Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — Orion Corp New B Shs — Q4 2023 Earnings Presentation
55 slides from Orion Oyj Class A's earnings presentation, Feb 14, 2024
Slide 1: Orion Equity Story
GRION Orion Equity Story »
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: Why to invest in Orion
Why to invest in Orion Nubeqa® main growth driver in Long history and proven short and mid-term track record Long-term growth drivers from R&D pipeline GROWTH INNOVATION Strong commitment to innovation Global pharma market growing 3-6%1 per annum Robust R&D pipeline with focus in pain and oncology D
Slide 4: Orion today – building well-being since 1917
Orion today – building well-being since 1917 Diversified R&D focus in pharmaceutical company oncology and pain ~3,600 employees 8 production sites in >35 countries Financially strong Net sales EUR 1,190 million Impacting millions of Operating profit 275 million lives globally 4 Investor Presentation
Slide 5: Five business divisions
Five business divisions Innovative Medicines Generics and Consumer Health • Innovative medicines developed or marketed by Orion, and EUR 518 million which have patent or other product protection. Animal Health EUR 104 million Branded Products 43% 9% • Orion’s innovative legacy products and in-licens
Slide 6: Solid financial performance despite significant LoEs
Solid financial performance despite significant LoEs1 1,600 35% 500 35% 1.75 120% 1,400 30% 450 25% 1.50 110% 400 30% 1,200 20% 350 1.25 100% 1,000 15% EUR million 300 25% EUR million 1.00 90% 800 10% 250 EUR 5% 200 20% 0.75 80% 600 0% 150 400 0.50 70% -5% 100 15% 200 -10% 0.25 60% 50 0 -15% 0 10% 0
Slide 7: Orion's operations
Orion’s operations Orion’s products are Sales operations Production and supply chain operations sold globally in >100 countries R&D operations Back-office operations
Slide 8: Research & Development
GRION Research & Development
Slide 9: Oncology and Pain focus areas of R&D
Oncology and Pain focus areas of R&D Proven track record in oncology Proven track record in CNS 2 approved 4 innovative medicines approved innovative 2 world-class medicines partnerships with big pharma CNS focus • Acquisition of ODM-111 6 phase III trials • 2 finalised and 2 ongoing with Bayer on d
Slide 10: Key clinical development pipeline
Key clinical development pipeline Project/compound Indication PHASE I PHASE II PHASE III REGISTRATION ARANOTE / darolutamide 1 Prostate cancer (mHSPC) Ongoing ARASTEP / darolutamide 1 Prostate cancer (BCR) Ongoing OMAHA1 / ODM-208 (MK-5684-003) 2 Prostate cancer (mCRPC) Initiated OMAHA2a / ODM-208 (
Slide 11: Orion's key clinical trials with darolutamide
Orion’s key clinical trials with darolutamide Clinical trial and Indication Primary endpoint and results Key secondary endpoints Status treatment ARAMIS Metastasis free survival Overall survival darolutamide + ADT nmCRPC prolongation by 22.0 months, 31% risk reduction (HR=0.69, p=0.003) Approved 59%
Slide 12: ODM-208/MK-5684 for metastatic castration-resistant prostate cancer mCRPC
ODM-208/MK-5684 for metastatic castration-resistant prostate cancer mCRPC CYP11A inhibitor blocking synthesis of steroids and thus Phase III Omaha1 trial ongoing ligands for androgen receptor activation • Randomised, open-label • Treatment: ODM-208/MK5684 in combination with HRT Orion develops ODM-2
Slide 13: ODM-111 for acute and chronic pain
ODM-111 for acute and chronic pain Huge unmet need for non-opioid pain treatments - Orion among the frontrunners to target NaV1.8 Why are we targeting Where are we now? Next steps NaV1.8? • NaV1.8 is validated • Phase I ongoing • Plan to initiate target for pain • No significant safety phase II in a
Slide 14: ODM-105 (tasipimidine) and ODM-212
ODM-105 (tasipimidine) and ODM-212 Phase IIa ongoing with ODM-105 for insomnia Phase I ongoing with ODM-212 – TEAD inhibitor Potent and selective alpha 2A adrenoceptor ODM-212 is an oral small molecule blocking agonist TEAD activity • Orion has long experience and proven track record with alpha 2 ag
Slide 15: We have a long history of bringing innovative treatments to market
We have a long history of bringing innovative treatments to market Proprietary human pharmaceuticals developed by Orion 1993 1998 2000 2003 2011 2018 1988 1994 1999 2002 2004 2014 2019 15 Investor Presentation © Orion Corporation
Slide 16: We are a trusted innovator in animal health products
We are a trusted innovator in animal health products Main Orion Animal Health marketing authorisations Kefavet Comforion 1987 1998 2008 2015 2019 2021 1983 1989 2002 2012 2018 2020 Geepenil Benzorion 16 Investor Presentation © Orion Corporation
Slide 17: Strategy and financial targets
Strategy and financial targets
Slide 18: Building well-being
Building well-being Inspired by our Nordic heritage, we strive to empower people around the world to live their lives to the fullest – today and tomorrow. Build a customer-driven Expand to new geographies and Develop I nn portfolio strengthen global partnerships growth enablers ov t iv a e a lt h M
Slide 19: The dream of a truly global Finnish pharma company – why now?
The dream of a truly global Finnish pharma company has existed for a long time – why now? Promising R&D capabilities and All of our business areas projections for the quality have been have demonstrated coming decade: validated. resilience by establishing The stellar success of We have excelled in g
Slide 20: Building well-being
Building well-being Inspired by our Nordic heritage, we strive to empower people around the world to live their lives to the fullest – today and tomorrow. • Innovative Medicines for Oncology and Pain Build a customer- • Brand products for Respiratory, Central Nervous Innovative Branded driven portfo
Slide 21: Our growth will come in three phases
Our growth will come in three phases STRENGTHEN & BUILD & INVEST ACCELERATE EXPAND Build and invest into Grow & maximize value Strengthen European & global commercial assets of global assets APAC market position and capabilities Inspired by our Nordic heritage, we strive to empower people around the
Slide 22: Financial objectives
Financial objectives Strategy period 2024–2028 Net sales Operating profit CAGR ≥8% To grow faster than net sales Equity ratio ROE ≥50% ≥25% Dividend Annually increasing dividend – payout ratio 50%–100% 22 Investor Presentation © Orion Corporation
Slide 23: Capital allocation focus
Capital allocation focus In-licensing / Focused Maintaining In-licensing / Internal R&D acquiring M&As to gain Dividends & increasing acquiring pipeline commercial strategic capacity R&D assets assets competences Higher Lower 23 Investor Presentation © Orion Corporation
Slide 24: 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 1.75 120% 0.20 1.50 0.12 11
Slide 25: Our sustainability agenda
GRION Our sustainability agenda
Slide 26: Orion's Sustainability Agenda
Orion’s Sustainability Agenda Patient safety as a Active work for a Care for well-being Ethics at the core top priority better environment professionals of our business We want to be the We want to take care of Patient safety has been a priority environmental leaders in our Orionees – professionals
Slide 27: Orion's Sustainability Agenda and indicators 2023
Orion’s Sustainability Agenda and indicators 2023 Patient safety as a top priority Active work for a better environment Care for well-being professionals Ethics at the core of our business Customer GxP2 audits Greenhouse gas Energy savings Injury rate Code of Conduct complaints by Orion emissions (M
Slide 28: Orion FY2023 Results
Orion FY2023 Results 13 February 2024
Slide 29: Q4 2023 results
Q4 2023 results • Net sales growth driven by Nubeqa® and 10-12/ 10-12/ Easyhaler® product portfolio 2023 2022 Change • Operating profit boosted by EUR 30.7 million Net sales, EUR million 321.1 294.5 +9.0% positive impact from the transfer of the Orion Pension Fund’s B Fund to an external pension ins
Slide 30: Full-year 2023 results
Full-year 2023 results • Underlying net sales increased by ~7% 1-12/ 1-12/ Change • i.e. without EUR 228 million upfront payment in 2022 2023 2022 • Underlying operating profit increased by ~5% • i.e. without EUR 208 million net impact from upfront Net sales, EUR million 1,189.7 1,340.6 -11.3% payme
Slide 31: Net sales bridge from FY2022 to FY2023
Net sales bridge from FY2022 to FY2023 1 Simdax® and dexmedetomidine for human use 5 Other products and services (excl. Animal Health and Fermion) 2 Nubeqa® (product sales and royalty) 6 Animal Health and Fermion 3 Entacapone products 7 Milestones 4 Russia 8 Exchange rates The figures in the chart a
Slide 32: Operating profit bridge from FY2022 to FY2023
Operating profit bridge from FY2022 to FY2023 1 Product & service sales without sales margin and product mix change and exchange rate effect 5 Milestones 2 Product sales margin and product mix change but without exchange rate effect 6 Other operating income and expenses 3 Exchange rate effect on gro
Slide 33: Innovative Medicines EUR 235.1 million (-28.6%)
Innovative Medicines EUR 235.1 million (-28.6%) – Nubeqa® sales more than doubled in 2023 • Decline due to significant EUR 228 million upfront Nubeqa® sales booked by Orion1 payment recorded in 2022 70 • Excluding the upfront payment, net sales more than 60 doubled • 2023 sales includes EUR 30 milli
Slide 34: Branded Products EUR 260.9 million (-6.3%)
Branded Products EUR 260.9 million (-6.3%) 160 • Easyhaler® product portfolio 144.2 Sales split 140 continued on a solid growth 129.7 3% track 120 113.4 • The decline in entacapone 8% 100 88.4 products mainly due to lower partner sales MEUR 80 • De-stocking 60 • Increased competition 40 34% 55% 27.6
Slide 35: Generics and Consumer Health EUR 517.6 million (-7.1%)
Generics and Consumer Health EUR 517.6 million (-7.1%) 450 • Generic competition pressing 419.8 Sales split by geographic 386.7 the prices and sales of Simdax® 400 areas and dexmedetomidine products 350 for human use 300 • Discontinuation of business 16% 250 operations in Russia also MEUR explains t
Slide 36: Animal Health and Fermion
Animal Health and Fermion • Animal Health growth (+5%) due Animal Health Fermion to acquisition of animal health 120 120 103.9 company VMD (Inovet) in June 98.9 2022 100 100 22.8 • In H2 Animal Health net sales 80 36.3 80 68.7 73.7 declined from comparative period due to weakening MEUR 60 60 demand
Slide 37: TOP 10 products and total sales split by division
TOP 10 products and total sales split by division EUR vs. Product or product portfolio million 2022 Sales split in 2023 1. Nubeqa® 182.5 >100% 2. Easyhaler® product portfolio 144.2 +11.1% 3. Entacapone products1 88.4 -22.0% 6% 9% 20% 4. Simdax® 25.7 -40.0% 5. Burana® 25.1 -6.0% 6. Dexdomitor®, Domit
Slide 38: Appendices
GRION Appendices
Slide 39: Outlook for 2024
Outlook for 2024 Net sales EUR 1,340–1,410 million Operating EUR 270–310 million profit 39 Investor Presentation © Orion Corporation
Slide 40: Basis for the outlook – key contributors
Basis for the outlook – key contributors Net sales EUR 1,340–1,410 million Operating profit in the range of EUR 270–310 million Innovative Medicines • Expected growth driven by Nubeqa® royalties and assumed EUR 70 million Nubeqa® milestone Nubeqa® sales booked by Orion • Difficult to predict the
Slide 41: 88,722 registered shareholders on 31 December 2023
88,722 registered shareholders on 31 December 2023 By number of shares By number of votes Households (Finnish retail) 6% 3% 5% 7% Non-Finnish holders and 7% 11% nominee-registered 39% Private corporations 13% 7% 62% Public sector 9% Non-profit institutions 32% Financial and insurance corporations 41
Slide 42: Largest shareholders by votes and shares on 31 December 2023
Largest shareholders by votes and shares on 31 December 2023 # Shareholder % of votes # Shareholder % of shares 1 Erkki Etola and companies 6.50% 1 Ilmarinen Mutual Pension Insurance Company 3.69% 2 Maa- ja vesitekniikan tuki r.y. and companies 5.38% 2 Varma Mutual Pension Insurance Company 3.28% 3
Slide 43: Orion B share performance
Share price, EUR 65 60 55 50 45 40 35 30 25 20 30-Sep-23 30-Jun-23 Orion B share price 31-Mar-23 31-Dec-22 30-Sep-22 30-Jun-22 31-Mar-22 31-Dec-21 OMXH-portfolio 30-Sep-21 30-Jun-21 31-Mar-21 31-Dec-20 from January 2016 to December 2023 30-Sep-20 30-Jun-20 Europe/Pharmaceutical 31-Mar-20 31-Dec-19 3
Slide 44: Net sales and operating profit by quarter (MEUR)
Net sales and operating profit by quarter (MEUR) Net sales Operating profit 500 250 450 400 200 350 300 150 250 200 100 150 100 50 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 241 252 284 274 2019 55 52 91 55 2020 280 292 250 255 2020 84 96 65 34 2021 269 255 241 277 2021 75 71 57 40 2022 271 284 492 295 202
Slide 45: Quarterly net sales by business division (MEUR)
Quarterly net sales by business division (MEUR) Innovative Medicines Branded Products Generics and Consumer Health 246.6 100 100 160 90 90 140 80 80 120 70 70 60 60 100 50 50 80 40 40 60 30 30 40 20 20 10 10 20 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2022 2023 2022 2023 Due to the change
Slide 46: Quarterly net sales by business division (MEUR)
Quarterly net sales by business division (MEUR) Animal Health Fermion 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 46 Investor Presentation © Orion Corporation
Slide 47: Fixed costs
Fixed costs 10-12/2023 10-12/2022 Change 1-12/2023 1-12/2022 Change Sales and marketing, EUR million -62.3 -58.7 +6.1% -224.8 -209.1 +7.5% Research and development, EUR million -36.6 -38.0 -3.6% -126.9 -133.2 -4.7% Administrative, EUR million -20.8 -20.0 +4.1% -74.8 -75.4 -0.7% 70 60 50 40 30 20 10
Slide 48: Key financial figures
Key financial figures 2019 2020 2021 2022 1-12/23 1-12/22 Change % Net sales, EUR million 1,051.0 1,078.1 1,041.0 1,340.6 1,189.7 1,340.6 -11.3% EBITDA, EUR million 308.9 336.5 289.1 487.1 326.4 487.1 -33.0% % of net sales 29.4% 31.2% 27.8% 36.3% 27.4% 36.3% Operating profit, EUR million 252.8 280.1
Slide 49: Income statement
Income statement EUR million 2019 2020 2021 2022 1-12/23 1-12/22 Change % Net sales 1,051.0 1,078.1 1,041.0 1,340.6 1,189.7 1,340.6 -11.3% Cost of goods sold -417.6 -434.4 -447.5 -489.0 -531.9 -489.0 +8.8% Gross profit 633.4 643.7 593.5 851.6 657.7 851.6 -22.8% Other operating income and expenses 2.
Slide 50: Royalties and milestones
Royalties and milestones Includes EUR 228 million upfront payment from MSD regarding ODM-208 collaboration agreement 300 250 Includes EUR 30 million Nubeqa® sales milestone from Bayer 200 Includes EUR 28 million milestones from Bayer for the first commercial EUR million sales of darolutamide in EU a
Slide 51: Financial position
Financial position EQUITY AND LIABILITIES ASSETS EUR million 12/23 12/22 Change % 12/22 EUR million 12/23 12/22 Change % 12/22 Share capital 92.2 92.2 92.2 Property, plant and equipment 400.9 373.3 +7.4% 373.3 Other reserves 4.6 3.3 +39.6% 3.3 Cumulative translation adjustments -9.8 -10.8 -9.5% -10.
Slide 52: Development of capital expenditure
Development of capital expenditure 250 200 150 EUR million 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Property, plant and equipment Intangible assets VMD (Inovet) acquisition Depreciation, amortisation and impairment 52 Investor Presentation © Orion
Slide 53: Development of net working capital
Development of net working capital % of net sales EUR million 40% 600 30% 500 400 20% 300 10% 200 0% 100 0 -10% -100 -20% -200 -30% -300 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Jun17 Jun18 Jun19 Jun21 Jun22 Jun23 Dec16 Dec17 Dec18 Dec19 Jun 20 Dec20
Slide 54: Easyhaler® - One device with several therapy options for asthma or COPD
Easyhaler® - One device with several therapy options for patients with asthma or Chronic Obstructive Pulmonary Disease (COPD) ● Easyhaler® portfolio consists of 6 dry-powder inhaler (DPI) products with several well-known generic active substances for the treatment of patients with asthma or COPD. ●
Slide 55: Upcoming events
Upcoming events AGM 2024 planned to be held on 20/3/2024 Interim Report 1–3/2024 25/4//2024 Half-Year Financial Report 1–6/2024 8/8/2024 Interim Report 1–9/2024 29/10/2024 55 Investor Presentation © Orion Corporation