Leading market position in Europe expanded

• Fiscal year 2014/15 proves to be a successful one
• Highest total operating performance (EUR 27.3 billion) in corporate history of PHOENIX
• Profit for the period significantly improved by EUR 188 million to EUR 258 million
• Equity ratio increased to 32.1%, net debt reduced by EUR 262 million
• Targeted acquisitions planned

The PHOENIX group brought the fiscal year 2014/15 to a successful close, expanding its position as a leading healthcare provider in Europe despite the challenging European market environment. Total operating performance, including revenue as well as handled volume (handling for service charge), rose by 5.3 per cent to EUR 27.278 billion in the past fiscal year. Adjusted for exchange rate effects, this increase amounts to 6.1 per cent, which is considerably higher than the market growth rate. Revenue rose by 3.6 per cent to EUR 22.568 billion.

This was particularly due to the higher revenues in the United Kingdom, the Netherlands, and Serbia, as well as in Germany, the largest market.

The profit for the period improved significantly by EUR 188.0 million to EUR 258.0 million (previous year: EUR 70.0 million). Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also increased considerably from EUR 440.5 million to EUR 546.6 million. Behind this development were the higher gross income, one-off effects in pension accruals, and the relatively small cost increase in comparison with the growth of gross income. Profit before tax rose by EUR 218.2 million to EUR 361.3 million (previous year: EUR 143.1 million). “Our strategy of profitable growth and cost efficiency has been a clear success. The unique geographic coverage, the continuous expansion of our services and logistics offering, and our highly qualified employees are the keys to our success”, remarked Oliver Windholz, Chief Executive Officer of the PHOENIX group.

Further improvement in capital structure and financial result

Equity rose from EUR 2.162 billion to EUR 2.482 billion, resulting in an increase in equity ratio to 32.1 per cent. The net debt was again reduced – by EUR 262.1 million. The financial result continued to improve from EUR –105.3 million to EUR –74.2 million. The ratio of net debt to adjusted EBITDA is on a solid level at 1.88 (previous year: 2.89). Both the company and bond rating continue to be rated positively at “BB” with a stable outlook. Following issues in 2010 and 2013, the PHOENIX group successfully placed a third bond in July 2014, thereby further strengthening its access to the capital market. The seven-year bond has a volume of EUR 300 million and an interest coupon of 3.625 per cent p.a.

In April 2014, the PHOENIX group extended the existing syndicated loan agreement of EUR 1.05 billion with 15 German and international banks on improved terms until 2019. Besides the optimised credit conditions, the PHOENIX group is thus securing the currently favourable financing terms for a further five years.

Targeted acquisitions for sustainable growth

Through major acquisitions in the fiscal year 2014/15, the PHOENIX group paved the way for further growth: In December 2014, the Dutch company Mediq Apotheken Nederland B.V. – whose activities comprise pharmacies, pharmaceutical wholesale, and pre-wholesale – was acquired via the Brocacef Groep, a subsidiary of PHOENIX. In January 2015, PHOENIX announced the purchase of the Slovakian pharmacy chain SUNPHARMA. In addition, the PHOENIX group intends to acquire the Hungarian company Novodata, the local market leader in the field of pharmacy software. The three acquisitions are still subject to approval by the relevant competition authorities.

PHOENIX group adopts a common corporate mission statement

Since PHOENIX was founded over twenty years ago, the company has undergone very dynamic development that has spanned numerous national borders. The objective is to continue to grow successfully throughout Europe. The PHOENIX group’s vision is to be the best integrated healthcare provider – wherever it is active. The new corporate mission statement serves as the supreme guideline for our day-to-day work. With respect to our customers and business partners, the corporate mission statement provides a strong indication that PHOENIX is a future-oriented company with clear visions that offers an attractive service portfolio along the entire pharmaceutical supply chain.

Increase in revenue anticipated for fiscal year 2015/16

The PHOENIX group expects to further expand its market position in Europe by means of organic growth and targeted acquisitions. For the fiscal year 2015/16, the company anticipates an increase in revenue above the growth level of the European pharmaceutical markets – particularly in Germany, Western Europe, and Eastern Europe.

Key figures of the PHOENIX group in comparison with the previous year

(Reporting date: 31 January respectively)

¹ Total operating performance = revenue + handled volume (handling for service charge).

² Total income = gross income + other operating income.

³ Adjusted for impairment losses on goodwill, effects from sale of financial assets, one-off effects in connection with the refinancing measures, expenditures associated with the PHOENIX FORWARD optimisation programme, and changes to the pension systems 2014/15.

⁴ Adjusted due to the first-time application of IFRS 11.