Slide 1: Company presentation for investors FY 2012
Company presentation for investors FY 2012
Slide 2: Forward-looking statements
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 anticipa
Slide 3: Contents
Contents 4 Results & Outlook Full year 2012 11 Strategy and financial targets 15 Orion R&D – long term opportunities 23 Proprietary Products and Specialty Products update 31 Key financials 38 General info 3 Investor Presentation FY 2012
Slide 4: Results & Outlook FY 2012
Results & Outlook FY 2012 ——=——— is RION Building well-being
Slide 5: Significant progress in research projects
Significant progress in research projects • Net sales higher due to sales growth in products other than Parkinson’s drugs (Stalevo®, Comtess® and Comtan®) • Operating profit at similar level to 2011 despite higher R&D expenses • Pharmaceutical research projects progressed as planned – Orion is prepa
Slide 6: Key figures for Q4/2012 and FY 2012
Key figures for Q4/2012 and FY 2012 Q4/12 Q4/11 Change % 2012 2011 Change % Net sales, EUR million 254.4 236.1 +7.8% 980.4 917.9 +6.8% Operating profit, EUR million 59.4 59.6 -0.2% 280.9 282.9 -0.7% % of net sales 23.4% 25.2% 28.7% 30.8% R&D expenses, EUR million 31.7 25.4 +24.7% 104.8 87.5 +19.8% %
Slide 7: Key figures by business areas FY 2012
Key figures by business areas FY 2012 Key figures for Pharmaceuticals business Q4/12 Q4/11 Change % 2012 2011 Change % Net sales of Pharmaceuticals, EUR million 242.1 223.8 +8.2% 928.9 870.6 +6.7% Proprietary Products 103.9 103.4 +0.5% 403.7 408.9 -1.3% Specialty Products 97.6 82.5 +18.3% 367.2 320.
Slide 8: Net sales originate mainly in Europe
Net sales originate mainly in Europe Breakdown of EUR 980 million net sales in 2012 By business division By market area 6% 4% 15 % 5% 26 % 7% 41 % 15 % 13 % 37 % 31 % Proprietary Products Specialty Products Animal Health Fermion Finland Scandinavia Other Europe Contract manufacturing & Other Orion D
Slide 9: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, Business EUR million Division 2012 2011 Change % 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) PP 250 267 -6% 2. Precedex® (intensive care sedative) PP 45 33 +38% 3. Simdax® (acute decompensated heart failure) PP 44 44 -1%
Slide 10: 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 11: Orion's strategy and financial targets
Orion’s strategy and financial targets
Slide 12: Profitable growth and increased shareholder value whilst keeping business risks under control
Profitable growth and increased shareholder value whilst keeping business risks under control Partners and networking Efficient and competitive operations M ANAGEMENT OF COMPLEXITY IN COST EFFICIENT WAY 12 Investor Presentation FY 2012
Slide 13: Balancing mid-term − building long-term
Balancing mid-term − building long-term Upside potential from long-term portfolio management R&D pipeline Larger portfolio in the Nordics Parkinson’s franchise post patent Continued growth in Eastern Europe and Russia Precedex royalty stream post patent Contract Manufacturing Easyhaler combinations
Slide 14: Orion's financial objectives
Orion’s financial objectives Operating profit 300 35% Orion’s financial objectives are: 250 30% Operating • Ensuring financial stability profit, EUR 200 25% • Profitable growth million 150 20% Operating profit, % of net The objectives are achieved through: 100 15% sales • Increasing net sales. Achie
Slide 15: Orion R&D – long term opportunities
Orion R&D – long term opportunities
Slide 16: Orion's R&D strategy
Orion’s R&D strategy Increased productivity R&D operational model renewed in 2009 Focus on three core therapy areas + generics • Central nervous system diseases Focused therapy areas • Oncology and critical care • Easyhaler pulmonary drugs Emphasis on collaboration and partnerships • Clinical studie
Slide 17: Collaborative networks across the R&D value chain
Collaborative networks across the R&D value chain Late stage Research Early development development Target Hit to Lead Lead Candidate Phase I Phase II Phase III identification generation optimisation selection, and validation preclinical dev. 8–24 mth 12–24 mth 18–36 mth 12–24 mth 12–14 mth 12–36 mt
Slide 18: Number of pre-clinical research projects has tripled since 2006
Number of pre-clinical research projects has tripled since 2006 HIT Finding Active-To-Hit Hit-To-Lead Lead Optimization ENDO collaboration in oncology 4x Oncology A Oncology B Oncology C Oncology D CNS A CNS B CNS B CNS C CNS D CNS E CNS F CNS G CNS H Super generic Oncology spin out for new indicati
Slide 19: 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 market 1) Parkinson’s disease ODM-101 Parkinson’s disease (more effective levod
Slide 20: ORM-12741, alpha-2c adrenoceptor antagonist
ORM-12741, alpha-2c adrenoceptor antagonist • Background: ORM-12741 is a highly potent and selective alpha-2c adrenoceptor (AR) antagonist that has demonstrated efficacy in rodent models • Indication: Cognitive and behavioral symptoms in patients with Alzheimer’s disease • Promising results from pha
Slide 21: ODM-201, androgen receptor antagonist
ODM-201, androgen receptor antagonist • A novel antiandrogen intended for patients with progressive metastatic castration-resistant prostate cancer mCRPC • Joint collaboration with Endo Pharmaceuticals – more about the collaboration at www.orion.fi/orion-and-endo • Phase I/II study results published
Slide 22: ODM-101 and ODM-103 for Parkinson's disease
ODM-101 and ODM-103 for Parkinson’s disease ODM-101, more effective levodopa product ODM-103, more effective COMT-inhibitor Phase II Proof of Concept study Pre-clinical study • Over 100 patients in Europe • Pre-clinical study results indicated that • Key results indicate that ODM-101 is more ODM-103
Slide 23: Proprietary Products and Specialty Products update
Proprietary Products and Specialty Products update
Slide 24: Turning points of Parkinson's franchise
Turning points of Parkinsons’s franchise 2011 2012 2013 2014 2015 Comtess in-market sales EUR 35 Entacapone molecule patent expires 11/2012 Generic versions of Comtess Europe million in 2011 Stalevo in-market sales EUR 250 Generic versions of million in 2011 Stalevo data protection ends 10/2013 Stal
Slide 25: Rx value shares in USA after generic launches
Rx value shares in USA after generic launches Total Rx value in USA - all entacapone products 120% 100% 80% 60% 48% 40% Generic Stalevo products launched in April 28% 20% Wockhardt’s generic Comtan launched in October 25% 0% Novartis Sun Wockhardt 25 Investor Presentation FY 2012
Slide 26: Precedex has captured a significant market share in the USA
Precedex has captured a significant market share in the USA Sedation market in USA in 2003 Sedation market in USA in 2011 Total market value 594 million USD in 2003 Total market value 366 million USD in 2011 Propofol Midazolam Propofol Midazolam Dexmedetomidine Remifentanil Dexmedetomidine Remifenta
Slide 27: dexdor has growth potential in Europe
dexdor® has growth potential in Europe European sedation market 2011 Precedex® and dexdor® in brief Total market value EUR 518 million, growth +3.8% • API is dexmedetomidine which is a sedative agent originated by Orion’s R&D Remifentanil • Precedex available in more than 30 17% countries • In USA s
Slide 28: Global coverage with well-known Easyhaler device
Global coverage with well-known Easyhaler device • Easyhaler® is authorised in 30 countries and coverage expanding, excl. USA and Japan • Targeting the pulmonologists and general practitioners • Favorable results from budesonide/formoterol combination development study. Estimated filing in Europe in
Slide 29: Retail sales of inhaled respiratory drugs market in Top 5 Europe
Retail sales of inhaled respiratory drugs market in Top 5 Europe EUR (1,000) In value Units (1,000) In units 3 000 000 90 000 80 000 2 500 000 70 000 2 000 000 60 000 50 000 1 500 000 40 000 1 000 000 30 000 20 000 500 000 10 000 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2
Slide 30: Launches are basis for future growth in SpP
Launches are basis for future growth in SpP EUR million Specialty Products launches 400 16% Number of product/country combinations 350 14% 160 140 300 12% 120 250 10% 100 80 200 8% 60 150 6% 40 20 100 4% 0 50 2% 2005 2006 2007 2008 2009 2010 2011 2012 0 0% SpP launches in 2012 2008 2009 2010 2011 20
Slide 31: Key financials
Key financials ——=——— is RION Building well-being
Slide 32: Key figures by quarter
Key figures by quarter EUR million Net sales Operating profit EUR million 1200 300 283 281 1000 980 254 918 250 60 59 850 772 254 207 53 800 711 236 Q4 215 200 185 Q4 44 65 76 193 600 180 246 Q3 33 71 211 150 Q3 213 56 170 192 Q2 44 65 400 66 Q2 227 233 100 60 196 207 Q1 45 50 181 Q1 200 50 215 244
Slide 33: 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 34: 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 35: Financial position
Financial position EUR million 12/12 12/11 Change% EUR million 12/12 12/11 Change% Non-current assets total 326.2 318.6 +2.4% Inventories 179.2 151.4 +18.4% Equity total 511.3 500.0 +2.3% Interest-bearing non-current Trade receivables 151.5 155.3 -2.5% liabilities 107.4 66.0 +62.8% Other receivables
Slide 36: Development of Net working capital
Development of Net working capital % of net sales EUR million 40% 250 200 30% 150 20% 100 10% 50 0 0% -50 -10% -100 -20% -150 Sep07 Jun08 Mar09 Dec09 Sep10 Jun11 Mar12 Dec12 Sep07 Jun08 Mar09 Dec09 Sep10 Jun11 Mar12 Dec12 Receivables Receivables Inventories Inventories Short-term non-interest beargi
Slide 37: Dividend distribution
Dividend distribution Dividend distribution history Dividend distribution policy EUR 1,60 160% 1,40 140% Orion’s dividend distribution takes into 1,20 120% account distributable funds and capital 1,00 100% expenditure and other financial requirements in medium and long term to 0,80 80% achieve the f
Slide 38: General info
General info GRION Building well-being
Slide 39: Building well-being is Orion's Mission
Building well-being is Orion’s Mission Orion is an innovative, European, R&D-based, pharmaceutical and diagnostic company with a special emphasis on developing medicinal treatments and diagnostic tests for global markets Orion in brief 2012 Net sales EUR 980 million Operating profit EUR 281 million
Slide 40: Business divisions
Business divisions Proprietary Products Fermion • Patented prescription drugs • Active pharmaceutical ingredients • CTAs: CNS, oncology & critical (API’s) for Orion and other companies care, Easyhaler pulmonary drugs • Net sales in 2012 EUR 48 million (excluding supplies for own use) • Net sales in
Slide 41: Market position strengthened in Europe
Market position strengthened in Europe Finland Market leader Scandinavia Strong domestic market position Eastern Europe Branded generics Western and Central Europe Strong position with proprietary products Southern Europe Progress with proprietary products in hospital markets 41 Investor Presentatio
Slide 42: Orion shares are broadly held
Orion shares are broadly held By number of shares on 31 Dec By number of votes on 31 Dec 6% 1% 7% 1% 6% 8% 7% 13 % 47 % 6% 65 % 33 % Households Households Non-Finnish holders and nominee registered Non-Finnish holders and nominee registered Private corporations Private corporations Public sector Pub
Slide 43: Orion B share performance July 2006─ January 2013
Orion B share performance 3 July 2006─ 28 January 2013 Index 3 July 2006 = 100 230 210 190 170 MSCI Europe Pharmaceuticals 150 OMX Helsinki Cap 130 Orion B 110 90 Orion B total return 70 50 43 Investor Presentation FY 2012
Slide 44: Orion Investor Relations
Jari Karlson CFO jari.karlson@orion.fi +358 10 426 2883 Orion Investor Tuukka Hirvonen IR Relations tuukka.hirvonen@orion.fi +358 10 426 2721 Heidi Ahti Executive Assistant (Investor meeting requests) heidi.ahti@orion.fi +358 10 426 2169 www.orion.fi/EN/Investors twitter.com/OrionCorpIR