Slide 1: Orion Financial Review for 2012
Orion Financial Review for 2012 5 February 2013 Timo Lappalainen President & CEO
Slide 2: Forward-looking statements
This presentation contains forward-looking statements which involve risks and uncertainty factors. These statements are not based on historical facts but relate to the Company’s future activities and performance. They include statements about future strategies and anticipated benefits of these strat
Slide 3: Significant progress in research projects
Significant progress in research projects • Net sales higher due to sales growth in products other than Parkinson’s drugs • Operating profit at similar level to 2011 despite higher R&D expenses • Pharmaceutical research projects progressed as planned – Orion is preparing an application for marketing
Slide 4: Net sales and operating profit
Net sales and operating profit Group key figures 2012 2011 Change % Net sales, EUR million 980 918 +7% Operating profit, EUR million 281 283 -1% Basic earnings per share, EUR 1.48 1.49 -0.4% Cash flow per share before financial items, EUR 1.23 1.10 +12% • Net sales up by 7% – Sales of branded produc
Slide 5: Breakdown of net sales
Breakdown of net sales By business divisions By market area Proprietary Products Specialty Products Finland Scandinavia Other Europe Animal Health Fermion North America Other Countries Contract manufacturing & Other Orion Diagnostica 6% 15% 4% 5% 26% 7% 41% 15% 13% 37% 31% 5 5 February 2013 Orion Fi
Slide 6: Business Reviews
Business Reviews
Slide 7: Pharmaceuticals business continued to grow
Pharmaceuticals business continued to grow Key figures for Pharmaceuticals business 2012 2011 Change % Net sales of Pharmaceuticals, EUR million 929 871 +7% Proprietary Products 404 409 -1% Specialty Products 367 321 +14% Animal Health 69 68 +2% Fermion 48 43 +12% Contract manufacturing and other 41
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, EUR million 2012 2011 Change % 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) 250 267 -6% 2. Precedex® (intensive care sedative) 45 33 +38% 3. Simdax® (acute decompensated heart failure) 44 44 -1% 4. Easyhaler® product famil
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals Finland’s biggest pharmaceutical market in 2012 companies in 2012 • Wholesale EUR 2,031 million (+3%) EUR million 250 219 Orion in Finnish human pharmaceuticals market 200 • Sales growth 9% 150 • Orion clear market leader 120 127 128
Slide 10: Sales of Parkinson's drugs growing in Japan
Sales of Parkinson’s drugs growing in Japan Overall markets for Parkinson’s drugs Market shares of entacapone MAT9 MAT9 October 2011─September 2012 drugs 2012 2011 • United States 3) USD 751 million (+3%) Finland 2) 25% 24% Sweden 2) 14% 14% • Five largest European markets 1) 3) EUR 954 million (-3%
Slide 11: Precedex and dexdor growing strongly
Precedex and dexdor® growing strongly Markets for intensive care sedative Breakdown of Precedex Precedex Oct 2011─Sept 2012* markets USD million 250 • Total USD 248 million (+27%) 200 • United States USD 193 million (+27%) 150 Sales of dexdor® intensive care 100 sedative in 2012 50 • EUR 13 (1) mill
Slide 12: Key clinical pharmaceutical development projects
Key clinical pharmaceutical development projects Clinical phases Project Indication I II III Registration Easyhaler® budesonide-formoterol Asthma, COPD Easyhaler® salmeterol-fluticasone Asthma, COPD Stalevo® for Japanese markets 1) Parkinson’s disease ODM-101 Parkinson’s disease (more effective levo
Slide 13: Net sales grew in Diagnostics business
Net sales grew in Diagnostics business Key figures for Diagnostics business 2012 2011 Change % Net sales, EUR million 54 50 +9% Operating profit, EUR million 2.6 4.9 -47% • QuikRead® tests remained main product – Sales of more user-friendly prefilled QuikRead 101 system and QuikRead go®, a new gener
Slide 14: Outlook for 2013
Outlook for 2013 • Net sales will be at similar level to 2012 (net sales in 2012 were EUR 980 million) • Operating profit will be slightly lower than in 2012 (operating profit in 2012 was EUR 281 million) • Group’s capital expenditure will be about EUR 80 million excluding substantial corporate or p
Slide 15: Orion Calendar
Orion Calendar • Deadline for registering for AGM 14 March 2013 at 10:00 • Annual General Meeting in Helsinki 19 March 2013 at 14:00 • Record date for dividend distribution 22 March 2013 • Dividend payment date 4 April 2013 • Interim Report January─March 2013 23 April 2013 • Interim Report January─J
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Slide 17: Orion's financial objectives
Orion’s financial objectives Orion’s financial objectives are: • Ensuring financial stability • Profitable growth The objectives are achieved through: • Increasing net sales. Achievement of this objective requires continuous investment in development of the product portfolio. • Maintaining profitabi
Slide 18: Key figures by quarter
Key figures by quarter EUR million Net sales EUR million Operating profit 1200 300 283 281 980 254 1000 918 250 60 59 850 207 53 772 254 200 185 800 236 Q4 65 Q4 711 215 44 76 193 33 71 600 180 246 Q3 150 Q3 211 56 213 44 65 170 192 Q2 66 Q2 400 100 60 227 233 45 50 Q1 196 207 Q1 181 200 50 93 63 71
Slide 19: Key figures for 2008─2012
Key figures for 2008─2012 Orion’s key figures 2008 2009 2010 2011 2012 Change % Net sales, EUR million 710.7 771.5 849.9 917.9 980.4 +6.8% Operating profit, EUR million 185.0 207.0 254.2 282.9 280.9 -0.7% Profit before taxes, EUR million 184.2 203.7 252.6 282.0 279.3 -0.9% R&D expenses, EUR million
Slide 20: Development of sales of own proprietary products
Development of sales of own proprietary products Net sales of proprietary products, EUR million Indication 2012 2011 Change % Stalevo®, Comtess® and Comtan® Parkinson’s disease 250.1 266.7 -6.2% Intensive care Precedex® 45.3 33.0 +37.5% sedative Acute decompensated Simdax® 43.6 44.0 -0.9% heart fail
Slide 21: Income Statement 2008─2012
Income Statement 2008─2012 Formation of profits, EUR million 2008 2009 2010 2011 2012 Change % Net sales 710.7 771.5 849.9 917.9 980.4 +6.8% Cost of goods sold -243.4 -265.2 -283.2 -305.1 -350.0 +14.7% Gross profit 467.4 506.3 566.8 612.8 630.4 +2.9% Other operating income and 3.1 6.0 1.2 3.0 6.3 +1
Slide 22: Orion's main research projects
Orion’s main research projects • Expansion of Easyhaler® product family. Under development are new budesonide-formoterol and fluticasone- salmeterol combined formulations for treatment of asthma and COPD. – Plans to submit application for marketing authorisation for the budesonide-formoterol formula
Slide 23: Product protection situation of key products
Product protection situation of key products Key patents or data protection expire Molecule Product Indication Europe USA Japan Stalevo®, November 2012 Entacapone Parkinson’s disease October 2013 2) 2015 3) Comtess® and Comtan® October 2013 1) Acute Levosimendan Simdax® decompensated September 2015
Slide 24: Dividend distribution policy
Dividend distribution policy Dividend distribution history Dividend distribution policy EUR 1.40 140% 1.20 120% Orion’s dividend distribution takes into account distributable funds and capital 1.00 100% expenditure and other financial 0.80 80% requirements in medium and long term to achieve the fina
Slide 25: Orion – Building well-being
S RION ing well-being Buildi