Slide 1: Orion Interim Report Q1-Q3/2011
Orion Interim Report Q1─Q3/2011 25 October 2011 Timo Lappalainen President and 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: Dexdor gained marketing authorisation
Dexdor gained marketing authorisation • Net sales and operating profit grew, but more slowly than in the first half of the year – Growth of Parkinson’s drugs 5% – Growth of other product ranges 9% – Growth of Orion’s human pharmaceuticals in Finland 6% • Orion's dexdor® (dexmedetomidine) intensive c
Slide 4: Net sales and operating profit grew
Net sales and operating profit grew Group key figures Q1─Q3/11 Q1─Q3/10 Change % 2010 Net sales, EUR million 682 635 +7% 850 Operating profit, EUR million 223 202 +11% 254 Basic earnings per share, EUR 1.17 1.05 +11% 1.31 Cash flow per share before financial items, EUR 0.77 0.82 -6% 1.26 • Net sales
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 Sales 3% 5% through 13 % partners 5% 30% 26 % 7% 14 % 45 % 13 % 35
Slide 6: Business Reviews
Business Reviews
Slide 7: Pharmaceuticals sales growth slowed
Pharmaceuticals sales growth slowed Key figures for Pharmaceuticals business Q1─Q3/2011 Q1─Q3/2010 Change % 2010 Net sales of Pharmaceuticals, EUR million 647 603 +7% 806 Proprietary Products 306 281 +9% 371 Specialty Products 238 222 +8% 299 Animal Health 49 49 -1% 68 Fermion 32 34 -8% 45 Contract
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, EUR million Q1─Q3/2011 Q1─Q3/2010 Change % 2010 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) 202.4 193.3 +4.7% 253 2. Simdax® (acute decompensated heart failure) 31.3 29.8 +4.9% 40 3. Easyhaler® product family (asthma, COP
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals market Finland’s biggest in Q1─Q3/2011 • Wholesale EUR 1,453 million (+3%) pharmaceutical companies in EUR million Q1─Q3/2011 160 150 Orion in Finnish human pharmaceuticals market 140 • Quarter of Orion’s net sales from 120 Finland 1
Slide 10: Sales of Parkinson's drugs still growing
Sales of Parkinson’s drugs still growing Overall markets for Parkinson’s drugs Market shares of Orion’s MAT MAT July 2010 ─ June 2011 Parkinson’s drugs 6/11 6/10 Finland 2) 23% 26% • United States 3) USD 758 million (-26%) Sweden 2) 15% 16% • Five largest European markets 1) 3) EUR 1,015 million (+2
Slide 11: Precedex maintains strong growth
Precedex maintains strong growth Markets for intensive care sedative Breakdown of Precedex Precedex July 2010 ─ June 2011 USD million markets 160 • Total USD 180 million (+38%) 140 120 • United States USD 146 million (+29%) 100 80 60 40 20 0 USA Other countries 11 25 October 2011 Orion Interim Repor
Slide 12: Orion's pharmaceutical research pipeline
Orion’s pharmaceutical research pipeline Clinical phases Regis- Project Indication Pre-clinical I II III tration Easyhaler® combined formulations Asthma, COPD Stalevo® for Japanese market Parkinson’s disease Partner: Endo Androgen receptor antagonist Advanced prostate cancer Pharmaceuticals Alpha 2c
Slide 13: Diagnostics business
Diagnostics business Key figures for Diagnostics business Q1─Q3/2011 Q1─Q3/2010 Change % Net sales, EUR million 37 34 +7% Operating profit, EUR million 4.2 5.1 -17% • QuikRead® tests remained main product. Progress in sales in Nordic countries and, for example, China and Czech Republic. • Profit dec
Slide 14: Outlook for 2011 (no change)
Outlook for 2011 (no change) • Net sales slightly higher than in 2010 – marketing expenditure will be higher due to the increased number of product launches – research expenditure will be higher than in 2010 • Operating profit excluding non-recurring items higher than in 2010 • Group capital expendi
Slide 15: Orion calendar 2012
Orion calendar 2012 • Financial Statements 2011 7 February 2012 • Annual General Meeting 2012 20 March 2012 • Interim Report January–March 2012 24 April 2012 • Capital Markets Day in Helsinki 24 May 2012 • Interim Report January–June 2012 31 July 2012 • Interim Report January–September 2012 23 Octob
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Slide 17: Orion's financial objectives
Orion’s financial objectives Net sales and profitability in next few years depend on rate of: • Decline in sales of Parkinson’s drugs • Growth in sales of other products Orion’s financial objectives: 1. Ensuring financial stability 2. Creating foundation for long-term profitable growth Principal mea
Slide 18: Key figures by quarter
Key figures by quarter EUR million Net sales EUR million Operating profit 900 850 300 800 772 254 680 711 215 682 250 223 700 193 207 53 192 600 173 180 200 185 211 Q4 44 65 Q4 213 39 33 71 500 192 Q3 Q3 170 150 400 163 49 44 56 Q2 65 Q2 227 300 207 100 60 166 181 196 Q1 45 Q1 44 50 200 50 93 100 19
Slide 19: Key figures for 2007-Q3/2011
Key figures for 2007─Q3/2011 Orion’s key figures 2007 2008 2009 2010 Q1─Q3/2011 Q1─Q3/2010 Change % Net sales, EUR million 680.0 710.7 771.5 849.9 681.8 635.0 +7.4% Operating profit, EUR million 192.0 185.0 207.0 254.2 223.4 201.6 +10.8% Profit before taxes, EUR million 193.4 184.2 203.7 252.6 222.4
Slide 20: Growth in sales of own proprietary products
Growth in sales of own proprietary products Net sales of proprietary products, EUR million Indication Q1─Q3/2011 Q1─Q3/2010 Change % 2010 Stalevo®, Comtess® and Comtan® Parkinson’s disease 202.4 193.3 +4.7% 252.7 Acute decompensated Simdax® 31.3 29.8 +4.9% 39.9 heart failure Easyhaler® product famil
Slide 21: Income Statement 2007-Q3/2011
Income Statement 2007─Q3/2011 Formation of profits, EUR million 2007 2008 2009 2010 Q1─Q3/2011 Q1─Q3/2010 Change % Net sales 680.0 710.7 771.5 849.9 681.8 635.0 +7.4% Cost of goods sold -232.8 -243.4 -265.2 -283.2 -219.8 -209.4 +5.0% Gross profit 447.2 467.4 506.3 566.8 462.0 425.6 +8.5% Other opera
Slide 22: Orion's main research programmes
Orion’s main research programmes • Expansion of Easyhaler® product family. Under development are new budesonide-formoterol and fluticasone-salmeterol combined formulations for treatment of asthma and COPD. – Bioequivalence results from budesonide-formoterol combined formulation development programme
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 decompensated September Levosimendan Simdax® Not m
Slide 24: Dividend distribution policy
Dividend distribution policy Dividend distribution policy 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 0,60 60% achieve