial review Sustainability Statement Oriola Annual Report 2024 |
- Annika Ekman
- Peter Immonen
- Timo Maasilta
- Pekka Pajamo
- Jukka Ylppö
- Ingeborg Åkermarck
Pekka Pajamo was elected Chairman of the Nomination Board.
Heikki Westerlund, Chairman of the Board of Directors of Oriola,
serves as an expert member of the Nomination Board.
CEO and Oriola Management Team
At the end of the year 2024, the Oriola Management Team
consisted of six members, including the President and CEO, to
whom the other Oriola Management Team members report.
On 29 August 2024 Mats Danielsson, M. Sc. (Econ) was appointed
Chief Financial Officer and member of the Oriola Management
Team as of 16 September 2024.
On 7 October 2024 Tuomas Tiilikainen, M. Sc. (Engineering) was
appointed Chief Supply Chain Officer and member of the Oriola
Management Team and he joined the company in the beginning of
February 2025.
On 11 October 2024 Oriola announced that Hannes Hasselrot, the
Chief Commercial Officer and member of the Oriola Management
Team, has resigned. Hannes left the company on 1 January 2025.
On 11 December 2024, Oriola announced that it renews its
operating model and appoints Satu Nylén, Executive Vice President,
Services and Products and Katja Lundell, Executive Vice President,
Advisory Services to Oriola’s Management Team as of 1 January
2025.
The following persons were members of Oriola Management Team
on 31 December 2024:
Oriola Corporation shares
Oriola Corporation’s market capitalisation on 31 December 2024
was EUR 162.0 (199.2) million.
Jan–Dec 2024 Jan–Dec 2023
Trading of shares class A class B class A class B
Trading volume, million 3.4 33.1 3.1 57.1
Trading volume, EUR million 3.5 33.0 4.0 61.6
Highest price, EUR 1.23 1.17 1.93 1.82
Lowest price, EUR 0.89 0.85 1.02 0.89
Closing quotation, end of
period, EUR 0.90 0.89 1.12 1.09
In 2024, the traded volume of Oriola Corporation shares, excluding
treasury shares, corresponded to 20.2% (33.2%) of the total number
of shares.
At the end of 2024, the company had a total of 181,486,213
(181,486,213) shares, of which 53,748,313 (53,748,313) were class
A shares and 127,737,900 (127,737,900) were class B shares. The
company held a total of 75,712 (87,426) treasury shares, of which
63,650 (63,650) were class A shares and 12,062 (23,776) were class B
shares. The treasury shares held by the company account for 0.04%
(0.05%) of the company’s shares and 0.11% (0.11%) of the votes.
Under Article 3 of the Articles of Association, a shareholder may
demand conversion of class A-shares into class B shares. In 2024
and 2023, no class A shares were converted into class B shares.
Management’s holding
On 31 December 2024, the members of the Board of Directors, the
CEO and the members of the Oriola Management Team, including
their controlled corporations, owned a total of 540,542 class B
shares corresponding to 0.30% of the total number of shares and
0.04% of the votes.
Flagging notifications
No flagging notifications during 2024.
- Katarina Gabrielson, President and CEO
- Mats Danielsson, Chief Financial Officer
- Hannes Hasselrot, Chief Commercial Officer
- Niklas Lindholm, Chief People Officer
- Mikael Nurmi, Chief Digital Officer
- Petter Sandström, General Counsel
Oriola’s planned operating model
The planned operating model consists of a common sales
organisation and two commercial units: Products and Services, and
Advisory Services.
With the planned Sales unit, Oriola is creating stronger partnerships
with improved customer focus, as well as reduced complexity for
customers. This will give Oriola even more flexibility to respond to
customer needs, and to better capture growth opportunities.
With the planned new commercial unit Services and Products,
Oriola is enhancing an integrated service offering with a service and
product portfolio that meets the standards of modern wholesale
and e-commerce of pharmaceuticals and health products.
The existing commercial unit Advisory Services will continue to
support pharmaceutical companies and pharmacies to succeed in
the Nordic countries by providing high-quality expert services and
tailored commercial data solutions covering the entire lifespan of a
pharmaceutical product.
The planned operating model also includes the existing Supply
Chain unit and enabling functions Finance, Digital, Legal, and
People and Culture.
The planned operating model is expected to be valid latest by the
end of the first quarter 2025. The planned changes will not impact
Oriola’s external financial reporting segments.
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Shares and shareholders
Shareholders by type of owner, 31 December 2024
Shareholders % of shareholders % of shares
A shares B shares Total A shares B shares Total A shares B shares Total
Individuals 12,133 25,360 33,228 97.2 96.0 96.3 43.4 45.9 45.2
Corporations and partnerships 211 687 833 1.7 2.6 2.4 29.7 29.8 29.8
Banks and insurance companies 13 42 44 0.1 0.2 0.1 2.2 7.5 5.9
Public entities 8 17 22 0.1 0.1 0.1 14.8 7.1 9.4
Non-profit institutions 50 168 198 0.4 0.6 0.6 8.1 1.9 3.7
Foreign shareholders 63 141 177 0.5 0.5 0.5 0.3 0.3 0.3
Total 12,478 26,415 34,502 100.0 100.0 100.0 98.4 92.5 94.2
Nominee registrations 1.6 7.5 5.8
Shareholders by number of shares held, 31 December 2024
Shareholders % of shareholders
Number of shares A shares B shares Total A shares B shares Total
1–100 3,006 3,943 5,933 24.1 14.9 17.2
101–1,000 6,051 13,150 16,815 48.5 49.8 48.7
1,001–10,000 3,064 8,245 10,279 24.6 31.2 29.8
10,001–100,000 317 996 1,361 2.5 3.8 3.9
over 100,001 40 81 114 0.3 0.3 0.3
Total 12,478 26,415 34,502 100.0 100.0 100.0
Of which nominee registered 6 8 8
Shares % of shares
Number of shares A shares B shares Total A shares B shares Total
1-100 137,756 201,872 339,628 0.3 0.2 0.2
101-1,000 2,631,571 5,993,996 8,625,567 4.9 4.7 4.8
1,001-10,000 8,844,984 24,982,762 33,827,746 16.5 19.6 18.6
10,001-100,000 8,012,406 25,344 ,995 33,357,401 14.9 19.8 18.4
over 100,001 34,121,596 71,214 ,275 105,335,871 63.5 55.8 58.0
Total 53,748,313 127,737,900 181,486 ,213 100.0 100.0 100.0
Of which nominee registered 833,675 9,635,329 10,469,004 1.6 7.5 5.8
Total number of shares 53,748,313 127,737,900 181,486,213 100.0 100.0 100.0
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Largest shareholders, 31 December 2024
By number of shares held A shares B shares Total shares % of total shares Votes % of total votes
1. Mariatorp Oy 7,100,000 19,525,000 26,625,000 14.67 161,525,000 13.43
2. Wipunen Varainhallinta Oy 2,600,000 6,400 000 9,000,000 4.96 58,400,000 4.86
3. Keskinäinen Työeläkevakuutusyhtiö Varma 4,320,600 3,273,000 7,593,600 4.18 89,685,000 7.46
4. Keskinäinen Eläkevakuutusyhtiö Ilmarinen 3,606,414 2,289,018 5,895,432 3.25 74,417,298 6.19
5. Vakuutusosakeyhtiö Henki-Fennia 555,000 3,886,797 4,441,797 2.45 14,986,797 1.25
6. Maa- ja Vesitekniikan Tuki ry. 4,025,358 0 4,025,358 2.22 80,507,160 6.69
7. Greenzap Oy 3,000,000 0 3,000,000 1.65 60,000,000 4.99
8. Kansaneläkelaitos, KELA 0 1,991,481 1,991,481 1.10 1,991,481 0.17
9. Ylppö Jukka 1,496,562 286,992 1,783,554 0.98 30,218,232 2.51
10. Sijoitusrahasto Seligson & Co Phoebus 220,000 1,379,857 1,599,857 0.88 5,779,857 0.48
11. Herlin Olli 275,000 1, 300 000 1,575,000 0.87 6,800,000 0.57
12. Proprius Partners Micro Finland 0 1,400,000 1,400,000 0.77 1,400,000 0.12
13. Ehnrooth Helene 0 1,304,333 1,304,333 0.72 1,304,333 0.11
14. Medical Investment Trust Oy 181,000 852,540 1,033,540 0.57 4,472,540 0.37
15. Drumbo Oy 0 1,000,000 1,000,000 0.55 1,000,000 0.08
16. Paloniemi Jari 0 1,000,000 1,000,000 0.55 1,000,000 0.08
17. Ylppö Into 693,522 240,200 933,722 0.51 14,110,640 1.17
18. Laakkonen Mikko 196,320 689,080 885,400 0.49 4,615,480 0.38
19. Jocer Oy Ab 0 874,334 874,334 0.48 874,334 0.07
20. Säästöpankki Kotimaa-sijoitusrahasto 619,649 166,939 786,588 0.43 12,559,919 1.04
Total 28,889,425 47,859,571 76,748,996 42.29 625,648,071 52.02
Nominee registered 739,159 9,453,394 10,192,553 5.62 24,236,574 2.02
Oriola Corporation 63,650 12 ,062 75,712 0.04 1,285,062 0.11
Other 24,056,079 70,412 ,873 94,468,952 52.05 551,534,453 45.86
All shareholders total 53,748,313 127,737,900 181,486,213 100.00 1,202,704,160 100.00
49
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Governance Financial review Sustainability Statement Oriola Annual Report 2024 |
Risk review
Key external factors/trends impacting Oriola’s business
environment include ageing of the population, increased spending
on health and wellbeing, growth in speciality pharmaceuticals, the
digitalisation of the retail trade and services, sustainability as well
as ongoing global health challenges.
Strategic and financial risks
Oriola’s risk management framework was updated in 2024 to
reflect the current business and regulatory environment. The
Group’s risk management policy outlines the principles, processes
and organisation designed to identify, measure and manage
risks impacting operations and strategic goals. The Group’s risk
management seeks to identify, measure and manage risks and
opportunities that may have an adverse or beneficial impact on
Oriola’s operations and strategic goals.
Oriola’s risk appetite reflects a balanced approach to taking
well-considered risks while maintaining strong financial stability
and operational continuity. Oriola’s risk management principles
emphasise proportionality, reasonableness, and disaster avoidance,
ensuring that risks are managed effectively and in alignment with
our long-term strategic goals.
Oriola also adheres to a Code of Conduct policy and a Treasury
policy covering compliance and financial risks. The internal control
and risk management systems related to Oriola’s financial reporting
are aimed at ensuring the reliability of the company’s financial
statements and financial reporting, as well as the company’s
compliance with legislation and generally approved operating
principles.
Oriola continuously monitors changes in the risk landscape and
adjusts the company’s risk and opportunity exposure in response
to shifts in the market, society, and geopolitical environment.
Changes in the pharmaceutical market regulation and related
licences, pricing, parallel import and public reimbursement, as
well as increased competition through e.g. growing number of
companies and pharmacies in e-commerce, decreasing share of
single channel distribution, and loss of several key pharmaceutical
company agreements, are examples of strategic and operational
risks that may have an impact on the performance of the Group.
Regulatory and market risks
Oriola operates in regulated pharmaceutical distribution and
retail markets closely monitored by authorities in both operating
countries.
The reform of social and healthcare (Sote), was approved in Finland
in 2021. In the beginning of 2022, 21 new county councils were
elected, and these new political bodies will decide on social,
healthcare and rescue services in each wellbeing services county.
New regions were affected from the beginning of 2023.
Oriola assesses ESG-related (Environment, Social and Governance)
risks as part of the regular risk management process. ESG-
related impacts, risks and opportunities are presented in Oriola’s
Sustainability Statement.
The main financial risks for Oriola involve currency rate, liquidity,
interest rate and credit risks. Changes in the value of the Swedish
krona have an impact on Oriola’s net sales, earnings and
consolidated statement of financial position. Changes in cash flow
forecasts may cause impairment of goodwill. More information
about financial risk management can be found in note 8.3. in
thenotes to the Consolidated Financial Statements.
Near-term risks and uncertainty factors
Risks related to instability in financial markets, cost inflation,
salary inflation and overheated labour markets, uncertain product
availability due to material and supply chain constraints, and
electricity shortages, remain. In addition, cyber-attacks against
critical areas of society are expected to increase. These factors
may have a significant impact on Oriola’s operations, net sales
andprofitability.
Oriola is deemed as a critical entity under the directive (2022/2557)
of the European Parliament on the resilience of critical entities.
Recognition of full-service healthcare distributors as critical
infrastructure reduces Oriola’s risks. The directive entered
intoforceon 16 January 2023 and will have to be implemented
atnational level. Finland has made progress towards implementing
Directive (EU) 2022/2557. The Finnish government submitted a
proposal related to the directive on May 23, 2024, which is currently
under committee review. Sweden has not yet transposed the
directive into national law. The implementation is expected to
occur in 2025.
Oriola’s continuity planning is designed to maintain critical
operations, even in the face of unforeseen challenges. It also
encompasses measures to rebuild and restore these operations if
disruptions would occur. With well-defined protocols and regular
testing, Oriola strengthens its capacity to safeguard customer
requirements, ensure profitability, and support societal needs.
By ensuring the availability and reliable distribution of critical
healthcare products, even under challenging conditions, Oriola
is also an important contributor to societal resilience and
preparedness. This entails that developments in national threat
scenarios and security protection legislation have an impact on
both the company’s risk exposure and its opportunities.
Oriola’s strategic development projects involve operational
risks which may have an effect on the company’s profitability if
materialized. Oriola has IT system projects underway. The company
has defined separate risk management plans for all major IT
projects and aims to ensure seamless implementation of the
systems through careful planning.
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Governance Financial review Sustainability Statement Oriola Annual Report 2024 |
Profit distribution proposal
Oriola Group’s parent company is Oriola Corporation, whose
distributable funds according to the balance sheet as at 31
December 2024 were EUR 153.3 (190.7) million. Oriola Corporation’s
result for the financial year 2024 was EUR -24.6 (-6.9) million.
Earnings per share of the Oriola Group were EUR-0.11 (-0.11).
The Board of Directors proposes to the Annual General Meeting
that a dividend of EUR 0.07 (0.07) per share would be paid for 2024.
The Board of Directors further proposes that the remainingnon-
restricted equity, EUR 140,573,934.29 be retainedand carried
forward.
Annual General Meeting 2025
Oriola Corporation’s Annual General Meeting will be held on
2 April 2025. The matters specified in article 10 of the Articles of
Association and other proposals of the Board of Directors, ifany,
will be dealt with at the meeting. The notice to convene will be
available on the company’s website at www.oriola.com on12
March 2025 at the latest.
Outlook for 2025
In 2025, the pharmaceutical distribution market is expected to
continue to grow. Value growth is expected to be driven by high-
value pharmaceuticals and products requiring advanced logistics.
The uncertainty in the geopolitical environment remains, and
the availability issues of certain pharmaceuticals are expected to
continue.
Consumer confidence is expected to remain weak, which may
have an impact on the wholesale market. Typically, in economic
uncertainty, consumers tend to shift purchases to low-price
categories.
For 2025, Oriola expects the adjusted EBITDA excluding the
Swedish dose dispensing business to increase from the previous
year. (2024: EUR 33.3 million). The expectation of improved
EBITDA is based on growing markets and strategy execution.
From the start of 2025 Oriola introduces adjusted EBITDA
(earnings before interest, taxes, depreciation and amortisation)
as a new alternative performance measure. EBITDA is widely used
by management and investors when assessing the profitability of
a company and cash flow generation. Oriola publishes adjusted
EBITDA for all quarters of 2024 separately.
Events after the balance sheet date
Acquisition of MedInfo ApS in Denmark
Oriola announced on 27 January that it acquires 100% of the shares
in MedInfo ApS in Denmark to strengthen its Nordic footprint in
medical information (MI) and patient support programmes (PSP).
MedInfo is currently Oriola’s subcontractor covering the Danish and
Norwegian markets with MI and PSP services.
MedInfo’s net sales in 2024 were EUR 0.9 million, which mainly
came from transactions with Oriola, and which is eliminated in
the consolidated financial statements. The company employs
five persons and an interim manager, who will stay on for the first
months to ensure a smooth transition. MedInfo will be integrated in
Oriola’s Advisory services, which is part of Wholesale segment. The
transaction was closed on 3 February 2025. The acquisition does
not have a significant impact on Oriola’s financial position.
Oriola Management Team
Oriola announced on 3 March 2025 that Stig Tornell, B. Sc. (Bus.
Adm. & Econ.), has been appointed as Executive Vice President,
Sales and member of the Oriola Management Team as of 1 April
2025.
Shareholder’s proposal regarding combination of share classes
and directed issuance of shares without payment
As announced on 7 February 2025, the Board of Directors of
Oriola Corporation has on 7 February 2025 received a demand in
accordance with Chapter 5 Section 5 of the Finnish Companies Act
to have the combination of share classes and directed issuance of
shares without payment dealt with by the Annual General Meeting
of Oriola scheduled to be held on 2 April 2025.
As announced on 3 March 2025, the Board of Directors of Oriola
Corporation recommends that the shareholder’s proposal
regarding combination of share classes and directed issuance
of shares without payment be accepted at the Annual General
Meeting.
Oriola’s distribution capabilities relies on well-functioning
distribution centres with automation and information systems. If
the systems experience long or short-term malfunctions, Oriola’s
delivery accuracy might be affected.
From time to time, Oriola is involved in legal actions, claims and
other proceedings. It is Oriola’s policy to provide for amounts
related to the proceedings if liability is probable, and such amounts
can be estimated with reasonable accuracy. Taking into account
all available information to date, legal actions, claims and other
proceedings are not expected to have a material impact on the
financial position of the Group.
Oriola’s proactive risk management, strategic alignment with
regulatory changes, and strengthened operational resilience
position the company well for sustained performance. The
continued focus on ESG, financial stability, and supply chain
reliability supports the long-term success of the organisation.
51
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Sustainability Statement Oriola Annual Report 2024 |
ESRS2 General Disclosures
General basis for preparation of
Sustainability Statement (BP-1, BP-2)
This Sustainability Statement has been prepared according to
the sustainability reporting standards (European Sustainability
Reporting Standards, ESRS) referred to in Chapter 7 of the Finnish
Accounting Act and Article 8 of the Taxonomy Regulation on a
consolidation basis.
Oriola’s sustainability reporting is aligned with reporting on the
financial year (calendar year 2024) and unless otherwise stated, it
comprises the parent company Oriola Corporation and all
the companies in which the Group holds over 50% of the voting
rights directly or indirectly. The scope of consolidation of this report
is the same as for financial statements covering Oriola Group Plc’s
legal entities in Finland and in Sweden: Oriola Corporation, Oriola
Finland Oy, Pharmaservice Oy, Oriola Sweden AB and Svensk dos
AB. No entities have been excluded from the reporting.
This statement includes information about Oriola’s material
impacts, risks and opportunities through its direct and indirect
business relationships in the upstream and downstream value
chain according to the outcome of the double materiality
assessment (DMA). The inclusion of the value chain information is
clearly stated in connection with the specific topic.
Oriola has not used the option to omit specific pieces of
information corresponding to intellectual property, know-how or
results of innovation. Neither has the company used the option to
omit disclosure of impending developments or matters in course of
negotiation.
In this report Oriola has used the time horizons according to the
ESRS standards. The short term refers to the upcoming financial
year, the medium term to the following 1–5 years, and the long
term to a time span exceeding 5 years.
Metrics related to greenhouse gas emissions encompass data from
both upstream and downstream parts of the value chain. While
most calculations rely on direct data, certain Scope 3 categories
incorporate information derived from indirect sources. The metrics,
including the basis for the preparation and the resulting level of
accuracy, are detailed in section E1 Climate Change.
No disclosure requirements or specific data points have been
incorporated by reference.
The role of the administrative,
management and supervisory bodies
(GOV-1)
Oriola’s administrative, management and supervisory bodies are
the Board of Directors and the President and CEO. The general
meeting of shareholders, the Board of Directors (including its
committees), and the President and CEO, assisted by the Oriola
Management Team, are responsible for the governance of Oriola.
The main tasks of the Board of Directors are listed in the
Board’s rules of procedure. According to the rules, the Board is
responsible for approving the company’s strategy, which includes
the sustainability agenda and strategic sustainability goals.
Oriola’s Board of Directors monitors the implementation of the
sustainability agenda and reviews the company’s sustainability
targets and progress of the sustainability work, including climate-
related issues.
The Audit Committee has a Board mandate to supervise the
execution of the Group’s sustainability agenda. The Audit
Committee prepares the sustainability agenda and strategic
sustainability goals for the Board’s approval. It monitors the
advancement of the sustainability agenda, offering feedback when
necessary.
The President and CEO has overall responsibility for implementing
Oriola’s sustainability agenda as part of the strategy. The CEO is
also responsible for establishing an appropriate organisation for
sustainability work and ensuring necessary internal and external
resources and expertise.
Oriola Management Team prepares and follows up the Group’s
sustainability agenda including action plans, risks, targets and
performance indicators. Oriola tracks progress in sustainability
areas using Group-level strategic targets and key performance
indicators (KPI).
Oriola has specified the company’s risk management model,
principles, organisation and process in the Group Risk Management
Policy. Sustainability-related risks are managed according to the Policy.
Diversity of the Board and Management
Oriola’s Board of Directors as a collegium has a competence profile
which supports the company’s existing and future business,
enabling the achievement of Oriola’s strategic goals. The members
of the Board of Directors have mutually complementary expertise
regarding their education and experience in different professional
areas and industrial sectors, businesses in various stages of
development, leadership, as well as their personal capacities.
Oriola’s Board of Directors consist of seven members: Heikki
Westerlund (chairman), Petra Axdorff, Ann Carlsson Meyer, Nina
Mähönen, Yrjö Närhinen, Ellinor Persdotter Nilsson and Harri
Sustainability Statement
1. General information
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Sustainability Statement Oriola Annual Report 2024 |
Pärssinen. All seven members (100%) are non-executive and
independent of the company and of the major shareholders.
The diversity of the Board of Directors is supported by experience
in operating environments and industries relevant to Oriola as
well as different cultures and by considering the age and gender
breakdown of the members. The percentage of female board
members is 57% and the gender diversity ratio is 1.33.
At the end of the year 2024, the Oriola Management Team
consisted of six executive members, who have extensive
experience relevant to the company’s sectors, products and
geographic locations. The percentage of female management team
members was 17%. The Oriola Management Team members were:
Katarina Gabrielson, CEO, Mats Danielsson, CFO, Hannes Hasselrot,
Chief Commercial Officer, Niklas Lindholm, Chief People Officer,
Mikael Nurmi, Chief Digital Officer, and Petter Sandström, General
Counsel.
In 2024, there was no employee representation in Oriola’s Board of
Directors or in the Oriola Management Team.
Managing material impacts, risks and opportunities
Oriola’s Board of Directors is the highest authority to oversee
the company’s material impacts, risks and opportunities. Oriola’s
Board of Directors approves the outcome of the double materiality
assessment and the Group’s sustainability agenda, based on the
outcome of the double materiality assessment, as a part of the
company’s strategy. The Board approves the Risk Management
Policy, Code of Conduct and Business Partner Code of Conduct and
the sustainability statement as a part of the company’s Financial
Statements.
The Audit Committee supervises the execution of the Group’s
sustainability agenda as well as tracking the progress of the
company’s sustainability reporting. Furthermore, it reviews the
sustainability-related matters finally decided upon by the Board.
To ensure alignment with ESRS disclosures, the Audit Committee
reviews the processes, controls, methodologies and policies related
to impacts, risks and opportunities that management employs to
enhance sustainability reporting.
The President and CEO has overall responsibility for implementing
Oriola’s sustainability agenda as part of the strategy. She reports
to the Board of Directors on material sustainability topics and
approves the Quality Policy setting the foundation for Oriola’s ISO-
certified Group-wide management system.
Skills and expertise to oversee sustainability matters
The members of Oriola’s Board of Directors currently hold or have
previously held leadership positions in companies with a high
level of sustainability. The members have experience in areas such
as sustainability management, human resources management,
occupational safety management, sustainable sourcing,
responsible finance and risk management.
The members of the Oriola Management Team have extensive
business knowledge and appropriate skills and expertise relevant
to their responsibility areas. The competence in sustainability is
sufficient, including for example expertise in human resources, data
and risk management, and governance and compliance matters.
The governing bodies use actively the expertise of the company’s
sustainability and environmental organisations, and external
experts are consulted when necessary. In addition, all members
of the Board of Directors and Oriola Management Team receive
sustainability-related training as needed.
Information provided to and
sustainability matters addressed by
the undertaking’s administrative,
management and supervisory bodies
(GOV-2)
Sustainability is integral to Oriola’s mission of improving health
and wellbeing, increasingly important to its stakeholders, and
a key enabler of the Group’s business strategy. Oriola actively
incorporates environmentally and socially responsible practices into
its day-to-day operations, decision-making and risk management
processes. Sustainability topics are also covered in strategic
negotiations with key suppliers in main sourcing categories.
Oriola’s sustainability agenda drives actions towards ambitious
long-term goals balancing environmental, social and economic
priorities with a strategic approach. Oriola is committed to
reducing the environmental impact of its operations, ensuring
the accessibility of medicines, and fostering responsible practices
across its value chain. Oriola continuously evaluates the interplay
between short-term operational demands and long-term
sustainability goals, emphasising transparency, innovation and
collaboration with its stakeholders.
Sustainability being a key part of Oriola’s strategy brings
sustainability-related topics regularly to the Board’s agenda:
• The Board and the Audit Committee are informed about
sustainability-related topics as part of the CEO’s business
review, which is on the agenda of each monthly meeting.
• The Board approves the sustainability agenda and strategic
sustainability goals in connection with the strategy process. The
current sustainability agenda is valid 2024-2026.
• The Board and the Audit Committee review the main risks
according to Group’s Risk Management Process on a quarterly
basis, and relevant policies as needed.
• The Board follows up the results and effectiveness of policies,
actions, metrics and targets adopted to address material
impacts, risk and opportunities at least on a yearly basis, when
it approves the sustainability statement as part of the Financial
Statements. The Audit Committee reviews the sustainability
statement prior to its approval by the Board of Directors.
Sustainability topics are presented to the Oriola Management Team
as needed over the year. The Management Team reviews the main
risks quarterly according to the Group’s Risk Management Process
and updates the sustainability agenda as part of the strategy
process according to internal and external expectations.
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Sustainability Statement Oriola Annual Report 2024 |
Oriola’s Board of Directors
Decides, steers and guides sustainability agenda,
follows up progress against targets and approves relevant policies
CEO and Oriola Management Team
Have overall responsibility for implementing Oriola’s sustainability agenda
as part of the strategy. Prepares and follows up the Group’s sustainability
agenda including action plans, risks, targets and performance indicators.
Approves the relevant policies.
Audit Committee
Monitors the advancement on the sustainability agenda
and the progess of sustainability reporting, reviews sustainability-related
processes, controls, methodologies and policies.
Communications and Sustainability function
Prepares proposals to Oriola Management Team about sustainability
development in line with the sustainability agenda and action plans.
Steers sustainability related activities, including follow-up of near- and
long-term plans and roadmaps as well as the Group’s
sustainability reporting according to the ESRS reporting standards.
Businesses and Functions
Ensure that sustainability goals are cascaded throughout
the organisation and KPIs are set at local level
Risk management team
Assesses sustainability risks as part of
the Group risk management process
Sustainability management The Oriola Management Team prepares and follows up the
Group’s sustainability agenda including action plans, risks, targets
and performance indicators. It approves the Group-wide Privacy
and Environmental Policies.
• The Communications and Sustainability function, led by VP,
Communications and Sustainability, is responsible for preparing
proposals to the Oriola Management Team about sustainability
development in line with the sustainability agenda and action
plans, steering sustainability-related activities, which include
follow-up of near- and long-term plans and roadmaps and
sustainability reporting according to the ESRS reporting
standards.
• The Quality and Environment organisation, led by the Quality
Director, is responsible for overseeing matters related to
product and operations quality and environment, including
energy consumption and emissions reporting.
• The HR organisation is responsible for overseeing social matters
related to own workforce, including employee engagement
and diversity. Impacts related to Oriola’s own workforce are
identified and managed through People Policy and multiple HR
and HSE (Health, Safety and Environment) processes.
• The IT organisation is responsible for Oriola’s comprehensive
Information Security Management framework including key
policies and data protection processes. Key policies include
Oriola’s Privacy Policy outlining the methods by which the
company gathers, uses, discloses and otherwise processes
personal information.
• The Legal organisation is responsible for overseeing the
governance and compliance matters and for updating Oriola’s
Code of Conduct, which guides management and personnel on
ethical principles within the Group.
• The Risk Management organisation, led by Director, Risk and
Security, is responsible for Oriola’s Risk Management Policy,
which outlines the company’s risk management model,
principles, organisation and process. The policy defines the
enterprise risk management system, objectives, roles and
responsibilities within Oriola, aiming to identify and manage
risks associated with the execution of the company’s strategy
and operations.
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Sustainability Statement Oriola Annual Report 2024 |
List of material impacts, risks and opportunities
addressed by administrative, management and
supervisory bodies or their relevant committees in
2024
• Oriola’s Board of Directors reviewed and approved the outcome
of the Group’s double materiality assessment.
• The Audit Committee reviewed the assessment prior to the
Board approval.
• Over the year, the Board and the Audit Committee followed up
the progress of sustainability reporting and related assurance
process.
• Other topics included for example the presentation of the
project for setting the Science Based Targets (SBTi) for Oriola’s
climate work.
• In October, the Board approved the renewed Code of Conduct
and Business Partner Code of Conduct.
• In November, the Board approved the new People Policy.
• The Oriola Management Team participated in the finalisation
of the double materiality assessment and decided on the final
material topics.
• The Management Team also reviewed the outcome of the
Human Rights impact screening and the ESRS GAP analysis.
Integration of sustainability-related
performance in incentive schemes (GOV-3)
In line with Oriola’s Remuneration Policy and Remuneration Report
2024, Oriola’s remuneration supports achieving strategic targets,
profitability and increased shareholder value. The objective is to
reward concrete achievements in implementing Oriola’s strategy
and in achieving its targets. When setting the remuneration for
executives, Oriola follows the same main principles as for other
employees in the company. Remuneration across the company is
reviewed regularly to secure its competitiveness in the market.
The main components of the remuneration are base salary and
short- and long-term incentives. The short-term incentive (STI) plan
is based on the achievement of the company’s financial targets and
personal targets. The measures may consist of a mix of financial,
operational and ESG related metrics.
The share-based long-term incentive (LTI) plan covers the
company’s key employees. The objectives of the LTI are to
promote shareholder value creation in the long term, to
commit management and key employees to achieving Oriola’s
strategic targets, and the retention of Oriola’s key resources.
The performance criteria may include financial or non-financial
measures to support the Group´s long-term success such as key
financial targets, ESG targets, strategic priorities, shareholder
return, and other performance measures set for the performance
period. The performance period of the current plan is 2022-2025.
Oriola’s share-based long-term incentive plan (LTI) ties a portion
of the compensation to an environmental target, specifically a
CO₂ reduction target covering Scope 1 and Scope 2 emissions,
as outlined in Oriola’s sustainability agenda. The climate-related
target carries a 10% weight in the LTI plan and must be achieved
without the use of carbon offsets.
The Remuneration Policy is developed by the Compensation and
Human Resources Committee, reviewed by the Board of Directors,
and approved by the Annual General Meeting. Each year, the Board
of Directors, based on the committee’s proposal, determines the
earnings criteria and parameters for the short-term incentive plan
(STI). For the long-term incentive plan (LTI), the Board establishes
the performance criteria and sets the required performance levels
for each criterion at the start of each performance period.
Statement on sustainability due
diligence (GOV-4)
In Oriola, due diligence refers to the process through which
the company identifies, assesses and manages the actual and
potential negative impacts its operations, supply chains or
business relationships may have on the environment, human
rights and society. The goal is to prevent harm, mitigate risks
and take corrective actions where necessary. Due diligence has
been incorporated in the company’s risk management process,
sustainability governance, and quality and management system.
DUE DILIGENCE GOV-4
CORE ELEMENTS OF DUE DILIGENCE PARAGRAPHS IN THE SUSTAINABILITY STATEMENT
a) Embedding due diligence in governance, strategy and business model
• General Disclosures: GOV-1, GOV-2, SBM-1 • Environment: E1.SBM-3
• Governance: G1-1
b) Engaging with affected stakeholders in all key steps of the due diligence
• General Disclosures: SBM-2, IRO-1 • Environment: E1-3, E2.IRO-1,
• Social: S1-2, S1-3, S2-2, S2-3, S3-2, S3-3, S4-2, S4-3 • Governance: G1-2
c) Identifying and assessing adverse impacts
• General Disclosures: GOV-5, SBM-3, IRO-1 • Environment E1.SBM-3, E5.IRO-1
• Social: S1.SBM-3, S2.SBM-3, S3.SBM-3, S4.SBM-3
d) Taking actions to address those adverse impacts
• General Disclosures: GOV-2 • Environment: E1-3, E5-2
• Social: S1-4 , S2-4, S3-1, S3-2, S3-3, S3-4, S4-4
e) Tracking the effectiveness of these efforts and communicating
• General Disclosures: SBM-1, SBM-2 • Environment E1- 3, E1-5, E1-6, E5-2, E5-5,
EU Taxonomy • Social: S1-4, S4-4 • Governance: G1-1
Due diligence
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Sustainability Statement Oriola Annual Report 2024 |
Risk management and internal controls
over sustainability reporting (GOV-5)
Oriola’s sustainability management model, which is described at
the sections GOV-1 and GOV-2, aims to mitigate the risks related to
the sustainability reporting process. Additionally, a complementary
governance model with defined roles and responsibilities has been
implemented for sustainability reporting.
In its sustainability reporting Oriola uses a specialised reporting
platform to ensure that data is stored and calculated in a correct
and consistent manner, and to ensure an audit trail is kept.
Instructions have been provided to all data reporters and a detailed
reporting guide has been compiled to support the reporters of
environmental data.
Key risks relating to sustainability reporting process have been
identified for the reporting project management purposes, but
they have not been assessed by any particular risk assessment
approach or risk prioritisation methodology. The risk assessment
will be updated according to the experiences from the first
statutory reporting project. So far, no decisions have been made
regarding how and how often these risk assessment findings will
be reported to the administrative, management and supervisory
bodies.
Key risks relating to sustainability reporting process
and their mitigation
Timing of reporting
• ESG data is gathered from multiple sources and the timing of
data availability varies.
• Oriola’s reporting governance model ensures that required
information is produced according to the set reporting
schedule.
• The approval and publication of the sustainability statement is
aligned with the Financial Statements.
Accuracy of data
• HR data is sourced from Oriola’s HR systems.
• Environmental data is gathered from multiple sources on site-
level.
• Data is verified through controls and analysis; instructions have
been provided to the reporters.
Roles and responsibilities
• Oriola’s reporting governance model and reporting guide aims
to mitigate the risk of unclear roles and responsibilities which
may arise especially in organisational and personnel changes.
• Lack of adequate resourcing may become a risk due to the
rising demands for sustainability reporting both from a
regulatory point of view and based on needs in the value chain.
Key risks relating to the reporting platform
• Unavailability of service due to technical failure
• Technical errors in key features of the platform such as
calculations, emission factors or data export
The responsibility for collecting data for the sustainability reporting
primarily lies with Oriola’s experts from Quality and Environment,
Human Relations, Risk Management, Supply Chain and
Sustainability functions. External expertise is used in the calculation
of emissions data when deemed necessary.
The reporter (who inputs data into the reporting platform) must
ensure the data is correct by comparing it with the previous
year and by double-checking it with someone else. They are
also instructed to double count if they feel that something is
not correct. Reporters have been instructed to upload source
documentation or proof of evidence to the reporting platform to
support the data (both for numerical data and narrative content).
Strategy, business model and value
chain (SBM-1)
Oriola is a health and wellbeing company operating in the Nordic
countries. The Group aims to be the leading specialist in wholesale
of pharmaceuticals and health products. It offers advanced
distribution, expert and advisory services for pharmaceutical
companies and a wide range of health and wellbeing products for
pharmacies, veterinarians, other healthcare and retail operators.
Additionally, Oriola offers dose dispensing services for pharmacies
and healthcare operators.
Oriola operates in Finland and Sweden. The total revenue for 2024
was EUR 1,679.7 million. At the end of December 2024, the total
number of employees (headcount) was 934, of which 452 worked
in Finland and 482 in Sweden. Oriola does not have product
manufacturing of its own.
Oriola promotes wellbeing by ensuring that pharmaceuticals
as well as health and wellbeing products are delivered safely,
accurately and on time. Oriola’s wide range of services help
pharmaceutical companies and other operators in the healthcare
sector to succeed and promote a healthier life for people.
Oriola serves as the link between pharmaceutical companies, and
pharmacies, hospitals, veterinarians and other healthcare providers.
Consumers are the end-users of the Group’s products, and Oriola
also delivers its own brands in Finland.
• Oriola’s distribution services include quality control, essential
warehousing, and logistics, offering specialised services that
comply with Good Distribution Practice (GDP) standards to
ensure the secure and efficient delivery of pharmaceuticals. In
addition, Oriola offers dose-dispensing services for pharmacies
and healthcare units, enhancing patient safety by providing
pre-measured doses of medication.
• Oriola’s wholesale business supplies a broad selection of traded
goods, over-the-counter (OTC) products, special licensed
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Sustainability Statement Oriola Annual Report 2024 |
medicines and parallel imports. Oriola serves a diverse array of
customers, including pharmacies and retailers, both online and
brick-and-mortar, as well as veterinarians, ensuring that health
and wellbeing products are widely accessible across Finland
and Sweden.
• Oriola’s advisory services provides pharmaceutical companies
with high quality expert services and tailored commercial data
solutions throughout the entire lifespan of a pharmaceutical
product. From clinical trials and regulatory compliance to
market access and patient support, Oriola’s expertise helps
customers navigate the complexities of successfully introducing
new medicines to market and meeting regulatory requirements
in the Nordics.
Strategy and its relation to sustainability
Oriola introduced its refined strategy in October 2023. The strategy,
with a strengthened focus on the wholesale business, aims to
capture the full value of the Group’s operations, strengthen market
position and create long-term shareholder value. This is being
done by focusing on strong partnerships, enhanced efficiency
and portfolio and market expansion. With the strategy, Oriola is
enabling health, every day, in accordance with the company’s
vision.
At Oriola the sustainability agenda is a key part of the business
strategy. The long-term sustainability targets are closely
incorporated to the company’s strategic direction and followed-up
through long-term strategic targets. To measure the achievements,
the company has set strategic and operative key performance
indicators (KPI) for each sustainability theme.
When setting the sustainability goals, the current significant
products and services, markets, customer groups and stakeholder
relationships have been taken into consideration.
Oriola’s sustainability agenda for 2024-2026
Oriola’s sustainability agenda for 2024-2026 is divided into three
key sustainability themes through which the Group can play a key
role in delivering services and products that enhance the health
and wellbeing of both people and the planet.
Pursuing a net-zero impact on climate
Oriola’s commitment to net-zero climate impact spans its entire
value chain. The Group focuses on reducing the environmental
footprint of its operations and supply chain, particularly addressing
the significant emissions generated within the value chain.
• Oriola aims to become carbon neutral in own operations (Scope
1 and 2) by 2025 and achieve carbon neutrality across the
supply chain (Scope 1, 2 and 3) by 2030. In addition, Oriola is
committed to set science-based climate targets.
• Oriola also focuses on reducing packaging waste by improving
waste sorting and increasing recycling rates across its Nordic
operations, where stringent environmental regulations and
customer expectations drive progress.
Advancing a sustainable people journey
Oriola has recognised a collaborative business culture as a key
driver for implementing the Group’s strategy and creating value. To
strengthen corporate culture and enhance leadership capabilities,
Oriola launched a Group-wide leadership training programme in
2024. Its effective and impactful implementation is important for
advancing the sustainability agenda. According to its strategy,
Oriola aims to enhance customer value by fostering a more
efficient, sustainable and collaborative working culture, with an
emphasis on good leadership and workplace safety.
• Oriola’s goal is to foster a culture that ensures fair treatment,
develops capable individuals, and empowers leaders.
Leadership Index is measured annually to ensure continuous
development.
• Oriola stresses the importance of a healthy and safe working
environment with the continuous improvement in LTIF (lost
time incident frequency) and long-term target of zero accidents.
Safeguarding deliveries for health and wellbeing
Oriola ensures that the right pharmaceuticals and the right amount
are delivered to the right place at the right time – and in the right
conditions. This is also the essence of the company’s sustainability
efforts. Since Oriola does not have its own product manufacturing
or transport logistics, transparent and responsible operations and
supply chain practices are crucial for the company to meet its
customers’ high expectations.
• Oriola’s goal is to ensure safe and accurate deliveries of
pharmaceuticals and other health products, and therefore
the Group closely monitors the quality and accuracy of
pharmaceutical deliveries and aims for a 99% picking accuracy.
• To ensure transparent and responsible operations and supply
chain practices, Oriola’s goal is that 100% of its key suppliers
are covered by Oriola’s Business Partner Code of Conduct or
equivalent and 100% of Oriola’s own workforce have completed
Annual Code of Conduct training from 2025 onwards.
To streamline its business processes, enhance efficiency and
strengthen data management, Oriola will replace its two separate
ERP and warehouse management systems in Finland and Sweden
with a unified system during 2025-2027. This common system
will enable the Group to better serve its customers, improve
collaboration and enhance reporting to various stakeholders.
Opportunities to improve the accuracy of sustainability reporting
will be explored once the new system is in use.
Description of business model and value chain
Oriola creates value for different stakeholders, from societal
operators to patients, suppliers, consumers and its shareholders. As
Oriola provides logistics and expert services to the pharmaceutical
companies and pharmacies, the company’s supply network consists
of pharmaceutical suppliers and retail suppliers and covers both
Finland and Sweden. These include, for example, manufacturers
of healthcare products as well as suppliers of packaging materials
used in the warehousing of these products. Oriola does not have
product manufacturing of its own.
As Oriola does not operate its own fleet of transport vehicles,
working closely with transport service providers is essential in
warehousing and distribution operations. Most of Oriola’s direct
non-pharmaceutical product purchases come from Europe.
Raw materials
Raw material
manufacturers
Raw materials for
pharmaceutical products.
Approximately 75% of raw
materials are produced in
China or India.
Procurement
Assortment supply
The procurement of
healthcare and well-
being products in Oriola’s
assortment range.
Including transport to
Oriola warehouses.
Pharmaceuticals
Pharmaceutical supply
(upstream customers*)
Manufacturers of
pharmaceutical and other
healthcare products that
Oriola distributes.
Including transport to
Oriola warehouses.
Service providers
Purchased services
The procurement of
services, including expert
services, and facility
services (on-site service
providers such as cleaning,
maintenance, security).
Own operations
Oriola’s operations
Oriola offices, distribution
centres, warehouse, and
dose dispensing
production.
Logistics
Procured logistics
The procurement of
transport and logistics
services.
Customers
Customers (downstream)
Oriola’s downstream
customers including
pharmacies; veterinarians;
other healthcare operators;
and retailers.
End-users
Use phase
Individuals who acquire,
consume or use the
pharmaceuticals and
healthcare products.
Oriola’s business model and value chain
INPUTS BUSINESS MODEL OUTPUTS & IMPACTS
Governance & Society
• Availability and safe distribution of pharmaceuticals
• Pharmaceutical advice
•
• Taxes
Customers
• Health-promoting products for consumers
• Value-adding services supporting healthcare operators and B2B
customers' business
• Good customer experience
Shareholders
• Stable investment
• Dividends
• Strong position in the Nordic health and wellbeing market
Environment
•
• Minimising environmental impact
• CO
emissions
• Waste
Social
• Strong Oriola culture, equal and
fair workplace
• Direct and indirect
employment
• Versatile career opportunities
• Training and development
• Wages, salaries and bonuses
Intellectual
• Pharmaceutical knowledge
• Service concepts and processes
• Leadership
• Brands
Financial
• Capital employed
Personnel
• Our employees in
pharmaceutical distribution,
dose production and other
expert positions
Infrastructure
• Distribution centres
• Central warehouses
• Dose-dispensing units
Social / Relationship
• Open dialogue with stakeholders
• Partnerships and collaboration
• Active participation in various
associations
Natural resources
• Energy consumption
• Fuel and water
Customers
Veterinarians
and veterinary
clinics
Retail
Patients
Hospital
pharmacies
Pharmaceutical
companies
Public and private
healthcare
Pharmacies
Services
Distribution
provides logistics
and dose dispensing
services mainly of
pharmaceuticals
Wholesale offers traded goods and
OTC-products to Oriola’s pharmacy and
retail customers including parallel import
and specialised medicines
Advisory provides
expert services to
pharmaceutical
companies and
pharmacies
* Note: Pharmaceutical companies also downstream customers in Oriola’s advisory business.
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Sustainability Statement Oriola Annual Report 2024 |
Key stakeholders Stakeholder engagement and its purpose How is the engagement organised How is the outcome taken into account
Customers • Ensuring a transparent value chain by fostering open and clear communication
to promote trust and understanding regarding product sourcing, supply, and
sustainability practices.
• Securing safe and accurate deliveries by ensuring timely, precise delivery and
availability of pharmaceuticals and health products, prioritising patient safety.
• Providing comprehensive product information by offering detailed guidance and
support to facilitate the appropriate and effective use of pharmaceuticals and
health products.
• Minimising environmental impact by actively collaborating with customers to
adopt practices that reduce environmental footprints, aligning with sustainability
goals.
• Adhering to policies and commitments by upholding internal and external
policies, certifications, and commitments to responsible business practices.
• Daily customer interactions, such as deliveries, customer service and
key account and sales representative action
• Customer forums and service channels
• Customer surveys
• Social media channels
• Customer experience development
• Internal processes to ensure quality
• Business Continuation Planning
• Regulatory compliance
• Continuous improvement of environmental work
Interests and views of stakeholders
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Sustainability Statement Oriola Annual Report 2024 |
Being a preferred partner and building the supply and partner
network on trust and accountability is a prerequisite for Oriola’s
whole value chain.
Standardised procurement principles, as well as supplier selection
and approval processes, are important to the company. With these
tools Oriola assesses the business partners’ ways of operating and
ensure that they meet the requirements set by the company.
Systematic risk management with supplier evaluation process
and audits, and compliance with national and international
pharmaceutical sector laws and regulations, form the foundation of
continuous improvement at Oriola.
Interests and views of stakeholders
(SBM-2)
Oriola’s key stakeholders consist of customers, employees,
investors and analysts, suppliers and subcontractors, authorities,
trade associations and industrial organisations. Engagement
with all stakeholders is ongoing and facilitated through various
communication channels, including online platforms and face-to-
face meetings, ensuring transparency and fostering open dialogue.
In addition to regular engagement, Oriola periodically gathers
stakeholder feedback to incorporate their perspectives into
strategic and operational decisions related to the Group’s
sustainability agenda.
In 2023-2024 the stakeholders’ views were collected widely and
systematically as a part of the double materiality assessment
required by the CSRD regulation. The process, which involved
Oriola employees, investors, pharmaceutical companies,
pharmacies, retail customers, suppliers and authorities, used a
digital survey, interviews and workshops.
Based on the stakeholder engagement and the double materiality
assessment, Oriola updated its sustainability agenda, key themes
and reporting scope. The findings also guide Oriola’s future
work and actions related to sustainability. Oriola will continue to
address its ongoing efforts to enhance the wellbeing of people and
minimise the environmental impact of its operations. To remain
attentive to its stakeholders’ evolving sustainability expectations,
Oriola aims to review the need for updating the double materiality
assessment on a yearly basis.
As part of the double materiality process, the Oriola Management
Team and the Board of Directors were informed of stakeholder
perspectives on the company’s sustainability impacts. The Board of
Directors approved the outcome of the assessment and the revised
scope of the sustainability agenda.
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Key stakeholders Stakeholder engagement and its purpose How is the engagement organised How is the outcome taken into account
Employees • Promoting health, safety, and wellbeing by focusing on initiatives and practices
that enhance the physical and mental health of employees, ensuring a safe and
supportive working environment.
• Fostering leadership and collaborative culture by developing strong leadership,
upholding shared values, and cultivating a culture that encourages collaboration
and teamwork across the organisation.
• Encouraging skills development by providing opportunities for continuous
learning and professional growth to help employees adapt to changing demands
and enhance their capabilities.
• Supporting diversity and inclusion by promoting a diverse and inclusive workplace
that guarantees equal opportunities and fair treatment for all employees.
• Respecting human rights by upholding fundamental human rights in all
employment practices and ensuring ethical treatment of all employees.
• Addressing data security and privacy by ensuring the protection of sensitive
information and actively mitigating risks related to data security and employee
privacy.
• Regular meetings and events focusing on employees and their needs
• Employee development discussions
• Employee engagement surveys
• Cooperation with employees
• Whistleblowing channel
• Internal and leadership communications
• Providing various learning and development opportunities
• Ensuring continuous development of leadership skills
• Providing change management training for managers
• Promoting non-discrimination and fair employment
• Code of Conduct
• Conducting regular employee engagement surveys to
understand employee satisfaction
Investors and analysts • Ensuring financial profitability and sustainable growth by delivering consistent
financial results while aligning with long-term sustainability goals to build investor
confidence.
• Providing consistent and transparent reporting by delivering accurate and reliable
disclosures to maintain trust and fulfill regulatory requirements.
• Offering insight into risks and opportunities by communicating effectively about
potential risks, opportunities, and the strategies in place to manage them.
• Sustainability compliance by showcasing adherence to sustainability standards
and commitments to responsible business practices.
• Regulatory financial communications (financial reporting, stock
exchange releases)
• Shareholders’ Meetings (Annual General Meeting)
• Investor and analyst meetings and site
• Capital Markets Day
• Communicating about Oriola’s strategy, sustainability
agenda and long-term targets
• Transparent and regular reporting and disclosure
• Sustainability risk management and compliance
Suppliers and
subcontractors
• Fulfilling contractual responsibilities by ensuring that all agreed terms and
obligations are met, fostering trust and reliability in business partnerships.
• Ensuring data security during tendering processes by implementing robust
measures to protect sensitive information during various stages during the
procurement and tendering process.
• Adhering to ethical and equitable practices by upholding fairness, integrity, and
transparency in supplier and procurement processes to support responsible
business conduct.
• Complying with legal and regulatory requirements by observing applicable laws
and standards, such as GDPR, to ensure compliance and protect stakeholders’
interests.
• Exploring opportunities for cooperation: identifying and leveraging ways to
enhance collaboration with suppliers, improving efficiency, sustainability, and
innovation across the value chain.
• Supplier events and meetings
• Supplier audits
• Business Partner Code of Conduct
• Oriola’s Business Partner Code of Conduct and Good
Distribution Practice (GDP) standards for suppliers and
business associates
• Procurement policy, supplier evaluation guidelines and
regular supplier evaluations to maintain ongoing compliance
• Joint efforts to improve sustainability performance
Authorities • Ensuring safe and accurate deliveries: guaranteeing the timely and precise delivery
of pharmaceuticals and other health products to ensure their availability for public
health needs.
• Complying with Good Distribution Practice (GDP) standards across operations to
maintain quality, safety, and efficacy in all processes.
• Maintaining legal compliance and sound governance: meeting all legal and
regulatory requirements, including financial reporting obligations, while
upholding high standards of governance.
• Engaging with policymakers on various themes related to own operations and
value chain, hosting meetings and visits to logistics centers. , Operating in line with
the principles of Finland’s and the EU’s transparency registers.
• Close cooperation and information sharing
• Inspections by Finnish Medicines Agency Fimea and Swedish
Medical Products Agency Läkemedelsverket
• Internal processes to ensure quality
• Operating in accordance with applicable legal and
regulatory requirements while ensuring a reliable supply of
pharmaceuticals and other health products
Associations and
organisations
• Facilitating collective bargaining agreements: collaborating to establish fair and
equitable agreements that align with industry standards and support sustainable
business practices.
• Memberships in relevant organisations • Participating in discussions and collaborating with industry
associations, both as a member and a partner
Linkage with Oriola’s business strategy,
purpose and values as well as Oriola’s
previous materiality analyses, which
served as a basis for the work.
Identification of a long list of potential
impacts, risks and opportunities (IRO’s)
for stakeholder engagement purposes
(considering e.g., current topics in the
industry, ESRS and other key standards
and EU regulation and sustainability
megatrends).
Benchmarking peers.
Oriola Management Team’s approval for
the potential material topics.
Gathering feedback from Oriola’s key
stakeholders to prioritise sustainability
topics and understand their expectations.
Insight from the sustainability survey
targeted at Oriola’s employees and
other stakeholders such as investors,
pharmaceutical companies, pharmacies,
suppliers and authorities.
Insight from the in-depth interviews,
representing Oriola’s management,
business partners and suppliers,
analysts, investors and owners, bankers,
pharmaceutical companies, pharmacies
and retail customers.
Insight from embedding the concept of
“double materiality” in the questionnaire
and interviews.
Evaluating the topics on which Oriola
can have the greatest impact externally
(impact on society and the planet).
Also, understanding the significance of
sustainability impacts at the different
stages of Oriola’s value chain and
reviewing the stakeholders’ main
information needs
Evaluating the potential impact of
sustainability topics on Oriola’s ability to
create value. Assessing the importance
of each issue from the perspective of
Oriola’s stakeholders as well as the
primary current and future sustainability
risks and opportunities.
Describing the potential material IRO’s
and evaluating them based on severity
/ financial effect and likelihood of
occurrence.
Prioritising IRO’s at internal workshops.
Identifying the most material
sustainability topics for Oriola and
designing a materiality overview.
Internal review and feedback for the
double materiality assessment.
Documentation and final presentation
including summary, conclusions and
recommendations.
Approval of the material topics by Oriola
Management Team.
Updating the Oriola’s sustainability
agenda according to the results of the
materiality assessment.
Approval by the Board of Directors.
Double materiality assessment process
Identifying potentially
material topics
Gathering stakeholder
perspectives
Assessing impacts, risks
and opprtunities
Identifying Oriola’s
most material
sustainability topics
Validation and integration
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Sustainability Statement Oriola Annual Report 2024 |
During its double materiality assessment, Oriola identified potential
impacts on workers in the value chain, affected communities, and
consumers and end-users. However, due to its position within the
value chain, Oriola does not engage directly with these stakeholder
groups. Instead, interactions with these groups occur through
suppliers, subcontractors or customer contacts.
Description of the process to identify
and assess material impacts, risks and
opportunities (IRO-1)
Oriola conducted a double materiality assessment to determine
the company’s actual or potential negative or positive material
impacts on people or the environment, and financial risks and
opportunities, related to sustainability matters over the short-,
medium- or long-term.
The process, which started with impact assessment in 2023 and
continued with the assessment of financial risks and opportunities
in spring 2024, covered Oriola’s own operations and upstream and
downstream value chain. Specific activities, business relationships,
geographies or other factors that give rise to heightened risk of
adverse impacts were taken into consideration. Impacts, risks and
opportunities were considered through Oriola’s products and
services, as well as through its business relationships.
The process started by identifying potentially material impacts,
risks and opportunities (IRO) by considering Oriola’s business
strategy and environment, external insights of typical material
topics in the industry, comprehensive list of sustainability matters
as listed in ESRS standards, other key standards and EU regulation,
sustainability megatrends, and Oriola’s previous materiality
assessments and Human Rights impact screening from 2023.
To prioritise sustainability topics and better understand stakeholder
expectations, Oriola gathered both qualitative and quantitative
feedback from internal and external stakeholders. This was
achieved through an online sustainability survey targeting Oriola
employees, investors, pharmaceutical companies, pharmacies,
suppliers and authorities. The survey was further complemented by
in-depth interviews with a range of stakeholders, including Oriola’s
management, business partners, suppliers, analysts, investors,
owners, bankers, pharmaceutical companies, pharmacies and retail
customers.
By applying the results from stakeholder engagement, the
identified impacts, risks and opportunities were described and
assessed in accordance with the principles of the ESRS.
• Negative impacts were scored based on severity, a combination
of scale, scope and irremediability, and likelihood. Severity
was prioritised over likelihood for negative impacts on human
rights.
Material sustainability matters
Overview of material topics and sub-topics
ENVIRONMENT SOCIAL GOVERNANCE
E1
Climate change:
Climate change adaptation, climate change mitigation, and energy.
E2
Pollution:
Pollution of air, pollution of water, pollution of soil, pollution of living
organisms & food resources, and substances of (very high) concern,
microplastics.
E3
Water & marine resources:
Water consumption and withdrawals, water discharges (in the oceans),
extraction and use of marine resources.
E4
Biodiversity & ecosystems:
Direct impact drivers of biodiversity loss, impacts on the state of species,
and impacts on the extent and condition of ecosystems, impacts and
dependencies on ecosystem services.
E5
Resource use and circular economy:
Resources inflows (incl. resource use), resource outflows related to
products and services, waste.
S1
O
wn workforce:
Working conditions, equal treatment and opportunities for all, other work-
related rights.
S2
Workers in the value chain:
Working conditions, equal treatment and opportunities for all, other work-
related rights.
S3
Affected communities:
Communities’ economic, social and cultural rights, communities’ civil and
political rights, rights of indigenous communities.
S4
Consumers & end-users:
Information-related impacts for consumers and/or end-users, personal
safety, social inclusion.
G1
Business conduct:
Corporate culture, protection of whistle-blowers, animal welfare, political
engagement, management of relationships with suppliers including
payment practices, corruption & bribery.
LEGEND: not material topics and sub-topics
are displayed with light grey color.
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Sustainability Statement Oriola Annual Report 2024 |
• Positive impacts were scored based on their scale, scope and
likelihood.
• Financial materiality was assessed based on financial magnitude
of risk/opportunity and likelihood.
The impacts, risks and opportunities were grouped and prioritised
at internal workshops with a working group consisting of Oriola’s
people from various areas, functions and focus areas (internal/
external). The most material sustainability topics were identified
and mapped according to their materiality.
In the end the process was documented, and the material topics
were approved by the Oriola Management Team and by Oriola’s
Board of Directors. To ensure alignment with ESRS disclosures,
the Audit Committee reviewed the process and the supporting
assurance assignment.
The results of the materiality assessment provided the basis for
updates to Oriola’s sustainability agenda, including actions, targets
and KPIs. Oriola will review the updating needs of the double
materiality process on an annual basis.
Sustainability risks and opportunities management
Oriola conducted the assessment of financial risks and
opportunities in spring 2024. The starting point for the assessment
was the impact materiality assessment, which was conducted
in 2023. Also, the company’s previous risk assessments were
used when identifying potential sustainability-related risks and
opportunities.
When assessing risks and opportunities, consideration was given to
any that might stem from impacts and dependencies. Impacts were
evaluated first to ensure that any potential risks or opportunities
arising from them could be accurately identified and assessed.
In Oriola sustainability-related risks, including climate-related
risks, are assessed as part of the Group’s regular risk management
process. The risk management team monitors the level of risks
and ensures that the risks are processed appropriately by Oriola’s
businesses and shared functions. Due to the strategic importance
of sustainability at Oriola, the risk appetite for sustainability risks is
small.
In 2024 climate-related risks and opportunities were assessed in
a detailed way to support the future actions related to Oriola’s
climate work. These are described in the E1 Climate change section
of this report.
A sustainability matter was deemed material if at least one
impact, risk or opportunity (IRO) was above the defined threshold,
indicating either impact materiality, financial materiality, or both.
Non-material sustainability matters were those where no IRO was
identified and/or all IROs were found to fall below these thresholds.
Material impacts, risks and opportunities
IMPACT MATERIALITY FINANCIAL MATERIALITY
Negative impacts
Positive
impacts
Business
opportunities
Business risks
E1
Climate change
• Oriola’s own emissions
• Emissions from the value chain
• Oriola’s energy consumption
E2
Pollution
• Potential upstream air pollutants
• Incorrect downstream handling of pharmaceuticals
E5
Circular economy
• Waste generated throughout the value chain
S1
Own workforce/
S2
Workers in the value chain
• S1/S2 Work-life balance
• S1/S2 Occupational health and safety
• S1/S2 Discrimination, harassment and inappropriate
behaviour
• S2 Risk of infringement of workers’ freedom of
association and collective bargaining
• S2 Risk for inadequate wages
• S2 Risk of forced labour
S3
Affected communities
• Upstream environmental impacts to communities
S4
Consumers and end-users
• Disruption to product supply
• Affordability and accessibility of medicines
• Deviances in safety and quality, counterfeit medicines
• Information security and non-compliance
E5
Circular economy
• Handling of partners’
pharmaceutical stock and waste
S1
Own workforce
• Active participation in
developing positive and
inclusive corporate culture
• Leadership promoting equal
opportunities and diversity
• Collective bargaining
agreements
S4
Consumers and end-users
• Safe and timely delivery of
medicines
• Product safety and quality
G1
Business conduct
• Sustainable policies and
business practices, employee
and supplier code of conduct
• Ethical sourcing and supply
chain management
• Supporting animals’ health and
wellbeing
S1
Own workforce
• Active participation in
developing a
positive and inclusive
corporate culture
S4
Consumers and
end-users
• Growing demand for
pharmaceuticals
E1
Climate change
• Energy efficiency
investments
• Physical climate
risks
E5
Circular economy
• Regulatory demand
for sustainable
packaging
S1
Own workforce
• Workplace hazards
and incidents
S4
Consumers and
end-users
• Disruption of
product supply
• Data protection and
information security
risks
G1
Business conduct
• Failure to meet ESG
expectations of
stakeholders
• Data protection and
information security
risks
Legend:
Environmental
Social
Governance
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Sustainability Statement Oriola Annual Report 2024 |
Additional information for negative materiality
assessment (E3, E4)
E3 Water and marine resources
Oriola’s daily operations involve minimal water usage and none
of Oriola’s sites are located in areas of high water stress. The
Group employs several filtration stages before discharging water
according to sewer standards. Wastewater from Oriola’s operations
is directed to municipal water treatment plants. Oriola has not
conducted consultations with affected communities regarding
water-related issues.
E4 Biodiversity and ecosystems
As Oriola does not have its own production, the direct impacts
of its operations on biodiversity are minor. The wholesale and
distribution of pharmaceuticals does not reserve large areas of
land, and Oriola has not identified any high biodiversity areas
owned by the company. The primary way for Oriola to contribute
to maintaining biodiversity is through the reduction of greenhouse
gas emissions.
Since Oriola has not identified any high biodiversity areas
owned by the company, the company has concluded that it is
not necessary to implement biodiversity mitigation measures.
However, Oriola currently has a limited understanding of specific
biodiversity impacts and so this topic needs to be studied more
carefully in the future. Oriola has not performed a comprehensive
assessment of its impacts, risks, dependencies and opportunities at
its own site locations and in the upstream and downstream value
chain to the extent of the requirements of E4 IRO-1 (17).
Material impacts, risks and opportunities
and their interaction with strategy and
business model (SBM-3)
As a result of its double materiality assessment, Oriola has identified
its material impacts, risks and opportunities. Depending on the
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Sustainability Statement Oriola Annual Report 2024 |
topic, drivers of materiality arise from impact materiality, financial
materiality, or both. Some of the drivers are concentrated in
Oriola’s own operations and some in its upstream or downstream
value chain. Unless stated otherwise, Oriola has assessed that the
identified material impacts, risks and opportunities may materialise
across all time horizons, meanng that they may be be applicable in
the short-, medium- and long term.
To enhance relevance and avoid obscuring material information,
the material impacts, risks, opportunities, and their connections to
Oriola’s strategy and business model are presented in aggregated
groups, categorised according to topical ESRS standards. Detailed
descriptions of impacts, risks and opportunities are presented in
connection with material topical standards E1 Climate change,
E2 Pollution, E5 Resource use and circular economy, S1 Own
workforce, S2 Value chain workers, S3 Affected communities, S4
Consumers and end-users and G1 Business Conduct.
E1 Climate change
Climate change and emissions
Climate change has been assessed as material for Oriola from both
an impact materiality and financial materiality perspective. Impact
materiality is primarily driven by value chain emissions.
Physical climate risks have been identified as material due to
the increasing frequency of extreme weather events, which
could result in rising warehouse temperatures or supply chain
disruptions, leading to increased costs, lost opportunities, or lower
capital efficiency (e.g., delays). While no financial impacts have
materialised to date, the potential magnitude of these effects could
be significant. However, their likelihood of occurrence is currently
assessed as low.
Energy efficiency
Oriola’s own energy consumption has been identified as a material
topic from an impact perspective. To mitigate its negative impacts,
Oriola is transitioning to renewable or carbon-neutral energy
sources and investing in energy efficiency measures. These actions
require investments, leading to increased costs, which have been
assessed as material from a financial perspective in the medium to
long term.
Due to the global importance and stakeholder expectations,
climate change is a top priority in Oriola’s sustainability agenda.
Oriola has set clear goals towards carbon neutrality in own
operations by 2025 and in the value chain by 2030. The company is
also committed to set science-based climate targets.
E2 Pollution
Environmental impact of pharmaceuticals
Oriola’s value chain, particularly in pharmaceutical manufacturing,
contributes to local pollution for example due to energy-intensive
processes. Although Oriola’s direct contribution to these impacts
is limited, as the company is one of many regional distributors,
potential air pollutants from upstream manufacturing were found
to be material from an impact perspective.
Respectively, incorrect handling of pharmaceuticals in the
downstream value chain can cause environmental impacts. While
improper downstream handling of pharmaceuticals was identified
as material from an impact perspective, it was also recognised that
Oriola has limited control over this.
These potential negative environmental impacts in Oriola’s value
chain will be considered when developing sustainable sourcing
practices further.
E5 Resource use and circular economy
Packaging and waste
Waste is generated across Oriola’s value chain, mainly consisting of
packaging waste, including hard-to-recycle materials such as blister
packs. As a result, waste was identified as a material topic from an
impact perspective.
Looking ahead, packaging materials will likely need to increasingly
come from recycled sources. This could lead to higher material
costs and potentially reduced durability. Consequently, rising costs
associated with regulatory demands for sustainable packaging
were identified as financially material. While the financial impact
has not yet materialised, the regulation is being actively monitored,
and necessary adjustments will be implemented as required.
Waste reduction, recycling and reuse are central to Oriola’s
sustainability agenda, with a growing emphasis on raising internal
awareness of packaging’s environmental impact.
S1 Own workforce
Leadership, culture and talent development
At Oriola, employees actively contribute to fostering a positive
and inclusive operational environment, supported by leadership’s
commitment to promoting equal opportunities and diversity.
These efforts have a positive impact on the workforce and create
potential financial opportunities by attracting and retaining top
talent, enhancing employee engagement and productivity, and
driving innovation. Financial opportunities were assessed as likely,
but in 2024 the situation remained unchanged compared with
previous years.
To seize these opportunities, the topic is highlighted in Oriola’s
sustainability agenda going forward. Leadership quality is
measured annually to ensure continuous development.
Workplace safety and wellbeing
Oriola’s employees, particularly those in distribution centres, face
several occupational health and safety (OHS) risks, such as exposure
to medicine dust, high noise levels, cold storage environments,
and ergonomic challenges causing potential negative impacts
on own workforce. At the same time, the increasing number of
mental health related issues and stress due to heavy workload pose
potential negative impacts on white-collar employees’ wellbeing
and may compromise work-life balance.
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Sustainability Statement Oriola Annual Report 2024 |
Workplace hazards and incidents can also result in potential
costs associated with medical treatments, legal liabilities, and lost
productivity in the medium to long term.
As a result of the double materiality assessment, the topic was
found material from both perspectives and continues to be a key
focus in Oriola’s sustainability agenda.
Fair working conditions including human rights
A large proportion of Oriola’s employees are covered by collective
bargaining agreements, which strengthens labour rights protection
in Finland and Sweden and therefore creates positive impacts
towards the company’s own workforce. However, risks such as
discrimination, harassment and inappropriate behaviour, especially
towards underrepresented groups such as migrant and external
workers, remain concerns and create potential negative impacts.
Oriola is committed to providing a fair and equal workplace
that supports diversity and inclusion. In addition to the Code
of Conduct, which outlines diversity and inclusion principles in
general, the new People Policy sets the frames for more detailed
human rights principles at Group level.
S2 Value chain workers
Fair working conditions including human rights
Oriola’s Human Rights impact screening identified that Oriola’s
value chain workers, especially migrant workers, are vulnerable to
poor working conditions, discrimination, harassment and forced
labour. These risks are heightened by potential lack of awareness
of rights and language barriers. Inadequate wages and excessive
hours are prevalent in lower-tier supply chain roles, particularly in
countries with weak labour laws, and in logistics where irregular
hours may occur causing potential negative impacts on Oriola’s
value chain workers.
To mitigate these impacts, as part of its sustainability agenda,
Oriola requires its direct and indirect suppliers to commit to Oriola’s
Business Partner Code of Conduct, or to their own similar policy,
covering principles related to discrimination, respecting labour and
human rights, and promoting occupational health and safety.
S3 Affected communities
Potential upstream environmental impacts to communities
Oriola’s upstream value chain may indirectly impact community
health, especially in areas near pharmaceutical manufacturing
sites. Although Oriola is not directly responsible for these impacts,
its supply chain operations contribute to them, making these
potential negative impacts material in the assessment. These will
be taken into account as sustainable sourcing practices are further
developed.
S4 Consumers and end-users
Safe and timely delivery of medicines
Oriola plays a vital role in ensuring the availability of medicines,
with timely deliveries across Finland and Sweden. Ensuring
pharmaceutical safety and the delivery of pharmaceuticals is the
highest priority in Oriola’s operations, and the most significant task
societally for Oriola contributing to positive impacts on patient
health. As a part of its sustainability agenda Oriola closely monitors
the quality and accuracy of pharmaceutical deliveries.
Any disruptions to this process, such as geopolitical instability
or very unlikely product quality failures, could have a negative
impact on public health. Not being able to deliver the required
pharmaceuticals can result in significant reputational damage
and lost revenue for Oriola. For these reasons, the topic has been
assessed as material from both impact and financial perspectives.
Product safety and quality
While pharmaceutical companies are responsible for their products,
Oriola is responsible for the services it provides to its customers.
Oriola makes sure that pharmaceutical producers are appropriately
licensed and that products reach the market through approved
channels. Oriola promotes pharmaceutical safety by preventing
counterfeit pharmaceuticals from entering the market. It ensures
specific handling conditions to prevent product safety issues, which
can pose serious risks to patient health.
The focus on product safety is critical for Oriola, and therefore it
has been identified as a material topic with positive and potential
negative impacts on public health. Product safety and quality
form a core part of Oriola’s quality management, which is firmly
grounded in legal and regulatory standards.
Data protection/Information security risk and potential non-
compliance
Oriola handles sensitive health data, and potential data breaches
pose risks to patient privacy. Although Oriola has policies to
safeguard data, non-compliance with data protection laws such as
GDPR could result in serious consequences for both customers and
the company. Therefore, the topic has been assessed as material
from both perspectives.
Financial risks resulting in business disruptions, reputational
damage and/or sanctions are mitigated by Oriola’s robust data
protection approach including policies, procedures and controls
that are designed to protect the confidentiality, integrity and
availability of its data and information systems.
G1 Business conduct
Governance/Sustainable policies and business practices
Oriola has implemented sustainable policies and a Code of Conduct
for employees and partners to ensure ethical practices throughout
the supply chain. This was assessed as having a positive impact
on business conduct. However, the company also recognised a
financial risk if it fails to meet growing stakeholder demands for
sustainable governance, which could affect employee recruitment
and retention, operations, financial performance, reputation and
share price.
Ethical sourcing and supply chain management
According to Oriola’s double materiality assessment, responsible
supply chain practices and transparent, ethical relations with
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Sustainability Statement Oriola Annual Report 2024 |
suppliers create a positive impact by promoting sustainability and
social responsibility, benefiting the workers in the value chain and
communities by upholding fair labour practices and minimising
environmental footprints.
Animal welfare
Oriola contributes positively to animal health by supporting
veterinarians in their work through its veterinary medicine
distribution across Finland, comprehensive animal product offering
and special licensed medicine services.
Data protection/Information security and operational risks
related to cyber-attacks
Cyber-attacks were identified as a potential source of business risks,
which may result in operational costs related to corrective actions,
cause disruption for business operations and harm the company’s
reputation and relationships with key business partners.
Financial effects of material risks and opportunities
Material risks that were identified during the double materiality
assessment have not yet materialised and have not had an
impact on Oriola’s financial position, performance or cash flows.
Additionally, the company has not identified material risks or
opportunities that could lead to significant adjustments to the
carrying amounts of assets or liabilities in its financial statements
within the next annual reporting period. To ensure the resilience
of its strategy, Oriola has integrated sustainability-related risks
and opportunities into its continuous risk management process.
Regularly updated risk assessments are used in the company’s
strategy process. While climate-related risks and opportunities were
included in the 2024 risk assessment, the company has not yet
conducted a comprehensive resilience analysis but aims to conduct
one in the coming years.
Changes to previous reporting periods
The double materiality assessment mainly confirmed the
importance of Oriola’s current sustainability focus areas, but to
align with ESRS topics, some topics were added. Moderate changes
were also made to the grouping of material impacts, risks and
opportunities compared with previous reporting period.
All Oriola’s material impacts, risks and opportunities are covered by
ESRS Disclosure Requirements. Therefore, Oriola has not decided to
include any additional entity-specific disclosures.
Disclosure Requirements in ESRS
covered by the sustainability statement
(IRO-2)
Appendix 1: Content index of ESRS disclosure requirements
Appendix 2: List of datapoints that derive from other EU legislation
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EU Taxonomy
The EU taxonomy is a classification system for environmentally
sustainable economic activities for directing investments at
more sustainable activities. Economic activities are classified
as taxonomy-eligible or taxonomy-non-eligible according to
the delegated acts supplementing the Taxonomy Regulation
(Regulation (EU) 2020/852).
Taxonomy-eligible activities are considered as taxonomy-aligned if
they comply with the technical screening criteria as defined in the
delegated act (commission delegated regulation (EU) 2021/2139,
partially supplemented by the delegated act (EU) 2023/2486), and
are carried out in compliance with minimum safeguards. In order
to meet the technical screening criteria an economic activity must
contribute substantially to one or more environmental objectives
while not doing significant harm to any of the other environmental
objectives. Environmental objectives in the EU taxonomy include
the following: climate change mitigation, climate change
adaptation, sustainable use and protection of water and marine
resources, transition to a circular economy, pollution prevention
and control and protection and restoration of biodiversity and
ecosystems.
Oriola is required to disclose information about environmentally
sustainable economic activities in accordance with the Finnish
Accounting Act and ESRS as defined in the EU taxonomy. Reporting
in accordance with the EU taxonomy requires presenting the
shares of taxonomy-eligible, taxonomy non-eligible and taxonomy-
aligned turnover, capital expenditure (CapEx) and operating
expenditure (OpEx) as defined in the delegated act (EU) 2021/2178.
Oriola has conducted an analysis on all of its economic activities
to identify taxonomy-eligible activities as described in the
delegated regulations ((EU) 2021/2139 and (EU) 2023/2486).
Based on the assessment and the company’s best interpretation
of the EU taxonomy regulation, a few economic activities have
been identified as taxonomy eligible within the scope of CapEx.
Total OpEx (denominator) as defined by the EU Taxonomy has
been deemed not material, and therefore no economic activities
have been assessed within the scope of OpEx. Neither has Oriola
identified economic activities as taxonomy-eligible within the
scope of turnover. In addition, as part of the assessment process,
a few economic activities have been considered as possibly
eligible for which further analysis has been conducted. However,
after further considerations these have been concluded as being
non-eligible. However, none of the economic activities have been
assessed to fulfill the requirements of taxonomy alignment and
therefore, no further assessment on the taxonomy alignment has
been conducted.
The economic activities assessed as eligible are reported in the
CapEx KPI table in section A.2. (taxonomy-eligible but not aligned).
Oriola has identified the following activities eligible under climate
change mitigation objective: 7.7. Acquisition and ownership of
buildings and 6.5. Transport by motorbikes, passenger cars and
commercial vehicles. All taxonomy-eligible CapEx is classified
as category c) as defined in section 1.1.2.2. of the EU Taxonomy
delegated regulation 2021/2178. Oriola did not identify capital
expenditure in categories a) or b). As it was assessed that the
criteria for alignment were not met, section A.1. (taxonomy-
aligned) is reported as zero on CapEx KPI table. As there are neither
eligible nor aligned activities identified for turnover or OpEx KPIs,
sections A.1. (taxonomy-aligned) and A.2. (taxonomy-eligible but
not aligned) include only zero values on the turnover and OpEx KPI
tables. Accordingly, in the KPI tables section B (non-eligible), the
proportion of turnover and OpEx is 100%.
Calculation of denominators
Turnover is the part of net sales relating to the sale of products and
services (Note 4.2.) and totaled EUR 1,679.7 million in 2024.
Capital expenditure (CapEx) is determined on the basis of additions
to property, plant and equipment (Note 6.1.), intangible assets
(Note 6.2.) and IFRS 16 Leases (Note 6.1.) during the financial
year and included in the Financial Statements for 1 January-31
December 2024. CapEx (denominator) totaled EUR 9.9 million in
2024.
Operating expenditure is determined according to the EU
Taxonomy’s definition and includes direct non-capitalised costs
that relate to building renovation measures, short-term lease,
and maintenance and repair. OpEx (denominator) totaled EUR 2.8
million in 2024.
Taxonomy-eligible CapEx in the reporting year
EUR million 2024 2023
Taxonomy-eligible CapEx, total 7.0 -
of which attributable to property, plant and equipment - -
of which attributable to intangible assets - -
of which attributable to IFRS 16 Leases 7.0
The taxonomy-eligible CapEx in 2024 consists of additions to IFRS
16 Leases i.e. company vehicles and forklifts as well as rented
properties.
Oriola notes that the EU Taxonomy Regulation will keep evolving
and will continue to consider its impacts as well as future reporting
obligations.
2. Environmental information
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Substantial Contribution Criteria
DNSH criteria
(‘Does Not Significantly Harm’) (h)
Economic activities (1)
Code (a) (2)
Turnover (3)
Proportion of Turnover, year N (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned
(A.1.) or eligible (A.2.) turnover, year
N-1 (18)
Category enabling activity (19)
Category transitional activity (20)
€
million
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
0 0% - - - - - - - - - - - - - -
Of which Enabling
0 0% - - - - - - - - - - - - - - -
Of which Transitional
0 0% - - - - - - - - -
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (g)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Turnover of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
0 0% - - - - - - -
A. Turnover of Taxonomy eligible activities (A.1+A.2)
0 0% - - - - - - -
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities
1,679.7 100 %
TOTAL
1,679.7 100 %
Proportion of turnover from products or services associated with Taxonomy-aligned economic activities -
disclosure covering year2024
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Substantial Contribution Criteria
DNSH criteria
(‘Does Not Significantly Harm’) (h)
Economic Activities (1)
Code (a) (2)
CapEx (3)
Proportion of CapEx, year N (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (A.1.)
or eligible (A.2.) CapEx, year N-1 (18)
Category enabling activity (19)
Category transitional activity (20)
€
million
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
0 0% - - - - - - - - - - - - - -
Of which Enabling
0 0% - - - - - - - - - - - - - - -
Of which Transitional
0 0% - - - - - - - - - -
A.2 Taxonomy-Eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (g)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
Transport by motorbikes, passenger cars and commercial vehicles
6.5. 0.9 9% EL N/EL N/EL N/EL N/EL N/EL -
Acquisition and ownership of buildings 7.7. 6.1 62% EL N/EL N/EL N/EL N/EL N/EL -
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
7.0 71% - - - - - - -
A. CapEx of Taxonomy eligible activities (A.1+A.2)
7.0 71% - - - - - - -
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities
2.9 29 %
TOTAL
9.9 100 %
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities -
disclosure covering year2024
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Substantial contribution criteria DNSH criteria
Economic Activities (1)
Code (a) (2)
OpEx (3)
Proportion of OpEx, year N (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (A.1.)
or eligible (A.2.) OpEx, year N-1 (18)
Category enabling activity (19)
Category transitional activity (20)
€
million
%
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y; N;
N/EL
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
0 0% - - - - - - - - - - - - - -
Of which Enabling
0 0% - - - - - - - - - - - - - - -
Of which Transitional
0 0% - - - - - - - - - -
A.2 Taxonomy-Eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (g)
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
EL;
N/EL
OpEx of Taxonomy-eligible but not environmentally sustainable activities
(not Taxonomy-aligned activities) (A.2)
0 0% - - - - - - -
A. OpEx of Taxonomy eligible activities (A.1+A.2)
0 0% - - - - - - -
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities
2.8 100%
TOTAL
2.8 100%
Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities -
disclosure covering year2024
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The table below presents, in accordance with the Taxonomy,
activities related to nuclear energy and fossil gas.
Nuclear energy related activities
1. The undertaking carries out, funds or has exposures to
research, development, demonstration and deployment of
innovative electricity generation facilities that produce energy
from nuclear processes with minimal waste from the fuel cycle
No
2. The undertaking carries out, funds or has exposures to
construction and safe operation of new nuclear installations
to produce electricity or process heat, including for the
purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using
best available technologies.
No
3. The undertaking carries out, funds or has exposures to safe
operation of existing nuclear installations that produce
electricity or process heat, including for the purposes of
district heating or industrial processes such as hydrogen
production from nuclear energy, as well as their safety
upgrades.
No
Fossil gas related activities
4. The undertaking carries out, funds or has exposures to
construction or operation of electricity generation facilities
that produce electricity using fossil gaseous fuels.
No
5. The undertaking carries out, funds or has exposures to
construction, refurbishment, and operation of combined
heat/cool and power generation facilities using fossil gaseous
fuels.
No
6. The undertaking carries out, funds or has exposures to
construction, refurbishment and operation of heat generation
facilities that produce heat/cool using fossil gaseous fuels.
No
ESRS E1 Climate change
Transition plan (E1-1)
Oriola’s key focus areas in environmental work are to use
resources efficiently and reduce emissions. Oriola is working
towards preparing a transition plan supporting the transition to a
sustainable economy.
In line with the Group’s commitment to enhanced emissions
reporting, Oriola submitted its science-based targets initiative
(SBTi) commitment letter in September 2024, with targets
estimated for submission in 2025, pending validation. Preparation
of the climate transition plan is contingent on SBTi validation, and
as such, a finalised transition plan for climate change mitigation is
not yet in place. Oriola estimates adoption of the transition plan in
2026. The transition plan aims to align with the goals of the Paris
Agreement.
In support of these efforts, Oriola has finalised its greenhouse
gas (GHG) inventory, expanding Scope 3 calculations to include
additional categories for a more comprehensive emissions profile
in the coming years, as part of the initiation of the science-based
targets process.
Oriola acknowledges that environmental risks, including transition
risks related to climate change, may impact the Group’s business,
value chain, communities and the planet. Such risks could involve
fluctuations in fossil fuel prices, stricter environmental regulations
that increase operational costs, and shifts in consumer behaviour
driven by sustainability priorities.
Oriola continuously works with transport partners to find
opportunities to reduce emissions. In own operations, Oriola has
been able to reduce emissions primarily by energy optimisation
and using renewable energy. More information about Oriola’s
decarbonisation levers can be found in the section Actions to
reduce emissions (E1-3) on page 72.
Oriola intends to assess potential locked-in GHG emissions from
the company’s key assets and products in connection with the
SBTi target setting process and take the potential locked-in GHG
emissions into consideration when developing the company’s
transition plan. In the next few years, in connection with the
transition plan development, Oriola aims to further assess how it
will adjust its strategy and business model to ensure compatibility
with the transition to a sustainable economy.
Oriola is not excluded from the EU Paris-aligned Benchmarks.
Oriola has implemented a share-based long-term incentive (LTI)
plan for key employees, including the CEO and Oriola Management
Team, which links part of the compensation to climate-related
performance. More information about Oriola’s sustainability-related
performance in the company’s incentive schemes is presented
under ESRS 2 General disclosures on page 54.
Material impacts, risks and opportunities
(SBM-3)
Given its global significance and stakeholder expectations, climate
change is a top priority in Oriola’s sustainability agenda. In the
double materiality assessment, Oriola has assessed climate change
to be a material topic for the Group both from an impact materiality
and a financial materiality perspective.
Material negative impacts in Oriola’s own operations and in
the value chain arise from value chain emissions, Oriola’s direct
emissions and Oriola’s energy consumption:
• Most of Oriola’s emissions stem from its value chain, with
purchased goods and services and upstream transportation and
distribution playing a substantial role. Around 99.9% of total
emissions are indirect (Scope 3). The assessment is based on
Oriola’s actual GHG emissions.
• Oriola’s direct emissions arise from the maintenance of its
warehouse and office facilities, including ventilation, lighting,
and specific heating and cooling systems for pharmaceutical
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Sustainability Statement Oriola Annual Report 2024 |
storage, accounting to around 0.03% of the Group’s total
emissions.
• Oriola’s energy consumption is focused on maintaining its
warehouse and office facilities for pharmaceutical storage.
Currently, 94% of the company’s total energy usage is sourced
from renewable options.
Identified material financial risks are divided into physical risks
and transition risks:
• An increase in physical climate risks, such as extreme weather
events – flooding, heatwaves and storms – may pose increased
threats to Oriola’s operations by potentially causing harmful
increases in warehouse temperatures or disruptions in the
supply chain. These events can impact container shipments
and challenge the maintenance of required temperatures for
pharmaceuticals in warehousing and throughout distribution.
• Oriola has identified required energy efficiency investments as
a transition risk in its efforts to reduce environmental impact.
Oriola prioritises energy efficiency within its environmental
initiatives and the Group invests in measures such as heat
recovery and LED lighting.
Identified opportunities related to climate change were not
assessed material for Oriola in the double materiality assessment.
As part of Oriola’s general risk analysis, the company has identified
transition risks and opportunities as well as physical risks related
to climate change. The results of Oriola’s general risk analysis were
considered in the double materiality assessment. Based on the
double materiality assessment, physical risks and transition risks
related to energy efficiency investments were assessed material for
Oriola. Material risks are presented above in connection with the
double materiality assessment impacts, risks and opportunities.
Below are presented climate-related risks and opportunities
identified in the company’s general risk analysis:
Transition risks
• Oriola is actively addressing potential challenges such as
growing demand for climate-neutral transportation, stricter
material regulations, and the rising costs of sustainable
materials and packaging. Efforts are also focused on managing
fluctuations in renewable energy and fossil fuel pricing,
reducing emissions from operations and the value chain, and
improving waste management to meet increasing regulatory
requirements.
Physical risks
• Oriola is actively managing physical risks such as delivery
delays caused by extreme weather, potential shortages of
raw materials for pharmaceutical manufacturing, and the
increasing probability of pandemics and new diseases linked
to changing climates. The company is also taking measures to
mitigate the impacts of extreme weather events on warehouse
conditions, ensuring the safe storage of temperature-sensitive
pharmaceuticals.
Opportunities related to transition events
• Oriola recognises opportunities in meeting growing consumer
demand for easily recyclable packaging materials and
contributing to the transition towards a lower-carbon economy.
These efforts not only align with Oriola’s purpose and objectives
but also offer reputational and market advantages.
Oriola plans to further analyse the resilience of its strategy and
business model in relation to climate change and conduct a
resilience analysis in the years following the science-based targets
validation.
Oriola manages climate risks by focusing on the most relevant low
carbon technologies when acquiring new or modernising existing
equipment. In addition, physical climate risks are managed by
adopting clear risk management practices.
Climate change assessment (IRO-1)
Oriola’s assessment to identify climate-related impacts, risks and
opportunities is based on the company’s general risk analysis,
GHG calculation and double materiality assessment. The double
materiality assessment process is presented in detail under ESRS
2 on page 60. Oriola recognises that effective risk management
is vital for achieving strategic objectives, increasing shareholder
value, and contributing to a healthier, more sustainable world.
The Group’s balanced, fact-based risk appetite supports the long-
term resilience, profitability and sustainability of Oriola’s business,
serving as a guiding framework for risk management and decision-
making. The risk appetite is regularly updated to align with changes
in the business environment, industry dynamics, regulatory
requirements and stakeholder expectations. Sustainability risks,
including climate risks, are integrated into Oriola’s overall risk
management process.
Oriola is committed to integrating sustainability into its business
practices, carefully managing the level of sustainability risk it
is willing to accept in pursuit of its strategic objectives. This
approach reflects the company’s dedication to environmental
stewardship, social responsibility and economic viability, guiding
the identification, assessment and management of sustainability
risks to ensure alignment with the overall strategy and stakeholder
expectations. Supporting initiatives that benefit present and future
generations is central to Oriola’s values and core business, resulting
in a low-risk appetite for sustainability risks.
Climate-related risks and opportunities were assessed as a part
of Oriola’s general risk analysis between August and October
2024. Oriola has analysed the risks based on the risk category, risk
source and risk event and rated risks based on their consequence,
probability and risk level. Each identified risk has been assigned a
mitigation owner.
To identify actual and potential future greenhouse gas emission
sources, Oriola has screened its operations and plans based on the
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Greenhouse Gas Protocol standards for carbon footprint calculation
of companies and organisations in their own operations and value
chain. In the identification process Oriola also took into account
the requirements for the scope of emission calculation set by the
SBTi framework, to which Oriola is committing. Consequently,
the calculation of actual greenhouse gas emissions covers more
than 95% of Scope 1 and Scope 2 emissions and more than 90%
of Scope 3 emissions. In practice, all emission categories of the
standard, according to which Oriola has operations and which are
sources of greenhouse gas emissions, have been included in the
calculation. Potential future sources of greenhouse gas emissions
were identified in relation to potential investments in Oriola’s
properties. The investments will temporarily increase greenhouse
gas emissions, but in the long term will reduce them, for example
by introducing new technology and more energy-efficient
solutions. Oriola’s actual impacts on climate change, specifically
GHG emissions, are further detailed in section GHG emissions (E1-6).
Oriola plans to further develop its assessment in its own operations
and in the value chain. The company plans to conduct climate-
related scenario analysis to elaborate on the identification
and assessment of impacts, physical risks, transition risks and
opportunities over the short-, medium and long-term in connection
with the transition plan. In the planned assessment Oriola intends
to identify climate-related hazards and transition events and
assess the extent to which its assets and business activities may be
exposed to those hazards and events. The timing of the transition
plan depends on the timing of SBTi validation.
Climate-related policy (E1-2)
Oriola’s Group Environmental Policy sets the framework for
environmental work in the group and its business areas. The
policy is approved by the Oriola Management Team and Board
of Directors. The Quality and Environment organisation, led by
the Quality Director, is responsible for overseeing matters related
to environment, including energy consumption and emissions
reporting.
The policy applies to all employees and Group companies. Oriola
makes the policy available at the company’s website to potentially
affected stakeholders, and stakeholders who need to help
implement it.
In accordance with the Group Environmental Policy, Oriola is
committed to work to lower energy consumption and decrease
the emissions generated from transportation. Oriola takes
environmental issues into consideration when making decisions
related to procurement, subcontracting and investing.
Oriola’s environmental work is based on the ISO 14001 framework
for environmental management. Oriola’s current environmental
policy gives an overview of the company’s approach on
environmental matters, but does not disclose information about
material impacts, risks and opportunities related to climate change
mitigation and adaptation, energy efficiency or renewable energy
deployment. Oriola plans to review its Group Environmental Policy
during 2025. The Group intends to consider the interests of its key
stakeholders in the policy revision process.
To reduce environmental impacts across its value chain, Oriola
requires its partners, suppliers and subcontractors to meet the
same high environmental principles it upholds. Outlined in Oriola’s
Code of Conduct, these principles include, but are not limited
to, compliance with laws, climate action and environmental
protection. Oriola also expects these principles to be applied
throughout each supplier’s own supply chain.
Actions to reduce emissions (E1-3)
Climate change is the greatest health threat facing humanity,
affecting both individual health and healthcare systems. Reducing
environmental impacts by using resources efficiently and
minimising emissions and waste remains a top priority for Oriola.
The most significant environmental impacts of Oriola’s business
and operations stem from value chain emissions (Scope 3),
particularly from purchased goods and services and upstream
transportation and distribution. In 2024 Oriola expanded Scope 3
calculations to include additional categories, making purchased
goods and services the largest Scope 3 category. The expanded
calculation provides a more comprehensive emissions profile, and
serves as a reference for future comparisons, particularly regarding
Scope 3 emissions. For the reporting year 2024, the calculation
scope remains consistent with previous years and comparable
with the 2019 base year, while the expanded scope for Scope 3
categories will be addressed in subsequent years.
Oriola’s key actions to reduce emissions and energy consumption
in accordance with the Group Environmental Policy include
transport emission reductions, distribution centre initiatives
and energy efficiency measures. The scope of key actions spans
upstream and downstream (e.g., collaboration with transport
partners and providing transport emissions data to customers), and
Oriola’s own operations (e.g., energy efficiency improvements at
facilities). Key stakeholders include transport partners, customers
and employees involved in distribution centre operations.
Transport optimisation is an ongoing action, while other key
actions such as facility upgrades and distribution centre efficiencies
were completed in 2024, with further improvements planned for
the future.
Oriola continuously works with transport partners to find
opportunities to reduce emissions. In practice, this means,
for example, optimising routes, using capacity efficiently and
expanding the use of alternative fuels. In addition, Oriola requires
its transport partners to disclose their short-term (1-3 years) and
long-term (5+ years) CO2 strategies and targets. Oriola considers
emissions reporting an important aspect when selecting transport
service providers. The company also supports its customers with
transport emissions data, helping them gain better visibility into
their carbon footprint.
Oriola can also influence transport emissions at distribution
centres, for instance by improving the fill rate of transport boxes,
as demonstrated at the Mankkaa site, where increasing the fill rate
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has reduced the number of boxes delivered to customers and the
volume of air transported, ultimately lowering transport emissions.
Furthermore, Oriola has observed emission reduction potential in
the transition of several last-mile routes to electric vehicles by the
Group’s transport partners.
At the Mankkaa site, a change in order times has resulted in
improvements in transport emissions and energy efficiency during
2024. This initiative has significantly optimised transportation
processes, with around 350,000 fewer reusable transport boxes
delivered which corresponds to around 240 fewer semi-trailer
trucks departing from the Mankkaa site for deliveries. Additionally,
the transport operator has further optimised deliveries based on
actual demand, reducing unnecessary trips and improving overall
efficiency. These changes support the company’s sustainability
goals and contribute to a more streamlined distribution process
with lower environmental impact. The impacts of the initiative on
the use of packaging materials are explained further in section E5
Resource use and circular economy.
To achieve reductions in direct emissions, Oriola has introduced
new low-emission refrigerant options when expanding cold
storage capacity for products requiring temperature-controlled
storage conditions.
Oriola has not used carbon offsetting in 2024.
Oriola’s actions in relation to climate change policies are mainly
operational and their current implementation is assessed to not
require significant financial resources. Oriola does not apply
sustainable finance instruments or financial support.
Energy efficiency
Oriola’s energy usage encompasses the maintenance of
warehouse and office facilities, including ventilation, lighting, and
specific heating and cooling for pharmaceutical warehouses. As
much as 94% of Oriola’s total energy consumption comes from
renewablesources.
Oriola prioritises energy efficiency in the environmental work
related to the Group’s own operations. To achieve the targets,
Oriola invests in energy efficiency actions such as heat recovery
and LED lighting. In recent years, Oriola has implemented various
measures in different facilities. At Enköping distribution centre,
changes to light fixtures were made, contributing to more efficient
energy use. At the central warehouse in Mölnlycke, three cooling
machines were renovated and as a result the machines use less
energy while still keeping the right temperatures. Mölnlycke also
benefits from geothermal heating and solar panels.
Oriola plans to report on expected GHG emission reductions when
describing the outcome of its actions for climate change mitigation
in the following years, after the company has set its transition plan.
Climate targets (E1-4)
Oriola is committed to using resources efficiently and reducing
greenhouse gas emissions. Oriola’s target is to become carbon
neutral in its own operations (Scopes 1 and 2) by 2025 and achieve
carbon neutrality across the supply chain (Scopes 1, 2 and 3) by
2030. The Group is committed to setting science-based climate
targets, and eventually, target a net-zero impact on climate.
As its strategic key performance indicators, Oriola follows the
emission reductions on Scopes 1, 2 and 3 as well as total GHG
emissions. Oriola tracks its targets annually, with key indicators
reviewed semi-annually. Emissions calculations are conducted once
a year.
Base year is set to 2019. In 2023, Oriola restated emissions
information due to internal data validation and the Kronans Apotek
divestment in 2022. In the restatements, Oriola deducted Kronans
Apotek’s emissions from 2019-2021 and reallocated leasing car
emissions from Scope 3 category 6 to Scope 1. Kronans Apotek
was excluded from environmental data collection and reporting
in 2022. With restatements of historical data, Oriola improved
comparability of emission data. No other significant changes to
Oriola’s operational boundaries, premises or core activities have
occurred since the baseline year, ensuring the comparability of the
base year data with the reporting period. See table on page 75 for
detailed GHG emissions and emission reductions.
Oriola’s Scope 1 and 2 (market-based) emissions have reduced
by 90% from 2019 base year, primarily by energy optimisation
and using renewable energy. In 2024, Oriola’s Scope 3 emissions
decreased by 26% from the 2019 base year (calculation includes
Scope 3 categories 1, 4, 5 and 6 as defined in 2019 base year).
Oriola transitioned to more extensive emission reporting in 2024
and intends to establish a transition plan after the SBTi targets
have been validated. At the same time, the company will refine the
management of material climate impacts, risks and opportunities.
Oriola plans to conduct a resilience analysis including the use of
climate scenario analysis in the following years to detect relevant
environmental-, societal-, technology-, market- and policy-related
developments and determine its expected decarbonisation levers.
Energy consumption and mix (E1-5)
Managing energy supply risk is crucial for Oriola because it could
impact on Oriola’s ability to ensure that pharmaceuticals, essential
for health and wellbeing, have the right conditions during storage
and transport. Oriola’s general business continuity plan covers the
preparedness for potential power outages in the daily operating
environment. The continuity plan includes and defines the critical
functions to be maintained or run down in a controlled manner
during risk events, such as power outage. The Group has back-up
power at the Mankkaa, Juvanmalmi, Enköping and Mölnlycke sites.
Oriola’s energy usage encompasses the maintenance of warehouse
and office facilities, including ventilation, lighting, and specific
heating and cooling for pharmaceutical warehouses. Total energy
consumption within the organisation was 16,763 MWh in 2024.
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Total energy consumption from fossil sources was 954 MWH and 46
MWH from nuclear sources, which amounts to less than 1% of total
energy consumption.
As much as 94% of Oriola’s total energy consumption comes
from renewable sources. Consumption of purchased or acquired
electricity, heat, steam, and cooling from renewable sources
amounts to 15,553 MWh (93% of total energy consumption) while
the share of consumption of self-generated non-fuel renewable
energy is 210 MWh (1.3% of total energy consumption).
Energy consumption figures have been compiled based on energy
supplier invoices. No assumptions have been made regarding the
amount of energy consumption in the reporting. The amount of
self-generated energy (solar electricity produced in Mölnlycke)
is read from the meter. The share of renewable energy has been
calculated based on the energy guarantees of origin issued by
the suppliers. Energy consumption figures are not validated by an
external body other than the assurance provider.
E1-5 Energy consumption within the organisation, MWh
2024 2023
Electricity 12,275 10,962
Heat 4,060 5,605
Own produced energy (solar panels) 210 223
Fuel consumption (stationary
combustion and company vehicles)
218 229
Total energy consumption 16,763 17,018
E1-5 Energy consumption and mix
Unit 2024
Total fossil energy consumption MWh 954
Share of fossil sources in total energy
consumption
% 6
Consumption from nuclear sources MWh 46
Share of consumption from nuclear sources in
total energy consumption
% 0
Fuel consumption for renewable sources,
including biomass (also comprising industrial
and municipal waste of biologic origin, biogas,
renewable hydrogen, etc.)
MWh 0
Consumption of purchased or acquired electricity,
heat, steam, and cooling from renewable sources
MWh 15,553
The consumption of self-generated non-fuel
renewable energy
MWh 210
Total renewable energy consumption MWh 15,763
Share of renewable sources in total energy
consumption
% 94
Total energy consumption MWh 16,763
GHG Emissions (E1-6)
GHG emissions presented in text below have been calculated
according to Oriola’s new, more extensive emission reporting
adopted in 2024 and comparisons below are made with year 2023.
The year 2023 serves as a base year for SBTi target. This change has
increased Scope 3 emissions significantly due to the new emission
categories added in the calculation and the scope of purchased
goods and services being extended to include all purchased
goods and services whereas the previous calculation included only
purchased packaging material. The table (E1-6 GHG emissions
disaggregated by Scopes 1 and 2 and significant Scope 3) presents
emission calculation results from base year 2019 as well as the
extended emission calculation results from years 2023 and 2024.
Emissions from Oriola’s own operations (Scopes 1 and 2), which
include electricity consumption and heating as well as fugitive
emissions from refrigerants, cover around 0.03% of the Group’s
total emissions. Direct emissions (Scope 1), generated primarily
from refrigerants, decreased by 81% to 66 tCO
2
eq in 2024
(compared with 339 tCO
2
eq in 2023) and round up to 0.01% of the
Group’s total emissions. Indirect location-based emissions from
purchased energy (Scope 2), including electricity and heating,
dropped by 28% to 614 tCO
2
eq (from 852 tCO
2
eq in 2023), while
market-based Scope 2 electricity emissions fell by 26% to 171
tCO
2
eq (from 230 tCO
2
eq in 2023). Scope 2 emissions cover around
0.02% of Oriola’s total emissions.
Around 99% of total emissions are indirect (Scope 3), originating
from sources such as purchased goods, packaging materials,
transport, waste, business travel, and employee commuting. Total
indirect emissions from value chain activities (Scope 3) amount
to 745,668 tCO
2
eq (2023: 542,426 tCO
2
eq). Significant Scope
3 emission categories are purchased goods and services and
upstream transportation and distribution, accounting for 742,115
tCO
2
eq (99.5% of total Scope 3 emissions). Purchased goods and
services cover 99.2% of total Scope 3 emissions, while upstream
transportation and distribution amount to 0.3% of total Scope 3
emissions.
Oriola’s total GHG emissions (Scopes 1-3) in 2024 were 745,905
tCO
2
eq (2023: 542,996 tCO
2
eq).
2% of Scope 3 GHG emissions are calculated using primary
data. Definitions of reporting undertaking and its value chain in
connection with GHG emissions reporting are to be reviewed
each year. Biogenic emission of CO2 from the combustion or
biodegradation of biomass do not occur in the Oriola’s Scope 3
upstream or downstream value chain.
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Sustainability Statement Oriola Annual Report 2024 |
E1-6 GHG emissions disaggregated by Scopes 1 and 2 and significant Scope 3
2024 2023 2019 base year
% change from
base year
Scope 1, tCO
2
eq 66 339 750 -91
Scope 2 (location-based), tCO
2
eq 614 852 1,527 -60
Scope 2 (market-based), tCO
2
eq 171 230 1,635 -90
Total Scope 1 and 2 (location-based) emissions, tCO
2
eq 680 1,192 2,277 -70
Total Scope 1 and 2 (market-based) emissions, tCO
2
eq 237 570 2,385 -90
Scope 3 emissions per category (GHG), tCO
2
eq 2024 2023 2019 base year*
% change
from base year
1: Purchased goods and services 739,825 536,492 846 86
2: Capital goods 737 393
3: Fuel- and energy-related activities 163 205
4: Upstream transportation and distribution 2,290 2,857 2,498 -25
5: Waste generated in operations 273 88 1,846 -85
6: Business travel 292 293 196 49
7: Employee commuting 459 457
8: Upstream leased assets 16 18
12: End-of-life treatement of sold products 1,542 1,577
13: Downstream leased assets 70 46
Total Scope 3 emissions, tCO
2
eq 745,668 542,426 5,386 -26
2024 2023
Total Scope 1, 2 (location-based) and 3 emissions, tCO
2
eq 746,348 543,618
Total Scope 1, 2 (market-based), and 3 emissions, tCO
2
eq 745,905 542,996
*Categories included in the 2019 base year calculatiion
Due to the adoption of a more extensive emission calcuation in 2024, the values presented in the above table for 2024 Scope 3 Category 1 and Category 4 are not comparable against the base year.
The comparable figures are as follows: Scope 3 Category 1: 1,574.51 tCO
2
eq and Category 4: 1,868.15 tCO
2
eq.
E1-6 Greenhouse gas emissions per net revenue
Metric 2024 2023
Total Scope 1 emissions per net revenue (tCO
2
eq/MEUR) 0.04 0.11
Total Scope 2 (location-based) emissions per net revenue (tCO
2
eq/MEUR) 0.37 0.29
Total Scope 2 (market-based) emissions per net revenue (tCO
2
eq/MEUR) 0.10 0.08
Total Scope 3 emissions per net revenue (tCO
2
eq/MEUR) 312.79 181.38
Total GHG emissions (location-based) per net revenue (tCO
2
eq/MEUR) 313.19 181.78
Total GHG emissions (market-based) per net revenue (tCO
2
eq/MEUR) 312.93 181.57
Net revenue (Note 4.2.) used in GHG intensity calculation is EUR 1,679.7 million.
Scope 1: Share of emissions by source, %
On site stationary combustion
Company vehicles
Produced electricity
Fugitive emissions
Scope 2: Share of emissions by source, %
Purchased heat
Produced electricity
Scope 3: Share of emissions by source, %
1: Purchased goods and services 99.22
2: Capital goods 0.10
3: Fuel- and energy-related activities 0.02
4: Upstream transportation and distribution 0.31
5: Waste generated in operations 0.04
6: Business travel 0.04
7: Employee commuting 0.06
8: Upstream leased assets 0.00
12: End-of-life treatement of sold products 0.21
13: Downstream leased assets 0.01
32%
50%
0%
66%
50%
1%
Purchased electricity
Purchased heat
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Sustainability Statement Oriola Annual Report 2024 |
Accounting policies
Oriola has applied financial control approach in the Group’s GHG
accounting. The company ensures that all GHG emissions data used
in its reporting aligns with Oriola’s reporting period. Joint venture
Kronans Apotek is excluded from the reporting since Oriola does
not have operational control over the entity. There have not been
significant changes in the organisational structure or value chain.
Oriola’s Scope 1, Scope 2 and Scope 3 emissions are measured
according to minimum boundaries of GHG Protocol. GHG
emissions of CO
2
, CH
4
, N2O, HFCs, PCFs, SF6, NF3 are considered. The
calculation tool is Position Green platform for all the scopes and
their categories, excluding in Scope 3 Oriola’s outbound transport
emissions and business travel emissions which are ready-calculated
values by the supplier of the activity.
The included scopes and categories are the following:
Scope 1:
• Onsite stationary combustion
• Produced electricity
• Company vehicles
• Fugitive emissions
Scope 2:
• Purchased electricity
• Purchased heating
Scope 3:
• Cat 1. Purchased goods and services
• Cat 2. Capital goods
• Cat 3. Fuel and energy related activities, outside of Scope 1 & 2
• Cat 4. Upstream transportation and distribution
• Cat 5. Waste generated in operations
• Cat 6. Business travel
• Cat 7. Employee commuting
• Cat 8. Upstream leased assets
• Cat 12. End-of-life treatment of sold products
• Cat 13. Downstream leased assets
Excluded categories (and reason for exclusion) from the GHG
calculation are:
Scope 1:
• Process emissions (Oriola has no processes that cause
emissions)
Scope 2:
• Purchased steam (Oriola did not purchase steam in 2024.)
• Purchased cooling (Oriola did not purchase cooling in 2024.)
Scope 3:
• Cat 9. Downstream transportation and distribution (All inbound
and outbound transportation emissions of Oriola are already
accounted for in category 4.)
• Cat 10. Processing of sold products (Oriola did not sell any
intermediate products which could need processing in 2024.)
• Cat 11. Use of sold products (The sold products in 2024 were
generally such that their usage does not consume energy and
therefore does not cause GHG emissions. Only an insignificant
proportion of the sold products consume electricity during use,
so the emissions generated can be assumed to be negligible
compared with total emissions.)
• Cat 14. Franchises (Oriola does not have any franchises.)
• Cat 15. Investments (not material)
Total GHG emissions are calculated as follows: Total GHG emissions
market-based (tCO
2
eq) = Gross Scope 1 + Gross Scope 2 market-
based + Gross Scope 3.
Scope 1 emissions include fugitive emissions, leased cars, and
stationary combustion emissions. The source for fugitive emission
factors is Opteon (2023). Calculation is carried out based on data
of refrigerant refill invoicing of maintenance companies. Emission
factors used for calculating leased cars’ emissions are from DEFRA
(2023), AIB (2023), Energimyndigheten (ER 2023), and IEA (2023).
Emission data is obtained from travel agencies, leasing companies
and Oriola payroll department. The stationary combustion emission
factor is from DEFRA (2023). Calculations are based on refueling
litres.
Sources for Scope 2 purchased electricity’s market-based emission
factors are from AIB (2022 and 2023), location-based emission
factors are from Fingrid (2023), AIB (2023) and energy suppliers.
Scope 3 emissions factors for electricity are from IEA (2023).
Purchased heating’s Scope 2 emission factor sources are Finnish
Energy (2024) and Energiföretagen (2022). Scope 3 emission factors
are from DEFRA (2023) and Energiföretagen (2022). Consumption
figures of electricity and heat are calculated based on the invoicing
of the energy suppliers.
The calculation of Scope 3 emissions for 2023 was expanded to
provide a more comprehensive emissions profile, and the year
2023 serves as a reference point for future comparisons, particularly
regarding Scope 3 emissions. Screening of the 15 categories of
Scope 3 was carried out in connection with the initiation of the
science-based targets process. The baseline year for SBTi was
selected to be 2023. For the SBTi at least 67% of Scope 3 emissions
are required to be accounted, and therefore all categories
according to which activities are related to Oriola’s value chain have
been included in the calculation. Purchased goods and services
includes all purchases when previously only packaging materials
were included.
Either the spend-based, mass-based or average data method
emission factors were used in the calculation depending on the
type of initial data when calculating Scope 3 emissions. In the
category of purchased goods and services, emissions related
to purchased packaging materials were calculated with mass-
based emission factors (DEFRA 2023), and emissions related to
other purchased goods and services with spend-based emission
factors (Exiobase 3.9, 2019). Also, emissions from capital goods
were calculated with the spend-based method with Exiobase
3.9 emission factors (2019). The volume of purchased packaging
materials has been obtained based on the invoices of the suppliers.
The value of purchased goods and services and capital goods
is taken from Oriola’s finance system as the initial data for the
emission calculation. Inbound transportation related emission
factors are from NTM (2022), and the transportation distance and
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Sustainability Statement Oriola Annual Report 2024 |
volumes were estimated based on supplier locations and available
data on delivery weights at Oriola. Outbound transportation
emissions were calculated by the transport suppliers.
Emissions related to waste generated in Oriola’s own operations
were calculated with mass-based emission factors of EU & DK Input
Output Database (2022), and DEFRA (2023). The volume of waste
was calculated based on the invoicing of the waste treatment
companies and measuring the generated waste by the personnel
of Oriola. Employee commuting emissions were calculated based
on the employee survey of commuting distance and average
remote working days, and average method using distance-based
emission factors of DEFRA (2023), AIB (2020 and 2022), Severengiz,
Semih & Finke, Sebastian & Schelte, Nora & Wendt, Norman. (2020),
Bosch eBike system (2023), NTM (2018), and NTMCalc.advanced
4.0. Upstream and downstream leased assets’ emissions were
calculated based on an average emissions factor of Energiföretagen
(2022), AIB (2023), Finnish Energy (2024), and Fingrid (2023). Svensk
Dos’s facility is the only upstream leased asset and its energy
consumption was obtained from the invoicing of the energy
suppliers similarly to the Scope 2 calculation of other facilities.
Downstream leased assets are located in Mankkaa facility, and the
energy (both electricity and heat) consumption were estimated
based on the share of floor area of the total facility consumption.
Emissions of end-of-life treatment of sold products are calculated
with mass-based emission factors of EU & DK Input Output
Database (2022), and DEFRA (2023). The volume of sold products
by the product type was obtained from Oriola’s finance system and
connected to corresponding emission factors. Emissions factors
dated after 2021 follow the most recent Global Warming Potential
(GWP) values published by the IPCC based on a 100-year time
horizon to calculate CO
2
eq emissions of non-CO
2
gases.
The emission factors used have been selected to correspond as
closely as possible to the specific categories and actions being
calculated.
Carbon offset is a secondary means for Oriola, to be used when it is
not possible to further reduce the company’s emission levels. Oriola
has not used carbon credits in 2024 and therefore does not report
section E1-7.
Oriola does not have internal carbon pricing (E1-8) methods
and does not anticipate being regulated in the next three years.
According to ESRS 1 Appendix C, Oriola omits the information
prescribed by ESRS E1-9 for the first year of preparation of its
sustainability statement.
ESRS E2 Pollution
Material impacts, risks and opportunities
(IRO-1)
In the double materiality assessment Oriola has identified material
impacts related to pollution in its value chain. The assessment is
based on Oriola’s understanding of its value chain impacts and
typical value chain impacts in the industry. Oriola has not further
analysed the scope of the impacts. The Group has neither identified
material risks nor opportunities arising from the impacts.
Oriola has not screened its site locations and business activities in
order to identify its actual and potential pollution-related impacts,
risks and opportunities in its own operations and upstream and
downstream value chain. Neither has it conducted consultations, in
particular with affected communities.
Oriola has identified potential impacts in the value chain in both
upstream and downstream. In the upstream part of the value
chain, impacts arise from pharmaceutical manufacturing. The
energy consumption of pharmaceutical companies contributes
to local air pollution, and manufacturing may also release
pharmaceutical pollutants in the air, which can lead to long-term
health issues. Oriola’s contribution to impacts is limited as the
Group does not have its own product manufacturing and it is one
regional distributor among a large number of others. The topic
was considered important by stakeholders, specifically among
employees.
Environmental impacts downstream can be caused by incorrect
handling of pharmaceuticals. The pharmaceuticals can find
their way into the environment through various routes, such
as medicines that are consumed by patients and subsequently
excreted, or the improper disposal of unused and expired
medicines. All pharmaceuticals from healthcare and households
are classified as hazardous waste, and unused or expired medicine
should be returned to pharmacies. Oriola has limited control over
the handling of pharmaceuticals as the Group does not have a
licence to handle waste arising from for example pharmaceuticals
or substances of (high) concern. The topic was considered
important by stakeholders, specifically among employees.
Policies related to pollution (E2-1)
Oriola’s environmental efforts are guided by Oriola Group
Environmental Policy, which articulates the Group’s commitment
to minimise the environmental impact. In addition, environmental
impacts and efforts in the value chain are governed by the
company’s Code of Conduct. In accordance with the Group
Environmental Policy, Oriola is committed to work to minimise
risks of environmental incidents and prevent pollution. Currently
the policy does not address substituting and minimising the use
of substances of concern and phasing out substances of very high
concern, and it does not include information on the pollutants or
substances covered. Further details are provided under E1 Climate
change on page 72.
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Actions, resources and targets related to
pollution (E2-2, E2-3)
Pharmaceuticals can affect the environment in various ways
throughout their lifecycle. Most of the pharmaceutical residues
that reach the environment do so through the sewer system
after medication use. Pharmaceuticals can wash off the skin
during showers or be excreted into the sewer system. Although
wastewater treatment is effective, not all pharmaceutical residues
are removed from the water1 .
All pharmaceutical waste from healthcare and households is
classified as hazardous waste in Finland and Sweden, and returning
unused or expired medicines to pharmacies prevents them from
ending up in the environment and water systems through mixed
waste or sewage.
In Finland and Sweden, responsibility for the recycling of medicines
lies with pharmacies. According to a recent study
2
, most Finns
disposed of unnecessary and expired liquid (89%) and solid (93%)
medicines by returning them to a pharmacy. A small portion
disposed of medicines with household waste (7% liquid and 5%
solid) or through the sewage system (1% liquid and 1% solid).
Disposal practices were significantly influenced by the respondent’s
gender, age, and household life stage. Additionally, prescription
drug use, household waste recycling practices, environmental
attitudes, and awareness of pharmaceutical residues in water
bodies had an impact. In Sweden it is estimated that about 75
percent of leftover medicines are returned to pharmacies3 .
Oriola continues to collaborate with several charity organisations
by donating non-pharmaceutical products that can still be used
but cannot be sold due to close or just passed expiry date. For
several years in Finland and Sweden, Oriola has implemented this
collaboration to reduce the loss of non-pharmaceutical products.
The actions do not require significant financial resources.
Oriola has a limited impact on potential air pollution caused by
the upstream manufacturing process and the improper disposal of
pharmaceuticals downstream in the value chain. Currently Oriola
does not have the means to track the effectiveness of its actions to
address material impacts, risks and opportunities, or to measure
progress in achieving its policy objectives related to pollution.
Oriola has not adopted actions or targets specifically aimed at
mitigating potential negative impacts related to pollution in the
value chain. However, Oriola plans to re-evaluate the situation in
the coming years. Oriola plans to consider the potential impacts
when developing sustainable sourcing practices further.
1Lääketeollisuus ry. 2024. Lääkkeet ja ympäristö [Pharmaceuticals and the
Environment]. Available at: https://www.laaketeollisuus.fi/vastuullisuus/laakkeet-
ja-ymparisto.html [Accessed November 12, 2024].
2Louhisalmi, M., Martikainen, J., Timonen, J. & Alajärvi, A. 2020. Suomalaiset
palauttavat lääkejätteen apteekkiin – kyselytutkimus käyttämättömien ja
vanhentuneiden lääkkeiden hävityskäytännöistä aikuisväestölle [Finns Return
Unused Medicines to Pharmacies – A Survey on Disposal Practices of Unused and
Expired Medicines among the Adult Population]. Dosis, 3(2020), pp. 384–391.
Available at: https://sudden.fi/julkaisut/ [Accessed 12 November 2024].
3Lif – Läkemedelsindustriförening – The Research-Based Pharmaceutical
Industry in Sweden. 2021. Miljöinformation [Environmental Information].
FASS.se, published on 15 April 2021. Available at: https://www.fass.se/LIF/
menydokument?userType=0&menyrubrikId=2432 [Accessed 12 November 2024].
ESRS E5 Resource use and circular
economy
Material impacts, risks and opportunities
(IRO-1)
Resulting from double materiality assessment, Oriola has identified
material impacts and risks related to circular economy and waste
management in its own operations as well as its value chain
operations both upstream and downstream. As part of its waste
management development actions, Oriola has screened its assets
and activities to identify its main waste flows across the value chain
as presented in the waste flow chart on page 79. Double materiality
assessment is further described in section ESRS 2 General
information on page 60.
The following impacts and risks were identified as material during
the process:
• Oriola has identified a negative impact arising from waste
generated throughout the Group’s value chain. The generated
waste includes packaging that can be difficult to recycle. Oriola
primarily generates packaging waste from its own operations,
including storage, delivery and dose-dispensing activities.
Pharmaceutical waste generated includes unused and expired
medicines.
• A positive impact arises from handling partners’ pharmaceutical
stock and waste. Oriola oversees the proper disposal of
pharmaceutical waste, ensuring it complies with regulatory
standards. Pharmaceutical waste generated in Oriola’s
warehouses is collected and destructed by waste management
companies. Pharmaceutical waste is generated in Oriola’s
warehouses mainly due to damaged packaging or goods and
exceeded due dates. In Finland and Sweden, responsibility for
collecting unused medicines lies with pharmacies, and unused
medicines gathered at pharmacies are collected by waste
management companies.
• Increasing costs arising from regulatory requirements for
sustainable packaging were identified as a risk in relation to
Waste flow
Upstream in
value chain
Own operations
OutputsOrganisationInputs
Suppliers
Customers
Storing
Packaging
Delivering
Other activities:
• Office, kitchen
Pharmaceutical and
non-pharmaceutical
products
Packaging materials:
• Plastic
• Cardboard
• Reusable wooden
pallets
Upstream waste
Products, Packages
Waste:
• Cardboard
• Plastic
• Paper waste
• Bio waste
• Mixed waste
• Hazardous waste,
incl. pharmaceutical
waste
Waste handling
Recycling
Energy recovery
Reusable delivery boxes
Waste:
• Packaging waste
• Pharmaceutical waste
Downstream in value chain
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resource use and circular economy. Regulatory changes for
packaging can raise the initial cost of transitioning to new
packaging. It is likely that packaging materials used will need to
increasingly be of recycled origin. This may lead to increases in
material costs and potentially decreased durability.
Policies related to resource use and
circular economy (E5-1)
Oriola’s environmental efforts across its operations and value chain
are guided by the Group Environmental Policy and Oriola’s Code
of Conduct. Environmental Policy does not address the waste
hierarchy or the prioritisation of avoiding or minimising waste over
waste treatment. Oriola provides site-specific instructions for waste
handling which are reinforced during employee induction through
practical demonstrations of waste management procedures.
Further details are provided under E1 Climate Change on page 72.
Waste prevention, minimisation and
recycling (E5-2)
Waste reduction, recycling and reuse form one of the main
initiatives of Oriola’s environmental work, as wholesale and
distribution operations mostly generate packaging waste. Going
forward, Oriola also focuses on increasing the internal awareness of
the environmental impact of packaging.
Oriola’s key actions to enhance waste management and resource
efficiency include implementation of advanced sorting capabilities,
reusable transport solutions including water reuse and energy
recovery, and employee training programmes.
Oriola has consistently enhanced its waste sorting capabilities
in recent years, earning positive feedback on the quality of its
recycling efforts from the Group’s waste management partners.
Oriola’s largest warehouses in Finland and Sweden feature over
10 sorting categories, with cardboard, plastic and waste-to-energy
being the most substantial. These sorting categories include
different plastic classifications. All hazardous waste, including
pharmaceutical waste, is securely stored in a locked area and
disposed of at a waste disposal centre. These categories are
designed to improve recycling rates and reduce waste sent to
landfills. At the sites, waste bins are reviewed to ensure clear and
correct labelling and adjusted as needed to fit the sorting needs of
different warehouse sectors.
To reduce waste, Oriola delivers products from the Group’s
distribution centres to customers mainly in reusable transport
boxes and with reusable cold shields. This initiative reduces the
reliance on single-use packaging materials, aligning with the
company’s sustainability goals. Additionally, Oriola reuses the
water used for washing these plastic transport boxes in Sweden. In
Finland, opportunities for water reuse were thoroughly explored;
however, instead of reusing the water in the same manner, the
heat generated during the washing process is recovered and
repurposed, enhancing resource efficiency and supporting
sustainable practices. Oriola’s adjustment to order times has
resulted in improved fill rates and slower turnover of reusable
transport boxes. In addition, the adjustment has reduced the
amount of packaging materials used and the number of deliveries
in cardboard boxes. Waste is handled offsite and is arranged locally
by waste management companies to avoid long-distance transport.
Employee training plays a crucial role in Oriola’s daily efforts to
reduce waste and improve recycling. This includes familiarising
employees with Oriola’s recycling categories and correct handling
of waste. In 2024, Oriola’s training activities in Finland and
Sweden consisted of workplace-specific introduction sessions
and the onboarding process, which included sorting instructions
acknowledged through read-receipts. Comprehensive training
for employees is expected to increase employee compliance with
recycling procedures, improve waste sorting quality, and reduce
contamination of recyclable waste streams.
All of the key actions align with Oriola’s Group Environmental
Policy objectives of minimising waste and increasing recycling at
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Sustainability Statement Oriola Annual Report 2024 |
the company’s own premises. The scope of these actions spans
Oriola’s internal operations, including its major warehouses and
distribution centres in Finland and Sweden. Beyond its facilities,
these efforts extend to customer interactions, particularly through
the implementation of reusable transport solutions that reduce
packaging waste. Key stakeholders involved in these initiatives
include Oriola’s employees, who are actively trained in recycling
and waste management practices, as well as waste management
partners and customers, who benefit from improved packaging
solutions and sustainable practices. Oriola’s key actions are
ongoing initiatives that are integrated into its daily operations.
These actions are reviewed annually to assess performance
and identify opportunities for further enhancement, ensuring
continuous alignment with sustainability objectives.
Environmental impact of pharmaceuticals and packaging
Pharmaceuticals can enter the environment through various ways
and potentially impact the environment throughout their lifecycle.
As Oriola does not have its own production, its operations’ direct
impacts on environment are minor and mainly occur through value
chain activities. The most significant impacts occur at the start of
the value chain, from the manufacturing of products distributed
by Oriola, including the raw materials used in the products and the
pharmaceutical waste they generate.
Ensuring the safe transport of all pharmaceuticals is a primary duty
for Oriola. The company implements appropriate packaging and
securing measures for pharmaceutical products to maintain their
integrity during transit.
All pharmaceutical waste from healthcare and households is
classified as hazardous waste in Finland and Sweden, and returning
unused or expired medicines to pharmacies prevents them
from ending up in the environment and water systems through
mixed waste or sewage. In Finland and Sweden, responsibility for
collecting medicines lies with pharmacies. More information about
end-user disposal practices and Oriola’s collaboration with charity
organisations to reduce non-pharmaceutical product waste can be
found in E2 Pollution.
Oriola follows local regulations and develops its waste
management practices and local reporting accordingly.
Targets (E5-3)
Oriola has updated its sustainability agenda and prioritised
increased recycling rate as one of the six key targets. Oriola has set
a strategic KPI to increase the Group-level recycling rate to 90%
by 2025. The target closely follows Oriola’s Group Environmental
Policy objectives and the Group’s environmental work initiatives
focused on minimising waste and increasing recycling.
Recycling rate is measured as the proportion of waste that is
recycled of the total amount of non-pharmaceutical waste
collected from Group facilities, accumulated per year. Since the
target is not relative to a specific base year or base value, no
base year or base value has been established. Progress towards
the target will be tracked and reported using the total non-
pharmaceutical waste volume for the respective reporting period
as the reference point.
The target relates to waste and waste management, including the
preparation for proper treatment. The layer in waste hierarchy to
which the target relates is recycling (third layer). Oriola monitors
its performance against the target every six months. There are
ongoing initiatives at sites to reach the target. These initiatives
include adjusting the number of bins to improve accessibility
and better suit Oriola’s needs, reviewing bin labelling to facilitate
sorting, and enhancing training as part of the onboarding process.
Oriola has reported the recycling rate performance from 2021.
The set target is voluntary and not required by legislation. No
stakeholders other than Oriola’s own employees were involved in
the target setting. In 2024, the Group-level recycling rate of non-
pharmaceutical waste was 85% (2023: 81%).
Waste (E5-5)
Packaging waste remains the most common category of waste
generated in Oriola’s storage and delivery of pharmaceuticals and
non-pharmaceutical products, as well as dose-dispensing activities.
The waste generated consists of cardboard, paper, biowaste, wood,
glass, plastic film, metal, electrical and electronic waste, plastic
packaging, waste-to-energy, construction waste, mixed waste,
hazardous and pharmaceutical waste.
E5-5 Waste generated, tonnes of waste diverted from disposal and
waste directed to disposal
Waste diverted from disposal tonnes
Non-hazardous waste 2,313.60
Preparation for reuse -
Recycling 2,313.60
Other recovery operations -
Hazardous waste 267.00
Preparation for reuse -
Recycling 3.90
Other recovery operations -
Waste directed to disposal tonnes
Non-hazardous waste 285.70
Incineration 275.90
Landfill 9.80
Other disposal operations -
Hazardous waste 264.60
Incineration 264.60
Landfill -
Other disposal operations -
Total waste generated in Oriola’s own operations
2,867.80
Total amount of non-hazardous waste 2,599.30
Total amount of hazardous waste 268.50
Total amount of non-recycled waste 550.30
Percentage of non-recycled waste 19.19%
Total amount of recycled waste 2,317.50
Percentage of recycled waste 80.81%
Total amount of radioactive waste -
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Oriola calculates the reported data based on information from
collection service companies. The waste volumes for each category
are provided either via email by most service providers, or
through the customer portal of Stena Recycling in Sweden, where
site-specific volumes are available. Oriola receives waste data
categorised by type, reported in weights (tonnes or kilograms) on a
monthly, quarterly or annual basis. These figures are consolidated
to calculate the total annual waste volume in tonnes. Data for
calculations is currently unavailable for small rented and shared
office spaces in Sweden, primarily used for advisory services. Efforts
are underway to explore options for accessing this data.
According to ESRS 1, Oriola omits the information required by ESRS
E5-6 for the first year of preparation of its sustainability statement.
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3. Social information
ESRS S1 Own workforce
Advancing a sustainable people journey is one of the focus areas
in Oriola’s sustainability agenda. It guides the Group’s work in
leadership, employee engagement, attracting new employees and
wellbeing at work.
Oriola’s employees participated actively in the double materiality
assessment survey in 2023, where they highlighted the importance
of workplace safety measures. Workplace safety continues to be
one of the strategic focus areas in Oriola’s sustainability agenda.
In 2023 Oriola also implemented a Human Rights impact screening
according to which the company updated its internal and external
Code of Conducts in 2024 and included human rights topics into
the new People Policy.
Material impacts, risks and opportunities
and their interaction with strategy and
business model (SBM-3)
Oriola’s strategy and business model impact its workforce through
safety, regulatory and operational demands. Potential risks include
health and safety concerns from handling sensitive products and
stress from delivery pressures. By addressing these impacts through
training, safety improvements and innovation, the company adapts
its strategy to enhance workforce wellbeing while aligning with
operational goals.
Material risks and opportunities related to Oriola’s workforce stem
from safety, regulatory compliance, and operational efficiency.
These risks influence the strategy by necessitating strong
safety protocols and workforce training, while opportunities for
improvement, such as through innovation and technology, help
enhance efficiency and worker wellbeing, aligning with the overall
business model.
During the double materiality assessment process, several material
potential negative and positive impacts towards own workforce
were identified. It was also realised that all Oriola employees can
be materially impacted, but some groups may be at greater risk of
harm.
Potential negative impacts
• Occupational health and safety risks of employees. Employees
working in the distribution centres may be exposed to medicine
dust, high levels of noise, incidents from trucking or health
problems stemming from working in cold storage, and / or
poor ergonomics. The risk is heightened in the case of high
staff turnover, external workers, or limited cross-functional OHS
training. An increasing number of mental health related issues
poses health risks for white-collar employees.
• Challenges with work-life balance due to organisational
transformation and potential lack of resources. Such a lack of
resources can result in unbalanced work tasks and potential
overburdening. Unclarity around working conditions for the
subcontracted production staff may occur, while peak times in
production and delivery might cause additional working hours
for external staff.
• Discrimination, harassment and inappropriate behaviour,
especially towards underrepresented groups, including
migrant and external workers. Migrant workers in particular
are prone to different forms of discrimination, including racial
and ethnic discrimination, and unequal pay and working
conditions. Similarly, external workers may be discriminated
through lower compensation/benefits, and lack of effective
channels (for external workers) to share concerns or grievances
may mean that possible discrimination and harassment cases
remain unreported and unsolved.
Positive impacts
• Active participation in developing a positive and inclusive
operative environment. Oriola’s own employees are actively
involved in developing a positive and inclusive operative
environment. For example, during corporate values renewal,
most employees were part of developing/commenting on the
values and/or value descriptions.
• Leadership development through promoting equal
opportunities, diversity and team building activities. As
Oriola’s business environment, company structure, culture
and ways of working are changing, change leadership is one of
the key areas in leadership development. Furthermore, Oriola
is committed to providing a fair and equal workplace that
supports diversity and inclusion.
• A large share of employees covered by collective bargaining
agreements. In Finland 78.5% and in Sweden 100% of
employees are covered by collective bargaining agreements.
Risks
• Workplace hazards and incidents. Workplace hazards and
incidents can result in potential costs associated with medical
treatments, legal liabilities and lost productivity.
Opportunities
• Active participation in developing a positive and inclusive
operative environment and serving as a role model for future
work. By being an inclusive and attractive employer, Oriola can
attract and retain top talent, increase employee engagement
and productivity, and therefore foster innovation.
Types of employees and non-employees subject to
material impacts
• Active participation in developing a positive and inclusive
operative environment and leadership development through
promoting equal opportunities, diversity and team building
activities concern all own workforce.
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• Discrimination, harassment and inappropriate behaviour can
especially impact underrepresented groups, including migrant
and external workers.
• Challenges with work-life balance can include both white-collar
and blue-collar employees in own and external workforce.
• Occupational health and safety risks and workplace hazards
and incidents especially include a mix of employees responsible
for Oriola’s warehousing operations. It may also involve non-
employees, including contractors and personnel provided by
third-party logistics or employment agencies. These groups
face operational impacts such as safety risks, compliance with
handling standards, and delivery pressures, depending on their
role and employment type.
• All the blue-collar employees and most of the white-collar
employees are covered by collective agreements. In Finland, the
Commerce sector collective agreement does not include senior
salaried employees (personnel group). However, according to
Oriola’s personnel policy guidelines, collective agreement terms
are partially applied to senior salaried employees as well.
Material negative impacts of occupational health and safety,
discrimination, harassment and inappropriate behaviour and
challenges with work-life balance can be systematic, such as
recurring safety or compliance issues, limited working resources
or structural discrepancies. They can also be tied to individual
incidents such as isolated safety breaches or delivery failures,
individual case of discrimination or harassment, or stressful work
situation. The nature of the impacts depends on the specific
operational context.
Activities that result in positive impacts include involving own
employees actively through different channels, such as online
platforms, face-to-face meetings, and employee representative
engagements. Training leaders about change management
and team building results in the positive impact of leadership
promoting equal opportunities. To ensure commitment and
alignment with collective agreements, the company has
compliance practices in place.
Transitioning to greener, climate-neutral operations may
impact the workforce by requiring new technologies, training
and workflow changes. It could also offer opportunities for skill
development and better working conditions through sustainable
practices. This can lead to a more engaged and active own
workforce pursuing active participation.
Since Oriola operates in Finland and Sweden, there are no
operations at significant risk of incidents of forced labour or
compulsory labour.
Policies related to own workforce (S1-1)
Oriola’s Code of Conduct and People Policy cover material impacts,
risks and opportunities related to leadership, culture and talent
development, and fair working conditions, including human rights.
Risk Management Policy covers Workplace safety and wellbeing
related risks and impacts. The policies cover all the company’s own
workforce.
The content of the policies addresses workforce health and safety,
diversity and inclusion, employee training and development,
and regulatory compliance. The policies ensure safe conditions,
equal opportunities, skills development, and labour standards.
Oriola’s CEO and the Oriola Management Team are responsible
for implementing the policies. To put these policies into practice,
Oriola has several local or Group level operational procedures
related to for example training and onboarding.
The People Policy was approved by the Board of Directors and
launched within Oriola during 2024. The Code of Conduct was
updated during 2024. Both policies were sent to sign-off by all
employees in December 2024.
Human Rights Policy commitments
Oriola’s human rights focus is on the due diligence efforts where
the Group’s operations can have the most severe impact. Oriola
regularly reviews its approach to human rights and reflects on
its commitments to human rights in the policies and procedures
where relevant. Fair working conditions, including human rights,
are covered by Oriola’s People Policy. The policy states that Oriola
supports and respects the protection of internationally proclaimed
human rights and ensures that the company is not complicit in
human rights abuse.
The human rights work is guided by local regulation and
Oriola’s values. This includes promoting fair wages, safe working
conditions, freedom of association, and non-discrimination. Oriola
complies with national laws and respects international human
rights standards. Where they are in conflict, Oriola respects national
law while seeking to honour the principles of internationally
recognised human rights.
Regular engagement with own workforce occurs through surveys,
consultations and grievance mechanisms to ensure employees’
human and labour rights are respected, allowing workers to voice
concerns and provide feedback on workplace conditions.
Compliance with these human rights commitments is monitored
through internal audits, third-party assessments, and grievance
mechanisms. Alignment with the UN Guiding Principles on Business
and Human Rights and international labour standards is tracked,
and corrective actions are taken as needed.
In cases of human rights impacts, remedies such as grievance
channels, mediation and compensation are provided to ensure
affected individuals are supported in line with international
standards.
Oriola Group operates in countries in which fair working conditions
and human rights related legislation is on a high level and therefore
there is no remarkable risk identified for severe human rights
impacts. The Group is fully committed to local legislation, collective
agreements and compliance enhancing practices to ensure social
responsibility.
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Alignment with the following internationally recognised
instruments is recognised in the People Policy and maintained
through regular reviews, audits and reporting to ensure integration
into Oriola’s business practices:
• UDHR, the United Nations Universal Declaration of Human
Rights.
• UNGP, the United Nations Guiding Principles on Business and
Human Rights.
• UN Guiding Principles: Emphasising respect for human rights,
fair treatment, and preventing negative impacts.
• ILO Declaration: Upholding core labour rights such as freedom
of association, non-discrimination, and eliminating forced and
child labour.
• OECD Guidelines: Ensuring responsible business conduct,
transparency, and supply chain due diligence.
Oriola’s People Policy explicitly addresses trafficking of human
beings, forced labour, and compulsory labour and child labour.
Workplace safety and wellbeing is covered in the Workplace
accident prevention management procedures.
Eliminating discrimination (including harassment),
promoting equal opportunities, and other ways of
advancing diversity and inclusion
To ensure fair working conditions, including human rights, the
following policies aimed at eliminating discrimination are in place:
People Policy and Code of Conduct.
Everyone at Oriola shall follow the Code of Conduct promoting
freedom from discrimination. The People Policy was launched
during 2024 to further enhance the elimination of discrimination
and harassment, promote equal opportunities, and advance
diversity and inclusion.
Oriola respects and values diversity in its workforce. Oriola’s
policy is to treat all applicants and employees equally, without
regard to race, ethnic or national origin, colour, creed, gender,
gender expression, marital status, sexual orientation, age, medical
condition, or any other characteristic protected by local law or
regulation. This applies to all areas of employment: Oriola recruits,
employs and promotes people based on their merits and skills
required to handle the task.
Within Oriola, fairness and equality are integrated into all business
processes including, but not limited to, recruitment, promotion,
development, remuneration and termination. Oriola is committed
to actively work for, and maintain, an inclusive workplace with zero
tolerance for discrimination. Oriola’s aim is to foster a workplace
where each employee finds a sense of belonging and has equal
opportunities to grow.
Remuneration complies with national legislation and collective
agreements. Oriola respects the employees’ right to leisure time,
including their limited availability outside working hours, to
enhance work-life balance. Differences in individual salaries are
based on how demanding the job is, as well as on differences
between competence, work experience and performance. To
analyse job demands, Oriola uses a job architecture and grading
system, updated in 2021. Oriola is committed to equal pay. Pay
level will be reviewed annually and at the same time, possible
deviations that cannot be explained by, for example, seniority or
performance, will be corrected.
Oriola is committed to providing a workplace where employees
can perform their work in an environment of mutual respect and
fairness. The company does not tolerate any form of harassment
or bullying of employees by other colleagues. All employees are
expected to treat each other, customers and stakeholders with
dignity and respect.
The following grounds for discrimination are specifically covered
in Oriola’s policies: racial and ethnic origin, colour, gender, sexual
orientation, gender identity, disability, age, religion, political
opinion, national extraction and social origin. All other forms of
discrimination, covered by the Union regulation and national law,
are covered by the People Policy. These include marital status,
medical condition, or any other characteristic protected by local
law or regulation.
Oriola has a commitment to fostering inclusion and positive action
for vulnerable groups within its workforce, ensured by pay equality
reviews and non-discrimination policies.
The Oriola People Policy states that Oriola respects and values
diversity in its workforce and believes that diversity and inclusion
contribute to Oriola’s excellence, and therefore Oriola is committed
to providing equal employment opportunity for all applicants and
employees. Oriola’s policy is to treat all applicants and employees
equally based on their merits, regardless of ethnic or national
origin, colour, creed, political opinion, gender, gender expression,
marital status, sexual orientation, age, medical condition, or any
other characteristic protected by local law or regulation. This
applies to all areas of employment.
Oriola’s policies are implemented through specific procedures
aimed at preventing, mitigating and addressing discrimination,
while also promoting diversity and inclusion:
Clear Reporting Mechanisms: Confidential grievance mechanisms,
such as online platforms, allow employees to report discrimination
incidents safely and without fear of retaliation.
Investigation and Response: Upon receiving a report, a structured
investigation process is initiated to promptly address and resolve
discrimination claims, including disciplinary actions if necessary.
Regular Audits and Monitoring: Ongoing audits and diversity
metrics are used to assess the workplace environment, track
progress, and identify areas where further action is needed.
These procedures ensure that discrimination is effectively
addressed, and that diversity and inclusion are continuously
advanced.
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Processes for engaging with own
workforce and workers’ representatives
about impacts (S1-2)
Oriola periodically seeks feedback from stakeholders through
different surveys and regular engagements. The company
encourages transparent dialogue via various communication
channels, including online platforms and face-to-face meetings.
At Oriola, engagement with own workforce is frequent and it is
established within everyday work. Managers engage with their
direct reports on a recurring basis, weekly and/or biweekly.
A representative of the employer engages with workers’
representatives via recurring collaboration committees monthly,
as well as with safety committees at least quarterly. An anonymous
employee engagement survey is done yearly.
The most senior level within the organisation that has operational
responsibility for ensuring engagement happens and that
results inform the undertaking’s approach is the CEO and Oriola
Management Team.
Oriola has several agreements in place related to respecting the
human rights of workers. These include UN rights, local labour
legislation and legal requirements, local collective agreements and
internal company policies (People Policy).
Personnel feedback is recorded and the result of the feedback has
been informed to the personnel through the following channels,
depending on the type of the decision:
• Cooperation and safety committees
• Regular meetings and employee events
• Employee development discussions
• Employee engagement surveys
• Whistleblowing channel
• Internal HR case management system
• Internal communication including all-employee information
sessions
• Leadership communications
• Sounding boards
• Enterprise social networking service (Engage)
• Company intranet for information sharing purposes
Engagement activities take place at both organisation level and at
project or site level. The information from engagement activities is
aggregated from individual level all the way to Group level.
Allocated resources for processes for engaging with own workforce
or employees’ representatives are Business controllers and HR
People Partners, nominated occupational health and safety
managers, occupational health and safety committee members,
dedicated employee sounding board members and cooperation
committee members.
Oriola engages with its workforce and employees’ representatives
on the potential impacts of reducing emissions and transitioning
to greener, climate-neutral operations through the processes
described above.
Processes to remediate negative impacts
and channels for own workforce to raise
concerns (S1-3)
Oriola’s approach to remedying material negative impacts on its
workforce typically includes identifying the issue through internal
assessments or grievance mechanisms, engaging with affected
workers, and implementing corrective actions. This may involve
offering compensation, improving working conditions, or providing
access to support services such as counselling. The process also
includes monitoring outcomes to ensure that the remedy is
effective and preventing recurrence through policy changes or
improved oversight.
Oriola provides multiple channels for its workforce to raise
concerns promptly and fairly, including:
Grievance mechanism: A formal process where employees can
submit complaints or concerns confidentially, through a dedicated
portal. Employees may report misconduct or violations to their
manager, discuss the topic with the Legal or People and Culture
team, or report it anonymously through Oriola’s whistleblowing
channel. The whistleblowing service is provided by an external
partner, Whistleblowing Centre, to ensure anonymity. The
communication channel is encrypted and password protected. All
messages are processed in confidence.
Employee representatives or unions: Workers may raise issues
through elected representatives or collective bargaining structures.
The grievance or complaints handling mechanism for employee
matters is integrated into the broader HR and ethical frameworks.
Here’s an outline of the processes involved:
Existence of Grievance Mechanism:
Maintaining formal channels, such as grievance channels, email
addresses, or online platforms, specifically for employees to raise
concerns or complaints. These may cover issues related to working
conditions, harassment, discrimination, or other workplace-related
concerns.
Support for Availability:
Oriola actively promotes awareness of these channels through
employee handbooks, onboarding and training sessions, posters,
or internal communications. It ensures these mechanisms are easily
accessible, confidential, and free from retaliation to encourage
open reporting.
Tracking and Monitoring: Once a complaint is raised, it is logged
into a system that tracks the issue from submission to resolution.
This includes assigning responsibility, setting timelines, and
recording actions taken.
Ensuring Effectiveness:
Oriola evaluates the effectiveness of these grievance channels
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by seeking feedback from employees, analysing resolution
rates, and tracking the recurrence of issues. Oriola also engages
stakeholders such as employee representatives or unions to review
the grievance handling process and make improvements where
necessary. Additionally, periodic audits or reviews are conducted to
assess the quality and timeliness of the responses.
Assessing own workforce’s awareness and trust
towards the processes to raise concerns
Oriola assesses that its own workforce is aware of and trusts
structures or processes to raise their concerns or needs through the
following channels:
Employee surveys: Regular anonymous surveys or feedback
forms are distributed to gauge employees’ knowledge of available
channels and their confidence in using them without fear of
retaliation.
Focus groups or interviews: Focus groups or one-on-one
interviews with employees provide qualitative insights into their
perceptions of the grievance mechanisms, highlighting levels of
trust and effectiveness.
Usage data and trends: Monitoring the frequency and nature of
grievances raised, alongside resolution times, can reveal gaps in
awareness or trust if usage is low or issues recur.
Internal audits: Periodic reviews of grievance processes, including
interviews with HR personnel and employee representatives, help
ensure that the channels are effectively communicated and used.
Training and communication: Training sessions and workshops
followed by evaluations help confirm employee understanding of
grievance mechanisms.
These methods collectively measure both awareness and trust in
using these structures to raise concerns.
Policies regarding protection against retaliation for
individuals that use channels to raise concerns or
needs are in place
Oriola’s principles for protecting whistleblowers are described
in Oriola’s Code of Conduct. The team investigating the reports
ensures that the employee raising the concern is not placed
in a disadvantageous position. Any type of retaliation towards
employees who have raised concerns is treated as a serious breach
of the Code of Conduct.
As long as the employee raising a concern acts in good faith,
honestly and with integrity, they will not suffer any negative
consequences if they have mistakenly raised this concern. Further
information is disclosed in the context of standard G1.
Taking action on material impacts on
own workforce, and approaches to
managing material risks and pursuing
material opportunities related to own
workforce, and effectiveness of those
actions (S1-4)
Needed and appropriate actions in response to material impacts
are based on the People Strategy and the Sustainable People
journey focus. Oriola’s Sustainable People journey guides work in
leadership, employee engagement, attracting new employees and
wellbeing at work. The aim is to together develop a collaborative
culture that is grounded in Oriola’s shared values, promotes
fairness, encourages skills development, and empowers Oriola’s
leaders. The Sustainable People journey includes areas such
as modern people services promoting equality, diversity and
wellbeing, well-functioning organisation, enabling leaders and
capable people.
Workplace safety and wellbeing actions are identified through
continuous incident and hazard reporting, regular risk
assessments, and evaluations of workplace conditions. Feedback
from employees, occupational healthcare providers, and safety
committees informs action plans, which are reviewed and updated
annually to ensure effectiveness and compliance with regulations.
The process of identifying fair working conditions, including human
rights, involves regular assessments of workplace practices against
national laws, international standards, and company policies.
Feedback from employees, audits and engagement surveys helps
identify gaps or risks. Human rights considerations are integrated
into business operations, guided by frameworks such as the
UN Guiding Principles on Business and Human Rights. Findings
inform targeted actions to ensure ethical, equitable and compliant
working conditions.
The process of identifying leadership, culture and talent
development actions involves analysing employee feedback from
engagement surveys, performance reviews and development
discussions. Key organisational metrics, such as leadership, are
evaluated alongside business objectives. Insights are gathered
through collaboration with managers, HR teams and employee
focus groups to pinpoint areas for improvement. These findings
inform initiatives such as leadership training and cultural
development programmes to align workforce capabilities with
organisational goals. Strategy and strategic competencies set
the baseline for the talent development actions. Oriola iteratively
evaluates the need for talent development to meet the future
requirements at both organisational and individual level. This
approach is linked to the Sustainable People journey and the goal
to enhance competent and capable employees.
Key actions taken, planned or underway to prevent
or mitigate material negative impacts, risks and
opportunities related its own workforce
Material negative impacts and risks include workplace safety and
wellbeing, and fair working conditions, including human rights. The
following actions are taken, planned or underway to prevent and
mitigate these negative impacts. Time horizons for each action are
explained in connection with each action description. In general,
actions are taken in 2024 or planned to be accomplished in 2025-
2026.
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Workplace safety and wellbeing
Oriola prioritises workplace safety and employee wellbeing by
implementing comprehensive measures across all operations to
address occupational health risks, work-life balance challenges, and
potential workplace hazards. These measures contribute directly
to Oriola’s strategic targets, including fostering a culture of safety,
reducing workplace risks, and enhancing employee engagement
and wellbeing. By maintaining a Group-wide approach to
occupational health and safety, Oriola is committed to continuous
improvement, compliance with local legislation, and achieving its
long-term goal of zero workplace accidents.
Oriola’s occupational health and safety (OHS) processes are
designed to meet local legislative requirements and promote a
safe and supportive work environment. These processes involve
collaboration between managers, OHS representatives, line
organisations and occupational healthcare professionals, with
evaluations conducted at least annually to ensure effectiveness and
continuous improvement.
The company has implemented a structured hierarchy for
managing incidents and corrective actions, with employees actively
participating in hazard reporting and proposing solutions. Line
managers and OHS representatives review and approve actions,
with final oversight provided by OHS managers in Finland and
the Safety Committee of Sweden. All processes are documented
and followed by appropriate training or updates to policies and
procedures. Employee rights, such as the ability to withdraw
from unsafe work situations without reprisal, are protected and
supported through reporting channels, including whistleblowing
mechanisms.
Key measures and actions
Work ability management:
1. In both Finland and Sweden, work ability management is a
critical focus area to mitigate negative impact of occupational
health and safety risks and challenges with work-life balance.
Training programmes for managers, such as those conducted
in Finland during the second half of 2024, enhance their
ability to support employees’ work ability. Collaborative
steering groups in both countries, such as Finland’s Work
Ability Steering Group and Sweden’s ‘Samverkan Arbetsmiljö’,
continually assess and improve workplace safety and work
ability through preventive and proactive measures.
2. Proactive health interventions:
Proactive health interventions aim to mitigate negative
impact of occupational health and safety risks and challenges
with work-life balance. In Sweden, the integration of health-
related questions into follow-up discussions between
employees and managers supports early intervention for
health risks. Full implementation by 2025 is expected to
enhance work ability, reduce absenteeism, and strengthen a
supportive work environment. Similarly, Finland updated its
work ability processes in line with the occupational healthcare
action plan for 2023-2024, focusing on areas such as early
intervention, substituting work, and drug policy.
3. Routine health checkups:
In 2024, Oriola Sweden introduced routine health checkups
starting from age 35, with full implementation expected by
the end of 2025 to mitigate health and work-life balance risks.
This initiative is aimed at early detection of health risks and
fostering long-term employee engagement and productivity.
In Finland, employees have the opportunity for preventive
healthcare in addition to sick care. This means that all
employees have the right to have health checkups whenever
needed. Focused health checkups are also conducted
for those employees who are, via the legal workplace
investigations, recognised in risk groups and are therefore
contacted by OHC.
4. Risk assessments and safety observations:
To mitigate risks of workplace hazards and incidents, health
and safety risk assessments are conducted regularly in both
Finland and Sweden, with quarterly reviews by Health and
Safety Committees. Channels for reporting safety observations
and processes for managing accidents are in place to
continuously enhance workplace safety.
5. Training and awareness:
Increasing health and safety related competence and
awareness is considered important in the Group for
mitigating health safety, and workplace hazard related risks.
Training is offered for different roles and responsibilities,
the onboarding process includes health and safety topics,
and standard operating processes include health and safety
aspects. Tailored occupational safety and ergonomic training
programmes are provided across all sites, focusing on job-
specific risks such as chemical handling and equipment usage.
Site management teams are actively involved in identifying
and mitigating these risks.
6. Health and safety action plans:
The following action plans are created on a country specific
level to mitigate and remediate negative impacts and risks of
health, safety and wellbeing:
• Occupational healthcare action plans for 2023-2024
• Safety and health action plans for 2024-2025
Fair working conditions, including human rights
Key measures and actions
The following actions are done to mitigate negative impacts
of discrimination, harassment and inappropriate behaviour for
employees in Finland and Sweden:
1. Launch of People Policy: During 2024, the Group has
launched the People Policy, which sets the frames for more
detailed human rights principles and approach to equal
opportunities at Group level.
2. The Code of Conduct, updated in 2024. These ethical
principles also guide the Group’s approach to fair working
conditions and human rights together with the People Policy.
3. Salary review: Each year the Group conducts a salary review,
including an equal pay review as one of the key elements.
Adequate and fair wages are covered by local legislation,
applied collective agreements and staffing company
agreements.
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Action taken or underway to achieve positive
material impacts for its own workforce
Employees covered by collective bargaining agreements.
Key measures and actions
To promote the positive impact of a large share of employees
being covered by collective bargaining agreements, the Group has
continued close collaboration with the employee representatives.
According to the People Policy, the Group continues to respect
freedom of association and the right to collective bargaining.
Leadership, culture and talent development
Key measures and actions
The following actions are underway to pursue the material
opportunity of Actively participating employees & leadership
promoting equal opportunities for employees in Finland and
Sweden.
1. Leadership quality: Leadership quality is measured annually
to ensure continuous development. In 2024, the leadership
index remained at the same level 79 as in the previous year
(2023: 79).
2. Leadership training: Training programme for leaders (Core
Leadership) was launched in 2024 and will continue in 2025 to
enable authentic leadership in Oriola. Capable leaders are in
key roles in promoting equal opportunities within Oriola. The
first half of Oriola leaders, including the management team,
participated in the leadership development programme in
spring 2024. All the remaining leaders in Oriola will be invited
to the programme at the start of 2025, and the plan is to make
it a continuous programme at Oriola in the future.
3. Oriola culture: Senior Management conducted an
organisational culture assessment in 2024 to evaluate the
current and desired state of the company culture. Concrete
development actions were implemented for example to
increase customer-centricity in the organisation.
4. Talent development by strategic competencies: Oriola’s
strategic competences were defined in 2024. They are Value
Adding Relationships, Analytics & Insights, and Business
Acumen. Preliminary gap analysis has been piloted in parts
of organisation and gap analysis will continue in 2025,
resulting in L&D and talent acquisition action plans. Current
competence development is based on these competence
focus areas for enabling actively participating employees and
ensuring the possibilities to adjust for future demands in the
changing operating environment.
5. Talent and Performance Development: In 2025 and
2026, a renewed Performance & Development process
will be implemented to emphasise talent and leadership
development.
6. Talent development by LMS: The new Learning Management
System is planned to be launched in 2025 to enable structured
talent development.
Scope of the listed key actions
Leadership or designated leadership groups are included in the
scope of actions related to leadership and culture. Actions specific
to Finland and Sweden are outlined separately within each action
description. The entire own workforce is, or will be, included in the
scope of other listed actions.
Addressing material negative impacts
Oriola’s approach to addressing risks and pursuing opportunities
for its workforce includes systematic monitoring and assessment
of health and safety risks, along with proactive adjustments to
operational procedures. By investing in training and employee
development, the company not only mitigates risks but also fosters
a culture of safety and continuous improvement. These efforts,
combined with expanded healthcare services and employee
benefits, contribute to workforce satisfaction and retention. Oriola’s
structured and proactive initiatives demonstrate its effectiveness
in managing workforce-related impacts and opportunities,
positioning the company to continue driving positive outcomes for
its employees.
Oriola has allocated the following resources for the actions listed
in this chapter: line managers (according to work delegation
in Sweden and legislation in Finland), people and culture team
members, healthcare services and dedicated healthcare personnel,
OHS representatives, OHS managers in Finland and the Safety
Committee of Sweden.
Oriola’s approach to remedying material negative impacts on its
workforce typically includes identifying the issue through internal
assessments or grievance mechanisms, engaging with affected
workers, and implementing corrective actions. This may involve
offering compensation, improving working conditions, or providing
access to support services such as counselling. The process also
includes monitoring outcomes to ensure that the remedy is
effective and preventing recurrence through policy changes or
improved oversight. No severe cases requiring major actions
occurred during the reporting period.
Expected outcomes of the listed action plans
The following outcomes are expected from Oriola’s Workplace
safety & wellbeing action plans:
1. Enhanced employee health and wellbeing: Reduced health
risks and improved overall wellbeing through proactive health
interventions, regular risk assessments, and routine health
checkups.
2. Safer work environment: Fewer workplace incidents and
hazards due to tailored training, improved safety protocols,
and ongoing monitoring of risks.
3. Increased productivity and engagement: Better work-
life balance and healthier employees contribute to higher
engagement, motivation and overall productivity.
4. Reduced absenteeism and turnover: Early intervention
and support minimise health-related absences and improve
employee retention.
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5. Stronger safety culture: Building a proactive and preventive
approach fosters a culture of safety and accountability among
employees and leadership.
6. Regulatory compliance and continuous improvement:
Meeting legal and industry standards while enhancing
operational efficiency through ongoing evaluations and
updates.
These outcomes support Oriola’s long-term goal of zero workplace
accidents and its commitment to sustainable employee wellbeing
and operational excellence.
Expected outcomes of Leadership, culture and talent
development action plans:
1. Motivated and skilled workforce: In 2025, a renewed
performance and development process aims to better support
personnel and leadership in development planning and
enhancing motivation. The new learning management system
aims to provide a tool for offering training and support for
efficient processes.
2. Continued focus on leadership culture development and
ensuring equal development opportunities: The expected
outcome of the renewed performance and development
process is to ensure equal development opportunities and
increase regular feedback about leadership to enhance the
leadership culture.
Tracking and assessing the effectiveness of the
actions and initiatives in delivering outcomes for
own workforce
Leadership, culture and talent development related actions’
effectiveness is tracked through employee engagement surveys
and regular performance reviews.
Workplace safety and wellbeing actions are tracked in the
Occupational Health and Safety (OHS) committee’s quarterly
meetings. Oriola’s occupational health and safety processes are
designed to meet local legislative requirements and promote a
safe and supportive work environment. Work-related hazards
are systematically identified through continuous processes, such
as incident and near-miss reporting, annual or bi-annual risk
assessments, and workplace investigations aligned with OHS action
plans. Regular health and safety risk assessments are conducted
throughout the year. These assessments are reviewed quarterly
by the Health and Safety Committees in both countries to ensure
consistent monitoring and mitigation of potential hazards.
Fair working conditions, including human rights related actions’
effectiveness, is tracked through the following channels: equal pay
process, employee satisfaction surveys, grievance channels.
Leadership, culture and talent development related actions’
effectiveness is tracked through employee engagement surveys
and regular performance reviews.
The ways to ensure that its own practices do not
cause or contribute to material negative impacts
on its own workforce
Occupational health and safety risks of employees: The employer
follows local legislation requirements to prevent and mitigate
significant negative OHS impacts that are directly linked to its
operations, products or services by its business relationships. The
legislation covers both own employees and non-employee workers.
Related hazards and risks are related to normal physical, social and
psychological topics.
Challenges with work-life balance: To ensure that the company’s
practices do not contribute to material negative impacts of
challenges with work-life balance, for example personnel working
on projects are supplemented when needed to lighten the
workload. Rental workers are insourced, when possible, to bring
stability to the working environment. There is also a work ability
management system, including individual case management, in
place to further monitor work-life balance.
Discrimination, harassment and inappropriate behaviour: The
updated Code of Conduct and accessible whistleblowing channel
are in place to mitigate the negative impacts of discrimination,
harassment and inappropriate behaviour in the company’s own
practices. There are regular meetings with rental worker companies
to align equal employment conditions for external and internal
workers.
Additional actions or initiatives with the primary
purpose of delivering positive impacts for its
own workforce
Oriola pursues positive material impacts for its workforce by
offering a range of health and wellbeing benefits, including sports
and cultural activities, to promote physical and mental wellbeing.
In Sweden the amount of health allowance was increased in 2024
to provide greater financial support for health-related activities,
align with market standards, and strengthen employee satisfaction
and engagement.
Bike benefit was implemented to all own workforce in Sweden
in 2024 and will be implemented to all own workforce in Finland
in 2025. The bicycle benefit encourages sustainable commuting
and active lifestyles. By providing access to bicycles, accessories
and servicing, this programme supports employee health,
environmental responsibility and overall wellbeing. The benefit
is expected to promote sustainable commuting and healthier
lifestyles, reduce environmental impact, and enhance employee
wellbeing and satisfaction. The initiative fosters a positive
workplace culture while contributing to Oriola’s environmental and
wellness goals.
In 2024 Oriola introduced a subsidised lunch benefit for Sweden in
addition to a lunch benefit offered in Finland. The benefit allows
employees to access nutritious meals conveniently, promoting a
healthier lifestyle. This initiative reflects Oriola’s commitment to
supporting employee wellbeing and work-life balance.
In Sweden, new occupational healthcare service provider
implementation was finalised in 2024. Transitioning to a new
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provider reflects a commitment to enhancing both employee
health as well as offered healthcare services.
Oriola Group operates in countries in which health and safety and
work environment related legislation is at a high level. The early
intervention model, adopted in both countries, allows proactive
identification and resolution of health-related issues. Preventive
occupational healthcare services are offered for the employees. In
Finland, the statutory occupational safety organisation represents
all personnel groups, while in Sweden, compliance with local
legislation is supported through partnerships with occupational
healthcare providers and collaboration with internal safety officer
representatives. To further support the workforce, Oriola provides
comprehensive occupational healthcare services and health
insurance for employees in Finland and Sweden, ensuring access to
medical care and preventive measures.
Oriola applies parental leave rights that are covered by union
regulation and national law for both Finland and Sweden.
The implementation of the action plans does not require significant
operational expenditures (OpEx) or capital expenditures for Oriola.
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks
and opportunities (S1-5)
Workplace safety and wellbeing related targets
Long-term goal of zero accidents in 2024: 0
Performance against the disclosed target:
Number of recordable work-related accidents in 2024 was 28. There
has been improvement in recording accidents in the system.
Baseline year: 2023
Baseline value: 7
Lost Time Incident Frequency (LTIF) rate 4.5 by 2026
Performance against the disclosed target:
LTIF value in 2024 was 5.04.
Lost-time injury rate reflects the number of injuries resulting in
an absence of at least one workday per million hours worked.
Incidents included: Accidents at work, no commuting incidents.
Rental workers are excluded.
Baseline year: 2023
Baseline value: 6.09
Workplace safety and wellbeing targets are derived from the Oriola
Risk Management policy, which states the company’s striving
towards zero accidents and emphasises proactive measures to
prevent accidents, injuries and health-related incidents. All the
company’s businesses and functions covering both Sweden and
Finland are in scope of these targets. The methodologies and
significant assumptions used to define targets are based on Oriola’s
business strategy.
The methodology for tracking the process is accident reporting
tools. Work-related hazards are systematically identified through
continuous processes, such as incident and near-miss reporting,
annual or bi-annual risk assessments, and workplace investigations
aligned with OHS action plans.
Leadership, culture and talent development related
targets
Leadership index 80 by 2026
Performance against the disclosed target: Leadership index
stayed at last year’s level 79 in 2024.
Baseline year: 2023
Baseline value: 79
The leadership index target is connected to the Oriola People Policy
that states principles for leadership in Oriola. All the company’s
businesses and functions covering both Sweden and Finland
are in scope of this target. The methodologies and significant
assumptions used to define the target are based on Oriola’s
business strategy.
Target tracking is based on the annual employee engagement
survey which is feedback from the company’s personnel.
Fair working conditions, including human rights
related target
Annual Code of Conduct training completion rate among Oriola’s
own workforce 100% from 2025 onwards (including employees
working in Oriola Group legal entities, and excluding external
workforce, new hires during the onboarding process and people on
long leave of absence.)
Performance against the disclosed target: The performance
against this target will be reported 2025 onwards.
Baseline year: 2023
Baseline value: no baseline value to be reported.
All the company’s businesses and functions covering both Sweden
and Finland are in scope of this target. The methodologies and
significant assumptions used to define target are based on Oriola’s
business strategy.
The purpose of Code of Conduct – common to the whole Oriola
Group – is to provide guidance and support in daily work and
decision-making, ensure common understanding and foster a
culture of doing the right thing. In terms of fair working conditions,
including human rights, it is important that each employee
understands and knows the Code of Conduct, which is why
everyone at Oriola must complete the Code of Conduct training
annually. The Code of Conduct is signed by all employees in the HR
master system as a proof of its reading and understanding.
According to the People Policy, the Group respects freedom
of association and the right to collective bargaining. Oriola
continuously works to promote a good work environment and fair
working conditions according to industry standards. There is no
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Sustainability Statement Oriola Annual Report 2024 |
specific target set for promoting the positive impact of the large
share of employees covered by collective bargaining agreements.
Engaging directly with own workforce or the
workforce’s representatives in setting targets
The leadership index goal is based on the employee engagement
survey which is feedback from the company’s personnel. LTIF and
zero accident goals are based on health and safety committee
provided input. The Code of Conduct training completion goal
has been set with a focus group collected from representatives of
different parts of the organisation.
Engaging directly with own workforce or the
workforce’s representatives in tracking performance
against targets
Employee engagement survey results including the leadership
index are tracked yearly in all-employee information sharing
channels.
Occupational Health and Safety (OHS) committees participate in
tracking workplace accidents and lost time incident frequency in
quarterly meetings. Accident statistics are published after meetings
of the Occupational Safety and Health Commission. Oriola’s
occupational health and safety processes are designed to meet
local legislative requirements and promote a safe and supportive
work environment. Work-related hazards are systematically
identified through continuous processes, such as incident and
near-miss reporting, annual or bi-annual risk assessments, and
workplace investigations aligned with OHS action plans.
Performance against the Code of Conduct training completion has
not yet been tracked together with own workforce as the target has
been set for 2025.
Engaging directly with own workforce or the
workforce’s representatives in identifying lessons or
improvements as a result of target performance
Own workforce and workforce representatives are engaged directly
in identifying lessons and improvements of the Leadership index
targets by employee engagement survey related team workshops
and action plans.
Occupational Health and Safety processes involve collaboration
between managers, OHS representatives, line organisations,
and occupational healthcare professionals, with evaluations
conducted at least annually to ensure effectiveness and continuous
improvement.
The company has implemented a structured hierarchy for
managing incidents and corrective actions, with employees actively
participating in hazard reporting and proposing solutions. Line
managers and OHS representatives review and approve actions,
with final oversight provided by OHS managers. All processes are
documented and followed by appropriate training or updates to
policies and procedures.
The lessons learned and improvement as a result of the Code of
Conduct training completion target performance has not yet been
tracked together with own workforce as the target has been set for
2025.
Characteristics of the undertaking’s
employees (S1-6)
S1-6: Employee head count by country
Country Number of employees (head count)
Finland 452
Sweden 482
S1-6: Employees by contract type, broken down by region,
Head count
2024 Finland Sweden Total
Number of employees 452 482 934
Number of permanent employees 421 469 890
Number of temporary employees 9 7 16
Number of non-guaranteed employees 22 6 28
Number of full-time employees 397 467 864
Number of part-time employees 55 15 70
S1-6: Employee turnover
Country Number of employees (head count)
Employee turnover rate rate [%] 10,6
Employees who left the company during
the reporting period 99
S1-6: Employees by contract type, broken down by gender, Head count
Metric Female Male Other* Not disclosed Total
Number of employees 498 434 0 2 934
Number of permanent employees 477 411 0 2 890
Number of temporary employees 10 6 0 0 16
Number of non-guaranteed hours employees 11 17 0 0 28
Number of full-time employees 453 410 0 1 864
Number of part-time employees 45 24 0 1 70
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Characteristics of non-employees in the
undertaking’s own workforce (S1-7)
Total number of non-employees in the company’s own workforce
in the end of reporting period was 228 (FTE).
Non-employee workers were mainly staffing consultants in blue
collar environment (warehouse operations). Non-employee
workers also include consultants in e.g. Finance and IT. The need to
employ non-employee workers in the warehouse depends on the
volumes over the year. There was no significant fluctuation during
the reporting period.
Measurement methodology and significant
assumptions used
FTE was calculated by dividing the total externals’ worked hours
(including overtime) during the year 2024 by country specific
default full-time monthly hours and multiplied by number of
working months (one month of holiday excluded).
Finland
The data is gathered from worked hours in time management
system for blue collars and estimated hours added for white collars
in HR system (Pharma Service based on managers estimations).
Sweden
The data is gathered from planners reports and staffing companies
for blue collars, and external company invoiced hours for white
collars.
Omission: Details on non-employee workers is not available
in reliable format. Oriola plans to develop data collection and
reporting in the coming years.
Collective bargaining coverage and
social dialogue (S1-8)
S1-8: Collective bargaining coverage and social dialogue
- Top level
Year
Collective
Bargaining
Coverage
Collective
Bargaining
Coverage
Social
dialogue
Coverage
Rate
Employees
– EEA
Employees
– Non-EEA
Workplace
representation
(EEA only)
0-19%
20-39%
40-59%
60-79% Finland
80-100% Sweden Sweden, Finland
S1-8: Percentage of employees covered by collective bargaining
agreement
Year Collective bargaining agreement coverage rate (%)
2024 90%
Measurement methodology(s) and significant assumptions
Data about collective agreement coverage is according to HR data
master system. The data in the master system is based on work
contracts signed by employees and employer.
In Sweden collective agreement terms are applied throughout the
entire internal workforce. In Finland Commerce sector collective
agreement does not include Senior salaried employees (personnel
group). According to Oriola’s personnel policy guidelines, collective
agreement terms are partially applied to senior salaried employees.
The percentage of employees covered by collective bargaining
agreements is calculated using the following formula: number
of employees covered by collective agreements / number of
employees x 100. Global workers’ representatives coverage is
calculated by using following formula: number of employees
working in establishments with workers’ representatives / number
of employees x 100.
Diversity metrics (S1-9)
Distribution of top management by gender
Number of women in top management 1
Number of men in top management 5
Number of other in top management 0
Number of gender not disclosed in top management 0
Percentage of women in top management [%] 16.67
Percentage of men in top management [%] 83.33
Percentage of other in top management [%] 0
Percentage of employees with gender not disclosed in top
management [%] 0
Top Management covers Oriola Management team members
December 31, 2024.
Distribution of employees by age
Number of employees under 30 years old 170
Number of employees 30-50 years old 500
Number of employees over 50 years old 264
Percentage of employees under 30 years old [%] 18.2
Percentage of employees 30-50 years old [%] 53.53
Percentage of employees over 50 years old [%] 28.27
Age data is based on verified national IDs.
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Adequate wages (S1-10)
All employees are paid an adequate wage, in line with applicable
benchmarks.
Collective agreements applied and followed in Oriola both in
Finland and Sweden determine minimum wages that provide for
the satisfaction of the needs of the worker and their family in light
of national economic and social conditions for employees.
In Oriola, base salary ranges are created based on job architecture,
current salary ranges, external salary market data and collective
agreements to assure fair and adequate pay for each role. To
ensure adequate pay levels, the following benchmarks are used:
data provided by the Confederation of Finnish Industries, employer
unions and Statistics Sweden and Finland.
Social protection (S1-11)
All employees are covered by social protection against loss of
income due to major life events, either through public programs or
through benefits offered by the company.
Training and skills development metrics
(S1-13)
Employees who participated in regular performance and career
development reviews is presented as the number of white-collar
employees that have documentation of the review in the HR master
system. The number does not include blue collars. 57% of white
collars have completed the review according to the documentation
in the system.
The limitation of the method is that blue-collar employees and
some white-collar employees do not have documentation in the HR
system, although the regular performance and career development
review may have been completed.
Training hours data is not available in reportable format currently,
so Oriola cannot report information about training hours. A new
learning management system that will gather this data is planned
to be implemented during 2025. When the new system is in place
this can be reported.
Health and safety metrics (S1-14)
S1-14: Health and safety metrics - Own workforce
Metric 2024
Percentage of own workers in headcount who are covered by the
company's health and safety management system based on legal
requirements and/or recognised standards or guidelines 100
Percentage of own workers who are covered by a health and
safety management system which is based on legal requirements
and/or recognised standards or guidelines and which has been
internally audited and/or audited or certified by an external party 0
Number of fatalities as a result of work-related injuries and work-
related ill health 0
Number of recordable work-related accidents (excluding
fatalities) 28
Rate of recordable work-related accidents 20.15
Number of cases of recordable work-related ill health 0
Number of days lost to work-related injuries and fatalities from
work-related accidents, work-related ill health and fatalities from
ill health 12.6
Work-life balance metrics (S1-15)
S1-15: Percentage of employees entitled to take family-related
leave
Metric 2024
Percentage of employees entitled to take family-related leave 100
Percentage of employees entitled to take family-related leave [%] 100
Percentage of entitled employees that took family-related leave
[%] 20.02
Percentage of entitled women that took family-related leave [%] 20.68
Percentage of entitled men that took family-related leave [%] 19.12
Percentage of entitled other employees that took family-related
leave [%] 0
Percentage of entitled employees with gender not disclosed that
took family-related leave [%] 50
Data received from payroll vendors. Reported family-related leaves
include: Parental leave, Leave with sick child, First 10 days after
child is born (applicable for Sweden), Pregnancy leave.
S1-13: Percentage of employees that participated in regular performance and career development reviews by gender
Metric Female Male Other
Gender not
disclosed Total
The percentage of employees that participated in regular performance and career
development reviews (%) 83.53 44.24 0 100 32.76
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Remuneration metrics (pay gap and total
remuneration) (S1-16)
Country Aggregated gender pay gap [%]
Finland 2.1
Sweden -6.73
Gender pay gap is calculated using the following formula: (Average
gross hourly pay level of male employees – average gross hourly
pay level of female employees) / Average gross hourly pay level of
male employees x 100.
Gender pay gap is based on internal workforce’s basic salaries,
including base salary and monthly fixed entitlements, excluding
variable pay, such as bonuses and incentives. CEO is excluded from
the data.
Gender pay gap is presented as unadjusted gap by Country. It
does not take into consideration different job roles, pay grades,
performance rating, tenure in position, or education level.
In Sweden 71% of the employees on the lowest pay grade are
men, whereas in Finland the number is 47%. As the figures are
unadjusted, this affects the negative gap in Sweden. Oriola is
committed to pay equality and the company is preparing to report
gender pay gaps in detailed and adjusted level according to the EU
Pay transparency directive requirements in 2027.
Annual total remuneration ratio was 12 %. The ratio is calculated
using following formula: the annual total compensation of the
CEO / The median annual total compensation for all employees
(excluding the CEO) x 100.
CEO’s total annual remuneration includes base pay, car benefit,
holiday bonus, LTI cash rewards and fair value, additional pension
and other benefit (medical insurance).
Employees’ median total annual salary includes base salaries,
monthly fixed entitlements, variable pay (production bonus, STI,
LTI cash rewards and fair value), benefits, supplements and holiday
bonuses. Employees’ median salaries are calculated as annual full-
time salaries as of 31.12.2024 together with benefits, supplements
and holiday bonuses paid in 2024 and reported from payrolls.
Incidents, complaints and severe human
rights impacts (S1-17)
Work-related grievances, incidents and complaints
Total number of incidents of discrimination, including harassment 0
Number of complaints filed through channels for own workers to
raise concerns (including grievance mechanisms) 6
Number of complaints filed through channels for own workers to
raise concerns (including grievance mechanisms) to the National
Contact Points for OECD Multinational Enterprises 0
Total amount of fines, penalties, and compensation for damages
as a result of incidents and complaints [EUR] 0
Total number of severe human rights incidents connected to the
company’s workforce 0
Measurement methodologies for incidents, complaints and severe
human rights impacts typically include both qualitative and
quantitative approaches, with key assumptions and limitations as
follows:
Reporting and tracking systems: Systems are used to log and
track incidents and complaints, relying on self-reporting by
employees or other stakeholders. Significant assumptions include
the completeness of reporting and that all incidents are accurately
captured. Limitations may arise from underreporting due to fear of
retaliation or lack of awareness.
Employee surveys and feedback: Surveys are distributed to
gather insights on perceived human rights impacts. These rely on
assumptions that employees provide honest and representative
responses. Limitations include survey design bias, low response
rates, or fear of negative consequences.
Root cause analysis: For severe human rights impacts, root cause
analysis is conducted to identify underlying factors. This assumes
that the available data accurately reflects all contributing factors.
Limitations may include incomplete data or difficulties in isolating
specific causes.
Stakeholder consultations: Engaging with affected individuals and
external stakeholders helps validate the reported impacts. A key
assumption is that stakeholders provide candid input. Limitations
include power imbalances, language barriers, or cultural differences
that may affect openness.
Benchmarking and industry standards: Impacts are sometimes
measured against industry benchmarks or human rights standards.
This assumes that these benchmarks are universally applicable and
comparable. Limitations arise if local contexts differ, or benchmarks
do not account for specific situations.
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ESRS S2 Workers in the value chain
The value chain workers, especially in Oriola’s transport partners,
play an important role in securing reliable delivery of medicines
and ensuring product safety according to Good Distribution
Practice (GDP) regulation. As Oriola does not operate its own
fleet of transport vehicles, working closely with transport service
providers is essential in warehousing and distribution operations.
Similarly, co-operation with product manufacturers is important,
since Oriola does not have product manufacturing of its own. In
addition, Oriola purchases other services, such as cleaning, facility
and security services, that support its core business. All these value
chain worker groups are included in the scope of this disclosure.
Material impacts, risks and opportunities
related to value chain workers (SBM-3)
Potential impacts on Oriola’s value chain workers were
comprehensively examined in the human rights impact screening
and re-evaluated during the double materiality assessment in
line with ESRS requirements. This assessment also included an
evaluation of financial risks and opportunities as specified by the
ESRS framework.
The following potential material impacts, and the value chain
worker groups which may be at greater risk of harm, were identified
during the process:
Potential negative impacts
• Risk of forced labour among service providers, especially
when hiring migrant workers. In Oriola’s value chain, low-
skilled labour, especially in cleaning services, are more prone to
forced labour, since those sectors often rely on large migrant
workforces who are recruited from abroad. Hiring migrant
workers – either directly or indirectly – can inadvertently
contribute to human trafficking and forms of forced labour.
• Health and safety risks in pharmaceutical manufacturing, R&D,
logistics and purchased services. Pharmaceutical manufacturing
exposes workers to multiple health and safety risks and in
logistics, there is a risk of road accidents. Subcontracted
workforce in purchased services, especially migrant workers in
roles such as cleaning, are more prone to work related accidents
due to unclear instructions or language barriers.
• Risk of inadequate wages or excessive unpaid working hours,
especially in manufacturing in the lower tiers of the supply
chain and transport and logistics. The risk is present especially in
the pharmaceutical supply chain, particularly in manufacturing
countries where there are gaps in labour laws or enforcement is
poor, such as China and India. Furthermore, the transport and
logistics industry often requires 24/7 operations, which can lead
to long and irregular working hours for employees.
• Risk for infringement of workers’ freedom of association
and collective bargaining as Oriola’s supply chain extends to
countries such as India and China, where freedom of association
and collective bargaining is not recognised.
• Irregular and long hours in the value chain. Many of Oriola’s
value chain workers, such as cleaning and security personnel
and truck drivers work irregular hours, which can lead to
inadequate rest and recovery time, impacting physical and
mental health.
Oriola’s strategy is built on strong partnerships and a reliable
supplier network, managed through robust supplier relationship
management practices. Therefore, based on Oriola’s assessment,
potential negative impacts are not widespread or systemic
but rather linked to individual incidents or specific business
relationships. Consequently, the company has not found it
necessary to adjust its strategy or business model to address these
impacts.
Oriola has recognised that via its ethical sourcing practices and
supply chain management, the company may be able to positively
impact its value chain workers. These impacts are reported under
G1 Business Conduct section of this report.
No material risks or opportunities arising from impacts and
dependencies on value chain workers were identified in the double
materiality assessment.
Policies related to value chain workers
(S2-1)
To help mitigate human rights risks and drive ethical practices in
supply chains, Oriola promotes adherence with ethical principles
among its business partners, suppliers and customers. Oriola
expects its suppliers and other business partners to commit
to Oriola’s Business Partner Code of Conduct or have in place
equivalent principles regarding respect for people as outlined
below. Furthermore, Oriola expects its suppliers and subcontractors
to enforce the same requirements in their own supply chains.
Oriola’s Business Partner Code of Conduct, which was updated
in 2024 and taken into use on 1 January 2025, covers principles
related to anti-bribery, anti-corruption and discrimination,
respecting labour and human rights (including freedom of
association, adequate wages and respect for work-life balance), and
promoting occupational safety and health. It explicitly addresses
that the company does not tolerate the use of child or any form of
forced labour, human trafficking or other forms of modern slavery,
or discrimination in its own or its suppliers’ or partners’ operations.
As stated in Oriola’s Business Partner Code of Conduct, Oriola
supports and respects internationally recognised human rights
in its own operations and promotes their implementation in the
value chain. Oriola strives to conduct business in a way that does
not lead to any harm on people, whether Oriola’s own employees,
non-employee workers, workers in the value chain or communities
around the company’s operations.
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Oriola aims to identify, prevent and address negative impact on
human rights in its operations and requires its suppliers to do the
same. Oriola focuses on the areas where its operations have the
most severe impact. The company does not tolerate human rights
violations in any form.
According to the policy, Oriola complies with national laws,
respects human rights and does not take part in abuses. Oriola’s
operations align with the United Nations’ Universal Declaration
of Human Rights, the International Bill of Human Rights, and ILO
Declaration core conventions. Where national laws and human
rights standards are in conflict, Oriola respects national law while
seeking to honour human rights principles at the highest standard.
Oriola’s Business Partner Code of Conduct has been approved by
Oriola’s Board of Directors. The Oriola Management Team reviews
the Code regularly and proposes changes to it, when necessary, for
the approval of the Audit Committee and the Board of Directors.
The Oriola Management Team oversees the implementation of
the policy, which is further cascaded to the various organisations,
functions and teams responsible for supplier and subcontractor
contracts.
Ensuring supplier sustainability
Oriola assesses suppliers’ sustainability performance as part
of its regular supplier evaluation process, which is based on
Oriola’s Procurement Policy, reviewed and approved by Oriola
Management Team. All new suppliers entering into business
withOriola must be appropriately pre-qualified according to
process.
The Sourcing function holds overall responsibility for ensuring that
suppliers are evaluated and assessed to verify their compliance
with all criteria for qualified suppliers. These criteria include
financial solvency, adherence to applicable laws and regulations,
fulfilment of customer requirements, compliance with Oriola’s
technical, quality and safety standards, and the ability to meet
Oriola’s demand.
GDP critical indirect purchases must comply with regulations
according to specification set and executed by Oriola’s Quality
team. GDP critical suppliers are required to provide information
about their compliance with internationally accepted standards
such as the UN Universal Declaration of Human Rights, the
UN Convention against Corruption and ILO’s Declaration on
Fundamental Principles and Rights at Work.
Oriola maintains close oversight of its suppliers through regular
monitoring and re-evaluations to ensure ongoing compliance with
its Business Partner Code of Conduct. Both Oriola and any mutually
appointed third party have the right to audit the premises of
business partners or their subcontractors to verify adherence to the
Code of Conduct.
If a supplier encounters a challenging situation or identifies
behaviour that violates Oriola’s Code of Conduct, they are required
to address the matter with their designated contact person at
Oriola.
Engagement with suppliers is further reinforced through day-to-
day interactions managed by business owners and assortment
management. Supplier contracts typically include provisions for
regular follow-up meetings with key suppliers and, when necessary,
audits to ensure compliance with contractual terms and ethical
standards.
To support ethical practices across the value chain, Oriola provides
a formal grievance mechanism, including a whistleblowing
channel, accessible to all value chain workers via Oriola’s external
website, for reporting concerns related to human rights or ethical
issues.
Based on its supplier evaluations, audits, and grievance reports,
Oriola is not aware of any instances of non-compliance involving
value chain workers.
Processes for engaging with value chain
workers about impacts (S2-2)
Besides the general supplier relationship management processes
described above, Oriola has not adopted a specific process to
engage directly with value chain workers about potential human
rights impacts.
Processes to remediate negative impacts
and channels for value chain workers to
raise concerns (S2-3)
Oriola’s value chain workers may anonymously and confidentially
report violations against Oriola’s Business Partner Code of Conduct
through Oriola’s whistleblowing channel, which is available both
via Oriola’s website. The whistleblowing process is described in
section G1 Business Conduct of this statement.
The availability of the whistleblowing channel is included in Oriola’s
Business Partner Code of Conduct and therefore communicated
to all suppliers, but Oriola has not assessed whether value chain
workers are aware of the channel or trust the process.
Taking action on material impacts on
value chain workers (S2-4)
Oriola did not take specific actions targeting value chain workers
during the reporting period. Instead, efforts focused on updating
the Business Partner Code of Conduct to set clearer expectations
for suppliers regarding labour rights and working conditions.
Currently, Oriola estimates that the efficient implementation of the
Business Partner Code of Conduct and supplier evaluation process
are adequate to manage potential negative human rights impacts
in its value chain.
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However, the company acknowledges that human rights due
diligence is a continuous process and therefore remains committed
to taking necessary steps to mitigate or remediate significant
negative impacts on workers in its value chain. Future action plans
and timelines will be shaped by the Corporate Sustainability Due
Diligence Directive’s scope and requirements.
Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks
and opportunities (S2-5)
Oriola has not established specific quantitative targets related
to workers in the value chain. The company is focusing on
implementing the supplier evaluation process and adopting the
Business Partner Code of Conduct, as outlined in its sustainability
agenda and reported under the G1 Business Conduct section of this
statement. These efforts aim to ensure suppliers uphold fair labour
practices and respect human rights.
ESRS S3 Affected communities
Material impacts, risks and opportunities
and their interaction with strategy and
business model (SBM-3)
As a regional pharmaceutical distributor and wholesaler of traded
goods and over-the-counter (OTC) products, Oriola relies on
a global network of manufacturers rather than engaging in its
own product manufacturing. While the company is not directly
responsible for the impacts of production, it recognises its indirect
responsibility and remains committed to minimising negative
impacts throughout the value chain.
In 2023, Oriola conducted a Human Rights impact screening, during
which it identified potential negative impacts on local communities
near manufacturing sites producing pharmaceutical products, that
the company distributes or sells, or their ingredients. These findings
were further examined through a double materiality assessment,
which highlighted upstream environmental impacts as potential
concerns for nearby communities.
However, it was also recognised that as one regional distributor or
wholesaler among a large number of others, Oriola’s contribution
to potential impacts on local communities is modest, and also its
possibilities to mitigate these indirect potential impacts are limited.
Therefore, Oriola has not adapted its strategy or business model to
specifically address these impacts.
No material risks or opportunities arising from the impacts and
dependencies on affected communities were identified during the
assessment processes.
Potential negative upstream impacts to
affected communities
Oriola’s upstream value chain may indirectly impact water supply,
local air pollution or community health, especially in areas near
pharmaceutical manufacturing sites of the products that Oriola
distributes or sells.
• Pharmaceutical manufacturing operations require consistent
access high-quality drinking water. In water-stressed areas, this
can reduce availability of water resources for communities living
around manufacturing sites.
• Furthermore, the accumulation of pharmaceuticals in the
environment around manufacturing sites, such as in water
systems, may cause negative effects for example to biodiversity
or long-term health impacts.
• The energy consumption of pharmaceutical manufacturing
can contribute to local air pollution and greenhouse gas
emissions. Manufacturing may also expose local communities to
pharmaceutical pollutants in the air.
The potential impacts on local communities have been identified,
but Oriola has not analysed the impacts or their scope further.
Neither has Oriola developed an understanding of how affected
communities with particular characteristics or those living in
particular contexts, or those undertaking particular activities, may
be at greater risk of harm.
Processes to remediate negative impacts
and channels for affected communities
to raise concerns (S3-3)
Given its role in the pharmaceutical value chain, Oriola estimates
that its ability to directly interact with affected communities is
very limited. As a result, Oriola does not have specific processes or
channels in place for affected communities to raise concerns and
have them addressed.
However, Oriola’s general whistleblowing channel is available to all
external stakeholders through the company’s website.
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Policies, actions and targets related to
affected communities (S3-1, S3-2, S3-3,
S3-4, S3-5)
To mitigate the environmental impacts of its value chain, Oriola
requires its business partners, suppliers and subcontractors
to conduct their business in compliance with the same high
environmental requirements and principles as Oriola does.
The principles are outlined in Oriola’s Code of Conduct and are
related to, but not limited to, complying with applicable laws,
standards and regulations, addressing climate change and
protecting the environment. Furthermore, Oriola expects its
suppliers and subcontractors to enforce the same requirements in
their own supply chains.
Based on its current assessment of effective ways to mitigate the
potential upstream environmental impacts of pharmaceutical
manufacturing, Oriola has estimated that its existing principles
and processes are adequate. Therefore, Oriola has not adopted any
policies, actions or targets specifically aimed at mitigating potential
adverse impacts on affected communities.
Oriola remains committed to continuous improvement and will
track the effectiveness of its current measures towards its supply
chain as has been described in G1 section of this report. In addition,
the company plans to continue dialogue with its suppliers to
encourage transparency throughout the value chain.
ESRS S4 Consumers and end-users
Ensuring pharmaceutical safety and timely delivery is Oriola’s
highest operational priority and its most significant societal
contribution. The pharmaceutical distribution industry is highly
regulated, governed by GDP (Good Distribution Practice)
guidelines and legislation, and closely monitored by authorities. In
addition to regulatory requirements, Oriola’s operations are guided
by a comprehensive management system and detailed Standard
Operating Procedures (SOP).
Oriola operates in the B2B market and its direct engagement with
consumers and end-users is very limited. However, as a leading
pharmaceutical distributor in Finland and Sweden, its operations
play a crucial role in the pharmaceutical value chain and can
indirectly impact patient health in these countries.
With Oriola’s extensive distribution network, the positive impacts
of prompt and secure pharmaceutical deliveries are widespread
across its operating markets. On the other hand, potential negative
impacts, such as disruption of product supply or deviations in
product safety or quality, could also affect patient health in these
regions. However, such cases are very rare, isolated and typically
linked to specific cases.
All consumers using medicines distributed by Oriola could be
negatively affected, but Oriola has not identified any consumer
and end-user groups as being more vulnerable to these potential
negative impacts than others.
Material impacts, risks and opportunities
and their interaction with strategy and
business model (SBM-3)
As part of its double materiality assessment process, Oriola
assessed the impacts its operations and value chain can have
on consumers and end-users, as well as business risks and
opportunities arising from these impacts and dependencies on
consumers and end-users and its strategy and business model. The
following material impacts, risks and opportunities were identified
during the process:
Positive impacts:
• Safe and timely delivery of medicines: Through its operations,
Oriola can positively impact on consumers’ health by taking
care of the safe and timely delivery of medicines. Oriola is
committed to deliver pharmaceuticals within 24 hours of
ordering to all pharmacies and hospital pharmacies, as well as
other healthcare operators.
• Enhanced product safety and quality: Oriola provides health-
promoting products for consumers and value-adding services
supporting healthcare operators and B2B customers’ businesses
(including advisory services to support pharmaceutical
companies in bringing medicines to market, starting with
clinical research, regulatory and market access services).
Potential negative impacts
• Disruption of product supply: Unplanned errors in the
pharmaceutical products distribution chain may result in risks
to patient health. These disruptions can be caused by scarcity
of raw materials and disturbances in the supply chain due to
for example geopolitical instability. While the availability of
medicines is pharmaceutical companies’ responsibility, it can
also be considered as a potential indirect negative impact
for Oriola. Accurate supply data is of utmost importance in
ensuring accurate deliveries of pharmaceuticals, and especially
in times of shortages in supply.
• Affordability and accessibility of medicines can be a barrier
to accessing healthcare for some patients. Even though Oriola
is not directly responsible for market pricing or distribution
optimisation, it is important to consider the company’s role as
a part of the value chain. As a distributor, Oriola contributes
to addressing these issues by ensuring a seamless flow of
medicines within its network.
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• Possible deviations in product safety and quality, counterfeit
medicines: Since pharmaceutical distribution increasingly
relies on handling the pharmaceuticals in special conditions,
distribution errors may compromise product safety and
therefore cause risks to patient health (e.g. cold chain,
contaminated medicine). This potential negative impact is to
be considered in the entire value chain, including also Oriola’s
operations. Similarly, possible counterfeit medicines pose a
danger to patients’ health because they do not contain the
expected amount of active ingredient and/or do not meet
standard requirements for safety, quality and efficiency.
Risks and opportunities
• Information security risks and disruption to Oriola’s IT
systems: Since Oriola handles sensitive data from consumers
and end-users in Oriola’s Advisory Services, data security has
been identified as a potential negative impact on consumers
and end-users and a financial risk for Oriola. Additionally,
disruption to Oriola’s IT systems, for example due to cyber-
attacks, infrastructure failure, data breach or breach of EU GDPR,
can result in business disruptions, reputational damage and/or
sanctions.
• Disruption of product supply due to, e.g., geopolitical
instability or quality failures compromising the availability
of products and therefore impacting overall health and
wellbeing of the society. Not being able to deliver the
required pharmaceuticals can result in significant reputational
damage and lost revenue. Furthermore, effectively managing
supply chains may avoid costs related to recalls, and related
reputational damage.
• Growing demand for pharmaceuticals and related services:
As the population grows older and people are more willing to
invest in healthy lifestyles, Oriola is in good position to serve
this growing need by ensuring a well-functioning distribution
chain and selection of healthcare products meeting consumer
needs.
The identified impacts, risks and opportunities are already
embedded in Oriola’s business model and strategy. Consequently,
no modifications to the strategy or business model have been
required as a result of the double materiality assessment or of
identified impacts, risks and opportunities.
Policies related to consumers and
end-users (S4-1)
To secure safe and timely delivery of medicines, mitigate potential
disruptions in product supply and to maintain product safety
and quality, Oriola’s operations adhere to the Good Distribution
Practice (GDP) guidelines of the European Medicines Agency, which
ensure that all pharmaceuticals are handled in compliance with
stringent safety and quality requirements. Compliance with GDP
is monitored by the Finnish Medicines Agency (Fimea) and the
Swedish Medical Products Agency (MPA).
Oriola’s Quality Policy further strengthens this commitment
by showing the overall intensions and alignments within the
organisation regarding quality. Oriola’s Quality Policy sets
the foundation for the company’s quality management and
commitment to continuous improvement throughout the Group.
In line with the policy, Oriola is committed to maintaining and
continually improving its management system and ensuring
that the company complies with requirements set by customers,
regulation and the company itself. The policy, approved by the
Chief Executive Officer, applies to all employees and Group
companies. It is publicly available on Oriola’s external website.
The overall policy, owned by the Quality Director, is implemented
via Oriola’s ISO-certified Quality Management System, ensures
the quality of products that Oriola handles, services the company
performs, and the safety of human health through the distribution
chain. The Oriola Management Team oversees the implementation
of the Quality Policy according to the defined management review
procedure.
To mitigate information security risks and potential negative
impacts related to IT disruptions and ensure consumer data
protection, Oriola has implemented a comprehensive Information
Security Management framework including data protection
processes. This framework includes policies, procedures and
controls that are designed to protect the confidentiality, integrity
and availability of its data and information systems. Oriola also
has processes in place for protection against cyber-attacks and
phishing.
Oriola’s approach to data protection focuses on ensuring
compliance with EU GDPR and regulations such as GxP, as well
as industry best practices. Oriola follows the Information Security
Forum’s Standard of Good Practices for Information Security
framework (ISF SOGP), which includes major frameworks such as
ISO 27001, COBIT, and NIST CSF.
Information Security Policy, owned by the CDO, is a key element of
Oriola’s Information Security Management framework. Information
Security’s primary focus is securing information from a wide range
of threats to ensure business continuity and patient safety.
Oriola has a cross-organisational board (Information Security
Steering Group) that governs information security activities
throughout the Group. The Head of Information Security is
responsible for information security activities and development
within the Oriola Group.
Oriola’s Privacy Policy outlines the methods by which the company
gathers, uses, discloses and otherwise processes personal
information. Additionally, it explains individuals’ rights, how they
can get in touch with the company, and the measures Oriola takes
to protect their data. Privacy Policy is applicable to all personal
data that Oriola handles. Oriola’s Privacy Policy, approved by the
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Oriola Management Team, applies to all employees and Group
companies. It is available via Oriola’s external website.
In case of potential breaches on sensitive patient data or GDPR
violations, Oriola follows a strict process for addressing the issue,
including immediate notification of relevant stakeholders and
authorities and implementation of corrective actions according
to Major Incident Management procedure. The Major Incident
Management procedure is a common guideline for the IT
organisation on how to act when a major incident occurs or when
there is an imminent threat of interruption or data breach on any IT
system or data category.
Approach towards human rights of consumers and
end-users
As part of its human rights impact screening, Oriola identified the
accessibility and availability of pharmaceutical products, along with
the personal health and safety of consumers and end-users, as key
human rights issues relevant for the entire value chain.
Due to Oriola’s role in the pharmaceutical value chain, these
impacts are managed through general policies and procedures
previously listed. Oriola does not have separate human rights
policy commitments specifically for consumers and/or end-users;
the company’s general human rights commitments, included in the
company’s Code of Conduct, apply to the entire value chain.
In case of potential violations against Oriola’s Code of Conduct,
Oriola’s whistleblowing channel is also available for consumers and
end-users via the company’s external website. Oriola is not aware
of any violations related to the UN Global Compact principles or the
OECD Guidelines for Multinational Enterprises involving consumers
and/or end-users in its downstream value chain.
Processes for engaging with consumers
and end-users about impacts (S4-2)
Oriola engages regularly with its downstream customers, which
include pharmacies, veterinarians, healthcare providers and various
retailers. These interactions are key to ensuring the reliable supply
of pharmaceuticals and health products, supporting partners with
timely information, and upholding quality standards.
But, due to its position in the pharmaceutical value chain, Oriola’s
direct engagement with consumers is very limited. It is currently
mainly focused on Oriola’s own product lines and branded
offerings, where it provides information and support as part of its
customer service. Due to the limited scope of these operations,
Oriola has not adopted a general process to engage with
consumers and end-users. However, the situation will be monitored
in the coming years as Oriola continues to expand its wholesale
operations in alignment with its strategy.
Processes to remediate negative impacts
and channels for consumers and end-
users to raise concerns (S4-3)
Oriola operates in a regulated market with well-defined processes
and channels for handling product-related grievances and
feedback. As a distributor, Oriola does not engage directly with
consumers and end-users but plays a critical role in the process by
relaying necessary information between product manufacturers
(‘upstream customers’) and consumer-facing organisations, such as
pharmacies and healthcare operators (‘downstream customers’).
In case of disruptions in product deliveries or deviations in
product safety or quality, Oriola follows established processes and
cooperates closely with its upstream and downstream customers to
mitigate impacts and ensure timely resolution.
Handling delivery disruptions
In the event of significant delivery delays, Oriola actively
communicates with its downstream customers to minimise
disruptions. It also identifies root causes of the issue and
implements corrective actions to prevent recurrence.
Addressing product safety and quality deviations
If a quality deviation is identified in a product distributed by
Oriola, the company acts as an intermediary by relaying reports
to the responsible pharmaceutical company through designated
portals or agreed communication channels. For suspected product
defects and recalls, Oriola follows a predefined procedure to
ensure efficient and coordinated action between upstream and
downstream customers.
Grievance channels, including contact details for reporting issues,
are typically provided by product manufacturers on packaging.
Oriola does not manage or monitor these channels and is therefore
unable to evaluate their effectiveness. Responsibility for follow-up
and providing remedies for product defects rests with the product
manufacturer.
Taking action on material impacts
on consumers and end-users, and
approaches to managing material risks
and pursuing material opportunities
related to consumers and end-users, and
effectiveness of those actions (S4-4)
Securing timely and accurate deliveries, mitigating
disruptions of product supply
To ensure that consumers/patients receive the medicines they
need at the right time, from the right place, and under the right
conditions, Oriola must operate with care and high precision. For
Oriola, timely deliveries simply mean high accuracy. In essence,
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improvement in delivery accuracy comes from the continuous
development of the company’s processes. Oriola is committed
to delivering pharmaceuticals within 24 hours of ordering to
pharmacies, hospital pharmacies, and other healthcare operators.
To achieve this, the company closely monitors delivery accuracy
and continuously improves key processes to maintain high picking
quality.
In 2024, Oriola improved picking accuracy by adhering to the
principle of continuous improvement. The development measures
implemented were based on precise daily quality monitoring and
systematic weekly deviation tracking. By focusing on identified
picking deviations and conducting thorough root cause analyses,
the company identified, among other things, training needs and
invested in the proactive maintenance of picking automation.
Additionally, Oriola took ongoing actions to ensure quality by
optimising product storage locations and anticipating customer
demand.
Collaboration is central to ensuring pharmaceutical availability.
Oriola works proactively with authorities, suppliers and
stakeholders to strengthen supply chains and improve market
operations. Using data-driven tools, Oriola supports pharmaceutical
companies in supply and demand planning to mitigate potential
disruptions.
Throughout 2024, Oriola closely cooperated with its suppliers and
customers to be well informed of the supply and demand balance
of the entire value chain. This is important in anticipating and
reacting to possible disturbances and shortages.
Ensuring product safety, including counterfeit
medicines
Although pharmaceutical companies are responsible for their own
products, Oriola plays a key role in ensuring that the medicines
delivered to consumers/patients are safe to use. Oriola ensures that
pharmaceutical manufacturers have the necessary licenses and
that products are brought to market in accordance with defined
processes.
Oriola also contributes to the safe handling and delivery
of medicines that require special conditions.. As some
pharmaceuticals are temperature sensitive products, appropriate
conditions are continuously monitored throughout the supply
chain. In addition, Oriola promotes pharmaceutical safety by
preventing counterfeit pharmaceuticals from entering the market
by dealing directly with pharmaceutical companies and complying
with the EU Falsified Medicines Directive. Furthermore, Oriola
ensures the high quality of its own health and wellbeing brands.
This is done through an ongoing quality evaluation process.
Oriola’s advisory services support pharmaceutical companies in
bringing medicines to the market, starting with clinical research,
regulatory and market access services. Once a medicine has
a marketing authorisation, there are many obligations and
requirements related to regulatory lifecycle management that
Oriola helps pharmaceutical companies to meet. These include
marketing authorisation applications and maintenance, scientific
and medical review of promotional materials, drug safety
responsibilities and medical information.
Protecting data and mitigating information security
risks
To safeguard consumers’/patients’ confidential information Oriola
has several ongoing internal training programmes to ensure that
employees are aware of the company’s data protection policies and
procedures. These training programmes are designed to provide
employees with the knowledge and skills they need to protect
the confidentiality, integrity and availability of Oriola’s data and
information systems. Basic information security awareness training
is provided to all employees, which includes video-based security
training and simulated phishing campaigns.
Oriola continuously assesses information security risks through
various methods, including regular risk assessments, vulnerability
assessments and penetration testing. These assessments are
designed to identify potential vulnerabilities and threats to Oriola’s
data and information systems, and to develop appropriate controls
to mitigate these risks.
Oriola has implemented several audits to ensure that the
company’s data protection programme is effective and compliant
with applicable laws and regulations. These audits are conducted
by both internal and external auditors and were designed to
identify areas for improvement.
In 2024, Oriola did not face any major incidents or any information
security incidents. However, the company has implemented
a comprehensive incident response plan to ensure that it can
respond quickly and effectively to any incidents that may occur.
Major Incident Management procedure is rehearsed continuously.
Meeting the growing demand for pharmaceuticals
and related services
To meet consumers’ growing needs and desire to invest in their
own health Oriola focuses, according to its strategy, on growing
its wholesale business by developing existing brands and new
brands, product categories and customer segments. The company
develops its product assortment in line with market and consumer
needs. Its extensive product range covers everyday essentials,
from premium consumer brands to private-label products.
Product categories include skincare, haircare, vitamins, dietary
supplements, self-care products, and animal health products.
Oriola’s actions in relation to material impacts on consumers
and end-users are ongoing initiatives based on the principle of
continuous development and therefore they are not tied to a
certain timeframe. The implementation of actions is part of the
company’s daily operations, and strategy execution involving
several teams and functions.
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Targets related to managing material
negative impacts, advancing positive
impacts, and managing material risks
and opportunities (S4-5)
Securing timely and accurate deliveries and mitigating
disruptions of product supply related target:
Picking quality of ordered pharmaceuticals 99.0% by 2026 at
group level, including Enköping and Mankkaa sites
Performance against the disclosed target: 99.8%
Baseline year: 2023
Baseline value: 99.8%
Picking accuracy, which is commonly used in warehousing and
logistics industries, measures the percentage of customer orders
picked and packed correctly without errors. The aim of the target is
to ensure safe and accurate deliveries of pharmaceuticals and other
health products to pharmacies, hospital pharmacies, veterinarians
and other healthcare operators.
The target, emphasising Oriola’s pivotal role in the pharmaceutical
value chain, is designed to ensure the safe and timely delivery
of medicines and to enhance patient safety by mitigating the
risks of incorrect or misplaced medications. By prioritising
improved picking accuracy, Oriola reduces the risk of supply
chain disruptions, strengthens the accessibility of medicines,
and enhances its capacity to meet the increasing demand for
pharmaceuticals.
To support the realisation of this target, Oriola is continuously
following up a key performance indicator (KPI) of picking accuracy
at the company’s Enköping and Mankkaa sites.
Consumers and end-users were not engaged in setting the target,
tracking performance against the target or identifying lessons or
improvements as a result of Oriola’s performance.
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4. Governance
ESRS G1 Business Conduct
Description of the processes to identify
and assess material impacts, risks and
opportunities (ESRS 2 IRO-1)
As a part of its double materiality process, Oriola carefully assessed
its own operations and the whole chain to identify material
impacts, risks and opportunities in relation to business conduct
matters.
• Location: Prioritising geographies of own operations and
suppliers with heightened risks related to labour, environment
or regulations.
• Activity and sector: Assessing core activities with a focus on
pharmaceutical sector-specific risks. Aligning with industry
standards and evaluating risks such as environmental impacts
of production and regulatory compliance (e.g., GxP).
• Transaction structure: Reviewing both direct and indirect
relationships across supply chains and ensuring supplier
contracts align with Oriola’s sustainability principles.
Identified impacts, risks and opportunities
• Sustainable policies and business practices (potential positive
impact): Oriola has established sustainable policies and business
practices, and employee and business partner Code of Conduct,
to promote ethical operations across the supply chain. In 2024,
Oriola updated its Code of Conduct and Business Partner Code
of Conduct to better meet the requirements of sustainable
business practices and regulatory frameworks.
• Financial risks associated with failure to meet environmental,
social and governance expectations of stakeholders
(financial risk due to lost opportunities): There are increased
requirements to align business and business governance with
sustainable development. Failure to meet environmental, social
and governance expectations can impact negatively on the
recruitment and retention of employees, operations, financial
results and reputation, and/or share price.
• Ethical sourcing and supply chain management (potential
positive impact): Responsible supply chain practices and
transparent, ethical relations with suppliers create a positive
impact by promoting sustainability and social responsibility,
benefiting the workers in the value chain and communities by
upholding fair labour practices and minimising environmental
footprints.
• Supporting animals’ health and wellbeing (potential
positive impact): Oriola contributes positively to animal health
through its veterinary medicine distribution across Finland,
comprehensive animal product offering and special licensed
medicine services. Oriola supports veterinarians in their work
for animals’ health and wellbeing with our vet medicine
distributions all over Finland, comprehensive animal product
offering and special licensed medicine services.
• Information security and operational risks related to
cyber-attack (financial risk due to reduced revenues and lost
opportunities): Cyber-attacks are potential source of business
risks, which may result in operational costs related to corrective
actions, they can cause disruption for business operations, and
they can harm company’s reputation and relationships with key
business partners.
Business conduct policies and corporate
culture (G1-1)
Oriola is committed to promoting ethical and sustainable business
practices. Oriola expects high commitment from all employees to
the principles and practices outlined in Oriola’s Code of Conduct.
The Code of Conduct applies to all Oriola employees and other
representatives acting on behalf of the company, including
permanent and temporary employees, non-employee workers,
consultants, contractors, senior management and board members
of Oriola Group companies.
The purpose of Oriola’s Code of Conduct is to provide guidance
and support in daily work and decision-making, ensure common
understanding and foster a culture of doing the right thing.
It is based on national and international laws and regulations
applicable to Oriola’s operations, as well as good corporate
governance, openness, fairness and confidentiality.
The Code of Conduct includes Oriola’s commitment to human
rights, diversity, non-discrimination and health and safety, and
to respecting the environment. Furthermore, it outlines Oriola’s
commitment to fair competition, anti-bribery and anti-corruption
and the company’s principles for engaging with suppliers and
protecting information.
Oriola’s Code of Conduct has been approved by Oriola’s Board
of Directors. Oriola’s Management Team reviews the Code of
Conduct regularly and proposes changes to it, when necessary, for
the approval of the Audit Committee and the Board of Directors.
Oriola’s Management Team oversees the implementation of the
Code of Conduct.
Animal welfare
Oriola does not have a policy with respect to animal welfare, but
the topic is material because of the positive impact that Oriola has
on animals’ health and wellbeing through the company’s important
role in distributing vet medicines. Oriola has a comprehensive
animal product offering including special licensed medicines,
which the company distributes to veterinarians all over Finland.
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Additionally, Oriola collaborates with veterinarians and veterinarian
students to increase awareness of the products supporting the
health and wellbeing of animals.
Anti-corruption and bribery
Oriola’s own operations are in among the lowest risk regions in
the world in terms of corruption and bribery, so anti-corruption
and bribery is not a material topic for Oriola. The company’s anti-
corruption principles are included in Oriola’s Code of Conduct,
which is available in Finnish, Swedish and English.
Corporate culture
Oriola’s purpose ‘Health for life’ steers the company’s activities.
Its refined strategy, financial and sustainability targets give a clear
direction forward for the company and its employees. The strategy
provides understanding of common priorities, and it brings clarity,
alignment and commitment. Oriola has established sustainable
policies and business practices, and employee and supplier code
of conduct to promote ethical operations across the supply chain.
Oriola’s collaborative culture is based on the company’s common
values – openness, responsibility, together and initiative. Through
a collaborative culture and with engaged people, Oriola supports
cross-market and cross-cultural working, diversity and inclusion,
and creates a solid foundation for our future.
There are increased requirements to align business and business
governance with sustainable development. Failure to meet
environmental, social and governance expectations can impact
negatively on the recruitment and retention of employees,
operations, financial results and reputation, and/or share price.
Protection of whistleblowers
Oriola’s principles for protecting whistleblowers are described in
Oriola’s Code of Conduct.
Oriola’s own employees, non-employee workers, workers in
the value chain and other stakeholders may anonymously and
confidentially report violations of Oriola’s Code of Conduct through
Oriola’s whistleblowing channel, which is available both internally
and externally.
The external whistleblowing channel, administered by an
impartial service provider, safeguards the anonymous handling of
whistleblowing reports. Neither Oriola or the service provider can
identify or track the source of a report unless the reporter provides
contact details.
Access to any reports made through Oriola’s reporting channel is
restricted to the company’s whistleblowing team, which consists of
three individuals (General Counsel, Chief People Officer and VP Risk
& Security). Any reports submitted through Oriola’s whistleblowing
channel are anonymous, treated confidentially and investigated
in detail. During the investigation process, the team may include
other people and request information. All reports will be treated
seriously and investigated in accordance with the set guidelines.
The whistleblowing team determines the appropriate manner of
investigation. All whistleblowing reports are handled confidentially.
A report will not be investigated by someone who may be involved
or connected with the misgiving.
The team investigating the reports ensures that the employee
raising the concern is not placed in a disadvantageous position.
Any type of retaliation towards employees who have raised
concerns is treated as a serious breach of the Code of Conduct.
As long as the employee raising a concern acts in good faith,
honestly and with integrity, they will not suffer any negative
consequences if they have mistakenly raised this concern.
Personal data included in a whistleblowing report will be deleted
when no longer needed for investigation and enforcement
purposes, and within reasonable time from completion of the
investigation. Archived documentation from the investigation is
anonymised; names and addresses are removed together with any
other information which could directly or, in conjunction with other
data, indirectly identify the person.
Oriola reports whistleblowing cases to Oriola’s Management Team.
Whistleblowing cases are further reported to the Board of Directors
via the Audit Committee. If needed, corrective actions are taken.
Mechanisms for identifying, reporting and investigating
concerns
Everyone at Oriola, our business partners and stakeholders are
encouraged to promptly raise concerns, report violations and
address potential misconduct of the Code of Conduct.
Oriola’s own employees, non-employee workers, workers in
the value chain and other stakeholders may anonymously and
confidentially report violations through Oriola’s whistleblowing
channel, which is available both internally and externally at the
company’s website.
In 2024, the channel received 6 reports related to, among other
things, HR and health and safety. No discrimination related cases
were reported. All reports were investigated in line with Oriola’s
process and necessary actions were taken accordingly. None of
the cases reported via the whistleblowing channel in 2024 were
classified as critical.
Policy for training on business conduct
Oriola has a Code of Conduct online training and it is included in
the onboarding process for employees. The company expects each
employee to complete the Code of Conduct training annually.
Oriola’s strategic sustainability target is that from 2025 onwards,
100% of Oriola’s own workforce complete the Code of Conduct
training annually.
The scope of the training includes the employees that are
employed in Oriola Group legal entities, excluding external
workforce, new hires during the onboarding process and people on
long leave of absence.
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Management of relationships with
suppliers (G1-2)
Oriola values a diverse supplier base and carefully chooses its
suppliers and business partners based on their ability to enable
the implementation of Oriola’s sustainability agenda and their
commitment to operating in accordance with Oriola’s values and
principles outlined in the company’s Code of Conduct.
Oriola requires its business partners, suppliers and subcontractors
to conduct their business in compliance with the same high
legal, ethical, human rights and environmental requirements and
principles as Oriola. The principles are outlined in Oriola’s Code
of Conduct and are related to, but not limited to, complying with
applicable laws, standards and regulations, ensuring human rights,
addressing climate change, protecting the environment and ethical
business conduct. Furthermore, Oriola expects its suppliers and
subcontractors to enforce the same requirements in their own
supply chains.
Managing the supply chain ethically
Oriola’s direct suppliers include manufacturers of healthcare
products (pharmaceuticals, non-pharmaceuticals and other
health products), as well as suppliers of packaging materials used
in the warehousing of these products. Most of Oriola’s direct
non-pharmaceutical product purchases come from Europe. In
indirect sourcing the key suppliers are transport service providers,
energy suppliers and facility management service suppliers. Oriola
does not operate its own fleet of vehicles, so working closely
with transport service providers is essential in warehousing and
distribution operations.
Oriola emphasises the importance of standardised procurement
principles, as well as supplier selection and approval processes.
With these tools Oriola’s sourcing teams assess the business
partners’ ways of operating and ensure that they meet the
requirements set by Oriola. Supplier evaluation process and audits
are key tools in ensuring product safety and quality, and form the
foundation of continuous improvement at Oriola. In 2024, Oriola’s
direct sourcing team conducted in total 54 evaluations of new
suppliers of which 30 suppliers were approved in Sweden and 10
in Finland. The supplier evaluations in Oriola’s indirect sourcing
focus on business-critical suppliers such as transport and logistics
partners, facility maintenance and IT services. Oriola also focus
on proactive information sharing on forthcoming legislation and
regulation, and this approach has been appreciated by the Group’s
partners.
Oriola’s operations regarding the warehousing and distribution of
pharmaceuticals, healthcare products and consumer goods, as well
as the performance of services and logistics for clinical trials, have
been certified according to ISO 9001 and ISO 14001 in Finland and
Sweden. Both certificates were renewed in 2024.
Oriola appreciates long-term partnerships and EU-based suppliers.
Compliance with laws and regulations as well as respect for the
environment and international human rights are required of each
supplier. Oriola’s transport partners need to fulfil Good Distribution
Practice (GDP) requirements.
Oriola’s Code of Conduct forms the basis for ethical sourcing. Oriola
requires its direct and indirect suppliers either to commit to Oriola’s
Business Partner Code of Conduct, or to their own equivalent
policy, covering principles related to anti-bribery, anti-corruption
and discrimination, respecting labour and human rights, promoting
occupational safety and health, and respecting the environment.
Oriola’s target is that 100% of its key suppliers are covered by
Oriola’s Business Partner Code of Conduct or equivalent. At the end
of 2024, 91% of Oriola’s key suppliers had signed Oriola’s Business
Partner of Code of Conduct.
Oriola evaluates suppliers according to the internal supplier
evaluation policy. Suppliers and their products and services
must be approved by Oriola’s Quality and Sourcing teams. Oriola
monitors its suppliers and also conducts re-evaluations to ensure
continued compliance.
Oriola, or any mutually appointed third party, is entitled to audit the
business partner’s premises or the premises of any sub-contractor
with respect to this Code of Conduct, environment, production,
control of quality system and quality control of products, and to
carry out sampling and other necessary investigations of quality
and environmental management, and delivery performance.
Supplier evaluation process and audits are key tools in ensuring
product safety and quality, and form the foundation of continuous
improvement at Oriola.
Policies and practices to prevent late payments,
specifically to SMEs
Oriola does not have a policy for payments to SMEs, but invoices
from SMEs are handled by the same process as all payments.
Payment practices (G1-6)
The average time it takes for Oriola to pay an invoice from the date
when the contractual or statutory term of payment calculation
begins is 37 days in Finland and 49 days in Sweden. The average
time is calculated as an average of total payment days in Finland
and Sweden. The calculation is not validated by any external body.
Oriola does not apply standard payment terms, payment terms
being negotiated case by case.
Oriola is not party to any legal proceedings due to late payments.
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ESRS REQUIREMENT PARAGRAPH IN THE SUSTAINABILITY STATEMENT COMMENTS
General information
ESRS2 General Disclosures
BP-1 General basis for preparation of the sustainability statement General basis for preparation of Sustainability Statement (BP-1, BP-2)
BP-2 Disclosures in relation to specific circumstances General basis for preparation of Sustainability Statement (BP-1, BP-2)
GOV-1 The role of the administrative, management and supervisory bodies The role of the administrative, management and supervisory bodies (GOV-1)
GOV-2 Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies
Information provided to and sustainability matters addressed by the undertaking’s administrative,
management and supervisory bodies (GOV-2)
GOV-3 Integration of sustainability-related performance in incentive schemes Integration of sustainability-related performance in incentive schemes (GOV-3)
GOV-4 Statement on due diligence Statement on sustainability due diligence (GOV-4)
GOV-5 Risk management and internal controls over sustainability reporting Risk management and internal controls over sustainability reporting (GOV-5)
SBM-1 Strategy, business model and value chain Strategy, business model and value chain (SBM-1)
SBM-2 Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
IRO-1 - Description of the process to identify and assess material impacts, risks and opportunities Description of the process to identify and assess material impacts, risks and opportunities (IRO-1)
IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement Disclosure Requirements in ESRS covered by the sustainability statement (IRO-2)
Environmental information
E1 Climate change
Disclosure requirement related to ESRS 2 GOV-3 Integration of sustainability-related
performance in incentive schemes
Transition plan (E1-1)
E1-1 – Transition plan for climate change mitigation Transition plan (E1-1)
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
Material impacts, risks and opportunities (SBM-3)
Disclosure requirement related to ESRS 2 IRO-1 – Description of the processes to identify
and assess material climate-related impacts, risks and opportunities
Climate change assessment (IRO-1)
E1-2 – Policies related to climate change mitigation and adaptation Climate-related policy (E1-2)
E1-3 – Actions and resources in relation to climate change policies Actions to reduce emissions (E1-3)
E1-4 – Targets related to climate change mitigation and adaptation Climate targets (E1-4)
E1-5 – Energy consumption and mix Energy consumption and mix (E1-5)
E1-6 – Gross Scopes 1, 2, 3 and Total GHG emissions GHG Emissions (E1-6)
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits Not material, not reported in 2024
E1-8 – Internal carbon pricing Not material, not reported in 2024
E1-9 – Anticipated financial effects from material physical and transition risks
and potential climate-related opportunities
Phased-in, not reported in 2024
Appendix 1: Content index of ESRS disciosure requirement
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ESRS REQUIREMENT PARAGRAPH IN THE SUSTAINABILITY STATEMENT COMMENTS
E2 Pollution
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify
and assess material pollution-related impacts, risks and opportunities
Material impacts, risks and opportunities (IRO-1)
E2-1 – Policies related to pollution Policies related to pollution (E2-1)
E2-2 – Actions and resources related to pollution Actions, resources and targets related to pollution (E2-2, E2-3)
E2-3 – Targets related to pollution Actions, resources and targets related to pollution (E2-2, E2-3)
E2-4 – Pollution of air, water and soil Not material, not reported in 2024
E2-5 – Substances of concern and substances of very high concern Not material, not reported in 2024
E2-6 – Anticipated financial effects from material pollution-related risks and opportunities Phased-in, not reported in 2024
E5 Resource use and circular economy
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and
assess material resource use and circular economy-related impacts, risks and opportunities
Material impacts, risks and opportunities (IRO-1)
E5-1 – Policies related to resource use and circular economy Policies related to resource use and circular economy (E5-1)
E5-2 – Actions and resources related to resource use and circular economy Waste prevention, minimisation and recycling (E5-2)
E5-3 – Targets related to resource use and circular economy Targets (E5-3)
E5-4 – Resource inflows Not material, not reported in 2024
E5-5 – Resource outflows Waste (E5-5) Only waste reported as material
E5-6 – Anticipated financial effects from material resource use and circular
economy-related risks and opportunities
Phased-in, not reported in 2024
Social information
S1 Own workforce
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
S1-1 – Policies related to own workforce Policies related to own workforce (S1-1)
S1-2 – Processes for engaging with own workforce and workers’ representatives about impacts Processes for engaging with own workforce and workers’ representatives about impacts (S1-2)
S1-3 – Processes to remediate negative impacts and channels for own workforce
to raise concerns
Processes to remediate negative impacts and channels for own workforce to raise concerns (S1-3)
S1-4 – Taking action on material impacts on own workforce, and approaches to managing
material risks and pursuing material opportunities related to own workforce, and effectiveness
of those actions
Taking action on material impacts on own workforce, and approaches to managing material risks and
pursuing material opportunities related to own workforce, and effectiveness of those actions (S1-4)
S1-5 – Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities (S1-5)
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S3 Affected communities
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
S3-1 – Policies related to affected communities Policies, actions and targets related to affected communities (S3-1, S3-2, S3-3, S3-4, S3-5)
S3-2 – Processes for engaging with affected communities about impacts Policies, actions and targets related to affected communities (S3-1, S3-2, S3-3, S3-4, S3-5)
S3-3 – Processes to remediate negative impacts and channels for affected
communities to raise concerns
Policies, actions and targets related to affected communities (S3-1, S3-2, S3-3, S3-4, S3-5)
Processes to remediate negative impacts and channels for affected communities to raise concerns (S3-3)
S3-4 – Taking action on material impacts on affected communities, and approaches to
managing material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions
Policies, actions and targets related to affected communities (S3-1, S3-2, S3-3, S3-4, S3-5)
S3-5 – Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Policies, actions and targets related to affected communities (S3-1, S3-2, S3-3, S3-4, S3-5)
ESRS REQUIREMENT PARAGRAPH IN THE SUSTAINABILITY STATEMENT COMMENTS
S1-6 – Characteristics of the undertaking’s employees Characteristics of the undertaking’s employees (S1-6)
S1-7 – Characteristics of non-employees in the undertaking’s own workforce Characteristics of non-employees in the undertaking’s own workforce (S1-7)
S1-8 – Collective bargaining coverage and social dialogue Collective bargaining coverage and social dialogue (S1-8)
S1-9 – Diversity metrics Diversity metrics (S1-9)
S1-10 – Adequate wages Adequate wages (S1-10)
S1-11 – Social protection Social protection (S1-11)
S1-12– Persons with disabilities Not reported due to data protection
S1-13 – Training and skills development metrics Training and skills development metrics (S1-13)
S1-14 – Health and safety metrics Health and safety metrics (S1-14)
S1-15 – Work-life balance metrics Work-life balance metrics (S1-15)
S1-16 – Remuneration metrics (pay gap and total remuneration) Remuneration metrics (pay gap and total remuneration) (S1-16)
S1-17 – Incidents, complaints and severe human rights impacts Incidents, complaints and severe human rights impacts (S1-17)
S2 Workers in the value chain
Disclosure Requirement related to ESRS 2 SBM-2 Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
Disclosure Requirement related to ESRS 2 SBM-3 Material impacts, risks and opportunities and
their interaction with strategy and business model
Material impacts, risks and opportunities related to value chain workers (SBM-3)
S2-1 – Policies related to value chain workers Policies related to value chain workers (S2-1)
S2-2 – Processes for engaging with value chain workers about impacts Processes for engaging with value chain workers about impacts (S2-2)
S2-3 – Processes to remediate negative impacts and channels for value chain
workers to raise concerns
Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3)
S2-4 – Taking action on material impacts on value chain workers, and approaches to managing
material risks and pursuing material opportunities related to value chain workers, and
effectiveness of those actions
Taking action on material impacts on value chain workers (S2-4)
S2-5 – Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities
Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities (S2-5)
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ESRS REQUIREMENT PARAGRAPH IN THE SUSTAINABILITY STATEMENT COMMENTS
S4 Consumers and end-users
Disclosure Requirement related to ESRS 2 SBM-2 – Interests and views of stakeholders Interests and views of stakeholders (SBM-2)
Disclosure Requirement related to ESRS 2 SBM-3 – Material impacts, risks and opportunities
and their interaction with strategy and business model
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
S4-1 – Policies related to consumers and end-users Policies related to consumers and end-users (S4-1)
S4-2 – Processes for engaging with consumers and end-users about impacts Processes for engaging with consumers and end-users about impacts (S4-2)
S4-3 – Processes to remediate negative impacts andchannels for consumers and
end-users to raise concerns
Processes to remediate negative impacts and channels for consumers and endusers to raise concerns (S4-3)
S4-4 – Taking action on material impacts on consumers and end- users, and approaches
to managing material risks and pursuing material opportunities related to consumers and
end-users, and effectiveness of those actions
Taking action on material impacts on consumers and end-users, and approaches to managing material risks
and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions
(S4-4)
S4-5 – Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities (S4-5)
Governance
G1 Business conduct
Disclosure Requirement related to ESRS 2 GOV-1 – The role of the administrative, management
and supervisory bodies
The role of the administrative, management and supervisory bodies (GOV-1)
Disclosure Requirement related to ESRS 2 IRO-1 – Description of the processes to identify and
assess material impacts, risks and opportunities
Description of the processes to identify and assess material impacts, risks and opportunities (ESRS 2 IRO-1)
G1-1– Business conduct policies and corporate culture Business conduct policies and corporate culture (G1-1)
G1-2 – Management of relationships with suppliers Management of relationships with suppliers (G1-2)
G1-3 – Prevention and detection of corruption and bribery Not material, not reported in 2024
G1-4 – Incidents of corruption or bribery Not material, not reported in 2024
G1-5 – Political influence and lobbying activities Not material, not reported in 2024
G1-6 – Payment practices Payment practices (G1-6)
Disclosure
Requirement and
related datapoint
SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Material/Not material
Paragraph
reference
ESRS 2 GOV-1
Board's gender
diversity paragraph 21 (d)
Indicator number 13 of
Table #1 of
Annex 1
Commission Delegated
Regulation (EU)
2020/181627, Annex II
Material ESRS 2 GOV-1
ESRS 2 GOV-1
Percentage of board members who are independent
paragraph 21 (e)
Delegated Regulation
(EU)
2020/1816, Annex II
Material ESRS 2 GOV-1
ESRS 2 GOV-4
Statement on due diligence paragraph 30
Indicator number 10
Table #3 of Annex 1
Material ESRS 2 GOV-4
ESRS 2 SBM-1
Involvement in activities related to fossil fuel activities
paragraph 40 (d) i
Indicators number 4
Table
#1 of Annex 1
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/245328 Table 1:
Qualitative information on Environmental risk and Table
2: Qualitative information on Social risk
Delegated Regulation
(EU)
2020/1816, Annex II
Not material
ESRS 2 SBM-1
Involvement in activities related to chemical production
paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation (EU) 2020/1816, Annex II Not material
ESRS 2 SBM-1
Involvement in activities related to controversial weapons
paragraph 40 (d) iii
Indicator number 14
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/181829,
Article 12(1) Delegated
Regulation (EU) 20/1816,
Annex II
Not material
ESRS 2 SBM-1
Involvement in activities related to cultivation and
production of
tobacco paragraph 40 (d) iv
Delegated Regulation
(EU) 2020/1818, Article
12(1) Delegated
Regulation (EU)
2020/1816, Annex II
Not material
ESRS E1-1
Transition plan to reach climate neutrality by 2050
paragraph 14
Regulation (EU)
2021/1119,
Ar ticle 2(1)
Material E1-1
ESRS E1-1
Undertakings excluded from Paris-aligned Benchmarks
paragraph 16 (g)
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template 1:
Banking book- Climate Change transition risk: Credit quality
of exposures by sector, emissions and residual maturity
Delegated Regulation
(EU) 2020/1818,
Article12.1 (d) to (g), and
Ar ticle 12. 2
Material E1-1
ESRS E1-4
GHG emission reduction targets paragraph 34
Indicator number 4 Table
#2 of Annex 1
Article 449a Regulation (EU) No
575/2013; Commission Implementing Regulation (EU)
2022/2453 Template 3: Banking book – Climate change
transition risk: alignment metrics
Delegated Regulation
(EU) 2020/1818, Article 6
Material E1-4
ESRS E1-5
Energy consumption from fossil sources disaggregated by
sources (only high climate impact sectors) paragraph 38
Indicator number 5
Table #1 and Indicator n.
5 Table #2 of Annex 1
Not material
Appendix 2: List of datapoints that derive from other EU legislation
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Disclosure
Requirement and
related datapoint
SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Material/Not material
Paragraph
reference
ESRS E1-5
Energy consumption and mix paragraph 37
Indicator number 5
Table #1 of Annex 1
Material E1-5
ESRS E1-5
Energy intensity associated with activities in high climate
impact sectors paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
Not material
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44
Indicators number 1
and 2
Table #1 of Annex 1
Article 449a; Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template 1:
Banking book – Climate change transition risk: Credit quality
of exposures by sector, emissions and residual maturity
Delegated Regulation
(EU) 2020/1818, Article
5(1), 6 and 8(1)
Material E1-6
ESRS E1-6
Gross GHG emissions intensity paragraphs 53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 Template 3:
Banking book – Climate change transition risk: alignment
metrics
Delegated Regulation
(EU) 2020/1818, Article
8(1)
Material E1-6
ESRS E1-7
GHG removals and carbon credits paragraph 56
Regulation (EU)
2021/1119,
Ar ticle 2(1)
Not material
ESRS E1-9
Exposure of the benchmark portfolio to climate-related
physical risks paragraph 66
Delegated Regulation
(EU) 2020/1818, Annex
II Delegated Regulation
(EU) 2020/1816, Annex II
Phased-in, not reported
in 2024
ESRS E1-9
Disaggregation of monetary amounts by acute and chronic
physical risk paragraph 66 (a)
ESRS E1-9
Location of significant assets at material physical risk
paragraph 66 (c)
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 paragraphs 46 and
47; Template 5: Banking book - Climate change physical risk:
Exposures subject to physical risk.
Phased-in, not reported
in 2024
ESRS E1-9
Breakdown of the carrying value of its real estate assets by
energy-efficiency classes paragraph 67 (c).
Article 449a Regulation (EU) No 575/2013; Commission
Implementing Regulation (EU) 2022/2453 paragraph
34;Template 2:Banking book -Climate change transition risk:
Loans collateralised by immovable property - Energy
efficiency of the collateral
Phased-in, not reported
in 2024
ESRS E1-9
Degree of exposure of the portfolio to climate- related
opportunities paragraph 69
Delegated Regulation (EU) 2020/1818, Annex II Phased-in, not reported
in 2024
ESRS E2-4
Amount of each pollutant listed in Annex II of the E- PRTR
Regulation (European Pollutant Release and Transfer
Register) emitted to air,
water and soil, paragraph 28
Indicator number 8
Table #1 of Annex 1
Indicator number 2 Table
#2 of Annex 1 Indicator
number 1 Table #2
of Annex 1 Indicator
number 3 Table #2 of
Annex 1
Not material
ESRS E3-1
Water and marine resources paragraph 9
Indicator number 7
Table #2 of Annex 1"
Not material
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8
Table 2 of Annex 1
Not material
ESRS E3-1
Sustainable oceans and seas paragraph 14
Indicator number 12
Table #2 of Annex 1
Not material
111
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Disclosure
Requirement and
related datapoint
SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Material/Not material
Paragraph
reference
ESRS E3-4
Total water recycled and reused paragraph 28 (c)
Indicator number 6.2
Table #2 of Annex 1
Not material
ESRS E3-4
Total water consumption in m
3
per net revenue on own
operations paragraph 29
Indicator number 6.1
Table #2 of Annex 1
Not material
ESRS 2- SBM-3 - E4
paragraph 16 (a) i
Indicator number 7
Table #1 of Annex 1
Material IRO-1
ESRS 2- SBM-3 - E4
paragraph 16 (b)
Indicator number 10
Table #2 of Annex 1
Material IRO-1
ESRS 2- SBM-3 - E4
paragraph 16 (c)
Indicator number 14
Table #2 of Annex 1
Material IRO-1
ESRS E4-2
Sustainable land / agriculture practices or policies
paragraph 24 (b)
Indicator number 11
Table #2 of Annex 1
Not material
ESRS E4-2
Sustainable oceans / seas practices or policies paragraph
24 (c)
Indicator number 12
Table #2 of Annex 1
Not material
ESRS E4-2
Policies to address deforestation paragraph 24 (d)
Indicator number 15
Table #2 of Annex 1
Not material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
Material E5-5
ESRS E5-5
Hazardous waste and radioactive waste paragraph 39
Indicator number 9
Table #1 of Annex 1
Material E5-5
ESRS 2- SBM3 - S1
Risk of incidents of forced labour paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
Material S1.SBM-3
ESRS 2- SBM3 - S1
Risk of incidents of child labour paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
Not material
ESRS S1-1
Human rights policy commitments paragraph 20
Indicator number 9
Table #3 and Indicator
number 11
Table #1 of Annex I
Material S1-1
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation Conventions 1 to 8,
paragraph 21
Delegated Regulation
(EU) 2020/1816, Annex II
Material S1-1
ESRS S1-1
Processes and measures for preventing trafficking in
human beings paragraph 22
Indicator number 11
Table #3 of Annex I
Material S1-1
ESRS S1-1
Workplace accident prevention policy or management
system paragraph 23
Indicator number 1
Table #3 of Annex I
Material S1-1, S1-4
112
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Disclosure
Requirement and
related datapoint
SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Material/Not material
Paragraph
reference
ESRS S1-3
Grievance/complaints handling mechanisms paragraph
32 (c)
Indicator number 5
Table #3 of Annex I
Material S1-1, S1-3
ESRS S1-14
Number of fatalities and number and rate of work-related
accidents paragraph 88 (b) and (c)
Indicator number 2
Table #3 of Annex I
Delegated Regulation (EU) 2020/1816, Annex II Material S1-14
ESRS S1-14
Number of days lost to injuries, accidents, fatalities or
illness paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
Material S1-14
ESRS S1-16
Unadjusted gender pay gap paragraph 97 (a)
Indicator number 12
Table #1 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex II
Material S1-16
ESRS S1-16
Excessive CEO pay ratio paragraph 97 (b)
Indicator number 8
Table #3 of Annex I
Material S1-16
ESRS S1-17
Incidents of discrimination paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
Material S1-17
ESRS S1-17
Non-respect of UNGPs on Business and Human Rights and
OECD paragraph 104 (a)
Indicator number 10
Table #1 and Indicator
n. 14
Table #3 of Annex I
Delegated Regulation
(EU) 2020/1816, Annex
II Delegated Regulation
(EU) 2020/1818
Ar t 12 (1)
Material S1-17
ESRS 2- SBM3 – S2
Significant risk of child labour or forced labour in the value
chain paragraph 11 (b)
Indicators number 12 and
n. 13 Table #3 of Annex I
Material S2.SBM-3, S2-1
ESRS S2-1
Human rights policy commitments paragraph 17
Indicator number 9
Table #3 and Indicator n.
11 Table #1 of Annex 1
Material S2-1
ESRS S2-1
Policies related to value chain
workers paragraph 18
Indicator number 11
and n. 4
Table #3 of Annex 1
Material S2-1
ESRS S2-1
Non- respect of UNGPs on Business and Human Rights
principles and OECD guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex
II Delegated Regulation
(EU) 2020/1818,
Ar t 12 (1)
Material S2-1
ESRS S2-1
Due diligence policies on issues addressed by the
fundamental International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated Regulation
(EU) 2020/1816, Annex II
Material S2-1
ESRS S2-4
Human rights issues and incidents connected to its
upstream and downstream value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Material S2-4
ESRS S3-1
Human rights policy commitments paragraph 16
Indicator number 9
Table #3 of Annex 1 and
Indicator number 11
Table #1 of Annex 1
Material S3-1
113
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Disclosure
Requirement and
related datapoint
SFDR reference Pillar 3 reference
Benchmark Regulation
reference
EU Climate Law
reference
Material/Not material
Paragraph
reference
ESRS S3-1
Non-respect of UNGPs on Business and Human Rights, ILO
principles or and OECD guidelines paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated Regulation
(EU) 2020/1816, Annex
II Delegated Regulation
(EU) 2020/1818, Art
12 (1)
Material S3-1
ESRS S3-4
Human rights issues and
incidents paragraph 36
Indicator number 14
Table #3 of Annex 1
Material S3-4
ESRS S4-1
Policies related to consumers and end-users paragraph 16
Indicator number 9
Table #3 and Indicator
number 11
Table #1 of Annex 1
Material S4-1
ESRS S4-1
Non-respect of UNGPs on Business and Human Rights and
OECD guidelines paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex
II Delegated Regulation
(EU) 2020/1818, Art 12 (1)
Ar t 12 (1)
Material S4-1
ESRS S4-4
Human rights issues and incidents paragraph 35
Indicator number 14
Table #3 of Annex 1
Material S4-1
ESRS G1-1
United Nations Convention against Corruption paragraph
10 (b)
Indicator number 15
Table #3 of Annex 1
Material G1-1
ESRS G1-1
Protection of whistle- blowers paragraph 10 (d)
Indicator number 6
Table #3 of Annex 1
Material G1-1
ESRS G1-4
Fines for violation of anti-corruption and anti-bribery laws
paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated Regulation
(EU) 2020/1816, Annex II)
Material G1-1
ESRS G1-4
Standards of anti- corruption and anti- bribery paragraph
24 (b)
Indicator number 16
Table #3 of Annex 1
Material G1-1
114
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115
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   2024 2023 2022 2021 2020
Earnings per share EUR -0.11 -0.11 -0.01 0.06 0.06
Earnings per share, continuing operations EUR -0.11 -0.11 0.03 0.05 0.02
Equity per share EUR 0.74 0.94 1.24 1.20 0.94
Total dividends EUR million 12.7* 12.7 10.9 7.3 5.4
Dividend per share EUR 0.07* 0.07 0.06 0.04 0.03
Payout ratio % -63.2* -61.4 -453.7 63.9 48.2
Dividend yield A % 7.80* 6.25 3.25 2.02 1.51
Dividend yield B % 7.87* 6.43 3.45 2.00 1.58
P/E ratio, continuing operations A -8.11 -9.82 70.34 41.67 112.61
P/E ratio, continuing operations B -8.04 -9.54 66.33 42.09 107.63
Share price on 31 Dec A EUR 0.90 1.12 1.85 1.99 1.99
Share price on 31 Dec B EUR 0.89 1.09 1.74 2.01 1.90
Average share price A EUR 1.04 1.38 1.96 2.04 2.01
Average share price B EUR 0.98 1.27 1.93 1.94 1.93
Lowest share price A EUR 0.89 1.02 1.75 1.78 1.62
Lowest share price B EUR 0.85 0.89 1.70 1.73 1.52
Highest share price A EUR 1.23 1.93 2.30 2.37 2.25
Highest share price B EUR 1.17 1.82 2.31 2.20 2.27
Market capitalisation EUR million 162.0 199.2 321.4 362.8 349.9
Trading volume
A shares pc 3,447,305 3,140,653 6,636,366 8,115,284 3,320,057
% of average number of A shares % 6.4 5.8 12.3 15.1 6.1
B shares pc 33,120,201 57,073,164 29,890,534 50,733,906 48,554,934
% of average number of B shares % 25.9 44.7 23.4 39.7 38.2
% of average number of all shares % 20.1 33.2 20.1 32.4 28.6
Number of shares 31 Dec A pcs 53,748,313 53,748,313 53,748,313 53,748,313 53,748,313
Number of shares 31 Dec B pcs 127,737,900 127,737,900 127,737,900 127,737,900 127,737,900
Total number of shares 31 Dec pcs 181,486,213 181,486,213 181,486,213 181,486,213 181,486,213
Total number of A shares, annual average pcs 53,748,313 53,748,313 53,748,313 53,748,313 54,390,973
Total number of B shares, annual average pcs 127,737,900 127,737,900 127,737,900 127,737,900 127,095,240
Total number of shares, annual average pcs 181,486,213 181,486,213 181,486,213 181,486,213 181,486,213
* Proposal by the Board of Directors.
Share-related key figures
Information on shares
116
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Calculation of share related key figures
Earnings per share (EPS), EUR =
Profit attributable to shareholders of the parent company
Average number of shares during the period excluding treasury shares
Equity per share, EUR =
Equity attributable to shareholders of the parent company
Number of shares at the end of the period excluding treasury shares
Dividend per share, EUR =
Dividends paid for the financial period
Number of shares at the end of the period excluding treasury shares
Payout ratio, % =
Dividend per share
x 100
Earnings per share
Effective dividend yield, % =
Dividend per share
x 100
Closing price on the last trading day of the financial period
Price/Earnings ratio (P/E) =
Closing price on the last trading day of the financial period
Earnings per share
Average price of share, EUR =
Trading volume, EUR
Average number of shares traded during the financial period
Market capitalisation, EUR = Number of shares at the end of the financial period x closing price on the last trading day of the financial period
117
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Financial indicators and performance measures
Financial indicators 2020–2024
Consolidated income statement*  2024 2023 2022 2021 2020
Net sales EUR million 1,679.7 1,493.8 1,539.1 1,452.2 1,398.6
Adjusted EBIT EUR million 21.7 16.7 19.7 14.9 6.6
% of net sales % 1.3 1.1 1.3 1.0 0.5
EBIT EUR million 13.6 -5.3 9.5 10.7 5.1
% of net sales % 0.8 -0.4 0.6 0.7 0.4
Financial income and expenses EUR million -7.3 -7.6 -0.7 0.3 -0.5
% of net sales % -0.4 -0.5 0.0 0.0 -0.0
Profit before taxes EUR million -18.6 -17.6 6.9 11.0 4.6
% of net sales % -1.1 -1.2 0.4 0.8 0.3
Profit for the period EUR million -20.1 -20.7 4.8 8.6 3.2
% of net sales % -1.2 -1.4 0.3 0.6 0.2
Consolidated balance sheet EUR million 2024 2023 2022 2021 2020
Non-current assets 314.0 347.5 419.1 539.3 537.3
Goodwill 35.1 35.2 61.1 273.5 278.7
Current assets 561.6 587.1 541.8 553.9 628.3
Inventories 176.3 162.9 148.5 229.2 250.1
Equity attributable to the parent company shareholders 133.4 171.3 225.6 216.8 169.6
Liabilities total 742.2 763.4 735.4 876.4 996.0
Interest-bearing liabilities 76.1 117.7 136.9 209.9 295.3
Non-interest-bearing liabilities 666.2 645.7 598.4 666.5 700.8
Total assets 875.6 934.7 960.9 1,093.2 1,165.6
118
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1 399
1 452
1 539
1 494
1 680
0
2 00
4 00
6 00
8 00
1 000
1 200
1 400
1 600
1 800
2020 2021 2022 2023 2024
Key figures 2024 2023 2022 2021 2020
Equity ratio* % 15.4 18.5 23.8 20.1 14.8
Equity per share* EUR 0.74 0.94 1.24 1.20 0.94
Return on capital employed (ROCE)* % 5.4 -1.6 2.4 4.6 5.0
Return on equity* % -13.2 -10.4 2.2 5.9 6.9
Net interest-bearing debt* EUR million -37.4 -20.6 -23.7 100.8 127.1
Gearing* % -28.0 -12.1 -10.5 46.5 75.0
Earnings per share from continuing operations EUR -0.11 -0.11 0.03 0.05 0.02
Earnings per share incl. discontinued operations EUR -0.11 -0.11 -0.01 0.06 0.06
Average number of shares** pcs 181,408,101 181,389,629 181,371,235 181,341,203 181,388,782
Average number of personnel from continuing operations, full time equivalents pers. 812 800 914 1,077 1,091
Gross capital expenditure incl. discontinued operations EUR million 2.9 3.5 8.4 22.8 32.8
* The comparative figures 2020-2021 include discontinued operations.
** Company-owned treasury shares are not included.
Net sales
EUR million
Adjusted EBIT
EUR million
Refer to section Alternative performance measures, for definitions of key figures.
6,6
14,9
19,7
16,7
21,7
0
5
10
15
20
25
2020 2021 2022 2023 2024
20
15
10
5
0
6.6
14.9
19.7
16.7 16.7
2020 2021 2022 2023 2024
1,399
1,680
21.7
1,539
1,494
16.7
19.7
14.9
6.6
1,452
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
2020 2021 2022 2023 2024
2020 2021 2022 2023 2024
25
20
15
10
5
0
119
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Alternative performance measures
In order to reflect the underlying business performance and to
enhance comparability between financial periods Oriola discloses
certain performance measures of historical performance, financial
position and cash flows, as permitted in “Alternative performance
measures” guidance issued by the European Securities and Markets
Authority (ESMA). These measures should not be considered as
a substitute for measures of performance in accordance with the
IFRS. These alternative performance measures are described in the
following tables:
Reconciliation of alternative performance measures to IFRS
Invoicing
EUR million 2024 2023
Net sales 1,679.7 1,493.8
+ Acquisition cost of consignment stock 2,092.4 2,093.4
+ Cash discounts 0.0 0.0
+ Exchange rate differences on sales -0.3 0.5
Invoicing 3,771.8 3,587.7
Adjusted EBIT
EUR million 2024 2023
EBIT 13.6 -5.3
- Adjusting items included in EBIT 8.1 21.9
Adjusted EBIT 21.7 16.7
Alternative performance measures on a constant currency basis
EUR million 2024 2023
Invoicing 3,771.8 3,587.7
Translation difference -9.7 182.5
Invoicing calculated on a constant currency basis 3,762.1 3,770.3
Net sales 1,679.7 1,493.8
Translation difference -4.5 75.6
Net sales calculated on a constant currency basis 1,675.2 1,569.5
Adjusted EBIT 21.7 16.7
Translation difference -0.0 0.4
Adjusted EBIT calculated on a constant currency
basis 21.6 17.1
Calculation of alternative performance measures
Alternative performance
measure Definitions
Reason for use of the alternative performance
measure
Invoicing =
Net sales + acquisition cost of consignment stock + cash discounts +
exchange rate differences on sales
Invoicing describes the volume of the business.
EBIT =
Net sales less material purchases and exchange differences on sales and
purchases, less employee benefit expenses and other operating expenses, less
depreciation, amortisation and impairment plus other operating income plus
share of results in joint venture
EBIT shows result generated by the business.
Adjusted EBIT = EBIT excluding adjusting items
Oriola discloses adjusted EBIT in order to reflect the
underlying business performance and to enhance
comparability between financial periods.
Adjusting items
Adjusting items include gains or losses from the sale or discontinuation
of business operations or assets, gains or losses from restructuring business
operations, and impairment losses of goodwill and other non-current assets,
or other income or expenses arising from rare events, and changes
in estimates regarding the realisation of contingent consideration
arising from business acquisitions. Adjusting items are specified in
note 4.1. Segment reporting.
Invoicing calculated on a
constant currency basis
Invoicing calculated with the average exchange rate of the corresponding
period of the comparative year.
Invoicing, net sales, and adjusted EBIT on a constant
currency basis describe the development of the
business without changes due to fluctuating
foreign exchange rates and thus enhance the
comparability between financial periods.
Net sales calculated on a
constant currency basis
Net sales calculated with the average exchange rate currency basis
of the corresponding period of the comparative year.
Adjusted EBIT calculated on
aconstant currency basis
Adjusted EBIT calculated with the average exchange rate of
the corresponding period of the comparative year.
Net debt = Interest-bearing liabilities – cash and cash equivalents
Net debt is an indicator to measure the total
external debt financing of the company.
Investments =
Capitalised investments in property, plant and equipment and in
intangible assets including goodwill arising from business combinations,
as well as investments in associates and joint ventures.
Investments provide additional information of
the cash flow need of the business operations.
Investments by business area are presented in note
4.1. Segment reporting.
Return on capital employed
(ROCE), %
=
EBIT
x 100
Return on capital employed measures how
efficiently the Group generates profits from its
capital employed.
Total assets – Non-interest-bearing liabilities (average between
thebeginning and the end of the year)
Return on equity (ROE), %
= Profit for the period
x 100
Return on equity measures the Group’s profitability
by showing how much profit is generated with the
funds invested to the Group by the shareholders.
Equity total (average between the beginning and the end of the year)
Gearing, % =
Net debt
x 100
Gearing provides information of the Group's
financial risk level and the level on the Group's
indebtedness.
Equity total
Equity ratio, % =
Equity total
x 100
Equity ratio provides information on the Group's
financial risk level and the level of the Group's
capital used in operations.
Total assets – Advances received
Financial Statements 2024
Consolidated statement of comprehensive income (IFRS)

EUR million | Note | 2024 | 2023
Net sales | 4.2. | 1,679.7 | 1,493.8
Other operating income | 4.2. | 4.5 | 2.9
Materials and supplies | 4.3. | -1,519.3 | -1,334.1
Employee benefit expenses | 4.4. | -56.1 | -52.8
Other operating expenses | 4.3. | -81.6 | -79.8
Depreciation, amortisation and impairments | 6.1./6.2. | -13.6 | -35.4
EBIT |  | 13.6 | -5.3
Financial income and expenses | 8.1. | -7.3 | -7.6
Share of results in joint venture | 10.4. | -24.8 | -4.8
Profit before taxes |  | -18.6 | -17.6
Income taxes | 9.1. | -1.5 | -3.1
Profit for the period |  | -20.1 | -20.7

Other comprehensive income |  |  |
Items which may be reclassified subsequently to profit or loss: |  |  |
Translation differences recognised in comprehensive income |  |  |
during the reporting period |  | -1.7 | 0.1
Cash flow hedge | 8.3. | -1.2 | -1.8
Income tax relating to other comprehensive income | 9.1. | 0.2 | 0.4
|  | -2.7 | -1.4
Items which will not be reclassified to profit or loss: |  |  |
Financial assets recognised at fair value through other comprehensive income | 8.2. | -2.6 | -20.6
Actuarial gains/losses on defined benefit plans | 4.4. | 0.2 | -1.4
Income tax relating to other comprehensive income | 9.1. | -0.0 | 0.3
|  | -2.5 | -21.7
Total comprehensive income for the period |  | -25.2 | -43.8
Profit attributable to Parent company shareholders |  | -20.1 | -20.7

EUR million | Note | 2024 | 2023
Total comprehensive income attributable to |  |  |
Parent company shareholders |  | -25.2 | -43.8
Earnings per share attributable to parent company shareholders: |  |  |
Basic, EUR | 8.5. | -0.11 | -0.11
Diluted, EUR | 8.5. | -0.11 | -0.11

*
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Consolidated statement of financial position (IFRS)

EUR million | Note | 2024 | 2023 | EUR million | Note | 2024 | 2023
ASSETS  |  |  |  | EQUITY AND LIABILITIES   |  |  |
Non-current assets |  |  |  | Equity |  |  |
Property, plant and equipment | 6.1. | 45.2 | 45.0 | Share capital | 8.4. | 36.2 | 36.2
Goodwill | 6.2. | 35.1 | 35.2 | Fair value reserve | 8.4. | 3.1 | 6.6
Other intangible assets | 6.2. | 10.5 | 16.0 | Contingency fund | 8.4. | 19.4 | 19.4
Investments in joint ventures | 10.4. | 210.9 | 235.4 | Invested unrestricted equity reserve | 8.4. | 74.8 | 74.8
Other non-current assets | 6.3. | 11.7 | 15.5 | Other reserves | 8.4. | 0.1 | 0.1
Deferred tax assets | 9.2. | 0.6 | 0.4 | Translation differences | 8.4. | -18.4 | -16.7
Non-current assets total |  | 314.0 | 347.5 | Retained earnings |  | 18.2 | 50.8
|  |  |  | Equity attributable to the parent company shareholders |  | 133.4 | 171.3
Current assets |  |  |  |  |  |  |
Inventories | 5.2. | 176.3 | 162.9 | Non-current liabilities |  |  |
Trade receivables | 5.1. | 247.1 | 259.5 | Deferred tax liabilities | 9.2. | 0.8 | 2.9
Income tax receivables | 5.1. | - | 0.6 | Pension obligations | 4.4. | 13.3 | 13.4
Other receivables | 5.1. | 11.7 | 13.8 | Interest-bearing liabilities | 8.2. | 39.7 | 7.1
Cash and cash equivalents | 8.2. | 113.5 | 138.4 | Other non-current liabilities | 5.3. | 1.0 | 0.8
Assets held for sale | 10.3. | 13.1 | 12.0 | Non-current liabilities total |  | 54.7 | 24.3
Current assets total |  | 561.6 | 587.1 |  |  |  |
|  |  |  | Current liabilities |  |  |
ASSETS TOTAL |  | 875.6 | 934.7 | Trade payables | 5.3. | 626.2 | 607.5
|  |  |  | Interest-bearing liabilities | 8.2. | 36.4 | 110.7
|  |  |  | Income tax payables | 5.3. | 0.3 | 0.1
|  |  |  | Other current liabilities | 5.3. | 22.9 | 19.1
|  |  |  | Liabilities related to assets held for sale | 10.3. | 1.8 | 1.8
|  |  |  | Current liabilities total |  | 687.6 | 739.1
|  |  |  | EQUITY AND LIABILITIES TOTAL |  | 875.6 | 934.7

 
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Consolidated statement of cash flows (IFRS)

EUR million | Note | 2024 | 2023 | EUR million | Note | 2024 | 2023
Net cash flow from operating activities |  |  |  | Change in other current financing * | 8.2. | -17.0 | -11.9
Profit for the period |  | -20.1 | -20.7 | Amortisations of lease liabilities | 8.2. | -3.1 | -3.5
Adjustments |  |  |  | Purchasing of own shares |  | -0.1 | -0.1
Depreciation and amortisation | 6.1./6.2. | 11.8 | 13.8 | Dividends paid |  | -12.7 | -10.9
Impairment | 6.1./6.2. | 1.9 | 21.6 | Net cash flow from financing activities |  | -60.7 | -28.3
Share of results in joint venture | 6.3. | 24.8 | 4.8 |  |  |  |
Financial income and expenses | 8.1. | 7.3 | 7.6 | Net change in cash and cash equivalents |  | -24.9 | -22.3
Income taxes | 9.1. | 1.5 | 3.1 |  |  |  |
Change in pension asset and pension obligation |  | 0.4 | 0.2 | Cash and cash equivalents at the beginning of the period |  | 138.4 | 160.6
Other adjustments |  | 0.0 | 1.7 | Translation differences |  | -0.0 | 0.0
|  | 27.7 | 32.0 | Net change in cash and cash equivalents |  | -24.9 | -22.3
|  |  |  | Cash and cash equivalents at the end of the period | 8.2. | 113.5 | 138.4
Change in working capital |  |  |  |  |  |  |
Change in current receivables increase (-)/ decrease (+) |  | 9.8 | -38.6 |  |  |  |
Change in inventories increase (-)/ decrease (+) |  | -16.6 | -14.9 |  |  |  |
Change in non-interest-bearing current liabilities increase (+)/ decrease |  |  |  |  |  |  |
(-) |  | 28.2 | 40.4 |  |  |  |
|  | 21.4 | -13.2 |  |  |  |
Interest received |  | 4.0 | 5.9 |  |  |  |
Interest paid |  | -3.8 | -4.2 |  |  |  |
Other financial income and expenses |  | -7.8 | -6.5 |  |  |  |
Income taxes paid |  | -2.9 | -4.4 |  |  |  |
Net cash flow from operating activities |  | 38.7 | 9.6 |  |  |  |
Net cash flow from investing activities |  |  |  |  |  |  |
Investments in property, plant and equipment and intangible assets | 6.1./6.2. | -2.8 | -3.6 |  |  |  |
Proceeds from sales of property, plant and equipment and intangible assets | 6.1./6.2. | - | 0.0 |  |  |  |
Net cash flow from investing activities |  | -2.8 | -3.5 |  |  |  |
Net cash flow from financing activities |  |  |  |  |  |  |
Proceeds from long-term loans | 8.2. | 30.0 | - |  |  |  |
Repayments of long-term loans | 8.2. | -1.0 | -2.0 |  |  |  |
Repayments of short-term loans | 8.2. | -56.9 | - |  |  |  |

* Includes cash flows from commercial papers.
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Consolidated statement of changes in equity (IFRS)

|  |  |  | Translation | Retained |
EUR million | Note | Share capital | Funds | differences | earnings | Equity total
Equity 1 January 2023 |  | 36.2 | 122.9 | -16.7 | 83.2 | 225.6
Comprehensive income for the period |  |  |  |  |  |
Net profit for the period |  | - | - | - | -20.7 | -20.7
Other comprehensive income: |  |  |  |  |  |
Financial assets recognised at fair value through other comprehensive income: |  |  |  |  |  |
Change in fair value | 8.2. | - | -20.6 | - | - | -20.6
Cash flow hedge | 8.3. | - | -1.8 | - | - | -1.8
Actuarial gains and losses | 4.4. | - | - | - | -1.4 | -1.4
Income tax relating to other comprehensive income | 9.1. | - | 0.4 | - | 0.3 | 0.7
Translation difference |  | - | - | 0.1 | - | 0.1
Comprehensive income for the period, total |  | - | -22.1 | 0.1 | -21.8 | -43.8
Transactions with owners |  |  |  |  |  |
Dividend distribution | 8.5. | - | - | - | -10.9 | -10.9
Share-based incentive | 4.4. | - | - | - | 0.5 | 0.5
Purchase of own shares |  | - | - | - | -0.1 | -0.1
Transactions with owners, total |  | - | - | - | -10.5 | -10.5
Equity 31 December 2023 |  | 36.2 | 100.9 | -16.7 | 50.8 | 171.3
Comprehensive income for the period |  |  |  |  |  |
Net profit for the period |  | - | - | - | -20.1 | -20.1
Other comprehensive income: |  |  |  |  |  |
Financial assets recognised at fair value through other comprehensive income: |  |  |  |  |  |
Change in fair value | 8.2. | - | -2.6 | - | - | -2.6
Cash flow hedge | 8.3. | - | -1.2 | - | - | -1.2
Actuarial gains and losses | 4.4. | - | - | - | 0.2 | 0.2
Income tax relating to other comprehensive income | 9.1. | - | 0.2 | - | -0.0 | 0.2
Translation difference |  | - | - | -1.7 | - | -1.7
Comprehensive income for the period, total |  | - | -3.5 | -1.7 | -19.9 | -25.2
Transactions with owners |  |  |  |  |  |
Dividend distribution | 8.5. | - | - | - | -12.7 | -12.7
Share-based incentive | 4.4. | - | - | - | 0.1 | 0.1
Purchase of own shares |  | - | - | - | -0.1 | -0.1
Transactions with owners, total |  | - | - | - | -12.7 | -12.7
Equity 31 December 2024 |  | 36.2 | 97.3 | -18.4 | 18.2 | 133.4

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1. Basic information on the company
Oriola Corporation is a Finnish public limited company, domiciled
in Espoo, Finland. Oriola and its subsidiaries together form the
consolidated Oriola Group. The consolidated financial statements
were approved for publication by the Board of Directors of Oriola
Corporation on 3 March 2025. In accordance with Finland’s Limited
Liability Companies Act, the shareholders have the right to approve
or reject the financial statements at the General Meeting held after
their publication. The General Meeting may also decide to make
amendments to the financial statements. The company’s business
ID is 1999215-0. Copies of the consolidated financial statements
of the Oriola Group are available from the head office of Oriola
Corporation at the following address: Orionintie 5, FI-02200 Espoo,
Finland (investor.relations@oriola.com).
The consolidated financial statements are prepared in
accordance with International Financial Reporting Standards
(IFRSs) including the IAS and IFRS standards as well as the
SIC and IFRIC interpretations valid as of 31 December 2024.
The International Financial Reporting Standards refer to
standards and interpretations that have been approved for
application in the EU in the Finnish Accounting Act and the
provisions issued pursuant to it according to the procedures
provided for in EU regulation (EC) No. 1606/2002.
The consolidated financial statements are presented for
the 12-month period 1 January - 31 December 2024. The
financial statements are presented in EUR million and they
have been prepared under the historical cost convention,
except for financial assets recognised at fair value through
profit or loss, financial assets recognised at fair value through
other comprehensive income, derivatives and share-based
payments. The Group has applied the standards and
interpretations published by the International Accounting
Standards Board (IASB) that are mandatory as of 1 January
2024. These standards did not have a significant impact
on the Group in the current reporting period and they are
not expected to have a material impact on the Group in
the current or future reporting periods and on foreseeable
future transactions.
The sale of Svensk dos AB
The Swedish Competition Authority (Konkurrensverket) announced
on 30 April 2024 its decision on prohibiting Oriola’s sale of Svensk
dos AB to Apotekstjänst Sverige AB. The Swedish Patent and Mar-
ket Court rejected Apotekstjänst Sverige AB’s appeal in November
2024 and consequently the Swedish Competition Authority’s deci-
sion from April 2024 remains in effect. Apotekstjänst Sverige AB has
appealed the decision to the Patent and Market Court of Appeal.
The final ruling is expected in March 2025.
Svensk dos AB has been classified as held for sale as of October
2023 and Oriola is still committed to selling the company. More
information can be found in note 10.3. Assets held for sale and
discontinued operations.
Oriola to invest in ERP and warehouse management
On 10 January 2024, Oriola announced that it will be investing in its
infrastructure as part of its refined strategy with the aim to enhance
efficiency and operational excellence.
Notes to the consolidated financial statements
2. Basis of presentation
The investment comprises the renewal of Oriola’s ERP (enterprise
resource planning) and warehouse management in 2025−2027.
The aim of the project is to have one common system which will
enable to harmonise business processes, strengthen data manage-
ment and enhance customer experience. The value of the total
investment is about EUR 35 million. The new ERP and warehouse
management system will replace the current two separate systems
in Sweden and Finland. The project started in the beginning
of 2024 and the new system will be deployed in phases during
2025−2027. The first deployment will be in Sweden followed by the
deployment in Finland.
Oriola’s ERP arrangement is a cloud computing arrangement where
costs incurred in customising or configuring the software are
expensed as incurred. Costs arising from developing interfaces to
existing on premise systems, will be capitalised. ERP investment
related costs are reported as adjusting items. More information has
been presented in note 4. Operating result.
Impairment recognised in the share of result in joint venture
In 2024, Oriola recongised a loss of EUR 24.8 (loss of 4.8) million
from Swedish Pharmacy Holding AB in the consolidated statement
of comprehensive income. The loss included Oriola’s share of the
impairment of goodwill in Kronans Apotek amounting to EUR 16.3
million. The impairment is related to the integration of Kronans
Apotek and the transition to one common ERP system, which have
required more time than anticipated. More information has been
presented in note 10.4. Investments in joint ventures.
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Use of judgements
Information about judgements the Group management has made
in applying accounting policies that have the most significant effect
on the amounts recognised in the financial statements is included
in the following notes:

Item | Nature of management judgement | Note
Revenue recognition | Principal vs. agent assessment | 4.2.
Inventories | Principal vs. agent assessment | 5.2.
| Changes in the fair value of the investment |
Other shares | (Doktor.se) | 6.3.
Lease liabilities | Determining lease term for contracts | 7.1.

Estimates and assumptions
Information about assumptions and estimation uncertainties at the
reporting date that have a significant risk of resulting in a material
adjustment to the carrying amounts of assets and liabilities within
the next financial year in included in the following notes:

Item | Nature of assumptions and estimates | Note
Defined benefits | Key actuarial assumptions | 4.4.
| Projection parameters and key assumptions |
| used in determining the underlying |
Impairment testing | recoverable amounts | 6.2.
Impairment testing | Events or change in circumstances | 10.4.

4. Operating result
4.1. Segment reporting
Oriola has two reporting segments, Distribution and
Wholesale. Oriola’s operating and reporting segments are
reported in accordance with internal reporting provided
to the Chief Executive Officer, the chief operating decision
maker responsible for allocating resources and assessing
performance of the business areas. The accounting
policies do not differ from the accounting policies for the
consolidated financial statements.
Segment non-current assets exclude financial instruments
and deferred taxes. Investments exclude right-of-use assets.
Transactions between segments are based on market prices.
Group items include eliminations and items related to
corporate functions.
As of 1 January 2024, Oriola’s reporting segments are Distribution
and Wholesale. The comparative information has been restated
accordingly. Until end of 2023 Oriola had one reportable segment
containing two business areas, Oriola Finland and Oriola Sweden.
Distribution segment consists of pharmaceutical logistics, quality
control, essential warehousing and dose dispensing services in
Finland and in Sweden.
Wholesale segment consists of wholesale of traded goods and
over-the-counter (OTC) products, parallel import and special
licensed medicines, as well as advisory services in Finland and in
Sweden.
Oriola offers advanced distribution, expert and advisory services
for pharmaceutical companies and wide range of health and
wellbeing products for pharmacies, veterinarians, other healthcare
operators and retail operators in the Finnish and Swedish markets.
Additionally, Oriola offers dose dispensing services for pharmacies
and healthcare operators.
The geographical areas of Oriola are Finland (the country of
domicile), Sweden and other countries. Net sales are divided by
the countries in which the customers are located. Assets and
investments are divided according to the country in which they
are located.
In order to reflect the underlying business performance and to
enhance comparability between financial periods Oriola discloses
Adjusted EBIT as permitted in ESMA (European Securities and
Markets Authority) guidelines on Alternative Performance
Measures. These measures should not be considered as a substitute
for measures of performance in accordance with the IFRS. Adjusted
EBIT is reported excluding adjusting items. In addition, Oriola uses
“Invoicing” as the measure to describe the business volume.
Adjusted EBIT excludes gains or losses from the sale or
discontinuation of business operations or assets, gains or losses
from restructuring business operations, and impairment losses
of goodwill and other non-current assets, or other income or
expenses arising from rare events and changes in estimates
regarding the realisation of contingent consideration arising from
business acquisitions.
Oriola’s agreements with pharmaceutical companies are either
wholesale agreements where Oriola buys the products into own
stock and acts as a principal or agreements where Oriola delivers
the products from consignment stock and acts as an agent.
Oriola reports invoicing of both type of agreements as it describes
the volume of the business.
The preparation of consolidated financial statements in
accordance with IFRS requires the application of judgement
by management in making estimates and assumptions. Such
estimates and assumptions have an impact on the assets and
liabilities reported as at the end of the reporting period, and
on the presentation of contingent assets and liabilities in the
notes to the consolidated financial statements as well as on
the income and expenses reported for the financial year. The
estimates are based on the management’s best knowledge
about the facts and as such actual results may differ from
the estimates and assumptions used. The application of
accounting principles also requires judgement .
3. Use of estimates and judgement
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Financial review Sustainability Statement Oriola Annual Report 2024 |

EUR million |  |  |  |  |
2024 | Note | Distribution | Wholesale | Group items | Total
External invoicing |  | 3,456.5 | 315.3 | - | 3,771.8
Internal invoicing |  | - | 0.6 | -0.6 | 0.0
Invoicing |  | 3,456.5 | 315.9 | -0.6 | 3,771.8
Sales to external customers |  | 1,364.7 | 315.0 | - | 1,679.7
Sales to other segments |  | - | 0.6 | -0.6 | 0.0
Net sales | 4.2. | 1,364.7 | 315.6 | -0.6 | 1,679.7
EBIT |  | 20.4 | 8.5 | -15.3 | 13.6
Adjusted EBIT |  | 19.0 | 9.5 | -6.8 | 21.7
Non-current assets |  | 60.3 | 20.0 | 232.4 | 312.8
Investments | 6.1./6.2. | 2.6 | 0.2 | 0.1 | 2.9
Depreciation, amortisation and impairments | 6.1./6.2. | 8.6 | 3.0 | 2.0 | 13.6
Average number of personnel, full time equivalents |  | 447 | 292 | 74 | 812
2023 |  |  |  |  |
External invoicing |  | 3,282.5 | 305.3 | - | 3,587.7
Internal invoicing |  | - | 0.9 | -0.9 | 0.0
Invoicing |  | 3,282.5 | 306.2 | -0.9 | 3,587.7
Sales to external customers |  | 1,189.0 | 304.8 | - | 1,493.8
Sales to other segments |  | - | 0.9 | -0.9 | 0.0
Net sales | 4.2. | 1,189.0 | 305.7 | -0.9 | 1,493.8
EBIT |  | -6.9 | 8.6 | -7.0 | -5.3
Adjusted EBIT |  | 14.5 | 8.9 | -6.8 | 16.7
Non-current assets |  | 71.5 | 8.9 | 264.9 | 345.3
Investments | 6.1./6.2. | 1.6 | 0.2 | 1.7 | 3.5
Depreciation, amortisation and impairments | 6.1./6.2. | 31.7 | 3.6 | 0.1 | 35.4
Average number of personnel, full time equivalents |  | 450 | 268 | 82 | 800

Reporting segments Adjusting items

Adjusting items included in EBIT |  |
EUR million | 2024 | 2023
Restructuring costs | -0.1 | -0.2
Impairments and write-downs | -1.9 | -21.6
ERP investment related implementation costs in cloud computing arrangement | -5.9 | -
Service agreement settlement | -0.9 | -
Compensation from court appeal | 1.4 | -
Other | -0.8 | -0.2
Total | -8.1 | -21.9

Restructuring costs in 2024 relate to expert services. Impairments
and write-downs include earlier under construction in progress
capitalized ERP investment related costs. Other adjusting items
include costs due to the sale of dose dispensing in Sweden.
Adjusting items in 2023 include an impairment loss on goodwill
totalling EUR 21.4 million in the dose dispensing cash generating
unit and a write-down of assets of EUR 0.2 million at Brunna
warehouse, which was closed. Restructuring costs in 2023 relate to
expert services and other adjusting items relate to the sale of dose
dispensing business in Sweden.

Geographical information |  |  |  |
EUR million |  |  | Other |
2024 | Sweden | Finland | countries | Total
Sales to external customers | 1,093.8 | 549.8 | 36.2 | 1,679.7
Non-current assets* | 29.2 | 283.7 | - | 312.8
Investments | 1.0 | 1.8 | - | 2.9
Average number of personnel, full time equivalents | 394 | 418 | - | 812
EUR million |  |  | Other |
2023 | Sweden | Finland | countries | Total
Sales to external customers | 836.7 | 536.5 | 120.7 | 1,493.8
Non-current assets* | 55.1 | 290.2 | - | 345.3
Investments | 0.8 | 2.7 | - | 3.5
Average number of personnel, full time equivalents | 389 | 411 | - | 800

* Non-current assets exclude financial instruments and deferred tax assets.
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Financial review Sustainability Statement Oriola Annual Report 2024 |
4.2. Net sales and other operating income
The Group’s net sales include income from the sale of goods,
distribution fees and the sale of services adjusted with
indirect taxes, discounts and currency translation differences
resulting from sales in foreign currencies. Revenue is
measured based on the consideration specified in a contract
with a customer and excludes amounts collected on behalf
of third parties. The Group recognises revenue when it
transfers control over a product or service to a customer.
Payment terms are typical to the business. Oriola has open-
ended frame agreements in Sweden that allow the company
to sell trade receivables relating to Swedish wholesale
businesses to the financial institutions on a non-recourse
basis.
Oriola’s agreements with pharmaceutical companies are
either wholesale agreements where Oriola buys the products
into own stock and acts as a principal or agreements where
Oriola delivers the products from consignment stock and
acts as an agent. For agreements in which Oriola acts as
a principal the revenue is recognized on gross basis. For
consignment agreements where Oriola acts as an agent,
only the distribution fee is recognized as revenue. Oriola
reports invoicing of both type of agreements as it describes
the volume of the business. The definition of invoicing is
described in section Alternative performance measures.
The Group’s revenues derive from the following revenue
streams: services and products, dose dispensing, and sale of
other services. In the following section the principal activities
of the different revenue streams are described as well as the
nature of performance obligations.
Services and products in Distribution segment consist of
mainly medicinal products sold to pharmacies, veterinarians,
hospitals and other retailers, as well as sale of logistics and
transportation services to pharmaceutical companies.
Services and products in Wholesale segment consist
of mainly selfcare and other products sold to pharmacies,
retailers and veterinarians.
In products the performance obligation is sale of goods,
which is based on sales order. The transaction price is the
price of goods. Revenue is recognised when the Group
transfers control of goods to customer at the amount which
the Group expects to be entitled, i.e. the price of goods sold
less any possible discounts.
In Distribution segment where Oriola delivers products from
consignment stock and acts as an agent, the performance
obligation is sale of logistics and transportation services to
pharmaceutical companies. The revenue is recognised at
the time when actual services have been performed on a net
basis as a fee or commission.
Dose dispensing services are offered to pharmacies in
Sweden and Finland and county councils in Sweden. The
performance obligation is sale of dose dispensed goods. The
transaction price includes the price of goods sold and the
price of dose dispensing. The revenue is recognised when
the control of the dose dispensed goods is transferred to the
customer.
Sale of other services consist of Advisory services providing
support to pharmacompanies regulatory needs, market
access services and patient support services, clinical
trial services and special licenced medicine sales. The
performance obligation is sales of services, which is based
on a contract for delivering services to the customer. The
revenue is recognised over the period during which the
service is performed at the amount totalling the price of
service performed less any possible discounts.
Use of judgements: Oriola’s agreements with pharmaceutical
companies are either wholesale agreements where Oriola
buys the products into own stock and acts as a principal
or agreements where Oriola delivers the products from
consignment stock and acts as an agent. For agreements where
Oriola acts as a principal the legal title, control and payment
liability has been transferred to Oriola and the revenue is
recognized on gross basis. For consignment agreements where
Oriola acts as an agent, only the distribution fee is recognized
as revenue. Oriola is the principal if it controls the goods and
services before they are provided to the customer. Analysis of
the agreements and the related revenue recognition method
requires management judgement, considering various
contractual terms. In such cases, the Group assesses, for
example, whether Oriola has the primary responsibility for the
supply of the goods or services in question, the risk associated
with inventories and the discretion to determine the price of
the goods and services.
Net sales by currency
2024 2023
Million SEK EUR SEK EUR
Sweden 12,782.9 1,118.1 10,864.3 946.5
Finland 561.5 547.4
Total 1,679.7 1,493.8
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Financial review Sustainability Statement Oriola Annual Report 2024 |
4.3. Operating expenses
Operating expenses include material purchases, employee benefit
expenses and other operating expenses as presented on the face
of the statement of comprehensive income. Employee benefit
expenses are specified in note 4.4. Employee benefits.
Materials and supplies
Materials and supplies include materials, procurement and
other costs related to procurement.

EUR million | 2024 | 2023
Purchases during the period | 1,535.5 | 1,348.1
Change in inventories | -16.6 | -13.8
Products for own use | -0.1 | -0.1
Foreign exchange differences | 0.4 | -0.1
Total | 1,519.3 | 1,334.1

Materials and supplies by currency |  |
| 2024 |
Million | SEK | EUR
Sweden | 11,782.7 | 1 030.6
Finland |  | 488.6
Total |  | 1,519.3
| 2023 |
Million | SEK | EUR
Sweden | 9,857.4 | 858.7
Finland |  | 475.3
Total |  | 1,334.1

Other operating expenses |  |
EUR million | 2024 | 2023
Freights and other variable costs | 30.2 | 32.4
Marketing | 0.7 | 0.4
Information management | 9.9 | 9.3
Premises | 5.7 | 5.9
External services | 25.7 | 21.8
Other operating expenses | 9.4 | 9.9
Total | 81.6 | 79.8

External services include EUR 4.7 million expenses related to the
ERP investment.

Audit fees |  |
EUR million | 2024 | 2023
To member firms of KPMG network |  |
Fees for statutory audit | 0.3 | 0.2
Fees for other audit assignments | 0.1 | 0.0
Fees for other services | 0.0 | 0.0
Total | 0.4 | 0.3

Disaggregation of revenue
In the following table, the Group’s external revenue is
disaggregated by the Group’s major revenue streams.

EUR million |  |  |
2024 | Distribution | Wholesale | Total
Services and products | 1,302.3 | 244.0 | 1,546.4
Other* | 62.4 | 70.9 | 133.3
Total | 1,364.7 | 315.0 | 1,679.7
EUR million |  |  |
2023 | Distribution | Wholesale | Total
Services and products | 1,121.4 | 234.2 | 1,355.6
Other* | 67.7 | 70.6 | 138.2
Total | 1,189.0 | 304.8 | 1,493.8

* Other includes sales of dose dispensing and sale of other services.
Revenues from one customer in Distribution and Wholesale
segment were 360 (2023:315) million from Group’s net sales.
Contract balances
The Group has recognised the following liabilities related to
contracts with customers:

EUR million | 31 Dec 2024 | 31 Dec 2023
Advances received from pharmacies | 7.9 | 10.4
Advances received related to other services | 0.1 | 0.2
Total | 8.0 | 10.6

Advances received from pharmacies are presented as current
interest-bearing liabilities in the statement of financial position.
Additional information on the interest-bearing liabilities can be
found in note 8.2. Financial assets and liabilities.
Other operating income

EUR million | 2024 | 2023
Gains on sales of tangible and intangible assets | - | 0.0
Rental income | 0.1 | 0.2
Service charges | 1.4 | 1.3
Other operating income | 2.9 | 1.4

EUR million | 2024 | 2023
Total | 4.5 | 2.9

Other operating income in 2024 includes compensation of EUR 1.4
million received from court appeal.
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Financial review Sustainability Statement Oriola Annual Report 2024 |
4.4. Employee benefits
The Group’s employee benefits include short-term employee
benefits, pension benefits, other long-term employee
benefits and share-based payments.
Short-term employee benefits: Wages and salaries, fringe
benefits, annual leave and bonuses are recognised in the
period in which the work is performed.
Pension benefits: The Group’s pension arrangements
are in compliance with each country’s local regulations
and practices. The pension arrangements of the Group
companies comprise both defined contribution plans
and defined benefit plans. The payments to the defined
contribution plans are recognised as expenses in the
statement of comprehensive income in the period in which
they incur. Under a defined benefit pension plan, the Group’s
obligation is not limited to the payments made under the
plan but also includes the actuarial and investment risks
related to the pension plan in question.
The pension expenses related to defined benefits have
been calculated using the projected unit credit method.
Pension expenses are recognised as expenses by distributing
them over the estimated period of service of the personnel
concerned. The amount of the pension obligation is the
present value of the estimated future pensions payable.
Other long-term employee benefits consist of a long-
service benefit scheme operated by the Group. The long-
service benefit scheme is presented as other non-current
liabilities in the statement of financial position.
Share-based payments: Share incentive plans are measured
at fair value at the grant date, and are recognised as
expenses over the vesting period. The fair value of the share
is the share price on the date at which the target group has
agreed to the conditions of the plan. Share-based payments
are paid in cash and in equity.

Employee benefit expenses |  |
EUR million | 2024 | 2023
Wages, salaries and bonuses | 42.5 | 39.8
Share-based payments | 0.1 | 0.5
Pension costs |  |
Defined contribution plans | 5.6 | 5.2
Defined benefit plans | 0.5 | 0.3
Other personnel expenses | 7.3 | 7.0
Total | 56.1 | 52.8

Number of employees
At the end of the financial year, the total number of employees
(headcount) was 934 (932).
The number of employees in full-time equivalents (FTE) was 816
(801), of which 409 (412) worked in Finland and 407 (389) worked
in Sweden. The average number of employees (FTE) during the
financial year was 812 (800).
Post-employment benefits
The Oriola Group has defined benefit pension plans in Finland and
Sweden.
In Finland, the defined benefits plans consist of a voluntary
insurance plan, which is a final average pay pension plan
concerning additional pensions. The benefits are insured with OP
Life Assurance.
In Sweden, some of the office employees are covered by the defined
benefit plan ITP 2 and others by the defined contribution plan ITP 1.
The employees have a defined contribution plan according to local
legislation. In ITP 2, the company can recognise the old age pension
liabilities in its statement of financial position or, alternatively, pay
the pension expenses to the pension insurance company Alecta.
Oriola Sweden AB has recognised its ITP 2 old age pension liabilities
in full in its statement of financial position. Oriola Sweden AB’s old
age pension benefits other than ITP 2 are insured with Alecta.
Employer contributions to post-employment benefit plans are
expected to be EUR 0.5 million during 2025 financial year. The
weighted average duration of the defined benefit obligation is 18.5
years.
All plan assets of the Group relate to the Finnish voluntary insurance
plan and are held by the insurance company. They are part of the
insurance company’s investment assets and are considered to be
unquoted.
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Net defined benefit liability in the statement of financial position is |  |
defined as follows: |  |
EUR million | 2024 | 2023
Present value of funded obligations | 14.7 | 14.8
Fair value of plan assets | -1.4 | -1.4
Deficit/surplus | 13.3 | 13.4
Net liability (+) / assets (-) in the statement of financial position | 13.3 | 13.4

Change in defined benefit obligation and plan assets: |  |  |
| Present value |  |
| of funded | Fair value of |
EUR million | obligation | plan assets | Total
1 Jan 2023 | 13.2 | -1.4 | 11.8
Current service cost | 0.4 | - | 0.4
Interest cost or income | 0.5 | -0.1 | 0.4
| 14.1 | -1.5 | 12.6
Remeasurements |  |  |
Actuarial gains (-) and losses |  |  |
(+) arising from changes in demographical assumptions | 0.2 | - | 0.2
Actuarial gains (-) and losses (+) |  |  |
arising from changes in financial |  |  |
assumptions | 0.7 | 0.1 | 0.8
Experience profits (-) or losses (+) | 0.5 | - | 0.5
| 15.4 | -1.4 | 14.0
Differences in foreign exchange rates | 0.1 | - | 0.1
Contributions |  |  |
Plan participants | - | -0.1 | -0.1
Expenses arising from the plans |  |  |
Benefits paid | -0.7 | 0.2 | -0.5
31 Dec 2023 | 14.8 | -1.4 | 13.4
Current service cost | 0.6 | - | 0.6
Interest cost or income | 0.5 | -0.1 | 0.4
| 15.9 | -1.4 | 14.5
Remeasurements |  |  |
Actuarial gains (-) and losses (+) |  |  |
arising from changes in financial |  |  |
assumptions | -0.1 | 0.0 | -0.1
Experience profits (-) or losses (+) | -0.1 | - | -0.1
| 15.7 | -1.4 | 14.3

| Present value |  |
| of funded | Fair value of |
EUR million | obligation | plan assets | Total
Differences in foreign exchange rates | -0.4 | - | -0.4
Contributions |  |  |
Plan participants | - | -0.1 | -0.1
Expenses arising from the plans |  |  |
Benefits paid | -0.6 | 0.1 | -0.5
31 Dec 2024 | 14.7 | -1.4 | 13.3
Significant actuarial assumptions 31 Dec: |  | 2024 | 2023
Discount rate (%) |  | 3.30 | 3.10-4.00
Salary increases (%) |  | 2.30-3.45 | 2.80-3.40

Mortality assumptions are made on the basis of actuarial guidelines
and they are founded on statistics published in each region and on
experience.

Sensitivity of the defined benefit obligation to changes in the most |  |
significant assumptions: |  |
| Change in assumption | Effect of change
Assumption | as percentage point | in assumption %
Decrease in discount rate | -0.5 | increase by 10.1
Increase in discount rate | +0.5 | reduce by 9.0
Increase in salaries | +0.5 | increase by 2.2
Increase in benefits | +0.5 | increase by 10.0

The table presents a sensitivity analysis for the most significant
actuarial assumptions, showing the effect of any change in actuarial
assumptions on the defined benefit pension obligation.
The effects of the above sensitivity analysis have been calculated so
that when the effect of the change in the assumption is calculated
all other assumptions are expected to remain unchanged. This is
unlikely to happen and in some assumptions changes may correlate
with each other. The sensitivity of the defined benefit obligation
has been calculated using the same method as in the calculation of
the pension obligation to be entered in the statement of financial
position (the current value of the defined benefit obligation at
the end of the reporting period using the projected unit credit
method).
The most significant risks arising from defined benefit pension
plans:
Life expectancy: Most of the plan obligations are connected with
generating life-long benefits for employees and for this reason a
higher life expectancy will mean more obligations under the plan.
Inflation risk: Some of the Group’s pension obligations are linked
to inflation, and higher inflation will lead to higher liabilities.
Changes in bond yields: A decrease in bond yields will increase
Use of estimates: The discounted value of the pension
obligation is based on several actuarial assumptions.
Changes in the assumptions have an impact on the carrying
amount of the pension obligation. Discount rate used is one
of the assumptions used. The interest rate used is determined
at the date of measurement by reference to the maturity
of corporate bonds issued by financially sound companies
that is similar to that of the pension obligation. Other key
assumptions impacting pension liabilities are based on the
circumstances valid at the time.
plan liabilities, although this will be partially offset by an increase in
the value of the plans’ assets.
Short-term Incentive Plan
The Short-term Incentive Plan (STI) is based on the achievement
of the company’s financial targets and personal targets. The
Board of Directors decides annually on the earnings criteria
and the determination of the STI based on the proposal of the
Compensation and Human Resources Committee.
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The second plan, PSP 2024, is for three calendar years 2024-2026.
At the end of the financial year PSP 2024 has 16 participants. The
performance measures for this plan are cumulative adjusted EBIT,
earnings per share (EPS) and ESG-target (Delivery accuracy of
pharma). Possible share rewards are payable during the first half
of 2027. The aggregate maximum number of shares payable as a
reward based on this plan is approximately 2,283,305 class B shares
(referring to gross earnings, from which the applicable payroll tax
is withheld).
The expenses recognised for the Performance Share Plans were
EUR 0.1 (0.4) million in 2024.
THE BRIDGE PLAN (EQUITY-SETTLED)
In 2024, a total of 11,714 B treasury shares owned by the company
were conveyed without consideration to the key employees who
participated in the Bridge Plan 2022-2023 in accordance with the
terms and conditions of the plan.
THE RESTRICTED SHARE PLAN (EQUITY-SETTLED)
The Restricted Share Plan for the years 2022-2025 consists of
annually commencing individual restricted share plans which
are subject to a separate decision of the Board of Directors. Each
plan comprises a restriction period with an overall length of three
years, extending to first half of the fourth year of the individual
plan. During the plan period, the company may grant fixed share
rewards to individually selected key employees. The granted share
rewards are paid to the selected participants in one or several
tranches latest by the end of the restriction period. The share
rewards are paid in listed class B shares. The first plan, RSP 2022,
commenced effective as of the beginning of 2022. The aggregate
maximum number of shares payable as a reward is approximately
225,400 class B shares (referring to gross earning, from which the
applicable payroll tax is withheld).
For all programs, if the individual’s employment with Oriola
Corporation terminates before the payment of the reward, the
individual is, as a main rule, not entitled to any reward. The value
of the reward payable to each individual participant based on
the plans is limited by a maximum cap linked to a multiplier of
the individual’s annual salary. Oriola applies a share ownership
requirement to the CEO and the members of Oriola Management
Team. They are expected to retain ownership at least half of the
shares received under the incentive plans until the value of his/her
ownership in the company, in the case of the CEO, corresponds to
at least his/her annual gross base salary, and in the case of the other
the members of the Oriola Management Team, to at least half of his/
her annual gross base salary.
SHARE SAVINGS PLAN
The share savings plan for the key personnel that Oriola Corporation
has had since 2013 was terminated in 2022 and a total of 22,138
Oriola Corporation’s class B treasury shares were conveyed in 2023
without consideration to the key personnel who participated in the
plan.
Share-based payments
Oriola has a share-based long-term incentive plan for the
company’s key employees, including the CEO and the Oriola
Management Team.
The incentive plan comprises a Performance Share Plan (the “PSP”)
and a share-based bridge plan to cover the transition phase to the
new LTI structure (the “Bridge Plan”). In addition, the long-term
incentive scheme comprises a Restricted Share Plan (the “RSP”)
as a complementary long-term share-based retention plan for
individually selected key employees in specific situations.
THE PERFORMANCE SHARE PLAN (EQUITY-SETTLED)
The Performance Share Plan for the years 2022-2025 consists of
annually commencing individual performance share plans, each of
which is subject to separate decision of the Board of Directors. Each
plan comprises a performance period followed by the payment of
the potential share rewards in listed class B shares of Oriola.
The length of the performance period of the first plan, PSP 2022, is
four calendar years. At the end of the financial year PSP 2022 has
10 participants. The performance measures based on which the
potential share rewards under PSP 2022 will be paid are earnings
per share (EPS) and an environment-related target (CO2). PSP 2022
comprises a performance period covering the calendar years 2022-
2025, and the share rewards potentially payable thereunder will
be paid during the first half of 2026. The payment of the rewards
is conditional on the achievement of the performance targets
which the Board of Directors has set for the plan and the individual
participant’s continued employment or service relationship with
Oriola. If all the performance targets for the PSP 2022 are fully
achieved, the aggregate maximum number of shares to be paid
based on this plan is approximately 2,254,000 class B shares
(referring to gross earning, from which the applicable payroll tax is
withheld).
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5. Working capital
5.1. Trade and other receivables
Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course of
business. Trade receivables are initially recognised when
they are originated and subsequently carried at amortised
cost. The Group applies the simplified approach to providing
for expected credit losses, which permits the use of the
lifetime expected loss allowance for all trade receivables.
Loss allowances are recognised as an expense in the
consolidated statement of comprehensive income. The part
of the trade receivables, which is held for sale, is classified
to measurement category fair value through profit and
loss. Sold non-recourse trade receivables’ credit risk and
contractual rights are transferred from the Group on the
selling date and related expenses are recognised as financial
expenses. Additional information on sales arrangement for
trade receivables can be found in note 8.3. Financial risk
management.

EUR million | 2024 | 2023
Trade receivables | 247.1 | 259.5
Income tax receivables | - | 0.6
Prepaid expenses and accrued income | 2.3 | 2.0
VAT receivables | 8.2 | 10.4
Rental prepayments | 0.1 | -0.1
Other receivables | 0.9 | 1.5
Total | 258.8 | 273.9

As a part of managing liquidity risk Oriola has open-ended frame
agreements in Sweden that allows the company to sell trade
receivables relating to Swedish wholesale businesses to the
financial institutions on non-recourse basis. Sold and from the
statement of financial position derecognised non-recourse trade
receivables were EUR 94.1 (97.1) million on the balance sheet
date. No significant changes are anticipated in the scope of the
agreements to sell trade receivables in 2025.
The credit risk in Finland is reduced by interest-bearing advance
payments from pharmacies. These interest-bearing advance
payments are presented as current interest-bearing liabilities in
the statement of financial position. On the balance sheet date,
the amount of prepayments was EUR 7.9 (10.4) million. Additional
information on the interest-bearing advance payments can be
found in note 8.2. Financial assets and liabilities.
Information about the Group’s exposure to credit and market risks,
and impairment losses for trade receivables is included in note 8.3.
Financial risk management.
Ageing and loss allowance of trade receivables at the closing date

|  | 2024 |  | 2023
| Gross |  | Gross |
| carrying | Loss | carrying | Loss
EUR million | amount | allowance | amount | allowance
Not past due | 233.7 | -0.0 | 239.3 | -0.0
Past due 1 - 30 days | 11.4 | -0.0 | 7.7 | -0.0
Past due 31 - 180 days | 2.1 | -0.0 | 12.9 | -0.2
Past due more than 180 days | 0.1 | -0.1 | -0.0 | -0.1
Total | 247.3 | -0.2 | 259.8 | -0.3

The carrying amount of trade receivables corresponds to the
maximum amount of credit risk relating to them at the balance
sheet date.
The loss allowance for trade receivables as at 31 December recon-
cile to the opening loss allowances as follows:

EUR million | 2024 | 2023
Opening loss allowance at 1 Jan | 0.3 | 0.0
Net remeasurement of loss allowance | 0.1 | 0.3
Amounts written off during the year as uncollectible | -0.1 | -
Unused amount reversed | -0.2 | -
Foreign exchange rate differences | -0.0 | -
Closing loss allowance at 31 Dec | 0.2 | 0.3

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5.3. Trade payables and other liabilities

EUR million | 2024 | 2023
Trade payables | 626.2 | 607.5
Income tax payables | 0.3 | 0.1
Accrued liabilities | 12.0 | 10.8
Derivatives measured at fair value through profit |  |
and loss | 0.0 | 0.6
VAT liabilities | 5.3 | 5.6
Other current liabilities | 5.5 | 2.1
Total | 649.4 | 626.7
Material items included in accrued liabilities |  |
EUR million | 2024 | 2023
Accrued wages, salaries and social security |  |
payments | 9.2 | 7.9
Other accrued liabilities | 2.8 | 2.9
Total | 12.0 | 10.8
Other non-current liabilities |  |
EUR million | 2024 | 2023
Derivatives | 0.5 | 0.4
Other non-current liabilities | 0.5 | 0.4
Total | 1.0 | 0.8

Other non-current liabilities include long-service benefit liability.
5.4. Provisions
A provision is recognised in the consolidated statement
of financial position when the Group has a present legal
or contractual obligation as a result of a past event and
it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation.
A restructuring provision is recognised when the Group
has a detailed, formal restructuring plan, has started the
implementation of the plan or has informed those affected
by the plan. No provision related to costs for continuing
operations is recognised.
At the end of 2024 and 2023 the Group did not have any provisions
in the consolidated statement of financial position.
5.2. Inventories
Inventories are presented in the consolidated statement
of financial position at the lower of cost and net realisable
value. The net realisable value is the estimated selling price
in the ordinary course of business less the estimated costs
of completion and the estimated necessary direct costs
of sale. The cost of inventories is determined on the basis
of FIFO principle. If the net realisable value is lower than
cost, a valuation allowance is recognised for inventory
obsolescence.

EUR million | 2024 | 2023
Raw materials and consumables | 0.0 | 0.1
Work in progress | 0.0 | 0.0
Finished goods | 176.2 | 162.8
Total | 176.3 | 162.9

The inventories as of 31 December 2024 included pharmaceuticals
and health related products. No significant valuation allowances
have been recognised on inventories.
Oriola’s agreements with pharmaceutical companies are either
wholesale agreements where Oriola buys the products into own
stock and acts as a principal or agreements where Oriola delivers
the products from consignment stock and acts as an agent.
Consignment stock is not included in Oriola’s inventories.
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6. Tangible and intangible assets and
other non-current assets
6.1. Property, plant and equipment
Tangible assets are initially recognised at historical cost
and they are subsequently measured at historical cost
less depreciation and impairment losses. The assets are
depreciated over their estimated useful life using the
straight-line method. The useful life of assets is reviewed
at least annually, and it is adjusted if necessary. The
estimated useful lives are as follows:
- Buildings 20–50 years
- Machinery and equipment 5–10 years
- Other tangible assets 3–10 years
Land areas are not subject to depreciation. Repair and
maintenance costs are recognised as expenses for
the period. Improvement investments are capitalised
providing they are expected to generate future economic
benefits. Gains and losses resulting from the disposal of
tangible assets are recognised as other operating income
or expense in the statement of comprehensive income.
Impairment of tangible assets is disclosed in the note 6.2.

Property. plant and equipment |  | Buildings | Machinery |  | Other | Advance payments |
EUR million | Land and | and | and | Right-of-use | tangible | and construction in |
2024 | water | constructions | equipment | assets* | assets | progress | Total
Historical cost 1 Jan 2024 | 1.8 | 60.1 | 52.4 | 24.7 | 0.5 | 3.5 | 143.2
Increases | - | 0.1 | 1.3 | 7.0 | 0.1 | 1.1 | 9.6
Decreases | - | -0.1 | -0.5 | -1.5 | -0.1 | -0.0 | -2.1
Reclassifications | - | 0.0 | 0.9 | - | - | -0.9 | -
Foreign exchange rate differences | -0.0 | -0.6 | -1.1 | -0.7 | 0.0 | -0.1 | -2.5
Historical cost 31 Dec 2024 | 1.8 | 59.6 | 53.0 | 29.6 | 0.6 | 3.6 | 148.2
Accumulated depreciation 1 Jan 2024 | - | -44.1 | -34.4 | -16.1 | -0.3 | -3.3 | -98.2
Accumulated depreciation related to decreases and reclassifications | - | 0.1 | 0.5 | 1.1 | 0.1 | - | 1.7
Depreciation for the financial year | - | -1.4 | -3.6 | -3.0 | -0.0 | - | -8.0
Foreign exchange rate differences | - | 0.3 | 0.6 | 0.4 | -0.0 | 0.1 | 1.5
Accumulated depreciation 31 Dec 2024 | - | -45.1 | -36.9 | -17.6 | -0.3 | -3.1 | -103.0
Carrying amount 1 Jan 2024 | 1.8 | 16.0 | 18.0 | 8.6 | 0.3 | 0.3 | 45.0
Carrying amount 31 Dec 2024 | 1.8 | 14.5 | 16.1 | 12.0 | 0.3 | 0.5 | 45.2
2023 |  |  |  |  |  |  |
Historical cost 1 Jan 2023 | 1.8 | 59.7 | 60.0 | 31.6 | 0.7 | 3.4 | 157.2
Increases | - | 0.5 | 0.4 | 3.2 | 0.1 | 0.4 | 4.7
Decreases | - | -0.2 | -2.9 | -6.5 | -0.0 | -0.0 | -9.6
Reclassifications | - | 0.1 | 0.2 | - | - | -0.3 | 0.0
Transfer to assets held for sale (note 10.3.) | - | - | -5.4 | -3.6 | -0.2 | - | -9.3
Foreign exchange rate differences | 0.0 | 0.0 | 0.1 | 0.1 | 0.0 | 0.0 | 0.2
Historical cost 31 Dec 2023 | 1.8 | 60.1 | 52.4 | 24.7 | 0.5 | 3.5 | 143.2
Accumulated depreciation 1 Jan 2023 | - | -42.6 | -35.5 | -17.8 | 0.3 | -3.2 | -99.5
Accumulated depreciation related to decreases and reclassifications | - | 0.2 | 2.3 | 1.6 | - | - | 4.1
Depreciation for the financial year | - | -1.7 | -4.3 | -3.1 | -0.1 | - | -9.1
Impairments | - | - | -0.2 | - | - | - | -0.2
Transfer to assets held for sale (note 10.3.) | - | - | 3.4 | 3.3 | 0.1 | - | 6.9
Foreign exchange rate differences | - | -0.0 | -0.2 | -0.1 | -0.0 | -0.0 | -0.3
Accumulated depreciation 31 Dec 2023 | - | -44.1 | -34.4 | -16.1 | -0.3 | -3.3 | -98.2
Carrying amount 1 Jan 2023 | 1.8 | 17.1 | 24.5 | 13.8 | 0.3 | 0.1 | 57.7
Carrying amount 31 Dec 2023 | 1.8 | 16.0 | 18.0 | 8.6 | 0.3 | 0.3 | 45.0

* Decreases in 2023 mainly relate to Brunna warehouse, which was closed. For more details about the right-of-use assets please refer to section 7. Leases.
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6.2. Goodwill and other intangible assets
Goodwill: Goodwill arising from business combinations is recognised
as the amount by which the aggregate of the fair value of the
consideration transferred, the acquisition date fair value of any
previously held interest and any non-controlling interest exceeds the
fair value of the net assets acquired. Goodwill is not amortised but
is tested for impairment at least annually according to the business
structure in force at the time of impairment testing. For impairment
testing, goodwill is allocated to cash-generating units. Goodwill is
measured at cost less accumulated impairment losses. Impairment
losses are recognised in the statement of comprehensive income.
Other intangible assets: Other intangible assets are initially
recognised at historical cost and they are subsequently measured at
historical cost less amortisation and impairment losses. Intangible
assets not yet available for use are tested annually for impairment.
Other intangible assets include sales licences, trademarks, patents,
software licences and product and marketing rights. Assets with finite
useful life are amortised over their useful life, using the straight-line
method. Research and development costs are normally expensed
as other operating expenses for the reporting period in which they
are incurred. Expenditures on development is capitalised only
when it relates to new products or services that are technically and
commercially feasible. The majority of the Group’s development
expenditure does not meet the criteria for capitalisation and are
recognised as expenses as incurred. Configuration and customisation
costs in a cloud service contract, which do not meet the definition
of an intangible asset, and which are distinct from the actual cloud
service, are recognised as expense when the service is received.
Customisation costs which are not distinct from the actual cloud
services, are recognised as advance payments in the statement of
financial position and expensed over the estimated term of the cloud
service contract. The estimated useful lives of other intangible assets
are as follows:
Intangible rights:
- Patents and trademarks 10 years
- Software 5–10 years
Other intangible assets 3–10 years

6.2. Goodwill and other intangible assets |  |  |  |  |
|  |  | Other | Advance payments |
EUR million |  | Intangible | intangible | and construction in |
2024 | Goodwill | rights | assets* | progress ** | Total
Historical cost 1 Jan 2024 | 35.2 | 15.5 | 30.8 | 2.4 | 83.9
Increases | - | - | 0.0 | 0.2 | 0.2
Decreases | - | - | -0.1 | -0.0 | -0.1
Impairments | - | - | - | -1.9 | -1.9
Reclassifications | - | - | 0.0 | -0.0 | -
Foreign exchange rate differences | -0.0 | -0.3 | - | -0.0 | -0.3
Historical cost 31 Dec 2024 | 35.1 | 15.3 | 30.6 | 0.7 | 81.8
Accumulated amortisation 1 Jan 2024 | - | -15.1 | -17.2 | -0.5 | -32.7
Accumulated amortisation related to decreases and reclassifications | - | - | 0.1 | - | 0.1
Amortisation for the financial year | - | -0.2 | -3.6 | - | -3.8
Foreign exchange rate differences | - | 0.2 | - | 0.0 | 0.3
Accumulated amortisation 31 Dec 2024 | - | -15.0 | -20.7 | -0.5 | -36.1
Carrying amount 1 Jan 2024 | 35.2 | 0.5 | 13.6 | 1.9 | 51.2
Carrying amount 31 Dec 2024 | 35.1 | 0.3 | 10.0 | 0.2 | 45.7
2023 |  |  |  |  |
Historical cost 1 Jan 2023 | 61.1 | 20.1 | 32.4 | 7.0 | 120.6
Increases | - | 0.1 | 0.1 | 1.8 | 2.0
Decreases | - | -0.6 | -1.9 | -5.9 | -8.4
Impairments | -21.4 | - | - | - | -21.4
Reclassifications | - | 0.5 | 0.1 | -0.6 | -0.0
Transfer to assets held for sale (note 10.3.) | -4.5 | -4.5 | - | - | -9.0
Foreign exchange rate differences | 0.0 | 0.0 | - | 0.0 | 0.0
Historical cost 31 Dec 2023 | 35.2 | 15.5 | 30.8 | 2.4 | 83.9
Accumulated amortisation 1 Jan 2023 | - | -17.6 | -14.9 | -6.4 | -38.9
Accumulated amortisation related to decreases and reclassifications | - | 0.6 | 1.9 | 5.9 | 8.4
Amortisation for the financial year | - | -0.6 | -4.2 | - | -4.7
Transfer to assets held for sale (note 10.3.) | - | 2.6 | - | - | 2.6
Foreign exchange rate differences | - | -0.0 | - | -0.0 | -0.0
Accumulated amortisation 31 Dec 2023 | - | -15.1 | -17.2 | -0.5 | -32.7
Carrying amount 1 Jan 2023 | 61.1 | 2.5 | 17.5 | 0.6 | 81.7
Carrying amount 31 Dec 2023 | 35.2 | 0.5 | 13.6 | 1.9 | 51.2

* Other intangible assets include expenses for installation and specialist work related to the implementation of computer software.
** Advance payments and construction in progress include mainly costs related to software.
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Impairments
Impairment of tangible and intangible assets:
The Group assesses at each reporting date whether there
is any indication that an asset may be impaired. If any
indication exists, the Group estimates the asset’s recoverable
amount. The recoverable amount is the higher of the net
sales price or value in use, which is the present value of the
expected future cash flows expected to be derived from the
asset.
The impairment loss is recognised in the statement of
comprehensive income if the carrying amount of the asset
exceeds the recoverable amount. An impairment loss is
reversed if there is a change in the circumstances and
the recoverable amount exceeds the carrying amount.
The reversal of impairment loss cannot exceed the asset’s
carrying amount without any impairment loss.
Allocation and impairment testing of goodwill:
The goodwill impairment test is conducted at least annually
or more frequently if there is any indication that goodwill
may be impaired. Impairment testing is conducted according
to the business structure in force at the time of impairment
testing. Impairment is recognised in the statement of
comprehensive income under Depreciation, amortisation
and impairments. Goodwill impairment losses are not
reversed.
IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS
In 2024 an impairment of EUR 1.9 million was recognised to costs
related to ERP investment previously capitalised on unfinished
intangible assets. In 2023 an impairment loss of EUR 0.2 million
recorded in machinery and equipment related to Brunna
warehouse in Sweden, which was closed.
GOODWILL IMPAIRMENT TESTING
The recoverable amount of the cash-generating units (CGUs) in
impairment testing was based on value-in-use calculations. Value-
in-use has been determined based on discounted cash flows (DCF-
model). The cash flow forecasts are based on three-year strategic
plans approved by the management and are consistent with the
current business structure. The most important assumptions in the
strategic plans are estimates of overall long-term growth in the
market and the market position as well as the profitability of the
Group businesses. The foreign exchange rates used in converting
the calculations into euros are those prevailing at the time of
testing.
The main parameters used in the impairment testing are net sales
growth percentage, EBIT percentage, terminal growth percentage
and discount rate.
The three-year net sales forecasts are based on the management's
assessment of the net sales growth, market development forecasts
available from external information sources and sales growth based
on the Group’s actions.
The terminal growth rate used in the calculations is based on the
management’s assessments of the long-term growth. In estimating
the terminal growth rate, both country-specific and business sector
growth forecasts available from external information sources as
well as the characteristic features of each operating segment and
cash generating unit are considered. Terminal growth rate for cash
generating units was 2.0% from the year 2027. The discount rate
used in the calculation is based on the Group’s weighted average
cost of capital, taking into account the industry and country specific
risks in each of the Group's operating segment. When defining the
discount rates, Oriola has acquired the necessary information from
an external information source.
RESULT OF GOODWILL IMPAIRMENT TESTING
The result of impairment testing performed in the last quarter of
the year shows that the “value in use” in the tested cash generating
units exceeds the book value of the carrying amounts, and thus
no impairment of goodwill was recognised in 2024. In 2023 a
goodwill impairment loss of EUR 21.4 million was recognised in
the dose dispensing cash generating unit and EUR 3.3 million
from the impairment was related to dose dispensing business
in Sweden. The remaining goodwill of EUR 4.5 million in dose
dispensing busines Sweden is included in assets held for sale. More
information is presented in note 10.3. Assets held for sale and
discontinued operations.

GOODWILL AND PROJECTION PARAMETERS APPLIED |  |  |  |
| Dose | Distribution | Expert |
2024 | dispensing | services | services | T otal
Goodwill | 2.3 | 25.9 | 6.9 | 35.1
Pre-tax discount rate % | 9.4 | 8.4 | 8.4 |
Terminal growth % | 2.0 | 2.0 | 2.0 |
| Dose | Distribution | Expert |
2023 | dispensing | services | services | Total
Goodwill | 2.3 | 25.9 | 6.9 | 35.1
Pre-tax discount rate % | 10.7 | 9.5 | 9.9 |
Terminal growth % | 2.0 | 2.0 | 2.0 |

Sensitivity analysis for the following projection parameters have
been performed: discount rate, EBIT percentage, terminal growth
percentage, and net sales growth percentage. For Dose dispensing
CGU the recoverable amount would equal the carrying amount if
pre-tax rate increased 0.4 percentage points, or if EBIT percentage
decreased 0.1 percentage points, or if terminal growth percentage
decreased 0.5 percentage point, or if sales growth percentage
decreased 0.6 percentage points. For other CGUs, the management
believes that any reasonably possible change in the projection
parameters would not cause carrying amount of the cash-
generating units to exceed its recoverable amount .
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Use of estimates: The Group’s assets with an indefinite
useful life are subject to annual impairment testing and
any indication of impairment of assets is assessed using
information from external sources on market development
as well as information from internal sources on business
performance and estimates. When analysing these sources
and information and making conclusions, estimates are
used. The recoverable values used in impairment testing are
discounted future cash flows that can be obtained through
usage and possible sale of the assets. If the carrying amount
of the asset exceeds either its recoverable amount or fair
value, the difference is recognised as an impairment charge.
The preparation of such calculations requires the use of
estimates.

6.3. Other non-current assets |  |  |
| Other shares |  |
EUR million | and share- | Other non- |
2024 | holdings | current assets | Total
Carrying amount 1 Jan 2024 | 13.6 | 1.9 | 15.5
Decreases | - | -1.3 | -1.3
Changes in fair value | -2.6 | - | -2.6
Foreign exchange rate |  |  |
differences | - | -0.0 | -0.0
Carrying amount 31 Dec 2024 | 11.0 | 0.7 | 11.7
2023 |  |  |
Carrying amount 1 Jan 2023 | 34.2 | 4.0 | 38.3
Increases | - | -2.1 | -2.1
Decreases | -20.6 | - | -20.6
Foreign exchange rate |  |  |
differences | - | 0.0 | 0.0
Carrying amount 31 Dec 2023 | 13.6 | 1.9 | 15.5

Other shares and shareholdings
The investment in Doktor.se is accounted for as a financial
asset. Additional information can be found in note 8.2
Financial assets and liabilities. Oriola classifies the shares
of Doktor.se as the investment in Doktor.se is seen as
strategic investment, which supports Oriola’s business
operations. The shares are presented in the consolidated
statement of financial position as part of other non-current
assets. Possible changes in fair value of the investment are
recognised in other comprehensive income and they shall
not subsequently be transferred to profit and loss. Possible
dividends are recognised as dividend income in the profit
and loss.
Other shares and shareholdings include Oriola’s holding in the
Swedish online medical centre Doktor.se. Doktor.se offers personal
digital healthcare services to its customers. Doktor.se has a
comprehensive organisation with specialist nurses, doctors and
psychologists.
The applied valuation method for the shares in Doktor.se is based
on realised transactions. In 2024, a decrease of EUR 2.6 (decrease
of 20.6) million was recognised in the fair value of shareholdings in
Doktor.se due to the realised transactions at lower price.
Oriola’s ownership at the end of the reporting period was
approximately 5% of the total number of shares in Doktor.se.
Oriola’s ownership of shares in Doktor.se has not changed during
years 2023 and 2024.
Use of judgements: The management has to evaluate
at each balance sheet date whether there have been any
changes to the fair value of the shares measured at fair value
through other comprehensive income. The applied valuation
method for the shares in Doktor.se is based on realised
transactions.
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7. Leases
- Oriola has the right to direct the use of the asset.
The right-of-use asset is initially measured at cost, which
comprises:
- The initial amount of lease liability
- Any lease payments made at or before the
commencement date
- Any initial direct costs incurred by Oriola
- An estimate of costs to be incurred by Oriola in
dismantling and removing the underlying assets or
restoring the site on which the assets are located
The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date. The lease payments included in the
measurement of the lease liability include the following:
- Fixed payments, including in-substance fixed payments
- Variable lease payments that depend on an index or a
rate, initially measured using the index or the rate as at
the commencement date
- Amounts expected to be payable under a residual value
guarantee
- The exercise price of a purchase option that Oriola is
reasonably certain to exercise
- Penalties for early termination of a lease if the
termination is taken into account in determining lease
period.
The lease payments included in the measurement of lease
liability exclude variable elements which are dependent on
sales or usage. Variable payments not included in the initial
measurement of the lease liability are recognised as an
expense over the lease term.
The lease payments are discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the incremental borrowing rate. The incremental
borrowing rate is the rate of interest that a lessee would
have to pay to borrow over a similar term and with a
similar security, the funds necessary to obtain an asset of a
similar value to the right of use asset in a similar economic
environment. At Oriola, the incremental borrowing rates
are defined for the lease terms of 1, 3, 5 and 10 years. The
components of the incremental borrowing rate are:
- Risk free rate which reflect the different jurisdictions
and currencies: SEK and EUR swap rates for 1 to 3 years
and Government bonds for Finland and Sweden for 5
to 10 years
- Oriola’s internal credit rating for the parent company as
a company specific margin. As all the Group’s treasury
functions are centralized to the parent company and
all funding for the Group is managed centrally by the
parent company resulting in the parent providing a
guarantee of the lease payments to the lessor, the
pricing of the lease is more significantly influenced
by the credit standing of the parent than that of the
subsidiary.
- The incremental borrowing rates are reviewed monthly.
The lease term comprises of:
- Non-cancellable period of lease contract
- Periods covered by an option to extend the lease if Oriola is
reasonably certain to exercise that option
- Periods covered by an option to terminate the lease if the
lessee is reasonably certain not to exercise that option.
Leases: The Group has lease contracts related to real estates,
IT equipment, vehicles and other machinery and equipment.
The Group’s real estate leases include leases of office and
warehouse premises. The usual duration of the leases is 3
years, and the contracts are regularly renewed for the next
lease period. For most of the contracts the lease payments
are adjusted every year based on the change of the
consumer price index.
The Group leases of vehicles consist of company cars, which
are used as part of employee benefits and forklifts, which are
used in warehouses. The lease period for the company cars is
usually 3 years and for forklifts 5 or 6 years.
The Group leases IT equipment such as servers, printers and
laptops. The lease period for IT equipment is usually 3-5
years.
Leases of other machinery and equipment include waste
presses in the warehouses and dose dispensing equipment.
containers, furniture and other machinery and equipment
such as franking machines and coffee machines.
At inception of a contract it is assessed whether a contract
contains a lease. A contract contains a lease if it conveys the
right to control the use of an identified asset for a period
of time in exchange for consideration. In order to assess
whether a contract conveys the right to control the use of an
identified asset, it is assessed whether:
- The contract involves the use of an identified asset
- Oriola has the right to obtain substantially all of the
economic benefits from the use of the asset throughout
the period of use
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The exemption for short term leases is applied to real-estate
leases and the exemption for low-value assets is applied to
leases of IT equipment and other machinery and equipment.
For short term leases of real estate leases that have a lease
term of 12 months or less and for low-value leases of IT
equipment and other machinery equipment the right-of-
use asset and lease liability is not recognised. The lease
payments associated with these leases are recognised as an
expense on a straight-line basis over the lease term. An asset
is considered to be a low-value asset, if the value of the asset
when it is new is less than EUR 5.000 or SEK 50.000.
The right-of-use asset is subsequently measured at cost
less accumulated depreciation and less any accumulated
impairment losses and adjusted for any remeasurements
of the lease liability. Depreciation is calculated using the
straight-line method from the commencement date to the
earlier of the end of useful life of the right-of-use asset or the
end of the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as those of
property, plant and equipment.
The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in
an index or a rate, if there is a change in Oriola’s estimate of
the amount expected to be payable under a residual value
guarantee, or if Oriola changes its assessment of whether
it will exercise a purchase, extension or termination option.
When the lease liability is remeasured, a corresponding
adjustment is made to the carrying amount of the right-of-
use asset or is recognised in the profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero.
The right-of-use assets are presented in property, plant
and equipment and the lease liabilities in interest-bearing
liabilities in the statement of financial position. The lease
liabilities with the maturity of more than 12 months are
presented in the non-current interest-bearing liabilities and
the lease liabilities with the maturity of 12 months or less are
presented in the current interest-bearing liabilities.
The depreciations of right-of-use assets are presented in
depreciation, amortisation and impairments in the statement
of comprehensive income. The interest expense on the lease
liability is presented within the financial expenses. The lease
payments of low-value assets and short-term leases are
included in other operating expenses in the statement of
comprehensive income.
In the statement of cash flows the cash payments for the
principal portion of the lease liability are presented within
financing activities. The cash payments for the interest
portion of the lease liability as well as short term lease
payments, payments for leases of low-value assets and
variable lease payments not included in the measurement of
the lease liabilities are presented within operating activities.
Use of estimates: The Group’s most significant leases
relate to the office and warehouse premises, for which the
management has taken into account the location of the
premises, their importance to the Group’s operations and
the availability of the alternative premises when determining
the lease term. The probable lease term for the leases, which
are valid until further notice is estimated based on the
business plans, taking into account the costs of termination.
Extension options (or periods after termination options)
are only included in the lease term if the lease is reasonably
certain to be extended (or not terminated).
7.1. Leases in the statement of financial position
The Group has recognised following amounts in the statement of
financial position relating to leases:

Right-of-use assets |  |
EUR million | 2024 | 2023
Real estate | 10.8 | 7.5
IT equipment | 0.0 | 0.0
Vehicles | 1.2 | 1.0
Other machinery and equipment | 0.1 | 0.1
Total | 12.0 | 8.6
Lease liabilities |  |
EUR million | 2024 | 2023
Current | 2.7 | 2.8
Non-current | 9.7 | 6.1
Total | 12.3 | 8.9

Additions to the right-of-use assets during year 2024 were EUR 7.0
(3.2) million including warehouse lease renewal in Mölnlycke, Sweden
and new office lease contract for dose dispensing in Helsinki, Finland.
7.2. Leases in the statement of comprehensive income
The Group has recognised following amounts in the statement
of comprehensive income relating to leases:

EUR million | 2024 | 2023
Depreciation charge of right-of-use assets |  |
Real estate | -2.3 | -2.6
IT equipment | -0.0 | -0.0
Vehicles | -0.6 | -0.4
Other machinery and equipment | -0.0 | -0.0
Total depreciation | -3.0 | -3.1
Interest expense (included in financial expenses) | -0.3 | -0.3
Expense relating to short-term leases |  |
Expense relating to short-term leases |  |
(included in other operating expenses) | -0.1 | -0.1
Expense relating to leases of low-value assets |  |
(included in other operating expenses) | -0.2 | -0.3
Gains from changes in leases (included in other operating income) | 0.0 | 0.1

The total cash outflow for leases in 2024 was EUR 3.7 (4.3) million.
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8.1. Financial income and expenses
Interest income and expenses:
Interest income and expenses are recognised on a time-
proportion basis using the effective interest method .
The average interest rate on the interest-bearing liabilities
excluding lease liabilities was 3.01% (3.76%) in 2024.

Financial income and expenses |  |
EUR million | 2024 | 2023
Financial income |  |
Interest income on financial assets measured at amortised cost | 1.6 | 1.8
Interest income on financial assets and liabilities |  |
recognised at fair value | 0.1 | 0.0
Changes in fair values of financial assets and liabilities recognised at fair value, net | - | 0.1
Foreign exchange rate gains from financial assets |  |
and liabilities measured at amortised cost, net | 1.3 | -
Total | 3.0 | 2.0
Financial expenses |  |
Interest expenses on financial liabilities measured |  |
at amortised cost | 4.0 | 5.0
Interest expenses on leases | 0.3 | 0.3
Changes in fair values of financial assets and liabilities recognised at fair value, net | 1.7 | -
Foreign exchange rate losses on financial assets |  |
and liabilities measured at amortised cost, net | - | 0.2
Other financial expenses | 4.4 | 4.1
Total | 10.4 | 9.6
Financial income and expenses, total | -7.3 | -7.6

Other financial expenses are mainly related to the sale of trade
receivables in Sweden.
8.2. Financial assets and liabilities
Classification and measurement: Financial assets and
liabilities are recognised at the fair value at the settlement
date except derivatives, which are recognised at the trade
date in the statement of financial position. The Group’s
financial assets and liabilities include cash and cash
equivalents, loans and other financial receivables, trade
receivables, trade payables, loans and derivatives.
Financial assets and liabilities are classified into the following
measurement categories:
- Fair value through profit and loss
- Fair value through other comprehensive income
- Amortised cost
The classification of financial assets into different
measurement categories depends on the business model
for managing the financial asset and the contractual cash
flow characteristics of the financial asset. The classification
of financial liabilities into different measurement categories
depends on the purpose for which the financial liabilities
were initially acquired. The measurement category for
financial assets and liabilities is determined at the acquisition
date. Financial assets are derecognised when the Group
loses the rights to receive the contractual cash flows on the
financial asset or it transfers substantially all the risks and
rewards of ownership outside the Group. Financial liabilities
are derecognised when the obligation specified in the
contract is discharged or cancelled or expires.
Financial assets measured at fair value through profit
and loss: Money market investments, trade receivables held
for sale and derivatives which are not designated as hedges
are measured at fair value through profit and loss. Assets
within this category are short-term assets with a maturity of
less than 12 months and are measured at fair value using the
market price on the balance sheet date.
Both realised and unrealised gains and losses arising from
the changes in fair value are recognised in the consolidated
statement of comprehensive income for the financial period
during which they incurred.
Financial assets measured at amortised cost: Cash and
cash equivalents consist of cash in hand and cash at the bank
accounts. Items classified as cash and cash equivalents have
a maturity of less than 3 months from the acquisition date.
The used credit limits are included in current interest-bearing
liabilities.
Loans and other receivables are measured at amortised cost.
Receivables are classified as current financial assets unless
their maturity date is more than 12 months from the balance
sheet date. Trade and other receivables are included in this
category except for trade receivables held for sale, which
are measured at fair value through profit and loss. Trade
receivables are recognised at their original book value. A
valuation allowance for impairment of trade receivables is
recognised when there is objective evidence that the Group
will not be able to collect all amounts due according to
the original terms of the receivables. Significant financial
difficulties of the debtor, the probability of the debtor’s
bankruptcy, failure to pay and significant delay of payments
are considered to be justified reasons for the impairment of
trade receivables. The Group applies the simplified approach
to providing for expected credit losses, which permits the
use of the lifetime expected loss provision for all trade
receivables. Impairments are recognised as an expense in
the consolidated statement of comprehensive income. Sold
non-recourse trade receivables’ credit risk and contractual
8. Capital structure
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rights are transferred from the Group on the selling date
and related expenses are recognised as financial expenses.
Information about the Group’s exposure to credit and market
risks, and impairment losses for trade receivables is included
in note 8.3. Financial risk management .
Financial assets measured at fair value through
other comprehensive income: In 2018 and 2020, Oriola
Corporation invested a total of EUR 14.2 million in the
Swedish online medical centre Doktor.se. The investment is
accounted for as a financial asset. Oriola classifies the shares
of Doktor.se as fair value through other comprehensive
income. The investment in Doktor.se is seen as strategic
investment, which supports Oriola’s business operations.
The purchase price of the shares is recognised in the
consolidated statement of financial position in other
non-current assets. Possible changes in fair value of the
investment are recognised in other comprehensive income
and they shall not subsequently be transferred to profit and
loss. The applied valuation method for the shares in Doktor.
se is based on realised transactions. Possible dividends are
recognised as dividend income in the profit and loss. In June
2021, Oriola sold approximately 50% of its shareholding
in Doktor.se for EUR 33.9 million. More information on the
investment in Doktor.se can be found in note 6.3. Other non-
current assets.
Financial liabilities measured at amortised cost: Financial
liabilities measured at amortised cost are recognised in
the consolidated statement of financial position at the net
value received on the date of acquisition. Transaction costs
are included in the original carrying amount of financial
liabilities. Financial liabilities are subsequently measured at
amortised cost using the effective interest method. Interest
expenses are recognised in the statement of comprehensive
income using the effective interest method. Financial
liabilities that expire within 12 months from the balance
sheet date, including bank overdrafts in use, are recognised
within current interest-bearing liabilities, and those expiring
in a period exceeding 12 months, are recognised within non-
current interest-bearing liabilities.

Financial assets and liabilities by category |  |  |  |  |  |  |
|  |  | 2024 |  |  | 2023 |
EUR million | Note | Fair value | Book value | Hierarchy | Fair value | Book value | Hierarchy
Derivatives designated as hedges | 8.3 | 0.8 | 0.8 | Level 2 | 1.8 | 1.8 | Level 2
Financial assets recognised at fair value through profit and loss |  |  |  |  |  |  |
Derivatives measured at fair value through profit |  |  |  |  |  |  |
and loss | 8.3. | 0.5 | 0.5 | Level 2 | 0.9 | 0.9 | Level 2
Other investments measured at fair value through OCI | 6.3. | 11.0 | 11.0 | Level 3 | 13.6 | 13.6 | Level 3
Trade receivables for sale | 5.1. | 13.1 | 13.1 | Level 2 | 8.0 | 8.0 | Level 2
Financial assets measured at amortised cost |  |  |  |  |  |  |
Cash equivalents |  | 113.5 | 113.5 | Level 2 | 138.4 | 138.4 | Level 2
Trade receivables and other receivables | 5.1. | 236.7 | 236.7 | Level 2 | 254.0 | 254.0 | Level 2
Financial assets, total |  | 375.6 | 375.6 |  | 416.8 | 416.8 |
Derivatives designated as hedges | 8.3. | 0.5 | 0.5 | Level 2 | 0.4 | 0.4 | Level 2
Financial liabilities recognised at fair value through profit and loss |  |  |  |  |  |  |
Derivatives measured at fair value through profit |  |  |  |  |  |  |
and loss | 8.3. | 0.0 | 0.0 | Level 2 | 0.6 | 0.6 | Level 2
Financial liabilities measured at amortised cost |  |  |  |  |  |  |
Non-current interest-bearing liabilities |  | 39.7 | 39.7 | Level 2 | 7.1 | 7.1 | Level 2
Current interest-bearing liabilities |  | 36.4 | 36.4 | Level 2 | 110.7 | 110.7 | Level 2
Trade payables and other current liabilities | 5.3. | 643.6 | 643.6 | Level 2 | 620.2 | 620.2 | Level 2
Financial liabilities, total |  | 720.2 | 720.2 |  | 738.9 | 738.9 |

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).
Financial liabilities measured at fair value through
profit and loss: The Group’s financial liabilities measured
at fair value through profit and loss include derivatives
which are not designated as hedges. More information on
measurement of derivatives can be found from note 8.3.
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Reconciliation of financial assets recognised at fair value according
to the level 3

EUR million | 2024 | 2023
Carrying amount 1 Jan | 13.6 | 34.2
Change in fair value | -2.6 | -20.6
Carrying amount 31 Dec | 11.0 | 13.6

Financial assets recognised at fair value through other
comprehensive income (level 3) include Oriola’s holding in the
Swedish online medical centre Doktor.se. In 2024 a decrease of EUR
2.6 (decrease of 20.6) million was recognised in the fair value of
shareholdings in Doktor.se due to the realised transactions. More
information on the investment in Doktor.se and its valuation can be
found in note 6.3. Other non-current assets.

Net debt |  |
EUR million | 2024 | 2023
Loans from financial institutions | 30.0 | 1.0
Lease liabilities | 9.7 | 6.1
Non-current interest-bearing liabilities | 39.7 | 7.1
Loans from financial institutions | 1.0 | 58.1
Issued commercial papers | 24.8 | 39.3
Advances received from pharmacies | 7.9 | 10.4
Lease liabilities | 2.7 | 2.8
Current interest-bearing liabilities | 36.4 | 110.7
Interest-bearing liabilities, total | 76.1 | 117.7
Cash and cash equivalents | 113.5 | 138.4
Net debt | -37.4 | -20.6

Interest-bearing liabilities

Non-current |  |
EUR million | 2024 | 2023
Loans from financial institutions | 30.0 | 1.0
Lease liabilities | 9.7 | 6.1
Total | 39.7 | 7.1
Current |  |
EUR million | 2024 | 2023
Loans from financial institutions | 1.0 | 58.1
Issued commercial papers | 24.8 | 39.3
Advances received from pharmacies | 7.9 | 10.4
Lease liabilities | 2.7 | 2.8
Total | 36.4 | 110.7
Interest-bearing liabilities by currency |  |
EUR million | 2024 | 2023
EUR | 66.8 | 84.0
SEK | 9.3 | 33.8
Total | 76.1 | 117.7

The Group’s interest-bearing liabilities decreased by EUR 41.7
million during the financial year 2024. During the financial year,
EUR 57.9 million in loans from financial institutions were repaid
and a new term loan of EUR 30 million was raised. Liabilities related
to issued commercial papers were reduced by EUR 14.5 million.
The maturity of the new EUR 30 million term loan is three years
with one (1) + one (1) year extension options. The loan agreement
is subject to financial covenants stating that at the end of each
quarter the ratio of Net Debt to EBITDA shall be less than 3.50 and
the ratio of Net Debt to Consolidated Equity shall be less than
100%. Interest risk of the loan has been hedged with an interest
rate swap.
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Change in net debt |  |  |  |  |  |
| Loans from |  |  |  |  |
EUR million | financial | Commercial | Advances from |  | Cash and cash |
2024 | institutions | papers | pharmacies | Lease liabilities | equivalents | Total
Carrying value, at 1 January 2024 | -59.1 | -39.3 | -10.4 | -8.9 | 138.4 | 20.6
Change in net debt, cash: |  |  |  |  |  |
Proceeds from non-current loans | -30.0 | - | - | - | - | -30.0
Repayments of non-current loans | 1.0 | - | - | - | - | 1.0
Repayment of current loans | 56.9 | - | - | - | - | 56.9
Repayments of lease liabilities | - | - | - | 3.1 | - | 3.1
Change in other current liabilities | - | 14.5 | 2.4 | - | - | 17.0
Change in cash and cash equivalents | - | - | - | - | -24.9 | -24.9
Cash flows, total | 27.9 | 14.5 | 2.4 | 3.1 | -24.9 | 23.1
Change in net debt, non-cash: |  |  |  |  |  |
Change in lease liabilities | - | - | - | -6.8 | - | -6.8
Foreign exchange adjustments | 0.3 | - | - | 0.2 | -0.0 | 0.5
Non-cash movements, total | 0.3 | - | - | -6.6 | -0.0 | -6.3
Carrying value, at 31 December 2024 | -31.0 | -24.8 | -7.9 | -12.3 | 113.5 | 37.4
| Loans from |  |  |  |  |
EUR million | financial | Commercial | Advances from |  | Cash and cash |
2023 | institutions | papers | pharmacies | Lease liabilities | equivalents | Total
Carrying value, at 1 January 2023 | -61.1 | -49.8 | -11.8 | -14.3 | 160.6 | 23.7
Change in net debt, cash: |  |  |  |  |  |
Repayments of non-current loans | 2.0 | - | - | - | - | 2.0
Repayments of lease liabilities | - | - | - | 3.5 | - | 3.5
Change in other current liabilities | - | 10.5 | 1.4 | - | - | 11.9
Change in cash and cash equivalents | - | - | - | - | -22.3 | -22.3
Cash flows, total | 2.0 | 10.5 | 1.4 | 3.5 | -22.3 | -4.9
Change in net debt, non-cash: |  |  |  |  |  |
Change in lease liabilities | - | - | - | 1.6 | - | 1.6
Changes arising from losing control of subsidiaries | - | - | - | 0.2 |  | 0.2
Foreign exchange adjustments | -0.1 | - | - | 0.1 | -0.0 | 0.1
Non-cash movements, total | -0.1 | - | - | 1.9 | -0.0 | 1.8
Carrying value, at 31 December 2023 | -59.1 | -39.3 | -10.4 | -8.9 | 138.4 | 20.6

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8.3. Financial risk management
The financial risks relating to the business operations of the
Oriola Group are managed in accordance with the treasury policy
approved by the Board of Directors. Oriola’s centralised Group
Treasury is responsible for implementing, monitoring and reporting
of the treasury policy.
Oriola’s Group Treasury’s main objectives are to maintain solid
long-term financial position and secure daily liquidity of the Group
and to efficiently manage currency and interest rate risks.
The objective of financial risk management is to hedge against
unfavourable changes in the financial markets and to minimise the
impact of foreign exchange, interest rate, refinancing and liquidity
risks on the Group’s cash reserves, profits and shareholders’ equity.
Approved hedging instruments are set in the treasury policy.
Currency risk: The most important country-specific operating
currencies for the Oriola Group are the euro (EUR) and the Swedish
krona (SEK). A substantial proportion of procurements and sales
are conducted in the reporting currency of the subsidiaries,
which considerably reduces the currency risk. In accordance
with its treasury policy, Oriola’s internal loans and deposits are
denominated in the local currency of each subsidiary.
Transaction risk: Transaction risks arise from commercial and
finance-related transactions and payments made by the business
units, which are denominated in a currency other than the unit’s
reporting currency. Due to the nature of business operations,
Oriola’s transaction risks are minor. In accordance with its treasury
policy, Oriola’s internal loans and deposits are denominated in
the local currency of each subsidiary, mainly in Swedish krona. In
accordance of the treasury policy, transaction risk arising from
the items in the statement of financial position recognised in
the statement of comprehensive income is aimed to be fully
hedged with derivatives. On the balance sheet date Swedish krona
denominated open transaction position was EUR 0.1 (0.0) million.
Translation risk: Oriola’s most significant translation risk concerns
items in Swedish krona. Translation risks arise from capital
investments and goodwill in foreign subsidiaries. On the balance
sheet date Oriola had not hedged the equity-related translation
risks. On the balance sheet date Swedish krona denominated
translation risk position was EUR 57.3 (66.2) million. Translation
risk sensitivity: A 10% weakening/strengthening of Swedish krona
would have an impact of EUR -/+5.2 (-/+6.0) million in the Group’s
equity.
Liquidity risk: The objective of liquidity risk management is to
maintain adequate liquid assets and revolving credit facilities so
that Oriola is able to meet all of its financial obligations. The Group’s
liquidity management is based on 12-month cash flow forecasts
and 4-week rolling cash flow forecasts drawn up on a weekly basis.
Oriola has diversified its refinancing risk among several different
counterparties and various financing sources.
In June 2021, Oriola signed an unsecured revolving credit facility
agreement for a total of EUR 140 million. The facility is committed.
In May 2024, the revolving credit facility amount was reduced
from EUR 140 million to EUR 70 million. The revolving credit facility
matures in June 2026. The margin of the revolving credit facility
is linked to Oriola’s financial covenants and the performance of
sustainability targets. The committed long-term revolving credit
facility of EUR 70.0 million and short-term uncommitted credit
account limits of EUR 40.0 (34.5) million were unused on the
balance sheet date. In addition, Oriola has a EUR 200 (200) million
uncommitted commercial paper programme of which EUR 24.8
(39.3) million had been issued on the balance sheet date. Maturity
distribution of financial assets and liabilities is presented on the
following page. Oriola’s cash and cash equivalents at the end of
2024 totalled EUR 113.5 (138.4) million.
Oriola’s financial agreements include financial covenants that are
maximum net debt to EBITDA -ratio of 3.5 and maximum net debt
to equity ratio of 100%. In addition to financial covenants, the
margin of the revolving credit facility is linked to the performance
of the Group’s sustainability targets. Regarding the standard IFRS
16 Leases, the Group has agreed with financial institutions on
applying the financial reporting standards in force at the end of
2018 to all of the current long-term agreements. At the end of the
reporting period the financial covenants were fulfilled.
Oriola’s net working capital was EUR -202.8 (-185.0) million on the
balance sheet date. Oriola’s net working capital was negative on
the balance sheet date owing to the terms of payment defined
in principal and customer agreements and to the non-recourse
factoring programmes used in the retail and wholesale businesses
in Sweden. The Group’s principal and customer agreements are
based on established, long-term agreements, and no significant
changes are anticipated in them during 2025.
Oriola has open-ended frame agreements in Sweden that allow the
company to sell trade receivables relating to Swedish wholesale
businesses to the financial institutions on a non-recourse basis.
Sales of trade receivables were EUR 94.1 (97.1) million in total on
the balance sheet date. No significant changes are anticipated in
the scope of the agreements to sell trade receivables in 2025.
Interest rate risk: Interest rate risk arise from changes in interest
payments of floating rate loans due to changes in market interest
rates and market value changes of financial instruments (price
risk). The objective of the interest rate risk management is to
minimise the impact of interest rate fluctuations on the statement
of comprehensive income. The interest rate risk is evaluated using
sensitivity analysis and interest rate duration.
On the balance sheet date, Oriola’s interest rate risk consisted of
EUR 113.5 (138.4) million in cash assets, EUR 76.1 (117.7) million in
interest-bearing liabilities, and EUR 94.1 (97.1) million from sales
of non-recourse trade receivables in Sweden. The interest-bearing
liabilities at the end of 2024 include lease liabilities totalling EUR
12.3 (8.9) million. On the balance sheet date, a total of EUR 82.4
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(64.8) million of the interest rate risk was hedged, which covers
48.9% (61.7%) of total sales of non-recourse trade receivables. The
average interest rate on interest-bearing liabilities excluding lease
liabilities and including the sale of receivables on a non-recourse
basis and interest rate hedges, was 3.01% (3.76%), and the interest
rate duration was 13.5 (11) months. Interest rate hedges are mainly
long-term contracts. Oriola applies hedge accounting to the
interest rate swaps hedging cash flows relating to selling of non-
recourse trade receivables and to the interest rate swap hedging
future cash flows arising from floating rate long-term debt.
Based on the gross debt on the balance sheet date and assuming
that the trade receivables sales programmes will continue as
normal in Sweden, the effect of a one percentage point increase
in market interest rates on the Group’s annual earnings after taxes
would be EUR -1.9 (-2.5) million (including derivatives) and on
equity EUR 1.9 (3.0) million (including derivatives).
Credit and counterparty risks: A credit risk arises from the
possibility of a counterparty failing to meet its contractual payment
obligations or financial institutions failing to meet their obligations
relating to deposits and derivatives trading. Oriola’s treasury policy
provides the framework for credit-, investment- and counterparty
risk management.
Credit limits are determined for investments and derivative
agreement counterparties on the basis of creditworthiness and
solidity and are monitored and updated on a regular basis.
Business areas are responsible for the credit risk management
arising from commercial receivables. The Finnish and Swedish
wholesale business is based on well-established customer
relationships and contractual terms generally observed within the
industry, which significantly reduces the credit risk associated with
trade receivables. Due to the nature of the operations there are no
significant credit risks associated with the Swedish retail business.
The credit risk related to the wholesale business in Finland is
reduced by interest-bearing advance payments from pharmacies.
These interest-bearing advance payments are presented as current
interest-bearing liabilities in the statement of financial position. In
the wholesale business in Sweden, the credit risk is reduced by the
sale of non-recourse receivables to financial institutions and by the
usage of credit loss insurances.
The Group applies the simplified approach to providing for
expected credit losses, which permits the use of the lifetime
expected loss provision for all trade receivables. The Group uses a
provision matrix for loss allowance provision. The matrix is based
on historical observed default rates and incorporates forward
looking information.
Credit losses recognised in the statement of comprehensive
income for the financial year totalled EUR -0.2 (-0.3) million. The
ageing of trade receivables is presented in more detail in note 5.1.
Trade and other receivables.
Capital management: Oriola’s aim is to have an efficient capital
structure that allows the company to manage its ongoing
obligations and enables cost-effective operations under all
circumstances. The return on capital employed (ROCE) and
the gearing ratio are the measurements for monitoring capital
structure.
Oriola’s long-term financial targets are based on growth,
profitability and equity. The Group’s long-term targets are to grow
at the rate of the market, minimum 4%, adjusted EBIT margin above
3% and return on equity over 20%. In addition, Oriola’s aim is to pay
out an increasing annual dividend of 2/3 of its net profit.
For a definition of key figures, please see the section Alternative
performance measures.

Maturity distribution of financial assets and liabilities |  |  |  |  |
31 Dec 2024 |  |  |  |  |
EUR million | 2025 | 2026 | 2027 | 2028> | Total
Interest-bearing |  |  |  |  |
Loans from financial institutions and commercial paper loans | 25.8 | - | 30.0 | - | 55.8
Lease liabilities | 2.7 | 2.7 | 2.2 | 4.7 | 12.3
Advance payments received | 7.9 | - | - | - | 7.9
Non-interest-bearing |  |  |  |  |
Trade payables and other current |  |  |  |  |
liabilities | 643.6 | - | - | - | 643.6
Receivables from interest rate swaps | -0.2 | -0.3 | - | -0.3 | -0.8
Liabilities from interest rate swaps | - | - | 0.5 | - | 0.5
Receivables from foreign currency |  |  |  |  |
derivatives | -104.8 | - | - | - | -104.8
Payables on foreign currency |  |  |  |  |
derivatives | 104.4 | - | - | - | 104.4
Total | 679.4 | 2.4 | 32.7 | 4.4 | 718.9
Interest payments | 2.1 | 1.5 | 1.4 | 0.2 | 5.2
31 Dec 2023 |  |  |  |  |
EUR million | 2024 | 2025 | 2026 | 2027> | Total
Interest-bearing |  |  |  |  |
Loans from financial institutions and commercial paper loans | 97.5 | 1.0 | - | - | 98.5
Lease liabilities | 2.8 | 2.4 | 2.1 | 1.6 | 8.9
Advance payments received | 10.4 | - | - | - | 10.4
Non-interest-bearing |  |  |  |  |
Trade payables and other current |  |  |  |  |
liabilities | 620.2 | - | - | - | 620.2
Receivables from interest rate swaps | -0.3 | -0.8 | -1.1 | - | -2.2
Liabilities from interest rate swaps | - | - | - | 0.4 | 0.4
Receivables from foreign currency |  |  |  |  |
derivatives | -76.0 | - | - | - | -76.0
Payables on foreign currency |  |  |  |  |
derivatives | 76.1 | - | - | - | 76.1
Total | 730.5 | 2.6 | 1.0 | 2.0 | 736.1
Interest payments | 3.6 | 0.2 | 0.1 | 0.0 | 3.8

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Derivatives and hedge accounting
Recognition and measurement: Derivatives are initially
recognised at fair value on the date a derivative contract is
entered into and are subsequently measured to their fair
value at the end of each reporting month. The accounting for
subsequent changes in fair value depends on whether the
derivative is designated as a hedging instrument. Derivatives
are classified as held for trading and accounted for at fair
value through profit or loss unless they are designated as
hedges. They are presented as current assets or liabilities if
they are expected to be settled within 12 months after the
end of the reporting period.
Oriola has the following derivative instruments:
- Instruments held for trading: Foreign currency forward
and swap contracts
- Cash flow hedges: Interest rate swaps
The change in fair value of derivatives held for trading is
recognised either as other income or expense or as financial
income or expense depending on the underlying item being
hedged.
Hedge accounting: Oriola applies hedge accounting to
the interest rate swaps hedging cash flows relating to
selling of non-recourse trade receivables and to the interest
rate swap hedging future cash flows arising from floating
rate long-term debt. The floating interest rate has been
converted into fixed rate using interest rate swaps. When
initiating hedge accounting, the relationship between the
hedged item and the hedging instrument is documented
along with the objectives of the Group’s risk management.
The effective portion of the changes in the fair value of
interest rate swaps that are designated and qualify as cash
flow hedges is recognised in other comprehensive income
and accumulated in the reserves in equity. The ineffective
portion, if any, is recognised immediately in the statement of
comprehensive income within the financial items.
The fair value of currency forward and swap contracts is
determined by measuring them at fair value using market
rates on the balance sheet date.

Derivatives |  |  |
EUR million | Positive fair | Negative | Nominal
2024 | value | fair value | value
Derivatives recognised as cash flow hedges |  |  |
Interest rate swaps, in hedge accounting | 0.8 | 0.5 | 82.4
Derivatives measured at fair value through profit and loss |  |  |
Foreign currency forward and swap |  |  |
contracts | 0.5 | 0.0 | 104.4
Total | 1.3 | 0.5 | 186.7
2023 |  |  |
Derivatives recognised as cash flow hedges |  |  |
Interest rate swaps, in hedge accounting | 1.8 | 0.4 | 54.1
Derivatives measured at fair value through profit and loss |  |  |
Interest rate swaps | 0.3 | - | 10.8
Foreign currency forward and swap |  |  |
contracts | 0.6 | 0.6 | 75.5
Total | 2.8 | 1.0 | 140.4

Derivatives that are open on the balance sheet date fall due in the
12-month period except part of the interest rate swaps recognised
as cash flow hedges. Interest rate risk relating to cash flow from
selling of trade receivables and from floating rate long-term
debt has been hedged with interest rate swaps. The fair value of
interest rate derivatives is defined by cash flows due to contracts.
Interest rate swaps are designated as cash flow hedges and
their changes in fair value related to the effective portion of the
hedge are recognised in other comprehensive income and the
potential ineffective part is recognised within the financial items
in the statement of comprehensive income.
Fair values of the derivatives have been recognised in the
statement of financial position in gross amount as the
derivatives contracts are related to credit events and cannot
be netted in financial statements. The Group has not given nor
received collateral to/from derivatives counterparties.
Oriola has derivative positions with several banks and related
transactions are effected under master derivative agreements.
Master derivative agreements allow settlement on a net basis
of all outstanding items within the scope of the agreements for
example in the event of bankruptcy. On the balance sheet date,
the remaining counterparty risk after net settlement, as allowed
in the master derivative agreements, was EUR 1.3 (2.8) for Oriola
and EUR 0.5 (1.0) million for the counterparties.
The nominal amount of foreign currency derivatives is the euro
equivalent of the contracts’ currency denominated amount on
the balance sheet date.
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8.4. Equity, shares and authorisations
Share capital: Oriola Corporation’s share capital on 31 December
2024 stood at EUR 147,899,766.14. All issued shares have been paid
up in full. There were no changes in share capital in 2024.
Fair value reserve: The fair value reserve includes the change in
fair value of financial assets measured at fair value through other
comprehensive income as well as the effective portion of the
change in fair value of derivative financial instruments that are
designated as and qualify for cash flow hedges. At the balance
sheet date, the change in fair value of financial assets measured
at fair value through other comprehensive income recognised in
the fair value reserve totalled EUR -2.6 million. The change in fair
value of derivative financial instruments recognised in the reserve
totalled EUR -0.9 million (net of tax).
Contingency fund: The contingency fund is included in the
unrestricted equity of the company. The contingency fund has
been formed in 2006 when Oriola Corporation was entered into the
Trade Register. There were no changes in the contingency fund in
2024, and the fund stood at EUR 19.4 million on 31 December 2024
OTHER FUNDS
Invested unrestricted equity reserve: Oriola Corporation
executed a directed share issue against payment in June 2009,
issuing 9,350,000 new class B shares. The net proceeds received
from the share issue amounted to EUR 20.7 million. The proceeds
from the share issue were credited to the reserve of invested
unrestricted equity. In accordance with the decision of the Annual
General Meeting of 6 April 2011, the company distributed on
19 April 2011 EUR 0.13 per share from the reserve of invested
unrestricted equity as repayment of equity, totalling EUR 19.7
million.
Oriola Corporation completed a rights offering in the first quarter
of 2015. The subscription period of the offering ended on 3 March
2015. In the offering 9,429,742 new A shares and 20,798,643
new B shares were subscribed and Oriola Corporation raised
gross proceeds of EUR 75.6 million through the offering. Oriola
Corporation recognised gross proceeds and the transaction costs
less taxes, totalling EUR 73.7 million, in the invested unrestricted
equity fund. There were no changes in the invested unrestricted
equity reserve in 2024, and the fund stood at EUR 74.8 million on 31
December 2024.
Translation differences: Translation differences include translation
differences arisen from the subsidiaries’ equity translation during
the consolidation, change of the fair values of the net investment in
the foreign subsidiary, and foreign exchange rate differences arisen
from the conversion of the foreign subsidiaries’ income statements
using the average exchange rate of the reporting period and the
conversion of their balance sheets using the exchange rate quoted
on the balance sheet date.
Shares: Of the total number of shares in the company, a
maximum of 500,000,000 shall be class A shares and a maximum
of 1,000,000,000 class B shares. At the end of 2024, the company
had a total of 181,486,213 shares, of which 53,748,313 were class A
shares and 127,737,900 were class B shares. The shares do not have
a nominal value.
At General Meetings, each class A share carries 20 votes and each
class B share one vote. No shareholder may vote using a number
of votes that exceeds 1/20 of the total number of votes carried by
the shares of different share classes represented at the General
Meeting. Both share classes give the shareholder the same rights to
the company’s assets and dividend distribution. Under Article 3 of
the Articles of Association, a shareholder may demand conversion
of class A shares into class B shares.
Oriola Corporation’s class A and B shares are quoted on the main
list of the Nasdaq OMX Helsinki exchange. The company’s field of
business on the stock exchange on 31 December 2024 was Health
Care Distributors and the company was classified under Health
Treasury shares: Treasury shares acquired by the company
and the related costs are presented as a deduction of equity.
Gain or loss on surrender of treasury shares are recognised in
equity net of tax.
The company holds a total of 75,712 treasury shares, of which
63,650 are class A shares and 12,062 are class B shares. The treasury
shares held by the company account for 0.04% of the company’s
shares and 0.11% of the votes.
Share trading and prices: In 2024, the traded volume of Oriola
Corporation shares, excluding treasury shares, corresponded to
20.2% of the total number of shares. The traded volume of class A
shares amounted to 6.4% of the average stock, and that of class B
shares, excluding treasury shares, to 25.9% of the average stock.
The average share price of Oriola Corporation’s class A shares was
EUR 1.04 and of its class B shares EUR 0.98. The market value of
all Oriola Corporation shares at 31 December 2024 was EUR 162.0
(199.2) million, of which the market value of class A shares was EUR
48.3 million and of class B shares EUR 113.7 million.
Shareholders: On 31 December 2024 Oriola Corporation had a
total of 34,502 registered shareholders. There were 10,192,553
nominee-registered shares on 31 December 2024, corresponding
to 5.6% of all shares and 2.0% of all votes.
Share conversions: Under Article 3 of the Articles of Association, a
shareholder may demand conversion of class A shares into class B
shares. In 2024, no class A shares were converted into class B shares.
Care. The ticker symbol for the class A shares is OKDAV and for the
class B shares OKDBV.
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Management shareholdings: On 31 December 2024, the
members of the company’s Board of Directors and the President
and CEO, the members of the Oriola Management Team and
the companies controlled by them had a total of 540,542 shares,
corresponding to 0.30% of the total number of shares in the
company and 0.04% of the votes.

Management shareholding |  |
| 2024 | 2023
| B shares | B shares
Board of Directors |  |
Heikki Westerlund, Chairman | 46,593 | 31,759
Pension insurance where Heikki Westerlund is a beneficiary | 15,000 | 15,000
Heiwes Oy (Heikki Westerlund’s controlling |  |
corporation) | 150,000 | 150,000
Harri Pärssinen, Vice Chairman | 51,695 | 34,647
JF Capital Oy (Harri Pärssinen’s controlling |  |
corporation) | 65,000 | 65,000
Petra Axdorff (from 19 March 2024) | 14,278 | -
Ann Carlsson Meyer (from 19 March 2024) | 14,278 | -
Nina Mähönen | 30,489 | 16,211
Yrjö Närhinen | 22,657 | 8,379
Ellinor Persdotter Nilsson | 22,657 | 8,379
Eva Nilsson Bågenholm (until 19 March 2024) | - | 50,729
CEO and President |  |
Katarina Gabrielson | 71,430 | 65,124
Oriola Management team |  |
Mats Danielsson (from 16 September 2024) | - | -
Hannes Hasselrot | 11,414 | 11,414
Niklas Lindholm | - | -
Mikael Nurmi | 10,000 | 10,000
Petter Sandström | 30,051 | 27,864
Petri Boman (until 14 August 2024) | - | -
Timo Leinonen (until 14 August 2024) | - | 16,000

Authorisations: The Annual General Meeting authorised the
Board to decide on a share issue against payment in one or more
issues, including the right to issue new shares or to assign treasury
shares held by the company. The authorisation covers a combined
maximum of 5,500,000 class A shares and 12,500,000 class B
shares of the company and includes the right to derogate from the
shareholders’ pre-emptive subscription right. The authorisation
is in force for eighteen (18) months following the decision of the
Annual General Meeting.
The Board was also authorised to decide on a share issue against
payment of class B shares 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 18,000,000 class B shares of the company including the right
to derogate from the shareholders’ pre-emptive subscription
right. The authorisation is in force for a maximum of eighteen (18)
months following the decision of the Annual General Meeting.
The Annual General Meeting authorised the Board to decide on a
share issue of class B shares without payment to the Company and
on a directed share issue of class B shares in order to execute the
share-based incentive plan for Oriola Group’s executives and the
share savings plan for Oriola Group’s key personnel. The maximum
number of new class B shares to be issued under this authorisation
is 250,000, which represents of 0.14% of all shares in the Company.
The authorisation is in force for eighteen (18) months from the
decision of the Annual General Meeting.
The Annual General Meeting authorised the Board to decide on
repurchasing up to 18,000,000 of the company’s own class B shares.
Shares may be repurchased also in a proportion other than in
which shares are owned by the shareholders. The authorisation
is in force for a maximum of eighteen (18) months following the
decision of the Annual General Meeting.
All decisions of the Annual General Meeting 2024 are available on
the company’s website www.oriola.com.
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Share capital |  |  |  |
Share capital |  | A shares | B shares | Total
Number of shares 1 Jan 2024 | pcs | 53,748,313 | 127,737,900 | 181,486,213
Conversion of A shares to B shares | pcs | - | - | 0
Number of shares 31 Dec 2024 | pcs | 53,748,313 | 127,737,900 | 181,486,213
Treasury shares 31 Dec 2024 | pcs | 63,650 | 12,062 | 75,712
Votes 31 Dec 2024 | pcs | 1,074,966,260 | 127,737,900 | 1,202,704,160
Share capital per share class 31 Dec 2024 | EUR million | 43.8 | 104.1 | 147.9
Percentage from the total shares | % | 29.6 | 70.4 | 100.0
Percentage from the total votes | % | 89.4 | 10.6 | 100.0
Number of shares 1 Jan 2023 | pcs | 53,748,313 | 127,737,900 | 181,486,213
Conversion of A shares to B shares | pcs | - | - | 0
Number of shares 31 Dec 2023 | pcs | 53,748,313 | 127,737,900 | 181,486,213
Treasury shares 31 Dec 2023 | pcs | 63,650 | 23,776 | 87,426
Votes 31 Dec 2023 | pcs | 1,074,966,260 | 127,737,900 | 1,202,704,160
Share capital per share class 31 Dec 2023 | EUR million | 43.8 | 104.1 | 147.9
Percentage from the total shares | % | 29.6 | 70.4 | 100.0
Percentage from the total votes | % | 89.4 | 10.6 | 100.0
EUR million |  |  | 2024 | 2023
Parent company share capital 31 Dec |  |  | 147.9 | 147.9
Elimination of the revaluation of subsidiary shares in the consolidated financial statements |  |  | -111.7 | -111.7
Consolidated share capital 31 Dec |  |  | 36.2 | 36.2

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8.5. Earnings per share, dividend and other equity
distribution
Earnings per share: Basic earnings per share is calculated by
dividing the net result attributable to owners of the parent
company by the weighted share issue adjusted average
number of shares outstanding during the period, excluding
shares acquired by the Group and held as treasury shares.
When calculating diluted earnings per share, the weighted
share-issue adjusted average number of shares outstanding
during the period is adjusted by the effect of all dilutive
potential shares.
Dividend and other equity distribution: Dividends or
other equity distribution includes dividends and other
equity distribution approved by the Annual General
Meeting. Dividends and other equity distribution proposed
by the Board of Directors are not recognised in the
financial statements until they have been approved by the
shareholders at the Annual General Meeting. Dividend and
other equity distribution for shareholders is recognised as a
liability in the consolidated statement of financial position
for the period during which the dividend is approved by the
Annual General Meeting.
Dividend policy and distribution proposal: Oriola Corporation
will seek to pay out annually as dividends a 2/3 of the Group’s net
profit. The Company’s strategy and financial position shall be taken
into consideration when determining the annual dividend payout
ratio. The dividend paid for 2023 was EUR 12.7 million (EUR 0.07
per share) and for 2022 EUR 10.9 million (EUR 0.06 per share). The
Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 12.7 million, EUR 0.07 per share is paid for 2024.

Earnings per share |  |
Profit for the period |  |
EUR million | 2024 | 2023
Profit attributable to equity owners of the parent | -20.1 | -20.7
Average number of outstanding |  |
shares pcs |  |
Basic | 181,408,101 | 181,389,629
Diluted | 181,422,563 | 181,422,563
Earnings per share, EUR |  |
Basic | -0.11 | -0.11
Diluted | -0.11 | -0.11

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9. Income taxes
9.1. Taxes recognised in the comprehensive income
for the period
Tax expense in the consolidated statement of
comprehensive income consists of income taxes based
on the taxable profit for the financial year, prior period
adjustments, and changes in deferred tax assets and
liabilities. Income tax for the taxable profit for the period is
calculated based on the effective income tax rate for each tax
jurisdiction. Taxes are recognised in profit and loss, except
when they relate to items recognised directly in equity or
in other comprehensive income, when the taxes are also
recognised in equity or in other comprehensive income
respectively.
Oriola Group is within the scope of the Pillar Two legislation,
where the Group is liable to pay a top-up tax for the difference
between their GloBE effective tax rate per jurisdiction and the 15%
minimum rate. All entities within the Group have an effective tax
rate that exceeds 15% and therefore the Group does not expect to
be subject to the top-up tax. The Group has applied a temporary
mandatory relief from deferred tax accounting for the impacts
of the top-up tax and accounts for it as a current tax when it is
incurred.

Income taxes |  |
EUR million | 2024 | 2023
Taxes for current year | 3.6 | 3.1
Taxes for previous years | 0.0 | 0.9
Deferred taxes | -2.1 | -1.0
Total | 1.5 | 3.1

Taxes related to other comprehensive income |  |  |
EUR million |  |  |
2024 | Before taxes | Tax effect | After taxes
Cash flow hedge | -1.2 | -0.2 | -0.9
Financial assets recognised |  |  |
at fair value through other comprehensive income | -2.6 | - | -2.6
Actuarial gains and losses | 0.2 | 0.0 | 0.1
Translation differences | -1.7 | - | -1.7
Total | -5.3 | -0.2 | -5.1
2023 |  |  |
Cash flow hedge | -1.8 | -0.4 | -1.5
Financial assets recognised |  |  |
at fair value through other comprehensive income | -20.6 | - | -20.6
Actuarial gains and losses | -1.4 | -0.3 | -1.1
Translation differences | 0.0 | - | 0.0
Total | -23.8 | -0.7 | -23.1
Tax rate reconciliation |  |  |
EUR million |  | 2024 | 2023
Profit before taxes |  | -18.6 | -17.6
Corporate income taxes calculated at Finnish tax |  |  |
rate |  | -3.7 | -3.5
Effect of different tax rates of foreign subsidiaries |  | -0.1 | -0.0
Impairment of goodwill - non-deductible |  | - | 4.3
Non-deductible expenses and tax-exempt income |  | 0.2 | 0.4
Share of result in joint venture |  | 5.1 | 1.0
Adjustments recognised for taxes of previous |  |  |
years |  | - | 0.9
Other items |  | -0.0 | -0.0
Income taxes in the income statement |  | 1.5 | 3.1
Effective tax rate |  | -8.1% | -17.4%

Taxes entered with a positive value are recognised as expenses and
taxes entered with a negative value are recognised as income.
The Finnish tax rate used to calculate taxes was 20.0% and the
Swedish tax rate was 20.6%.
9.2. Deferred tax assets and liabilities
Deferred tax is calculated on temporary differences between
the carrying amounts and the taxable values of assets and
liabilities and for tax loss carry-forwards to the extent that it
is probable that these can be utilised against future taxable
profits. The largest temporary differences are caused by lease
agreements, depreciation of property, plant and equipment
and defined pension benefit plans. The deferred taxes are
determined using tax rates and laws that have been enacted
or substantially enacted by the balance sheet date and are
expected to apply when the related deferred income tax
asset is realised, or the deferred income tax liability is settled.
Deferred tax assets and liabilities offset in the consolidated
statement of financial position when there is a legally
enforceable right to offset current tax assets against current
tax liabilities and when the deferred taxes relate to the same
fiscal authority.
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Deferred tax assets and liabilities |  |  |  |  |  |
|  | Items recognised in | Items recognised in other | Classified as | Translation |
2024 | 1 Jan | income statement | comprehensive income | held for sale | differences | 31 Dec
Deferred tax assets |  |  |  |  |  |
Confirmed losses | - | 0.1 | - | -0.1 | - | -
Pension liabilities | 0.7 | -0.1 | -0.0 | - | 0.0 | 0.6
Employee benefits | 0.3 | 0.0 | - | - | -0.0 | 0.3
Lease agreements | 1.9 | 0.7 | - | 0.1 | -0.1 | 2.6
Other temporary differences | 0.0 | 1.3 | - | - | - | 1.4
Deferred tax assets | 3.0 | 2.1 | -0.0 | -0.1 | -0.1 | 4.9
Set-off of tax | -2.6 |  |  |  |  | -4.3
Net deferred tax assets | 0.4 |  |  |  |  | 0.6
Deferred tax liabilities |  |  |  |  |  |
Depreciation difference and other untaxed reserves | 3.8 | -1.2 | - | 0.2 | -0.1 | 2.7
Acquisitions | -0.1 | - | - | - | - | -0.1
Lease agreements | 1.8 | 0.7 | - | 0.0 | -0.0 | 2.5
Other temporary differences | 0.0 | 0.1 | - | - | - | 0.1
Deferred tax liabilities | 5.5 | -0.5 | - | 0.2 | -0.2 | 5.1
Set-off of tax | -2.6 |  |  |  |  | -4.3
Net deferred tax liabilities | 2.9 |  |  |  |  | 0.8
|  | Items recognised in | Items recognised in other | Discontinued | Translation |
2023 | 1 Jan | income statement | comprehensive income | operations | differences | 31 Dec
Deferred tax assets |  |  |  |  |  |
Inventories | - | 0.8 | - | -0.8 | - | -
Pension liabilities | 0.7 | -0.2 | 0.3 | - | 0.0 | 0.7
Employee benefits | 0.2 | 0.0 | - | - | - | 0.3
Lease agreements | 3.1 | -1.1 | - | -0.1 | 0.0 | 1.9
Other temporary differences | 0.0 | -0.3 | 0.4 | -0.0 | 0.0 | 0.0
Deferred tax assets | 4.0 | -0.8 | 0.7 | -0.9 | 0.0 | 3.0
Set-off of tax | -2.8 |  |  |  |  | -2.6
Net deferred tax assets | 1.2 |  |  |  |  | 0.4
Deferred tax liabilities |  |  |  |  |  |
Depreciation difference and other untaxed reserves | 4.9 | -0.9 | - | -0.2 | 0.0 | 3.8
Acquisitions | -0.1 | -0.0 | - | - | - | -0.1
Lease agreements | 2.8 | -1.0 | - | -0.0 | 0.0 | 1.8
Other temporary differences | 0.1 | 0.0 | - | -0.1 | - | 0.0
Deferred tax liabilities, total | 7.7 | -1.9 | - | -0.4 | 0.0 | 5.5
Set-off of tax | -2.8 |  |  |  |  | -2.6
Net deferred tax liabilities | 4.9 |  |  |  |  | 2.9

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10. Group structure
Consolidation principles: The consolidated financial
statements include Oriola Corporation and those directly or
indirectly owned subsidiaries over which Oriola Corporation
exercises control. Control is presumed to exist when the
Group through participation in an investee becomes
exposed to its variable returns or is entitled to its variable
returns and is able to have an influence on the returns
through exercising power over the investee. Subsidiaries are
consolidated from the date the Group has gained control
and divested companies are consolidated until the date
control is lost.
The acquisition method is used in the accounting for
the elimination of internal ownership. All intra-group
transactions, as well as intra-group receivables, payables,
dividends and unrealised internal margins, are eliminated.
The Group’s profit for the period is attributed to the
equity holders of the parent and non-controlling interests.
Identifiable assets acquired and assumed liabilities of an
acquired entity are measured at their fair value as of the
acquisition date. Any contingent consideration is measured
at fair value at the date of acquisition and classified under
other interest-bearing liabilities. Changes in the contingent
consideration and acquisition-related expenses are
recognised as an expense in the statement of comprehensive
income.
Changes in the parent’s ownership interest in a subsidiary
that do not result in a loss of control are accounted for as
equity transactions. As at the date when control is lost, any
investment retained in the former subsidiary is recognised
at fair value and the difference is recorded through the
statement of comprehensive income.
The consolidation principles for joint ventures are presented
in the note 10.4.
Foreign currency denominated items: The consolidated
financial statements have been presented in euros, which
is the functional and presentation currency of the Group’s
parent company. The items included in the financial
statements of the subsidiaries are valued in the currency,
which best describes the financial operating conditions of
each subsidiary “functional currency”.
Transactions in foreign currencies are translated into
functional currency/euro at the rates of exchange prevailing
at the dates of transactions. Monetary items have been
translated into euros using the rates of exchange as at the
balance sheet date and non-monetary items using the rates
of exchange at the dates of transactions, excluding items
measured at fair value, which have been translated using the
rates of exchange on the date of valuation. Gains and losses
arising from the translation are recognised in the profit or
loss. Foreign exchange gains and losses from operations are
included within the corresponding items above EBIT. Foreign
exchange gains and losses from loans denominated in a
foreign currency are included within financial income and
expenses.
The income statements of foreign group companies outside
the eurozone are translated into euros using the weighted
average rate of exchange of the financial year and the
statements of financial position using the rates of exchange
as at the balance sheet date. Differences resulting from
the translation of the result for the period at a different
rate in the statement of comprehensive income and in the
statement of financial position are recognised as a separate
item within the consolidated statement of comprehensive
income. Translation differences arising from the acquisition
cost elimination of foreign subsidiaries and from the
translation of equity items accrued after the acquisition
date are recognised in other comprehensive income. When
a subsidiary is sold in full or in part, related translation
differences are included in the calculation of gain or loss for
the sale and recognised in the profit or loss for the period.
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10.1. Subsidiaries

|  |  | Group | Parent company |
|  | Owner- | Owner-
31 Dec 2024 | Domicile | ship % Share % | ship % Share %
Parent company Oriola |  |  |  |  |
Corporation | Finland |  |  |  |
Oriola Finland Oy | Finland | 100 | 100 | 100 | 100
Oriola Sweden AB | Sweden | 100 | 100 | 100 | 100
Svensk dos AB | Sweden | 100 | 100 | 100 | 100
Pharmaservice Oy | Finland | 100 | 100 | 100 | 100

ICTHS Health Support AB was merged with the parent company
Oriola Sweden AB in January 2024.

|  |  | Group | Parent company |
|  | Owner- | Owner-
31 Dec 2023 | Domicile | ship % Share % | ship % Share %
Parent company Oriola |  |  |  |  |
Corporation | Finland |  |  |  |
Oriola Finland Oy | Finland | 100 | 100 | 100 | 100
Oriola Sweden AB | Sweden | 100 | 100 | 100 | 100
Svensk dos AB | Sweden | 100 | 100 | 100 | 100
Pharmaservice Oy | Finland | 100 | 100 | 100 | 100
Oriola Sweden AB | Sweden | 100 | 100 | 100 | 100
ICTHS Health |  |  |  |  |
Support AB | Sweden | 100 | 100 |  |

10.2. Related party transactions
Related parties in the Oriola Group are deemed to comprise the
members of the Board of Directors and the President and CEO of
Oriola Corporation, other members of the Oriola Management
Team (key management), the immediate family of the
aforementioned persons and companies in which they have control
or joint control, the Group’s subsidiaries and joint ventures.
The Group has transactions between the group companies and the
joint venture in the ordinary course of business. The Group has no
significant business transactions with other related parties.
Transactions with the joint venture are presented in the following
table:

EUR million | 2024 | 2023
Net sales* | 360.0 | 314.7
Purchases of goods and services | 0.8 | 0.4
Trade and other receivables | 70.0 | 70.5
Trade and other payables | 4.3 | 0.8
Commitments | - | 0.1

* Presentation of sales has been changed to net sales instead of invoicing and
comparative inromation has been restated accordingly.

Key management benefits |  |
EUR thousand | 2024 | 2023
Salaries and other short-term employee benefits | 2,173.2 | 2,515.9
Termination benefits | 408.0 | 159.0
Share-based payments | 132.5 | 97.4
Total | 2,713.6 | 2,772.3

Employee benefits to President and CEO |  |
EUR thousand | 2024 | 2023
Katarina Gabrielson |  |
Basic salary | 427.5 | 418.1
Bonuses | - | 204.9
Share-based payments | 16.4 | 3.6
Pension expenses (statutory) | 36.1 | 33.0
Pension expenses (voluntary) | 42.0 | 41.9
Employee benefits to President and CEO total | 522.1 | 701.4
Employee benefits to other members of the Oriola Management |  |
Team |  |
EUR thousand | 2024 | 2023
Basic salary | 1,155.1 | 1,001.7
Bonuses | - | 337.1
Share-based payments | 5.1 | 5.1
Termination expenses * | 408.0 | 159.0
Pension expenses (statutory) | 243.2 | 238.1
Pension expenses (voluntary) | 23.6 | 23.5
Total | 1,835.0 | 1,764.4

* Termination expenses include the severance pay equal to 6 months’ salary.
The total benefits of the President and CEO of the Group and
the Oriola Management Team include a supplementary health
insurance. The President and CEO of the Group and the Oriola
Management Team participate in statutory pension schemes. Two
Oriola Management Team members participate in a voluntary
defined contribution plan.

Remuneration of the members of the Board of Directors |  |
EUR thousand | 2024 | 2023
Heikki Westerlund, Chairman* | 85.5 | 75.0
Harri Pärssinen, Vice Chairman | 52.5 | 50.0
Petra Axdorff** | 43.0 | -
Ann Carlsson Meyer** | 41.0 | -
Nina Mähönen | 43.0 | 41.5
Yrjö Närhinen* | 47.0 | 39.5
Ellinor Persdotter Nilsson* | 42.5 | 38.0
Eva Nilsson Bågenholm*** | 2.0 | 50.0

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EUR thousand | 2024 | 2023
Juko-Juho Hakala**** | - | 7.0
Lena Ridström**** | - | 2.5
Panu Routila**** | - | 4.5
Total | 356.5 | 308.0

* from 21 March 2023
** from 19 March 2024
*** until 19 March 2024
**** until 21 March 2023
Annual General Meeting in 2024 confirmed that the fee for the term
of office of the Chairman of the Board of Directors is EUR 70,000,
the fee for the term of office of the Vice Chairman of the Board of
Directors and for the Chairman of the Board’s Audit Committee
is EUR 40,000 and the fee for the term of office of other members
of the Board of Directors is EUR 33,500. Of the annual fee, 60 per
cent shall be paid in cash and 40 per cent shall be used to acquire
Oriola Corporation’s class B shares. The Chairman of the Board of
Directors receives an attendance fee of EUR 1,000 per meeting for
meetings of the Board of Directors held in the Chairman’s home
country and EUR 2,000 for meetings of the Board of Directors
held elsewhere and the other members of the Board of Directors
receive attendance fees of EUR 500 per meeting for meetings held
in the home country of the respective member of the Board of
Directors and EUR 1,000 for meetings held elsewhere. Attendance
fees are correspondingly also paid to the Chairman and members
of company committees. Travel expenses are compensated in
accordance with the travel policy of the company.
For the apportionment paid in shares, an expense of EUR 0.1 (0.1)
million was recognised in 2024.
Assets held for sale
Oriola announced on 13 October 2023 that it has signed an
agreement to sell all shares in Svensk dos AB to Apotekstjänst
Sverige AB and is thereby exiting the dose dispensing business in
Sweden as part of Oriola’s strategic decision to strengthen focus on
wholesale business. Oriola has not seen a foreseeable recovery of
the business due to current tender market structure and dynamics.
Svensk dos AB has been classified as held for sale since October
2023.
The Swedish Competition Authority (Konkurrensverket) announced
on 30 April 2024 its decision on prohibiting Oriola’s sale of Svensk
dos AB to Apotekstjänst Sverige AB due to negative effects on the
competition in the market. The Swedish Patent and Market Court
rejected Apotekstjänst Sverige AB’s appeal in November 2024 and
consequently the Swedish Competition Authority’s decision from
April 2024 remains in effect. Apotekstjänst Sverige AB has appealed
the decision to the Patent and Market Court of Appeal. The final
ruling is expected in March 2025. Oriola is still committed to selling
Svensk dos AB.
In dose dispensing business, Svensk dos AB offers pharmaceuticals
and dose dispensing for private and public healthcare sector op-
erators. The net sales of dose dispensing Sweden in 2024 was EUR
21.7 (25.3) million and EBIT was EUR 1.5 (-6.1) million. In 2023 EBIT
includes a goodwill impairment loss of EUR 3.3 million.
The following assets and liabilities were classified as held for sale:

EUR million | 2024 | 2023
Property, plant and equipment | 2.3 | 2.4
Goodwill | 4.5 | 4.5
Other intangible assets | 1.8 | 1.9
Deferred tax assets | 0.6 | 0.5
Inventories | 1.5 | 1.2

10.3. Assets held for sale and discontinued operations
Non-current assets, or disposal groups comprising assets
and liabilities, are classified as held for sale if it is highly
probable that they will be recovered primarily through sale
rather than through continuing use. Such assets, or disposal
groups, are generally measured at the lower of their carrying
amount and fair value less costs to sell. The recognition
criteria are met when a sale is highly probable, the asset or a
disposal group is available for immediate sale in its present
condition subject only to terms that are usual and customary
for the sales of such assets, the management is committed
to the plan to sell the asset and the sale is expected to be
completed within one year from the date of classification.
Once classified as held for sale, intangible assets and
property, plant and equipment are no longer amortised or
depreciated, and any equity-accounted investee is no longer
equity accounted. From the date of the classification, assets
held for sale or disposal group are measured at the lower of
its carrying amount and fair value less costs to sell.
Operations are classified as discontinued operations in case
a component of an entity has either been disposed of, or is
classified as held for sale, and it represents a separate major
line of business or geographical area of operations, it is part
of a single coordinated plan to dispose of a separate major
line of business or geographical area of operations or it is a
subsidiary acquired exclusively with a view to resale.
The result for the period of discontinued operations is
presented as a separate item in the consolidated statement
of comprehensive income.
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EUR million | 2024 | 2023
Trade and other receivables | 2.4 | 1.5
Cash and cash equivalents | 0.0 | 0.0
Total assets | 13.1 | 12.0
EUR million |  |
Deferred tax liabilities | 0.1 | 0.1
Current interest-bearing liabilities | - | 0.2
Current trade and other payables | 1.7 | 1.5
Total liabilities | 1.8 | 1.8

Discontinued operations
There were no discontinued operations in 2023 or 2024.
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10.4. Investments in joint ventures
Joint ventures are joint arrangements where the Group has
joint control with other parties and the parties have rights to
the arrangement’s net assets.
Interests in joint ventures are accounted for using the
equity method of accounting and are initially recognised at
cost after which the Group’s share of the post-acquisition
retained profits and losses is included as part of investments
in joint ventures in the consolidated statement of financial
position. Under the equity method the share of profits
and losses of joint ventures is presented separately in the
statement of comprehensive income after EBIT.
Investments in joint ventures are tested for impairment
whenever events or change in circumstances indicate that
the carrying amount may not be recoverable.
Oriola has 50% shareholding in Swedish Pharmacy Holding
AB, which controls pharmacy chain Kronans Apotek in
Sweden.
Use of estimates: Management judgement is required when
testing the carrying amount of the joint venture for impairment.

EUR million | 2024 | 2023
Carrying amount 1 Jan | 235.4 | 240.4
Share of result for the period | -24.8 | -4.8
Foreign exchange rate differences | 0.3 | -0.2
Carrying amount 31 Dec | 210.9 | 235.4

The share of result in 2024 includes Oriola’s share of the impairment
of goodwill in Kronans Apotek amounting to EUR 16.3 million. The
impairment is related to the integration of Kronans Apotek and
Apoteksgruppen, and the transition to one common ERP system,
which have required more time than anticipated.
Summarised financial information for joint venture
The summary below is based on the reporting of the joint venture
prepared in accordance with IFRS.

| Swedish Pharmacy Holding AB |
Balance sheet EUR million | 31 Dec 2024 | 31 Dec 2023
Current assets |  |
Cash and cash equivalents | 3.8 | 13.5
Other current assets | 156.5 | 157.2
Current assets total | 160.3 | 170.6
Non-current assets | 507.8 | 587.9
Current liabilities |  |
Trade payables | 114.2 | 114.1
Other current liabilities | 48.7 | 59.9
Current liabilities total | 162.8 | 174.0
Non-current liabilities | 104.8 | 116.5
Net assets total | 400.4 | 468.1

Reconciliation to carrying amounts |  |
EUR million | 31 Dec 2024 | 31 Dec 2023
Net assets 1 Jan | 468.1 | 474.1
Change in reserves | -5.0 | -
Adjustment to the opening balance | 1.7 | 2.7
Translation differences | -14.7 | 0.8
Loss for the period | -49.7 | -9.5
Net assets 31 Dec | 400.4 | 468.1
Group's share in joint venture | 50% | 50%
Group’s share of net assets | 200.2 | 234.0
Translation differences | 7.4 | -0.4
Other | 3.3 | 1.8
Carrying amount 31 Dec | 210.9 | 235.4
| Swedish Pharmacy Holding AB
Income statement EUR million | 2024 | 2023
Net sales | 1,151.1 | 1,126.9
Depreciation. amortisation and impairment losses | -84.7 | -45.6
Net interest expenses | -5.0 | -3.9
Income taxes | 2.6 | 2.3
Result for the period | -49.7 | -9.5

In 2024 the company recognised a goodwill impairment loss of EUR
32.6 million. The impairment is related to integration of Kronans
Apotek and Apoteksgruppen, and the transition to one common
ERP system, which have required more time than anticipated.
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11.1. Commitments and contingent liabilities

EUR million | 2024 | 2023
Commitments for own liabilities |  |
Guarantees on behalf of subsidiaries | 7.1 | 6.6
Guarantees on behalf of other companies | - | 0.1
Mortgages on company assets | 2.0 | 1.9
Other guarantees and liabilities | 1.7 | 3.8
Total | 10.9 | 12.4

The most significant guarantees on behalf of subsidiaries are bank
guarantees against Swedish wholesale company’s trade payables.
11.2. Future lease payments

Committed future minimum lease payments: |  |
EUR million | 2024 | 2023
Within one year | 0.7 | 0.5
One to five years | 0.3 | 0.4
Total | 0.9 | 0.9

Future payments consist of minimum leasing commitments
related to low-value assets and short-term leases, to which the
Group elected to apply recognition exemptions permitted by IFRS
16. For details about leases please refer to section 7. Leases. The
leasing expenses related to short-term leases and leases of low-
value assets are presented in note 7.2. Leases in the statement of
comprehensive income.
11.3. Litigation
Oriola is from time to time involved in legal actions, claims and
other proceedings. It is Oriola’s policy to provide for amounts
related to the proceedings if liability is probable and such amounts
can be estimated with reasonable accuracy. Taking into account all
available information to date, the legal actions, claims and other
proceedings are not expected to have material impact on the
financial position of the Group.
11.4. Events after the balance sheet date
Acquisition of MedInfo ApS in Denmark
Oriola announced on 27 January 2025 that it acquires 100% of
the shares in MedInfo ApS in Denmark to strengthen its Nordic
footprint in medical information (MI) and patient support
programmes (PSP). MedInfo is currently Oriola’s subcontractor
covering the Danish and Norwegian markets with MI and PSP
services.
MedInfo’s net sales in 2024 were EUR 0.9 million, which mainly
came from transactions with Oriola, and which is eliminated in
the consolidated financial statements. The company employs five
persons in full-time equivalents (FTE) and an interim manager,
who will stay on for the first months to ensure a smooth transition.
MedInfo will be integrated in Oriola’s Advisory services, which
is part of Wholesale segment. The transaction was closed on 3
February 2025. The acquisition does not have a significant impact
on Oriola’s financial position.
Oriola Management Team
Oriola announced on 3 March 2025 that Stig Tornell, B. Sc. (Bus.
Adm. & Econ.), has been appointed as Executive Vice President,
Sales and member of the Oriola Management Team as of 1 April
2025.
11. Unrecognised items
12. Other notes
12.1.Application of new and amended IFRS standards
and IFRIC interpretations
Certain new or revised standards and interpretations have been
published by the International Accounting Standards Board (IASB)
that are not mandatory for 31 December 2024 reporting periods
and have not yet been applied by the Group. These standards are
not expected to have a material impact on the Group in the current
or future reporting periods and on foreseeable future transactions.
The Group is evaluating the effects of the new IFRS 18 Presentation
and Disclosure in Financial Statements -standard, which will be
effective from 1 January 2027.
The Group will apply each new standard and interpretation from
the effective date. If the effective date is other than the first day of
a financial year, the Group will apply the standard or interpretation
from the beginning of the following financial year.
Shareholder’s proposal regarding combination of share classes
and directed issuance of shares without payment
As announced on 7 February 2025, the Board of Directors of
Oriola Corporation has on 7 February 2025 received a demand in
accordance with Chapter 5 Section 5 of the Finnish Companies Act
to have the combination of share classes and directed issuance of
shares without payment dealt with by the Annual General Meeting
of Oriola scheduled to be held on 2 April 2025.
As announced on 3 March 2025, the Board of Directors of Oriola
Corporation recommends that the shareholder’s proposal
regarding combination of share classes and directed issuance
of shares without payment be accepted at the Annual General
Meeting.
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Parent company financial statements
Parent company income statement (FAS)
EUR thousand Note 2024 2023
Other operating income 2 17,580.9 17,148.6
Personnel expenses 3 -8,038.3 -7,777.8
Depreciation, amortisation
and impairment charges 4 -3,634.8 -4,185.0
Other operating expenses 5 -13,032.5 -11,164.2
Operating result -7,124.7 -5,978.5
Financial income and expenses 6 -35,425.4 -18,405.9
Result before appropriations and taxes -42,550.1 -24,384.4
Appropriations 7 19,278.5 19,663.5
Income taxes 8 -1,335.8 -2,214.3
Result for the period -24,607.3 -6,935.1
Parent company balance sheet (FAS)
EUR thousand Note 31 Dec 2024 31 Dec 2023
Assets
Non-current assets
Intangible assets 9
Intangible rights 151.3 222.9
Other intangible assets 9,832.2 13,368.1
Advance payments and construction in progress 6,394.9 1,865.6
16,378.4 15,456.5
Property, plant and equipment 10
Land and water areas 77.4 77.4
Machinery and equipment 1.1 2.6
Other tangible assets 7.5 7.5
86.0 87.5
Investments 11
Holdings in group companies 273,720.6 284,765.1
Holdings in participating interest companies 215,212.0 242,250.0
Other shares 8,203.2 8,203.2
497,135.7 535,218.3
Non-current assets, total 513,600.1 550,762.4
Current assets 12
Receivables
Long-term receivables
Accrued receivables 600.3 1,847.4
Short-term receivables
Trade receivables - 233.6
Receivables from group companies 19,662.5 19,903.1
Other receivables 511.6 662.0
Accrued receivables 1,381.1 1,167.9
22,155.4 23,814.1
Cash and cash equivalents 113,463.9 137,532.8
Current assets, total 135,619.3 161,346.8
Assets total  649,219.5 712,109.2
EUR thousand Note 31 Dec 2024 31 Dec 2023
Equity and liabilities
Equity 13
Share capital 147,899.8 147,899.8
Other funds 19,418.7 19,418.7
Invested unrestricted equity reserve 76,957.5 76,957.5
Retained earnings 81,503.8 101,248.6
Result for the financial year -24,607.3 -6,935.1
301,172.4 338,589.5
Appropriations 14 1,488.8 1,597.4
Liabilities 15
Long-term liabilities
Borrowings 30,000.0 1,000.0
Liabilities to group companies 18,326.2 37,851.5
Accrued liabilities 499.0 391.5
48,825.2 39,243.0
Short-term liabilities
Borrowings 1,000.0 58,135.5
Trade payables 2,778.6 1,936.4
Liabilities to group companies 264,829.6 228,665.5
Other liabilities 27,384.6 41,999.0
Accrued liabilities  1,740.2 1,942.9
297,733.1 332,679.4
Liabilities total 346,558.3 371,922.3
Equity and liabilities total  649,219.5 712,109.2
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Parent company cash flow statement (FAS)
EUR thousand 2024 2023
Cash flow from operating activities
Result before appropriations and taxes -42,550.1 -24,384.4
Adjustments
Depreciation, amortisation
and impairment charges 3,634.8 4,185.0
Unrealised foreign exchange gains and losses 1,054.3 1,989.7
Other non-cash items -1.2 -6.9
Financial income and expenses 33,180.5 16,416.2
 -4,681.6 -1,800.4
Change in working capital
Change in current
non-interest-bearing receivables -802.6 -941.1
Change in non-interest-bearing current
liabilities -537.3 487.2
 -6,021.5 -2,254.2
Paid and received other financial expenses
and income -497.3 -667.3
Interest received 3,748.4 4,024.5
Interest paid -7,924.4 -9,401.0
Income taxes paid -1,250.0 -1,433.6
Cash flow from operating activities -11,944.7 -9,731.6
Cash flow from investing activities
Investments in tangible and intangible assets -3,294.9 -1,601.0
Dividends received 8,799.7 38,171.4
Cash flow from investing activities 5,504.8 36,570.4
Cash flow from financing activities
Purchase of own shares -111.0 -88.8
Proceeds from long-term loans 30,000.0 -
Repayments of long-term loans -18,502.2 -40,171.4
Repayments of short-term loans -57,860.5 -
EUR thousand 2024 2023
Change in other current financing 22,147.9 -16,282.9
Group contributions received 19,392.5 18,181.9
Dividends paid -12,695.6 -10,869.2
Cash flow from financing activities -17,628.9 -49,230.5
Change in cash and cash equivalents -24,068.9 -22,391.7
Cash and cash equivalents at
the beginning of period 137,532.8 159,924.5
Net change in cash and cash equivalents -24,068.9 -22,391.7
Cash and cash equivalents at the end of period 113,463.9 137,532.8
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Notes to the parent company financial statements
(FAS)
1. Accounting principles
Oriola Corporation is the parent company of the Oriola Group,
domiciled in Espoo, Finland. Oriola Corporation provides
administrative services to group companies. These administrative
services are centralised to the parent company. Copies of the
consolidated financial statements of the Oriola Group are available
at the head office of Oriola Corporation, Orionintie 5, FI-02200
Espoo, Finland (investor.relations@oriola.com).
Oriola Corporation´s financial statements are prepared in euros and
according to Generally Accepted Accounting Principles in Finland
(Finnish GAAP) and according to corporate legislation. The financial
statements are presented in thousand euros.
When appropriate, the financial statements of Oriola Corporation
comply with the Group’s accounting principles based on IFRS.
Below are described those accounting principles in which
the financial statements of Oriola Corporation differ from the
accounting principles of the consolidated financial statements. The
accounting principles for the consolidated financial statements are
presented in the notes to the consolidated financial statements.
Financial assets and liabilities: Financial items classified as loans
and receivables or other financial liabilities are carried at amortised
cost.
The change in the fair value of the effective portion of interest rate
derivative agreements under hedge accounting made to hedge
cash flows is directly recognised against the fair value reserve
included in equity. Derivatives acquired to hedge balance sheet
items like bank accounts, loans and receivables denominated in
foreign currencies and derivatives made to hedge cash flows that
are not under hedge accounting are recorded in exchange gains
and losses in the financial items.
Share-based payments: The accounting treatment of Oriola
Corporations share-based incentive plans is described in the
accounting principles for the consolidated financial statements.
The share incentive plans of Oriola Corporation are a combination
of shares and a cash payment. The granted amount of the incentive
plans, settled in shares, is measured at share price of the grant
date less expected dividends. The cash-settled part of the plans is
measured at fair value, which is the share price at the end of the
reporting period. The expenses arising from the incentive plans
are recognised in the income statement over the vesting period.
In the financial statements of the parent company the component
settled in shares as well as the cash-settled part are recognised as
accrued liability until paid out. When paid out the share settled part
is credited to the equity.
Pension arrangements: The Statutory pension coverage of Oriola
Corporation is provided by Ilmarinen Mutual Pension Insurance
Company. Supplementary pension coverage is provided by OP Life
Assurance Company Ltd. Pension-related payments are recognised
as pension expenses on an accrual basis. No other pension liabilities
arising from pension arrangements are recognised in the balance
sheet except for pension-related accruals.
Leases: The lease agreements of Oriola Corporation consist
mainly of information and communication technology equipment.
Lease payments are expensed over the rental period and they are
included in other operating expenses. Assets leased and related
liabilities are not recognised in the parent company’s balance
sheet.
Subsidiary shares: The carrying amounts of subsidiary shares
are assessed as part of the Group’s impairment testing, where
cash flow forecasts based on value-in-use calculations are
prepared for the Group’s cash-generating units. In the impairment
testing of subsidiary shares, the cash flows are further allocated
to subsidiaries’ recoverable amounts. The impairment loss is
recognised, if the carrying amount of the subsidiary shares and
the amount of net loan receivables from the subsidiary exceed the
recoverable amount of the corresponding assets.
Other investments in non-current assets: If the recoverable
amount of the other investment in non-current assets is
estimated to be permanently lower than the acquisition cost less
amortisation, the difference is recorded as an impairment loss in
the income statement.
2. Other operating income
EUR thousand 2024 2023
Rental income 12.9 12.9
Other service charges 16,910.0 17,124.3
Other operating income 658.0 11.4
Total 17,580.9 17,148.6
3. Personnel
EUR thousand 2024 2023
Personnel costs
Salaries and fees 6,529.3 6,262.9
Pension costs 1,111.2 1,018.2
Other personnel costs 397.8 496.7
Total 8,038.3 7,777.8
Average number of personnel 67 62
Salaries and bonuses to the Management
CEO and Members of the Board of Directors 878.6 1,052.4
Remuneration and pension costs for the CEO and the members of
the Board of Directors are disclosed in the consolidated financial
statement in note 10.2. Related party transactions.
4. Depreciation, amortisation and impairment charges
EUR thousand 2024 2023
Depreciation 3,634.8 4,185.0
Total 3,634.8 4,185.0
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Criteria applied for the straight-line depreciation is disclosed
in notes 6.1. and 6.2. to the consolidated financial statement.
Depreciation by asset class is presented in notes 9-10.
5. Other operating expenses
EUR thousand 2024 2023
Postage, telephone and banking expenses 137.3 144.4
IT expenses 7,650.0 7,096.3
Travelling and car expenses 366.9 240.1
Administrative consultancy services 3,082.9 2,069.6
Other operating expenses 1,795.3 1,613.7
Total 13,032.5 11,164.2
Other operating costs are mainly costs related to the ownership.
Audit costs included in
other operating costs, EUR thousand 2024 2023
Fees for statutory audit 82.0 72.8
Fees for audit related assignments 104.7 20.5
Fees for other services 39.5 33.1
Total 226.2 126.4
6. Financial income and expenses
EUR thousand 2024 2023
Income from group companies
Dividend income from group companies 8,799.7 -
Other interest and financial income
Interest income from group companies 33.4 140.4
Interest income from other companies 3,715.0 3,884.1
Other financial income 16,184.5 14,647.9
Interest and other financial expenses
Interest expenses to group companies -3,240.6 -4,447.1
Interest expenses to other companies -4,448.8 -5,143.9
Other financial expenses -18,386.0 -17,661.2
Impairment on investments
Impairment on investments
in non-current assets -38,082.6 -9,826.1
Total -35,425.4 -18,405.9
Financial income and expenses include:
Interest income 3,748.4 4,024.5
Interest expenses -7,689.4 -9,591.1
Exchange rate gains/losses -36.3 -28.9
Impairment on investments in non-current assets include
impairment on subsidiary shares (EUR 11.0 million) and impairment
on joint venture shares (EUR 27.0 million).
7. Appropriations
EUR thousand 2024 2023
Change in depreciation difference 108.6 271.1
Group contribution received 19,170.0 19,392.5
Total 19,278.5 19,663.5
8. Income taxes
EUR thousand 2024 2023
Income taxes for the financial period 1,335.8 1,323.4
Income taxes for previous financial periods - 890.9
Total 1,335.8 2,214.3
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9. Intangible assets
EUR thousand
2024
Intangible
rights
Other
intangible
assets
Advance
payments and
construction in
progress Total
Historical cost 1 Jan 812.7 29,819.9 1,865.6 32,498.1
Increases - 13.6 4,541.6 4,555.2
Reclassifications - 12.3 -12.3 -
Historical cost 31 Dec 812.7 29,845.8 6,394.9 37,053.3
Accumulated amortisation 1 Jan 589.8 16,451.8 - 17,041.6
Amortisation for the financial year 71.6 3,561.7 - 3,633.3
Accumulated amortisation 31 Dec 661.4 20,013.6 - 20,674.9
Carrying amount 31 Dec 151.3 9,832.2 6,394.9 16,378.4
2023    
Historical cost 1 Jan 940.1 31,404.0 6,312.5 38,656.6
Increases - 117.1 1,568.0 1,685.1
Decreases -127.4 -1,819.4 -5,896.8 -7,843.6
Reclassifications - 118.1 -118.1 -
Historical cost 31 Dec 812.7 29,819.9 1,865.6 32,498.1
Accumulated amortisation 1 Jan 611.7 14,193.5 5,896.8 20,702.0
Accumulated depreciation related to decreases -127.4 -1,819.4 -5,896.8 -7,843.6
Amortisation for the financial year 105.6 4,077.7 - 4,183.3
Accumulated amortisation 31 Dec 589.8 16,451.8 - 17,041.6
Carrying amount 31 Dec 222.9 13,368.1 1,865.6 15,456.5
10. Property, plant and equipment
EUR thousand
2024
Land and
water areas
Machinery and
equipment
Other
tangible assets Total
Historical cost 1 Jan 77.4 17.7 7.5 102.6
Historical cost 31 Dec 77.4 17.7 7.5 102.6
Accumulated depreciation 1 Jan - 15.1 - 15.1
Depreciation for the financial year - 1.5 - 1.5
Accumulated depreciation 31 Dec - 16.6 - 16.6

Carrying amount 31 Dec 77.4 1.1 7.5 86.0
2023    
Historical cost 1 Jan 77.4 17.7 7.5 102.6
Historical cost 31 Dec 77.4 17.7 7.5 102.6
Accumulated depreciation 1 Jan - 13.3 - 13.3
Depreciation for the financial year - 1.8 - 1.8
Accumulated depreciation 31 Dec - 15.1 - 15.1

Carrying amount 31 Dec 77.4 2.6 7.5 87.5
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11. Investments
EUR thousand
2024
Holdings in group
companies
Holdings in
participating
interest companies Other shares Total
Historical cost 1 Jan 308,750.9 242,250.0 8,203.2 559,204.1
Historical cost 31 Dec 308,750.9 242,250.0 8,203.2 559,204.1
Accumulated impairments 1 Jan -23,985.8 - - -23,985.8
Impairments -11,044.6 -27,038.0 - -38,082.6
Impairment 31 Dec -35,030.4 -27,038.0 - -62,068.4
Carrying amount 31 Dec 273,720.6 215,212.0 8,203.2 497,135.7
2023   
Historical cost 1 Jan 308,750.9 242,250.0 8,203.2 559,204.1
Historical cost 31 Dec 308,750.9 242,250.0 8,203.2 559,204.1
Accumulated impairments 1 Jan -14,159.7 - - -14,159.7
Impairments -9,826.1 - - -9,826.1
Impairment 31 Dec -23,985.8 - - -23,985.8
Carrying amount 31 Dec 284,765.1 242,250.0 8,203.2 535,218.3
Holdings in participating interest companies include Oriola Corporation’s 50% shareholding in Swedish Pharmacy Holding AB, which
controls pharmacy chains Kronans Apotek and Apoteksgruppen in Sweden. In 2024, an impairment of EUR 11.0 million was made to the
subsidiary shares and an impairment of EUR 27.0 million to the shareholding in Swedish Pharmacy Holding AB. In 2023, an impairment in
total of EUR 9.8 million was made to the subsidiary shares.
12. Receivables
EUR thousand 2024 2023
Receivables from group companies
Short-term receivables
Trade receivables 466.1 35.5
Other receivables 26.5 475.1
Accrued income and prepaid expenses 19,170.0 19,392.5
Total 19,662.5 19,903.1
Items included in accrued receivables
Long-term accrued receivables
Change of fair value for interest rate swap 600.3 -
Short-term accrued receivables
Arrangement fees relating to loans 146.8 236.7
Exchange rate profit on hedges 450.1 481.5
Compensations not received 15.1 8.0
Group contribution 19,170.0 19,392.5
Other accrued receivables 573.1 441.8
Change of fair value for interest rate swap 195.9 -
Total 21,151.4 20,560.4
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13. Equity
EUR thousand 2024 2023
Share capital 1 Jan 147,899.8 147,899.8
Share capital 31 Dec 147,899.8 147,899.8
Restricted equity 147,899.8 147,899.8
Contingency fund 1 Jan 19,418.7 19,418.7
Contingency fund 31 Dec 19,418.7 19,418.7
Invested unrestricted equity reserve 1 Jan 76,957.5 76,957.5
Invested unrestricted equity reserve 31 Dec 76,957.5 76,957.5
Profit/ loss from previous years 1 Jan 94,313.5 112,220.0
Dividend paid -12,698.7 -10,882.6
Share-based compensation -124.0 -121.1
Purchase of own shares * -111.0 -88.8
Delivery of own shares 124.0 121.1
Profit/loss from previous years 31 Dec 81,503.8 101,248.6
Result for the period -24,607.3 -6,935.1
Non-restricted equity 153,272.7 190,689.8
Total 301,172.4 338,589.5
* Shares purchased for the share based incentive programme.
Distributable funds 31 Dec 2024 2023
Contingency fund 19,418.7 19,418.7
Invested unrestricted equity reserve 76,957.5 76,957.5
Profit/ loss from previous years 81,503.8 101,248.6
Net profit for the period -24,607.3 -6,935.1
Distributable funds 31 Dec 153,272.7 190,689.8
14. Appropriations
EUR thousand 2024 2023
Cumulative accelerated depreciation difference 1,488.8 1,597.4
Total 1,488.8 1,597.4
15. Liabilities
EUR thousand 2024 2023
Liabilities to group companies
Long-term liabilities
Other liabilities 18,326.2 37,851.5
Short-term liabilities
Trade payables 54.7 94.6
Other liabilities 264,775.0 228,555.9
Accrued liabilities - 14.9
Total 283,155.8 226,516.9
Items included in accrued liabilities
Long-term accrued liabilities
Change of fair value for interest rate swap 499.0 391.5
Short-term accrued liabilities
Items related to personnel 1,544.4 1,113.8
Interest 107.0 342.0
Other accrued liabilities 88.8 76.4
Change of fair value for interest rate swap - 410.8
Total 2,239.2 2,334.4
16. Guarantees, liability engagements
and other liabilities
EUR thousand 2024 2023
Guarantees and other liabilities
Guarantees for group companies - 86.7
Other liabilities and engagements 1,000.0 3,000.0
Total 1,000.0 3,086.7
Rental liabilities on real estate
Maturity within one year 33.0 33.0
Total 33.0 33.0
Rental liabilities on machinery and fixtures
Maturity within one year 288.2 299.6
Maturity within 1–5 years 248.7 282.2
Total 536.9 581.9
17. Derivatives and financial risk management
EUR thousand 2024 2023
Book values of derivative instruments
Interest rate swap agreements 82,360.6 64,888.2
Foreign currency forward and swap contracts 94,249.1 57,678.4
Total 176,609.7 122,566.7
Fair values of derivative instruments
Interest rate swap agreements 595.6 1,800.3
Foreign currency forward and swap contracts 450.1 360.5
Total 1,045.8 2,160.9
Oriola Corporation has interest rate swap agreements hedging
the Oriola Group’s cash flows as well as foreign currency forward
and swap contracts with various counterparties. These derivatives
are managed in accordance with the treasury policy approved
by the Oriola Corporation Board of Directors. While the Oriola
Group’s interest rate risks from Oriola Sweden AB’s selling of trade
receivables are hedged with derivative agreements on a group level,
the hedging presents an interest rate risk to Oriola Corporation.
More information on the Oriola Group’s financial risk management
and derivatives are presented in note 8.3. Financial Risk
Management in the notes to the consolidated Financial Statements.
18. Ownership in other companies
The Parent company’s ownership in other companies is presented
in the note 10.1. Subsidiaries, in the notes to the Consolidated
Financial Statements.
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Parent company financial statements
According to the parent company’s balance sheet as at 31 December 2024,
the total distributable funds are:
Other funds, EUR 19,418,729.58
Invested unrestricted equity reserve, EUR 76,957,531.72
Retained earnings, EUR 81,503,757.57
Loss for the period, EUR -24,607,349.51
Total distributable funds, EUR 153,272,669.36
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.07 per share will be distributed
to 181,410,501 shares, EUR 12,698,735.07 for year 2024 and EUR 140,573,934.29 will be retained in equity.
There have been no material changes in the financial position of the company after the end of the financial year.
The Board of Directors’ proposal for the profit
distribution and Auditor’s Note
Auditor’s Note
The Auditor’s report has been issued today.
Helsinki, 3 March 2025
KPMG Oy Ab
Kirsi Jantunen
Authorised Public Accountant
Signatures for the financial statements and the report of the Board of Directors
Espoo, 3 March 2025
Heikki Westerlund Harri Pärssinen Petra Axdorff Ann Carlsson Meyer
Chairman Vice Chairman
Nina Mähönen Yrjö Närhinen Ellinor Persdotter Nilsson Katarina Gabrielson
President and CEO
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To the Annual General Meeting of Oriola Corporation
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Oriola Corporation
(business identity code 1999215-0) for the year ended December
31, 2024. The financial statements comprise the consolidated state-
ment of financial position, statement of comprehensive income,
statement of changes in equity, statement of cash flows and notes,
including material accounting policy information, as well as the
parent company’s balance sheet, income statement, statement of
cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view
of the group’s financial position, financial performance and cash
flows in accordance with IFRS Accounting Standards as adopted
by the EU
• the financial statements give a true and fair view of the parent
company’s financial performance and financial position in
accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with
statutory requirements.
Our opinion is consistent with the additional report submitted to
the Audit Committee.
Auditor’s Report
Basis for Opinion
We conducted our audit in accordance with good auditing prac-
tice in Finland. Our responsibilities under good auditing practice
are further described in the Auditor’s Responsibilities for the Audit
of the Financial Statements section of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company and
group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have not
provided any prohibited non-audit services referred to in Article
5(1) of regulation (EU) 537/2014. The non-audit services that we
have provided have been disclosed in note 4.3 to the consoli-
dated financial statements.
We believe that the audit evidence we have obtained is suffi-
cient and appropriate to provide a basis for our opinion.
Materiality
The scope of our audit was influenced by our application of
materiality. The materiality is determined based on our profes-
sional judgement and is used to determine the nature, timing
and extent of our audit procedures and to evaluate the effect
of identified misstatements on the financial statements as a
whole. The level of materiality we set is based on our assessment of
the magnitude of misstatements that, individually or in aggregate,
could reasonably be expected to have influence on the economic
decisions of the users of the financial statements. We have also
taken into account misstatements and/or possible misstatements
that in our opinion are material for qualitative reasons for the users
of the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in
the context of our audit of the financial statements as a whole, and
in forming our opinion thereon, and we do not provide a separate
opinion on these matters. The significant risks of material misstate-
ment referred to in the EU Regulation No 537/2014 point (c) of Arti-
cle 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of
internal controls. This includes consideration of whether there was
evidence of management bias that represented a risk of material
misstatement due to fraud.
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THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Revenue Recognition (refer to accounting principles for the consolidated financial statements and notes 4.2)
Revenue is mainly generated through the sale of goods and services. The revenue earned is recognized when the control is
transferred to the customer in accordance with the terms of delivery or agreement.
There are two types of agreements with the pharmaceutical companies in which Oriola acts either as a principal or an agent.
For agreements in which Oriola acts as a principal the legal title, control and payment liability has been transferred to Oriola,
and the revenue is recognized on gross basis. For consignment agreements where Oriola acts as an agent, only the distribution
fee is recognized as revenue. Analysis of the agreements and the related revenue recognition method requires management
judgement, considering the various contractual terms.
Due to the large volumes of transactions and management judgement involved revenue recognition has been identified as an
area of focus in the audit.
We obtained an understanding of the revenue recognition processes and evaluated the design and tested the controls over
revenue recognition. With special focus on identifying unusual sales transactions, we also performed substantive procedures
such as testing samples of sales agreements and year-end transactions to ensure appropriate application of revenue recognition
criteria.
We examined sales contracts with pharmaceutical companies to ensure that revenue was recognized in accordance with the
terms of the contract and the group’s accounting policy.
Audit procedures were performed over revenue recognition at the group level and at each of the reporting components that
were in scope for the group audit.
In addition, we have assessed the appropriateness of accounting policy and disclosure information related to revenue
recognition in the financial statements.
Valuation of Inventories (refer to accounting principles for the consolidated financial statements and note 5.2)
The carrying value of inventories amounted to EUR 176 million at the end of the financial year.
Inventory management, stocktaking routines and pricing of inventories are key factors in the valuation of inventories. Oriola has
different types of contracts with pharmaceutical companies which are either accounted for as own inventory or consignment
stock.
In addition, the valuation of inventories requires management estimates in respect of obsolescence assessment.
Due to management judgement and the significant carrying amount involved, valuation of inventories is determined a key
audit matter that our audit is focused on.
We evaluated the appropriateness of the accounting policies by reference to IFRS standards, as well as the functionality of the
key IT systems of inventory management.
We tested the controls over inventory management, accuracy of inventory amounts and valuation of inventories. We performed
substantive audit procedures in relation to pricing of inventory and provision for obsolete inventory.
We reviewed a sample of contracts to ensure that inventory is accounted appropriately in line with the terms of the contract and
the group’s accounting policy.
We also attended physical inventory counting at selected locations to assess the appropriateness of stocktaking routines.
Valuation of Investments in the parent company’s financial statements (refer to notes 1 and 11 to the parent company’s financial statements)
After recognizing impairment losses of EUR 38 million, the carrying amount of the investments is EUR 497 million in the parent
company’s financial statements as of December 31, 2024.
The valuation of investments requires management to make estimates of the probable amount of future income generated by
the asset and the permanence of any impairment. The valuation of investments is assessed annually and, if necessary, tested for
impairment based on future income expectations.
Due to the high level of judgment incorporated in respect of the future income expectations and the significant carrying
amounts involved, valuation of investments is considered a key audit matter for the parent company.
KPMG valuation specialists were involved in the audit of the investments assessing the appropriateness of the technical model
used in the impairment tests and testing the integrity of the calculations.
We challenged the assumptions used by management in respect of forecasted growth rates and profitability as well as
the appropriateness of the discount rates used. We also validated the assumptions used in relation to market and industry
information.
We evaluated the cash flows used by comparing them to the group’s budgeting process, external sources and the
understanding we gained from our audit.
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Responsibilities of the Board of Directors and the
President and CEO for the Financial Statements
The Board of Directors and the President and CEO are responsible
for the preparation of consolidated financial statements that give a
true and fair view in accordance with IFRS Accounting Standards as
adopted by the EU, and of financial statements that give a true and
fair view in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with
statutory requirements. The Board of Directors and the President
and CEO are also responsible for such internal control as they deter-
mine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the Board of Directors and
the President and CEO are responsible for assessing the parent
company’s and the group’s ability to continue as a going concern,
disclosing, as applicable, matters relating to going concern and
using the going concern basis of accounting. The financial state-
ments are prepared using the going concern basis of accounting
unless there is an intention to liquidate the parent company or the
group or cease operations, or there is no realistic alternative but to
do so.
Auditor’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether
the financial statements as a whole are free from material mis-
statement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a mate-
rial misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggre-
gate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional skepti-
cism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a
basis for our opinion. The risk of not detecting a material mis-
statement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or the
group’s internal control.
• Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related disclo-
sures made by management.
• Conclude on the appropriateness of the Board of Directors’
and the President and CEO’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions
that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evi-
dence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the parent company or
the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropri-
ate audit evidence regarding the financial information of the
entities or business units within the group as a basis for forming
an opinion on the group financial statements. We are responsi-
ble for the direction, supervision and review of the audit work
performed for purposes of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regard-
ing independence, and communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with govern-
ance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasona-
bly be expected to outweigh the public interest benefits of such
communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting
on March 19, 2018, and our appointment represents a total period
of uninterrupted engagement of 7 years.
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Other Information
The Board of Directors and the Managing Director are responsible
for the other information. The other information comprises the
report of the Board of Directors and the information included in
the Annual Report, but does not include the financial statements
or our auditor’s report thereon. We have obtained the report of
the Board of Directors prior to the date of this auditor’s report, and
the Annual Report is expected to be made available to us after that
date. Our opinion on the financial statements does not cover the
other information.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above and,
in doing so, consider whether the other information is materi-
ally inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated. With respect to the report of the Board of Directors, our
responsibility also includes considering whether the report of the
Board of Directors has been prepared in compliance with the appli-
cable provisions, excluding the sustainability report information on
which there are provisions in Chapter 7 of the Accounting Act and
in the sustainability reporting standards.
In our opinion, the information in the report of the Board of Direc-
tors is consistent with the information in the financial statements
and the report of the Board of Directors has been prepared in
compliance with the applicable provisions. Our opinion does not
cover the sustainability report information on which there are pro-
visions in Chapter 7 of the Accounting Act and in the sustainability
reporting standards.
If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we con-
clude that there is a material misstatement of this other informa-
tion, we are required to report that fact. We have nothing to report
in this regard.
Helsinki, March 3, 2025
KPMG OY AB
Kirsi Jantunen
Authorized Public Accountant, KHT
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Assurance Report on the Sustainability Report
To the Annual General Meeting of Oriola Corporation
We have performed a limited assurance engagement on the group
sustainability report of Oriola Corporation (business identity code
1999215-0) that is referred to in Chapter 7 of the Accounting Act
and that is included in the report of the Board of Directors for the
financial year 1.1.–31.12.2024.
Opinion
Based on the procedures we have performed and the evidence we
have obtained, nothing has come to our attention that causes us to
believe that the group sustainability report does not comply, in all
material respects, with
1. the requirements laid down in Chapter 7 of the Accounting Act
and the sustainability reporting standards (ESRS);
2. the requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on the
establishment of a framework to facilitate sustainable invest-
ment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Oriola Corporation
has identified the information for reporting in accordance with the
sustainability reporting standards (double materiality assessment)
and the tagging of information as referred to in Chapter 7, Section
22 of the Accounting Act.
Our opinion does not cover the tagging of the group sustaina-
bility report with digital XBRL sustainability tags in accordance
with Chapter 7, Section 22, Subsection 1(2), of the Accounting
Act, because sustainability reporting companies have not had the
possibility to comply with that provision in the absence of the ESEF
regulation or other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability report as a
limited assurance engagement in compliance with good assurance
practice in Finland and with the International Standard on Assur-
ance Engagements (ISAE) 3000 (Revised) Assurance Engagements
Other than Audits or Reviews of Historical Financial Information.
Our responsibilities under this standard are further described in the
Responsibilities of the Authorized Group Sustainability Auditor section
of our report.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Other Matter
We draw attention to the fact that the group sustainability report of
Oriola Corporation that is referred to in Chapter 7 of the Account-
ing Act has been prepared and assurance has been provided
for it for the first time for the financial year 1.1.–31.12.2024. Our
opinion does not cover the comparative information that has been
presented in the group sustainability report. Our opinion is not
modified in respect of this matter.
Authorized Group Sustainability Auditor’s
Independence and Quality Management
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our engagement, and we
have fulfilled our other ethical responsibilities in accordance with
these requirements.
The authorized group sustainability auditor applies International
Standard on Quality Management ISQM 1, which requires the
authorized sustainability audit firm to design, implement and oper-
ate a system of quality management including policies or proce-
dures regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director of Oriola Corpo-
ration are responsible for:
• the group sustainability report and for its preparation and
presentation in accordance with the provisions of Chapter 7 of
the Accounting Act, including the process that has been defined
in the sustainability reporting standards and in which the
information for reporting in accordance with the sustainability
reporting standards has been identified as well as the tagging
of information as referred to in Chapter 7, Section 22 of the
Accounting Act and
• the compliance of the group sustainability report with the
requirements laid down in Article 8 of the Regulation (EU)
2020/852 of the European Parliament and of the Council on the
establishment of a framework to facilitate sustainable invest-
ment, and amending Regulation (EU) 2019/2088;
• such internal control as the Board of Directors and the Manag-
ing Director determine is necessary to enable the preparation of
a group sustainability report that is free from material misstate-
ment, whether due to fraud or error.
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Inherent Limitations in the Preparation of a
Sustainability Report
Preparation of the sustainability report requires company to make
materiality assessment to identify relevant matters to report. This
includes significant management judgement and choices. It is also
characteristic to the sustainability reporting that reporting of this
kind of information includes estimates and assumptions as well
as measurement and estimation uncertainty. Furthermore, when
reporting forward looking information company has to disclose
assumptions related to potential future events and describe com-
pany´s possible future actions in relation to these events. Actual
outcome may differ as forecasted events do not always occur as
expected.
Responsibilities of the Authorized Group
Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain
limited assurance about whether the group sustainability report
is free from material misstatement, whether due to fraud or error,
and to issue a limited assurance report that includes our opinion.
Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably
be expected to influence the decisions of users taken on the basis
of the group sustainability report.
Compliance with the International Standard on Assurance Engage-
ments (ISAE) 3000 (Revised) requires that we exercise professional
judgment and maintain professional skepticism throughout the
engagement. We also:
• Identify and assess the risks of material misstatement of the
group sustainability report, whether due to fraud or error, and
obtain an understanding of internal control relevant to the
engagement in order to design assurance procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the parent compa-
ny’s or the group’s internal control.
• Design and perform assurance procedures responsive to those
risks to obtain evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal control.
Description of the Procedures That Have Been
Performed
The procedures performed in a limited assurance engagement
vary in nature and timing from, and are less in extent than for, a
reasonable assurance engagement. The nature, timing and extent
of assurance procedures selected depend on professional judg-
ment, including the assessment of risks of material misstatement,
whether due to fraud or error. Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower
than the assurance that would have been obtained had a reasona-
ble assurance engagement been performed.
Our procedures included for ex. the following:
• We interviewed Oriola Corporation’s management and persons
responsible for the preparation and gathering of the sustainabil-
ity information.
• We familiarized with interviews to the key processes related to
collecting and consolidating the sustainability information.
• We got acquainted with the relevant guidances and policies
related to the sustainability information disclosed in the sustain-
ability report.
• We acquainted ourselves to the background documentation
and other records prepared by the company, as appropriate
and assessed how they support the information included in the
sustainability report.
• In relation to the double materiality assessment process, we
interviewed persons responsible for the process and familiarized
ourselves with the process description prepared of the double
materiality assessment and other documentation and back-
ground materials.
• In relation to the EU taxonomy information we interviewed
the management of the company and persons with key roles
in reporting taxonomy information to examine how taxonomy
eligible activities have been identified, we obtained evidence
supporting the interviews and reconciled the reported EU
taxonomy information to supporting documents and to the
bookkeeping, as applicable.
• We assessed the application of the ESRS sustainability reporting
standards reporting principles in the presentation of the sustain-
ability information.
Helsinki, 3 March 2025
KPMG OY AB
Authorized Sustainability Audit Firm
Kirsi Jantunen
Authorized Sustainability Auditor, KRT
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Financial review Sustainability Statement Oriola Annual Report 2024 |
Independent auditor’s report on the
ESEF financial statements of Oriola Corporation
To the Board of Directors of Oriola Corporation
We have performed a reasonable assurance engagement on the
financial statements 549300UWB1AIR85BM957-2024-12-31-0-en.
zip of Oriola Corporation (Business ID 1999215-0) that have been
prepared in accordance with the Commission’s regulatory technical
standard for the financial year ended 31 December 2024.
Responsibilities of the Board of Directors and the
Managing Director
The Board of Directors and the Managing Director are responsible
for the preparation of the company’s report of the Board of
Directors and financial statements (the ESEF financial statements)
in such a way that they comply with the requirements of the
Commission’s regulatory technical standard. This responsibility
includes:
• preparing the ESEF financial statements in XHTML format
in accordance with Article 3 of the Commission’s regulatory
technical standard
• tagging the primary financial statements, notes and company’s
identification data in the consolidated financial statements that
are included in the ESEF financial statements with iXBRL tags
in accordance with Article 4 of the Commission’s regulatory
technical standard and
• ensuring the consistency between the ESEF financial statements
and the audited financial statements.
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial statements in
accordance with the requirements of the Commission’s regulatory
technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the ethical
requirements that are applicable in Finland and are relevant to the
engagement we have performed, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Management
(ISQM) 1, which requires the firm to design, implement and operate
a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8
of the Securities Markets Act, provide assurance on the financial
statements that have been prepared in accordance with the
Commission’s regulatory technical standard. We express an opinion
on whether the consolidated financial statements that are included
in the ESEF financial statements have been tagged, in all material
respects, in accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent
the assurance has been provided. We conducted a reasonable
assurance engagement in accordance with International Standard
on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
• whether the primary financial statements in the consolidated
financial statements that are included in the ESEF financial
statements have been tagged, in all material respects, with
iXBRL tags in accordance with the requirements of Article 4 of
the Commission’s regulatory technical standard and
• whether the notes and company’s identification data in the
consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects,
with iXBRL tags in accordance with the requirements of Article 4
of the Commission’s regulatory technical standard and
• whether there is consistency between the ESEF financial
statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend
on the auditor’s judgment. This includes an assessment of the risk
of a material deviation due to fraud or error from the requirements
of the Commission’s regulatory technical standard.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes and
company’s identification data in the consolidated financial
statements that are included in the ESEF financial statements of
Oriola Corporation 549300UWB1AIR85BM957-2024-12-31-0-en.zip
for the financial year ended 31 December 2024 have been tagged,
in all material respects, in accordance with the requirements of the
Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial statements
of Oriola Corporation for the financial year ended 31 December
2024 has been expressed in our auditor’s report dated 3 February
2025. With this report we do not express an opinion on the audit
of the consolidated financial statements nor express another
assurance conclusion.
Helsinki 10 March 2025
KPMG OY AB
Kirsi Jantunen
Authorised Public Account–ant, KHT
Oriola Corporation
Head office
Orionintie 5, FI-02200 Espoo, Finland
P.O.Box 8, FI-02101 Espoo, Finland
Tel. +358 10 429 99
firstname.lastname@oriola.com
investor.relations@oriola.com
www.oriola.com