Celesio Publishes Quarterly Figures

STUTTGART, Germany, May 10 /PRNewswire/ --

- Oesterle: "Celesio has started successfully into the new fiscal year, increasing revenue and profit in the first quarter significantly."

Celesio, Europe's leading pharmaceutical trading company, increased both its revenue and profit in the first three months of 2006. Compared to the same quarter in the previous year, pre-tax profit rose by 21.4 percent (20.6 percent in local currency). The Chairman of the Management Board and CEO, Fritz Oesterle explains: "We are strategically well positioned within the pharmaceutical market and are benefiting from an increased demand for medicines. Seasonal effects have also helped us to successfully start into the new fiscal year."

Significant increase in revenue and pre-tax profit

When compared to the previous year, the Celesio Group increased its revenue by 8.2 percent (7.7 percent in local currency) in the 1st quarter of 2006, to 5,306.6 million euros. In addition to an increased demand for medicines, seasonal effects accelerated growth as expected. In the 1st quarter of 2006 there were more working days than in the previous year and Easter was in April in 2006 instead of in the 1st quarter as in the previous year. A higher number of working days has a direct positive effect upon revenue and profit. Revenue increases with the number of working days, whilst the costs increase hardly at all. As Easter is largely a holiday period, the period around Easter tends to generate lower revenue. But even without taking seasonal effects into account, revenue and profit would have risen significantly.

Pre-tax profit rose in the 1st quarter by 21.4 percent (20.6 percent in local currency), to 139.2 million euros. This strong growth is due to an improvement in gross profit, additional cost saving measures and seasonal effects. In addition, the proportion of overall profit generated by the high-margin Pharmacies division further increased.

The disproportionate growth in profit is reflected in improved profitability. In the 1st quarter, Celesio increased its return on sales. Based on EBIT, it rose to 3.08 percent (previous year: 2.84 percent), whilst based on pre-tax profit, it reached 2.62 percent, after 2.34 percent in the previous year.

Net profit grew by 24.8 percent (24.0 percent in local currency), to 98.9 million euros. Earnings per share, at 1.15 euros, were significantly higher than the 0.92 euros recorded in the previous year.

During the first three months of the current fiscal year, cash flow rose to 131.6 million euros, representing an increase of 22.8 percent (22.0 percent in local currency) when compared to the 1st quarter of 2005. The investments in the operating business were financed entirely from the cash flow.

Confident prospects for the 2006 fiscal year

Celesio's management board views the remainder of the fiscal year 2006 optimistically for all three business divisions. The board assumes that in 2006 the European pharmaceutical market will continue to grow at the same level as in the previous year, at approximately 5 percent.

Celesio's Wholesale division is expected to achieve organic growth in line with the comparable market. However, it is not yet possible to predict the effects of current and forthcoming state cost-cutting measures in France and Germany. Celesio's Wholesale division will be strengthened by the acquisitions of Max Jenne and K.V. Tjellesen in Denmark, as soon as the competition authorities give their approval. Celesio's Pharmacies division is expected to grow more strongly than the market. As far as Celesio Solutions is concerned, Celesio's management board sees considerable potential for growth in the medium-term. There is an increasing tendency amongst pharmaceutical manufacturers to outsource service functions. Celesio Solutions is set to benefit from this, though its business units Movianto and, since recently, pharmexx. At the end of April, Celesio acquired a 30 percent stake in pharmexx GmbH in Hirschberg, which provides sales support for pharmaceutical manufacturers. The shareholding is still pending approval by the competition authorities.

As the increase in revenue and the resulting rise in profit during the 1st quarter of 2006 were partly due to seasonal effects, this development cannot be projected onto the rest of the year 2006. Growth in revenue and profit will be less strong during the rest of the year 2006. In the 2nd quarter in particular, growth will be dampened by the lower number of working days and Easter. Today, it is also not yet possible to predict the effects of state measures, in France and Germany in particular. Despite a market environment that is anticipated to be difficult in parts, the Celesio management board expects pre-tax profit in local currency in 2006 to rise more strongly than revenue.

Overview of key 2005 2006 Change Change figures in euros in local 1st quarter in currency percent in percent Revenue 4.9 billion 5.3 billion 8.2 7.7 euros euros Gross profit 515.8 million 583.2 million 13.1 12.3 euros euros EBIT 139.4 million 163.6 million 17.3 16.6 euros euros Profit before tax 114.7 million 139.2 million 21.4 20.6 euros euros Net profit 79.2 million 98.9 million 24.8 24.0 euros euros Cash flow 107.2 million 131.6 million 22.8 22.0 euros euros Earnings per 0.92 euros 1.15 euros 25.8 25.0 share Interest coverage 5.63 6.71 - - Equity ratio 30.4 32.0 percent - - percent(i) Gearing 0.93(i) 0.91 - -



(i) 31.12.2005

About Celesio AG

With a revenue of 20.5 billion euros (2005) and more than 35,000 employees, Celesio is the leading pharmaceutical distribution company in Europe. Celesio is represented in 15 countries. With its three divisions, Celesio Wholesale, Celesio Pharmacies and Celesio Solutions, the group covers the entire scope of pharmaceutical trade and pharmaceutical-related services. Every day, 135 branches in the wholesale sector make more than 100,000 deliveries. Celesio's more than 2,000 pharmacies serve more than 500,000 customers daily. Celesio Solutions' business unit Movianto offers pharmaceutical manufacturers logistics and distribution services with its more than 150,000m squared of warehousing and through its pan-European network of subsidiaries.

More information on Celesio is available on the website www.celesio.com.

Press contact: Celesio AG Corporate Communications Michael Rüdel Neckartalstrasse 155 D-70376 Stuttgart Telephone: [phone] Telefax: [phone] E-mail: [e-mail] Internet: www.celesio.com