Slide 1: Orion Interim Report January–June 2014
Orion Interim Report January─June 2014 29 July 2014 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: Payments from partners increased net sales and operating profit
Payments from partners increased net sales and operating profit • Net sales increased slightly and operating profit increased • Orion began global partnership with Bayer for developing and commercialising compound ODM-201 • Net sales and operating profit include payments received from Bayer (EUR 23
Slide 4: Net sales and operating profit
Net sales and operating profit Group key figures Q1─Q2/2014 Q1─Q2/2013 Change % 2013 Net sales, EUR million 522 497 +5% 1,007 Operating profit, EUR million 153 135 +13% 268 Basic earnings per share, EUR 0.86 0.72 +19% 1.46 Cash flow per share before financial items, EUR 0.93 0.27 +248% 1.02 • Net sa
Slide 5: Breakdown of net sales
Breakdown of net sales By business division By market area 4% 5% 12% 7% 27% 6% 39% 13% 13% 39% 35% Proprietary Products Specialty Products Animal Health Finland Scandinavia Fermion Other Europe North America Contract manufacturing & other Orion Diagnostica Other countries 5 29 July 2014 Orion Interi
Slide 6: Business Reviews
Business Reviews
Slide 7: Pharmaceuticals business
Pharmaceuticals business Key figures for Pharmaceuticals business Q1─Q2/2014 Q1─Q2/2013 Change % 2013 Net sales of Pharmaceuticals, EUR million 494 469 +5% 953 Proprietary Products 204 193 +5% 390 Specialty Products 204 188 +9% 385 Animal Health 32 35 -7% 71 Fermion 35 34 +2% 64 Contract manufacturi
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Business Orion’s best-selling pharmaceuticals, EUR million Division Q1─Q2/2014 Q1─Q2/2013 Change % 2013 1. Stalevo®, Comtess® & Comtan® (Parkinson’s disease) PP 93 111 -16% 207 2. Simdax® (acute decompensated heart failure) PP 23 23 +1% 46 3. dexdor® (intensive care seda
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals Finland’s biggest pharmaceutical market in January─June 2014 companies in Q1─Q2/2014 EUR million • Wholesale EUR 1,048 million (+4%) 140 121 120 Orion in Finnish human pharmaceuticals market 100 • Sales growth +5% 80 74 • Orion clear
Slide 10: Review of Parkinson's drugs markets
Review of Parkinson’s drugs markets Overall markets for Parkinson’s drugs in April 2013 ─ March 2014 Market shares of Orion’s MAT3 MAT3 branded Parkinson’s drugs 2014 2013 • United States 3) USD 792 million (+8%) Finland 2) 22% 24% • Five largest European markets 1) 3) EUR 993 million (+3%) Sweden 2
Slide 11: Precedex and dexdor intensive care sedatives
Precedex® and dexdor® intensive care sedatives European sedative market MAT3/2014 Breakdown of Precedex USD million Total market value EUR 479 million (+1.4%) markets 400 12% 350 62 5% 300 +5% 59 250 15% 200 68% 316 150 +26% 252 100 50 Propofol EUR 323 million (+4%) 0 Midazolam EUR 74 million (-5%)
Slide 12: Key clinical pharmaceutical development projects
Key clinical pharmaceutical development projects Project Indication PHASE Registration Stalevo® for Japanese markets 1) Parkinson’s disease I II III Registration Bufomix Easyhaler® (budesonide-formoterol) 5) Asthma, COPD I II III Easyhaler® salmeterol-fluticasone Asthma, COPD I II III ODM-201 (andro
Slide 13: Diagnostics business
Diagnostics business Key figures for Diagnostics business Q1─Q2/2014 Q1─Q2/2013 Change % 2013 Net sales, EUR million 29 30 -3% 57 Operating profit, EUR million 2.9 1.9 +59% 4.6 • Decrease in net sales mainly due to ending of sales of products discontinued in 2013 • Operating profit in comparative pe
Slide 14: Outlook for 2014
Outlook for 2014 (updated on 2 June 2014) • Net sales will be at similar level to 2013 (net sales in 2013 were EUR 1,007 million) • Operating profit will be at similar level to 2013 (operating profit in 2013 was EUR 268 million) • Group’s capital expenditure will be about EUR 60 million excluding su
Slide 15: Orion Calendar 2014–2015
Orion Calendar 2014─2015 • Interim Report January─September 2014 21 October 2014 • Financial Statement Release for 2014 4 February 2015 • Annual General Meeting 2015 planned to be held on 24 March 2015 • Interim Report January─March 2015 29 April 2015 • Interim Report January─June 2015 28 July 2015
Slide 16: Appendix
GRION Building well-being
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 1,200 300 1,000 250 60 59 53 66 254 273 800 236 Q4 200 65 Q4 215 76 71 67 600 246 237 Q3 150 Q3 211 213 65 Q2 65 86 Q2 400 100 60 61 227 233 248 277 207 Q1 Q1 200 50 93 71 79 74 67 215 244 247 249 245 0 0 10 11 12 13 14 10 11
Slide 19: Key figures for 2010–Q2/2014
Key figures for 2010─Q2/2014 Orion’s key figures 2010 2011 2012 2013 Q1─Q2/2014 Q1─Q2/2013 Change % Net sales, EUR million 849.9 917.9 980.4 1,006.9 521.7 497.4 +4.9% Operating profit, EUR million 254.2 282.9 278.3 267.7 153.4 135.2 +13.4% Profit before taxes, EUR million 252.6 282.0 276.6 264.0 151
Slide 20: Income Statement 2010–Q2/2014
Income Statement 2010─Q2/2014 Formation of profits, EUR million 2010 2011 2012 2013 Q1─Q2/2014 Q1─Q2/2013 Change % Net sales 849.9 917.9 980.4 1,006.9 521.7 497.4 +4.9% Cost of goods sold -283.2 -305.1 -350.8 -393.5 -195.3 -190.6 +2.4% Gross profit 566.8 612.8 629.6 613.4 326.4 306.8 +6.4% Other ope
Slide 21: 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 January Entacapone Parkinson’s disease October 2013 Comtess® and Comtan® October 2013 1) 2015 2) Acute Levosimendan Simdax® decompensated September
Slide 22: Dividend distribution policy
Dividend distribution policy Orion’s dividend distribution takes into account distributable funds and capital expenditure and other financial requirements in medium and long term to achieve the financial objectives. Dividend distribution history EUR 1.60 100% 0.12 EUR 1.40 0.06 95% EUR 1.20 0.10 90%
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