Oriola Corporation Insider information 4 October 2021 at 10.00 am.

Oriola plans to restructure its operating model and initiates cooperation negotiations

Oriola Corporation is streamlining processes to improve operational efficiency and reduce cost for increased profitability. The objective is to optimise the operating model and organisational structure for better accountability and transparency as well as reduced organisational complexity.

New country-based operating model

Oriola targets to implement a country-based organisation where the current business areas Pharma and Retail and Operations function are transformed into geographical business areas, Finland and Sweden. The Swedish pharmacy operations directly serving consumers in Sweden would continue as its own business area, the same way as it is today. Oriola plans to implement the new operating model and the structure from the beginning of 2022.

Restructuring enables efficient operations

Oriola will initiate statutory employee cooperation negotiations to reorganise and streamline the organisation as well as to improve the profitability. The negotiations concern approximately 600 employees in Finland and Sweden. Production employees in distribution and dose-dispensing businesses, staffing services employees in Finland and pharmacy employees in Sweden are excluded from the negotiations. According to the company's preliminary estimate, the negotiations could lead to a maximum reduction of 130 positions. This would be equivalent to an annual cost saving of at least 7 million euros.

"During the most recent years, Oriola's financial performance has been unsatisfactory. By simplifying our operating model and organisational structure we can enable Oriola's profitable transformation. With the local business approach, we can fulfil customers' needs better and strengthen our ability to respond faster to the changes in market environment. The planned measures will not affect the security of pharmaceutical supply in Finland and Sweden," says Oriola's CEO Elisa Markula.

Now announced turnaround measures to improve the profitability and cost-competitiveness represent the first phase in Oriola's transformation. Oriola will continue to seek further measures to improve its profitability.

Oriola Corporation

Elisa Markula
CEO

Further information:

Elisa Markula
CEO
Tel. +358 10 429 2109
Email: elisa.markula@oriola.com

Elina Niemelä
VP, People and Transformation
Tel. +358 40 587 0879
Email: elina.niemela@oriola.com

Distribution:
Nasdaq Helsinki Ltd.
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Oriola Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola.com