The Year in Brief

Tamro Group is the leading pharmaceutical wholesaler and distributor in Northern Europe. The Group operates in the Nordic countries, in the Baltic States, Poland and through a minority shareholding in Russia. Our average share of the pharmaceutical wholesaling market in Northern Europe is around 52%. Tamro Group is engaged in pharmaceutical retail trade in Norway, Estonia, Latvia and Lithuania. In these countries Tamro’s aim is to operate as an integrated wholesale–retail company.

Tamro’s core business is pharmaceutical wholesaling and distribution, as well as retail trade in four specific markets. Our customers in the wholesaling and distribution sector include pharmacies, hospitals and other healthcare institutions. The operations are based on close co-operation with our principals, i.e., manufacturers and suppliers of pharmaceuticals and other healthcare products.

Tamro’s core business is supplemented by Tamro MedLab, which imports, markets and sells a broad range of basic and specialised healthcare products, laboratory products, diagnostics and biotechnical products and equipment. Tamro MedLab’s customers include healthcare facilities and industrial, research and educational laboratories.

Tamro is a fully owned subsidiary of the international pharmaceutical wholesaler PHOENIX Group.

Main events 2005/2006

• The Tamro Group net sales for the fiscal year 2005/2006 amounted to EUR 4,857 million, which represents an increase of 8% compared to the sales in calendar year 2004 (EUR 4,488 million). Sales increased also due to several retail acquisitions in the Baltics and Norway, the acquisition of Danpleje A/S in Denmark and exclusive distribution contracts won in Sweden and Finland.
  

• The consolidated operating profit was EUR 117 (93) million, and the operating margin was 2.4% (1.9%). The performance was driven by good sales performance in Norway, stable sales growth across several countries and strong control of operating and financial expenses. The result includes a one-time capital gain of EUR 7 million from a sale of property in Denmark.
  
  
• Tamro further developed its position in the Nordic pharmaceutical wholesale market, owing largely to sales growth in Finland, Sweden and Denmark. Tamro’s pharmaceuticals wholesale in the Nordic area increased by 8% at CER to EUR 3,616 million in pharmacy purchasing prices (PPP). Tamro’s average market share of pharmaceuticals wholesale rose to 52.3% in the Nordic countries, or 1.5 percentage points higher than in 2004.
  
  
• On 29 November Tamro announced its entrance into the Polish pharmaceutical wholesale. The business responsibility is transferred from Tamro’s parent company Phoenix Group. Tamro acquires the company Phoenix Pharma Polska Sp. z o.o., which employs 277 people and has an annual turnover of EUR 145 million. The company is consolidated into Tamro Group from the beginning of the new fiscal year 1.2.2006. After the reporting period, Tamro announced the acquisition the Polish pre-wholesaler FarmPlus Sp. z o.o., with 75 employees and annual sales of EUR 250 million.
  

• The year 2005/2006 is Tamro’s first financial year starting on 1 February and ending on 31 January. The previous financial year (1 January 2004 – 31 January 2005) was extended to thirteen months to match the financial year of Tamro’s parent company PHOENIX Pharmahandel AG&Co KG.