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2015-08-18

Oriola-KD Oyj: Oriola-KD's updated strategy, new operating model and long-term financial targets

Oriola-KD Corporation Stock Exchange Release 18 August at 8.30 a.m.

Oriola-KD's updated strategy, new operating model and long-term financial
targets

On 17 August 2015, as part of the company's annual strategy work, Oriola-KD's
Board of Directors approved the company's updated strategy, new operating
model and new long-term financial targets.

Changing business environment

People are more interested in their own health and live longer. Awareness and
spending on health and wellbeing is increasing. Consumers are more demanding
and technically advanced, thus expecting services 24/7. The retail business
is becoming increasingly digital and hence digital services are becoming a
necessity.

Also the pharmaceutical markets are undergoing a change. The roles of various
operators are changing, new actors are entering the markets and at the same
time markets are consolidating. Pharmaceutical companies are becoming
specialised and are focusing on their core businesses. Digitalization has an
impact on all operators and the need for digital services is growing. These
changes are increasing demand for new services.

The share of ageing population is growing leading into increasing need for
healthcare related services. These changes create new business opportunities
in public and private healthcare.

Strategy - The Channel for Health

Oriola-KD helps consumers to improve their wellbeing. In its own pharmacies,
Oriola-KD offers expert advice on health and wellbeing and an extensive and
high-quality selection of products. To healthcare operators in Sweden,
Finland and the Baltic countries, Oriola-KD offers a wide selection of
services. Oriola-KD unites consumers and pharmaceutical companies in a unique
way. Oriola-KD provides pharmaceutical companies an effective access to
markets and improves consumers' wellbeing by ensuring that pharmaceuticals,
health products and services are delivered in a safe and customer-friendly
manner.

New business areas

Oriola-KD is changing its operating model in order to meet the challenges of
the changing business environment and to serve customers even better.
Oriola-KD's operations will be divided into three business areas and
operating segments: Consumer, Services and Healthcare.

The Consumer business area
focuses on the needs of consumers' in health and wellbeing related products
and services. The business area will be headed byLars Birkeland,
Vice President, Consumer business.

The Services business area
offers tailored services to pharmaceutical companies, pharmacies and other
customer groups. The business area will be headed byKimmo Virtanen
, Executive Vice President, Services business.

The Healthcare business area
offers services to hospitals, healthcare centres and other healthcare sector
operators. The business area will be headed byThomas Gawell
, Vice President, Healthcare business.

The new operating model and responsibilities will be in force starting 1
January 2016.

Oriola-KD's Group Management Team's responsibilities as of 1 January 2016:

* Eero Hautaniemi, President and CEO
* Sari Aitokallio, CFO
* Lars Birkeland, Vice President, Consumer Business
* Thomas Gawell, Vice President, Healthcare Business
* Jukka Mäkelä, Vice President, Development
* Teija Silver, Vice President, HR
* Kimmo Virtanen, Executive Vice President, Services Business

Business strategies

Consumer business

Oriola-KD has a nationwide pharmacy chain Kronans Apotek in Sweden, skilled
personnel and an in-depth knowledge of consumer needs.

Oriola-KD has a strong position in health and wellbeing and prescription
medicine markets. Oriola-KD continues to develop its pharmacy chain and
customer loyalty programme and will have a strong focus on the development of
digital channels.

In Sweden, Oriola-KD will launch digital business for consumers and
professionals during the autumn 2015. In Finland and the Baltic countries the
company will continue to develop its existing oriolashop.fi and
internetaptieka.lv digital channels and to broaden the consumer offerings.

Services business

Oriola-KD is a reliable and well-known partner for healthcare actors in
Sweden, Finland and the Baltic countries. Oriola-KD focuses on long-term
customer relationships and wide service offering covering pharmaceutical
distribution, branded products and other tailored services.

Healthcare business

There are many growing business opportunities in the healthcare market, such
as hospital pharmaceutical care, dose dispensing and home distribution of
pharmaceuticals. Oriola-KD is investigating opportunities for expansion into
these new business areas.

Investments supporting the strategy

To support its strategy Oriola-KD will invest in improving its operational
efficiency and strengthening company's market position. To support this
Oriola-KD's Board of Directors has decided on additional investments, of
about EUR 20 million, into Group's IT systems and the logistics centre in
Finland. These investments will be realized over the following three years.

New long-term financial targets

Long-term financial targets:

* Business growth at the rate of the market
* Annual EPS growth over 5 per cent without non-recurring items
* Return on capital employed of over 20 per cent
* Adjusted gearing ratio of 30-60 per cent*

*Non-recourse trade receivables are added to the net debt

Dividend policy

Oriola-KD's aim is to pay out an increasing annual dividend of at least 50 per
cent of its earnings per share.

Oriola-KD's President and CEO, Eero Hautaniemi:

"Oriola-KD has a solid position in consumer and services business in the
pharmaceutical markets in Sweden, Finland and Baltic countries. We see new
opportunities in the growing healthcare markets. With our new strategy and
operating model, we can even better respond to our customers' needs. By
streamlining our operations and unifying our processes we provide better
services to our customers and improve our efficiency."

Capital Markets Day on 9 September 2015

Oriola-KD will host a Capital Markets Day for investors, analysts and media
representatives on 9 September 2015 in Stockholm. The aim of the event is to
provide information about Oriola-KD's updated strategy, new operating model
and long-term financial targets. To register for the event and to find out
more, please visit www.oriola-kd.com/CMD.

Oriola-KD Corporation

Eero Hautaniemi
President and CEO

Further information:

Eero Hautaniemi
President and CEO
tel. +358 (0)10 429 2109
e-mail: eero.hautaniemi@oriola-kd.com

Sari Aitokallio
CFO
tel. +358 (0)10 429 2112
e-mail: sari.aitokallio@oriola-kd.com

Distribution:
NASDAQ OMX Helsinki Ltd
Key media

Released by:
Oriola-KD Corporation
Corporate Communications
Orionintie 5
FI-02200 Espoo, Finland
www.oriola-kd.com

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Oriola-KD Oyj via Globenewswire

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