Slide 1: Orion Investor Presentation
Orion Investor Presentation
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: Content
Content 1) Orion in brief 2) Highlights of 1-6/2021 3) Research & Development 4) Sustainability 5) Appendices 6) Financial calendar Investor Presentation © Orion Corporation 3
Slide 4: Orion in brief
Orion in brief
Slide 5: Key messages
Key messages 1 Orion develops, 3 5 Growth targeted Strong position in manufactures and through new the Nordic markets human in-house developed generics market. and animal drugs. pharmaceuticals and APIs. Products marketed in >100 countries. Core therapy areas 4 6 Strong 22 4 Balanced business model:
Slide 6: Orion at a glance (2020 figures)
Orion at a glance (2020 figures) Net sales Sales by business Sales by market area 1,078 MEUR Operating profit 7% 13% 8% 280 MEUR 39% 8% 29% Personnel 3,311 R&D investments 46% 123 MEUR 34% 16% 6 production sites in Finland Proprietary Products Finland Specialty Products Scandinavia 26 Own sales unit
Slide 7: Financial development between 2008 and 2020
Financial development between 2008 and 2020 Net sales Operating profit EUR million EUR million 1 200 12% 350 35% 1 000 9% 300 30% 800 6% 250 25% 200 20% 600 3% 150 15% 400 0% 100 10% 200 -3% 50 5% 0 -6% 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2008 2009 2010 2011 2012 20
Slide 8: Orion's businesses
Orion’s businesses Fermion & Contract Proprietary Products Specialty Products Animal Health manufacturing In-house developed drugs Generic prescription drugs, Own animal drugs for global Active pharmaceutical and other drugs with valid OTC and non-medicinal markets. Other drugs and ingredients (APIs
Slide 9: Outlook for 2021
Outlook for 2021 (provided on 9 February 2021) Net sales Orion estimates that in 2021 net sales will be slightly lower than in 2020 (net sales in 2020 were EUR 1,078 million). Operating profit Operating profit is estimated to be lower or clearly lower than in 2020 (in 2020 operating profit was EUR 2
Slide 10: Key assumptions behind the outlook
Key assumptions behind the outlook Net sales Operating profit + Nubeqa® + Nubeqa® + Other growing products + No more depreciation expenses from Parkinson’s franchise - Milestones - Milestones - dexdor® - dexdor® - Simdax® - Simdax® - Animal Health - Normalisation of cost level (without Parkinson’s d
Slide 11: 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 12: Key elements of Orion's growth
Key elements of Orion’s growth Animal Support Proprietary Health growth Products Growth drivers and R&D APIs for R&D and Fermion Proprietary Generate cash Products flow to fund Specialty Products growth Less vulnerable investments Defensive to Support growth industry macroeconomic volatility Investo
Slide 13: 2025 Growth target – key positives and negatives so far
2025 Growth target – key positives and negatives so far Net sales (continued operations) Organic growth in 2018-2020 all units 1 200 Positives 1 000 Own sales in Europe & 800 Southeast Asia 600 400 ODM-109 Biosimilars 200 Negatives Loss of distribution agreement in Animal Health 0 2018 2019 2020 Los
Slide 14: Path to the 2025 target from 2021 onwards
Path to the 2025 target from 2021 onwards Organic growth in all units Estimated growth will not be linear Building blocks for growth Geographical expansion In-licensing & M&As are options in all units Darolutamide ARASENS* & ARANOTE* Unknowns Net sales Easyhaler® tiotropium* Possible changes in regu
Slide 15: Key clinical development pipeline
Key clinical development pipeline Phase completed Phase ongoing Project/compound Indication Phase I Phase II Phase III Registration ARASENS / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III ARANOTE / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III ODM-208 Prostate
Slide 16: Orion had 80,906 shareholders on 30 June 2021
Orion had 80,906 shareholders on 30 June 2021 By number of shares By number of votes Households (Finnish 5% 2% retail) 8% 2% 7% 6% Non-Finnish holders and nominee-registered 6% 39% Private corporations 12% 61% Public sector 10% 41% Non-profit institutions Financial and insurance corporations Investo
Slide 17: Largest shareholders by votes and shares on 30 June 2021
Largest shareholders by votes and shares on 30 June 2021 # Shareholder % of votes Number of votes # Shareholder % of shares Number of shares 1 Erkki Etola and companies 6.22 50,200,000 1 Ilmarinen Mutual Pension Insurance Company 2.55 3,600,305 2 Maa- ja vesitekniikan tuki r.y. and companies 5.16 41
Slide 18: Orion B share performance January 2016 – June 2021
Orion B share performance January 2016 – June 2021 Index 31/12/2015=100 65 195 60 180 55 165 Share price, EUR 150 50 45 Orion B 135 Index Orion B total return 120 40 Europe/Pharmaceutical 105 35 OMXH-portfolio 90 30 Orion B share price 75 25 60 20 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31
Slide 19: Highlights in January-June 2021
Highlights in January-June 2021
Slide 20: Operating profit without milestones at previous year's level
Orion’s operating profit without milestones at previous year’s level Net sales & • Milestones EUR 2 (33) million operating profit • Nubeqa® sales booked by Orion showed strong growth • Specialty Products had a good start for the year despite net sales declined from the strong comparison period • Ani
Slide 21: Key figures 1−6/2021
Key figures 1−6/2021 Net sales Operating profit Operating profit Cash flow per share margin before financial items 524 146 28% 0.53 MEUR (572) MEUR (181) (32%) EUR (0.90) -9% -19% -41% Investor Presentation © Orion Corporation 21
Slide 22: Development of net sales in 1-6/2021 vs. 1-6/2020
Development of net sales in 1-6/2021 vs. 1-6/2020 572 -14 11 -5 5 -5 -7 -1 -32 524 * Nubeqa® product sales & royalty ** Proprietary Products and Specialty Products *** Animal Health, Fermion and Contract Manufacturing **** Without Nubeqa® royalties Investor Presentation © Orion Corporation 22
Slide 23: Development of operating profit in 1-6/2021 vs. 1-6/2020
Development of operating profit in 1-6/2021 vs. 1-6/2020 181 -10 -14 1 15 -29 146 3 * Product & service sales without sales margin and product mix change and exchange rate effect *** Exchange rate effect on gross margin ** Product sales margin and product mix change but without exchange rate effect
Slide 24: Geographical breakdown and development of net sales
Geographical breakdown and development of net sales 1-6/2021 MEUR 1-6/2021 1-6/2020 14% 250 29% -6% 9% -4% 200 191 181 150 152 158 -26% -6% 100 -6% 13% 95 35% 50 70 72 77 49 52 Finland Scandinavia 0 Other Europe North America RoW RoW = Rest of the World Investor Presentation © Orion Corporation 24
Slide 25: Good development in business operations despite decline in net sales
Good development in business operations despite the decline in total net sales 1−6/2021 1−6/2020 1-6/2021 MEUR -2% -17% 7% 300 7% 244 249 243 250 202 39% 200 150 -4% -13% 100 47% 37 43 38 40 50 Proprietary Products 0 Specialty Products Specialty Proprietary Animal Fermion and Animal Health Products
Slide 26: TOP 10 products in 1-6/2021
TOP 10 products in 1-6/2021 EUR million vs. 1-6/2020 1. Easyhaler® product portfolio 56 -9% 2. Stalevo®, Comtess®, Comtan® 52 -0% 3. Simdax® 29 -16% 4. dexdor® 20 -40% 5. Nubeqa® 19 +140% 6. Dexdomitor®, Domitor®, Domosedan®, Antisedan® 18 +18% 7. Divina® series 12 +14% 8. Burana® 11 -11% 9. Solomet
Slide 27: Proprietary Products
Proprietary Products 6 RION ing well-being Buildi
Slide 28: Expected sales development excluding the Easyhaler product family
Expected sales development excluding the Easyhaler® product family Proprietary Products MEUR -9% sales split 1-6/2021 70 -0% -51% 61 13% 60 56 26% 52 53 52 50 -16% -40% 10% 40 35 34 +140% 29 30 26 20 19 20 14% 8 10 27% 0 10% Easyhaler® Parkinson's Simdax® Dexdor® Nubeqa® Others portfolio franchise P
Slide 29: Nubeqa sales booked by Orion showing strong growth
Nubeqa® sales* booked by Orion showing strong growth 1-6/2021 Nubeqa® MEUR 19 (8) +140 % 15 10 MEUR 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 * Orion’s sales to Bayer for commercial use + royalties from Bayer Investor Presentation © Orion Corporation 29
Slide 30: Easyhaler product portfolio sales
Easyhaler® product portfolio sales -9% 1-6/2021 Budesonide-formoterol Easyhaler® MEUR 34 (37) -7% 40 1-6/2021 Other Easyhaler® products MEUR 21 (24) -12% 35 30 Sales, MEUR 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2020 2021 Other Budesonide-formoterol
Slide 31: Sales of Parkinson's franchise at previous year's level
Sales of Parkinson's franchise at the previous year's level 1-6/2021 Own sales MEUR 27 (24) +13% 40 35 1-6/2021 Deliveries to partners MEUR 25 (28) -11% 30 Sales, MEUR 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2020 2021 Orion own sales Deliveries to p
Slide 32: Dexdor and Simdax - impact of generic competition
Dexdor® and Simdax® - impact of generic competition starting to show 1-6/2021 Dexdor® MEUR 20 (34) -40% 1-6/2021 Simdax® MEUR 29 (35) -16% 20 20 15 15 10 10 5 5 0 0 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Investor Presentation © Orion Corporation 32
Slide 33: Specialty Products
Specialty Products
Slide 34: Good start for Specialty Products
Good start for the year for Specialty Products even though net sales declined from strong H1 2020 -5% MEUR Sales split 1−6/2021 160 140 133 139 14% 120 100 -11% 16% 80 +17% 60 42 38 40 34 34 34 54% 40 20 0 16% Finland Scandinavia Eastern RoW Europe & Finland Russia Scandinavia Eastern Europe & Russi
Slide 35: Good start for Specialty Products
Good start for the year for Specialty Products even though net sales declined from strong H1 2020 MEUR Sales split 1−6/2021 -2% 250 200 185 188 24% 150 -2% 100 60 61 50 0 76% Generic Self Care products prescription drugs Generic drugs Self-care products 1-6/2021 1−6/2020 Investor Presentation © Orio
Slide 36: Reference priced prescription drugs in Finland developed better than market
In Finland, Orion’s reference priced prescription drugs developed better than the market The market for reference priced prescription drugs in Finland* The sales of Orion's reference (1−6/2021) priced prescription drugs in Finland MEUR 215 (228) MEUR 51 (50) Market development Orion’s development -6
Slide 37: Orion is strong in home market Finland
Orion is strong in home market Finland Human pharma market in Finland 1−6/2021 Reference Self-care Medicinal and non-medicinal products priced products in hospital and pharmacy channels: EUR 1,421 million prescription Orion market share in MEUR drugs pharmacy 180 154 Orion market share in 160 140 ph
Slide 38: Key business targets in 2021
Key business targets in 2021 STATUS on TARGET 30 Jun 2021 Supporting sales growth and co-promotion in Europe with Bayer Positive outcome from Phase III ARASENS trial Taking phase III ARANOTE trial forward together with Bayer Sales growth ODM-208 Taking the development program forward according to pl
Slide 39: Corporate responsibility – targets and performance in 2020
Corporate responsibility – targets and performance in 2020 CORPORATE RESPONSIBILITY 2020 FOCUS AREA TARGET PERFORMANCE Ensuring availability of pharmaceutical products Patient safety and ensuring reliable supply of medications Ensuring patient safety Improving energy efficiency Environment Reducing
Slide 40: Research and development
Research and development
Slide 41: Proprietary human pharmaceuticals developed by Orion
Proprietary human pharmaceuticals developed by Orion Fareston® Investor Presentation © Orion Corporation 41
Slide 42: Main Orion Animal Health Marketing Authorisations
Main Orion Animal Health Marketing Authorisations Geepenil Comforion Benzorion Kefavet Investor Presentation © Orion Corporation 42
Slide 43: Focus areas of Orion's R&D
Focus areas of Orion’s R&D Proprietary products Animal Health Fermion • Neurological disorders • Orion utilises the • APIs for Orion’s (including rare diseases) R&D of proprietary proprietary products • Oncology products to develop • Generic APIs • Respiratory new medicines for • Contract developmen
Slide 44: Together we can achieve more in R&D
Together we can achieve more in R&D 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 development 8‒24 mo. 12‒24 mo. 18‒36 mo. 12‒24 mo. 12‒14 mo. 12‒36 mo. 18‒48
Slide 45: Research Areas in Orion's R&D
Research Areas in Orion’s R&D Neurological Disorders Oncology Research Discovery Sciences • Pain • Immuno-oncology • New Therapies • Neurodegenerative • Cancer Genomics and • Microbiome Proteinopathy Signalling • Discovery Technologies • Neurological Genetic • Antibody Drug Conjugates Disorders Inve
Slide 46: Neurological Disorders Research
Neurological Disorders Research Research Areas Pain - Ion channels and Ion channel Impaired neuro-immune interaction pathology protein homeostasis Neurodegenerative Proteinopathy - Pathological Fermion protein aggregation and clearance • APIs to Orion’s proprietary products Lysosomal Neurological Ge
Slide 47: Oncology Research
Oncology Research Research Areas Immuno-Oncology • FiCAR T-cell therapy FiCAR T-cell therapy DNA Repair • 2nd generation immune- checkpoint inhibitors Cancer genomics and Fermion Cell signalling • APIs to Orion’s proprietary products • Generic Cell APIs signalling • Contract development Antibody dru
Slide 48: Discovery Sciences
Discovery Sciences Research Areas New Therapies • Cell and Gene Therapy FiCAR T-cell therapy Microbiome Microbiome Fermion • APIs to Orion’s proprietary products • Generic APIs Discovery Technologies • Contract development for pharmaceutical companies Investor Presentation © Orion Corporation 48
Slide 49: Key clinical development pipeline
Key clinical development pipeline Phase completed Phase ongoing Project/compound Indication Phase I Phase II Phase III Registration ARASENS / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III ARANOTE / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III ODM-208 Prostate
Slide 50: ARASENS & ARANOTE trials in metastatic hormone-sensitive prostate cancer
ARASENS & ARANOTE trials aiming to expand the indication of darolutamide to metastatic hormone-sensitive prostate cancer Trial Target Estimated Treatment Combo Primary End-point Present Status on-going Patients completion Darolutamide + ARASENS mHSPC Overall survival Fully recruited Q4 2021 ADT + Do
Slide 51: Global prostate cancer estimates (GLOBOCAN 2020)
Global prostate cancer estimates (GLOBOCAN 2020) 70 1 2nd 35th 5 most commonly leading cause of diagnosed death from cancer malignancy in men 50 60 70 80 in men worldwide 50 60 70 80 21.4 375,000 4 650+ million men died from Mainly affects men diagnosed with the disease over 50, the risk prostate ca
Slide 52: ODM-208 (& ODM-209): CYP11A1 inhibitor for mCRPC
ODM-208 (& ODM-209): CYP11A1 inhibitor to treat patients with metastatic castration-resistant prostate cancer ODM-208 Target Patients Target patients with prostate cancer that has become resistant to the standard hormonal treatments. ● First–in–class oral molecule to Potential indications inhibit th
Slide 53: Sustainability is built into Orion's mission
Sustainability is built into Orion’s mission
Slide 54: Orion's Sustainability Agenda and indicators 2020
Orion’s Sustainability Agenda and indicators 2020 Patient safety and ensuring Responsibility for reliable supply of medications the environment Business ethics and Responsibility for Orionees transparency Customer Greenhouse gas Energy savings Injury rate Code of Conduct complaints GxP* audits emiss
Slide 55: This is how we are building well-being responsibly
This is how we are building well-being responsibly WE PRODUCE 1/3 OF THE GLOBAL SUPPLY OF ~200-300 NUMBER OF AUDITS CUSTOMER METHOTREXATE ANNUALLY COMPLAINTS IN 2020 76 (ppm) ORION’S FOCUS ON QUALITY THROUGHOUT THE LIFECYCLE PATIENT R&D RAW MANUFACTURING PACKING DELIVERY SALES PATIENT RECYCLING NEED
Slide 56: Appendices
ae a W Appendices GRIon Building well-being
Slide 57: Track record vs. financial objectives
Track record vs. financial objectives Net sales Operating profit Dividend 35% 1,60 1 200 12% 300 30% 1,55 1 000 9% 250 1,50 25% 800 6% 200 1,45 20% 1,40 600 3% 150 15% 1,35 400 0% 100 1,30 10% 1,25 200 -3% 50 5% 1,20 0 -6% 0 0% 1,15 2012 2013 2014 2015 2017 2018 2019 2016* 2020** 2012 2013 2014 2015
Slide 58: Net sales and operating profit by quarter
Net sales and operating profit by quarter (MEUR) Net sales Operating profit 350 120 300 100 250 80 200 60 150 40 100 50 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 266 261 242 266 2017 88 71 55 71 2018 247 246 222 264 2018 70 70 45 69 2019 241 252 284 274 2019 55 52 91 55 2020 280 292 250 255 2020 84 96 65
Slide 59: Quarterly net sales by unit
Quarterly net sales by unit (MEUR) Proprietary Products Specialty Products 150 150 100 100 50 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Animal Health Fermion & Contract Manufacturing 30 30 20 20 10 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2017 2018 2019 2020 2021 2017 20
Slide 60: Key figures
Key figures 1-6/ Change vs. Orion’s key figures 2017 2018 2019 2020 2021 1-6/2020 Net sales, EUR million 1,033.6 977.5 1,051.0 1,078.1 523.6 -8.5% EBITDA 323.6 293.9 308.9 336.5 168.0 -19.7% Operating profit, EUR million 284.1 252.8 252.8 280.1 146.0 -19.2% Profit before taxes, EUR million 277.7 248
Slide 61: Income statement
Income statement Change vs. Formation of profits, EUR million 2017 2018 2019 2020 1-6/2021 1-6/2020 Net sales 1,033.6 977.5 1,051.0 1,078.1 523.6 -8.5% Cost of goods sold -417.6 -387.9 -417.6 -427.0 -214.3 +2.0% Gross profit 616.0 589.6 633.4 651.0 309.3 -14.6% Other operating income and expenses 4.
Slide 62: Royalties and milestones
Royalties and milestones Includes significant part of EUR 50 million 80 darolutamide collaboration signing fee from Bayer Includes EUR 28 million milestones from Bayer for the 70 first commercial sales of darolutamide in EU and JPN 60 Includes EUR 45 million milestone from Bayer for the 5 first comm
Slide 63: Development of Proprietary Products net sales
Development of Proprietary Products net sales 450 2 17 400 24 Nubeqa® 26 65 61 350 44 56 18 46 26 25 Other 27 20 59 62 300 13 29 47 56 57 68 EUR million 48 25 51 Simdax® 250 35 59 51 64 77 90 115 35 105 Easyhaler® 200 30 45 57 150 18 64 63 Dexdor® 249 20 57 55 206 25 26 13 12 100 170 Precedex® 138 1
Slide 64: Financial position
Financial position EUR million 6/21 6/20 Change % EUR million 6/21 6/20 Change % Non-current assets total 425.4 423.9 +0.4% Inventories 272.8 251.1 +8.6% Equity total 698.5 709.8 -1.6% Interest-bearing non-current Trade receivables 154.3 189.0 -18.4% liabilities 104.9 106.0 -1.0% Other receivables 2
Slide 65: Development of capital expenditure
Development of capital expenditure Orion capex, EUR million 90 80 70 60 50 40 30 20 10 0 Property, plant and equipment Intangible assets Depreciation, amortisation and impairment Investor Presentation © Orion Corporation 65
Slide 66: Development of net working capital
Development of net working capital % of net sales EUR million 40% 400 30% 300 20% 200 10% 100 0% 0 -10% -100 -20% -200 -30% -300 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Dec20 Jun21 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Jun
Slide 67: Dividend distribution policy and dividend history
Dividend distribution policy and dividend history • 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. EUR Dividend distribution history 1,75 0.20 110% 0.12 105% 1,
Slide 68: Easyhaler - diverse treatment options for asthma and COPD
Easyhaler® - diverse treatment options for asthma and COPD by utilising the same inhaler technology ● Easyhaler® is a dry-powder inhaler developed in-house ● Orion has developed Easyhaler®-adapted dry powder formulations of several well-known generic active substances: – salbutamol, beclometasone, b
Slide 69: Upcoming events
Upcoming events Interim Report 1-9/2021 20/10/2021 Financial Statement Release for 2021 10/2/2022 AGM planned to be held 23/3/2022 Interim Report 1-3/2022 28/4/2022 Half-Year Financial Report 15/7/2022 Interim Report 1-9/2022 20/10/2022
Slide 70: Investor Relations
Investor Relations Jari Karlson CFO jari.karlson@orion.fi +358 10 426 2883 Tuukka Hirvonen Head of Investor Relations tuukka.hirvonen@orion.fi +358 10 426 2721 Paula Bäck Executive Assistant (Investor meeting requests) paula.back@orion.fi +358 10 426 3011 www.orion.fi/EN/Investors twitter.com/OrionC