Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — Investor Day (May 2021)
10 slides from Orion Oyj Class A's investor day presentation, May 26, 2021
Slide 1: Growth in focus - In-organic growth also part of the playbook
Growth in focus - In-organic growth also part of the playbook Jari Karlson, CFO
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Orion's financial objectives
Orion’s financial objectives Growing net sales more rapidly than growth of the pharmaceuticals Keeping the equity ratio at market. Achievement of this objective least 50%. requires continuous investment in development of the product portfolio. Maintaining profitability at a good Distributing an annu
Slide 4: Financial objectives
Financial objectives Net sales Dividend 1 050 8% 1,60 900 6% 1,50 750 4% 2% 1,40 X 600 450 300 150 0 0% -2% -4% -6% 1,30 1,20 1,10 2019 2016 2017 2018 2020 2016 2017 2018 2019 2020 Net sales, EUR million Growth, % Target floor Dividend per share, EUR Target Operating profit Equity ratio 300 30% 80
Slide 5: Why growth is important
Why growth is important Without growth margins will gradually decrease even with good cost control due to price competition and inflation Profits & Larger scale of operations dividends -> Easier to carry fixed legacy costs -> Improved margins & ROCE Larger scale of operations Shareholder -> Improved
Slide 6: Ways to fund growth
Ways to fund growth Organic growth More spending upfront, i.e. lower than 1 maximum dividends mid-term to fund dividend/value growth in long term 2 Partnering with (Big) pharma Additional funding for in-organic growth Divesting of existing 3 business areas or assets Bank loans & Others, like using f
Slide 7: External funding capacity
External funding capacity BASIS Currently available funding up to EUR ~1.2bn without lowering equity ratio below 50% • The maximum amount of new debt Orion can take without lowering equity ratio below 50% Bank loan or bonds varies based on the M&A target’s cash flow and profit generation. The range
Slide 8: Possible targets
Possible targets BASIS POSSIBLE TARGETS In-organic growth option for all Orion Companies/assets generating sales businesses and cash flow Limited number of targets with good enough strategic and operational fit Late stage development assets Maintain good financial discipline and Early stage developm
Slide 9: Value created by growth with good profitability
Value created by growth with good profitability Growth EBIT > 25% of net sales Equity ratio ≥ 50% • Sales growth • R&D pipeline development • Good profitability • Management of cost structure • Geographical expansion • Management of • Management of product with focused sales working capital portfoli
Slide 10: Orion Corporation Capital Markets Day
Orion Corporation Capital Markets Day