Successful completion of 2012/13 fiscal year

• Total income and total income margin increased significantly
• Net debt reduced to EUR 244.2 million
• Equity rose to EUR 2,103.8 million
• EBITDA increased to EUR 553.6 million
• Free cash flow grew considerably to EUR 337.7 million
• Strong growth in Adjusted earnings before taxes to EUR 335.5 million
• Revenue and total operating performance developed better than the overall European pharmaceutical market

The PHOENIX group ends the 2012/13 fiscal year on a positive note despite a challenging European market environment. The company has further extended its position as a leading pharmaceutical trader in Europe. Revenue only experienced a moderate decline of 2 per cent to EUR 21,218.7 million compared to the general market development in Europe.

The total operating performance, which, apart from revenues, also includes the handled volume (handling for service charge) has developed better than the European pharmaceutical market. It only fell slightly by 0.9 per cent to EUR 25,251.3 million, while the European pharmaceutical market saw a dip of 2.3 per cent. The intended goal to establish stable revenue development despite difficult conditions was thus achieved. "In comparison with the market and competition, we have done well again", said Reimund Pohl, Chief Executive Officer of the PHOENIX group.

Pleasing development of total income, EBITDA and adjusted earnings before taxes

The total income increased by 3 per cent to EUR 2,335.5 million. The total income margin grew by 0,5 percentage points to 11.0 per cent of revenue. Furthermore, the PHOENIX group has been able to enhance its operating profitability: Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 2.6 per cent to EUR 553.6 million and adjusted earnings before taxes from EUR 300.9 million to 335.5 million. Despite consistently high investments in the PHOENIX wholesale and retail network, the free cash flow grew by EUR 68 million to 337,7 million.

Capital structure and financial result show further improvement

The financial result continued to improve from EUR –137.2 million to EUR –130.4 million, primarily owing to the reduction of net debt. The equity improved by 8.7 per cent to current level of EUR 2,103.8 million. The equity ratio rose by 2.6 percentage points to 28.7 per cent. The ratio of net debt to adjusted EBITDA fell to 2.79. Both the company and bond rating have continuously improved and are currently rated "BB". The financing structure was further optimised with the conclusion of a new syndicated loan agreement totalling EUR 1.35 billion. "This measure reinforces the financial basis over the long term and gives us the flexibility we need for further development", explains Pohl.

Expansion of range of products and services across the supply chain

In the wholesale segment, we have invested in operational quality and optimised our logistics procedures as well as our whole distribution network. In the pharmacy retail business, we have further developed our corporate brand BENU. "Our efforts have paid off. Just one and a half years after the launch, BENU is already the leading pharmacy brand in continental Europe with 700 pharmacies in seven countries", says Pohl. In addition to the rebranding of our pharmacies, the project also involved a new store concept that was harmonised across Europe as well as the launch of a range of private label products. In PHOENIX pharma services, the company bundled the comprehensive services it offers along the pharmaceutical supply chain at a local, regional, or European level as part of the "All-in-one" concept. Overall, the group has invested around EUR 150 million during the previous fiscal year.

Increase in revenues anticipated for 2013/2014 fiscal year

The PHOENIX group has clear objectives for the 2013/14 fiscal year. "We expect to achieve a slight increase in revenue despite the consistently difficult European market conditions. In virtually all of our company organisations, we aim to grow faster than the market and increase our market share", said Pohl. "We are anticipating a noticeable increase in revenues particularly in Germany, our domestic market", explained Pohl.

PHOENIX will further enhance its profitability with the PHOENIX FORWARD initiative

"Significant positive effects from the PHOENIX FORWARD programme are expected from the 2014/15 fiscal year", says Pohl. In January 2013, the company announced the launch of PHOENIX FORWARD. The aim of the programme is to achieve annual cost savings of at least EUR 100 million by applying sustainable measures across the group. The core of PHOENIX FORWARD is to improve the company’s internal organization structures in all 23 countries. A particularly important objective is to promote even more intensive know-how transfer between the regions.

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 profit and other operating income

³ Adjusted for impairment losses on goodwill as well as one-off effects related to the refinancing measures in 2012.