Slide 1: Orion Interim Report Q1─Q2/2012
Orion Interim Report Q1─Q2/2012 31 July 2012 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: Sales developed well
Sales developed well • Net sales remained at similar level to comparative period despite decline in sales of Parkinson’s drugs as anticipated – Sales of other products up by 10% • Operating profit down – Net sales and operating profit in the comparative period were increased by a milestone payment o
Slide 4: Net sales and operating profit
Net sales and operating profit Group key figures Q1─Q2/2012 Q1─Q2/2011 Change % 2011 Net sales, EUR million 480 471 +2% 918 Operating profit, EUR million 145 158 -8% 283 Basic earnings per share, EUR 0.77 0.83 -7% 1.49 Cash flow per share before financial items, EUR 0.50 0.54 -8% 1.10 • Net sales at
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 6% Sales 13% 4% through partners 27% 27% 6% 7% 40% 14% 13% 37% 33%
Slide 6: Business Reviews
Business Reviews
Slide 7: Specialty Products maintained strong growth
Specialty Products maintained strong growth Key figures for Pharmaceuticals business Q1─Q2/2012 Q1─Q2/2011 Change % 2011 Net sales of Pharmaceuticals, EUR million 453 447 +1% 871 Proprietary Products 193 214 -10% 409 Specialty Products 177 158 +12% 321 Animal Health 34 34 -1% 68 Fermion 28 25 +14% 4
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, EUR million Q1─Q2/2012 Q1─Q2/2011 Change % 2011 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) 118 143 -17% 267 2. Simdax® (acute decompensated heart failure) 22 21 +3% 44 3. Precedex® (intensive care sedative) 21 14 +48% 33
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals market Finland’s biggest pharmaceutical in Q1─Q2/2012 companies in Q1─Q2/2012 • Wholesale EUR 1,000 million (+3%) EUR million 120 108 Orion in Finnish human pharmaceuticals 100 market • Sales growth 8% 80 • Orion clear market leader
Slide 10: Sales of Parkinson's drugs growing in Japan
Sales of Parkinson’s drugs growing in Japan Overall markets for Parkinson’s drugs Market shares of Orion’s MAT3 MAT3 April 2011─March 2012 Parkinson’s drugs 2012 2011 • United States 3) USD 664 million (-21%) Finland 2) 25% 23% Sweden 2) 14% 15% • Five largest European markets 1) 3) EUR 951 million
Slide 11: Precedex maintains strong growth
Precedex maintains strong growth Markets for intensive care sedative Breakdown of Precedex Precedex April 2011─March 2012 markets USD million 180 160 • Total USD 217 million (+28%) 140 120 • United States USD 168 million 100 (+19%) 80 60 40 20 0 USA Other countries Source: IMS Health sales statistic
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 markets Parkinson’s disease Partner: Endo Androgen receptor antagonist Advanced prostate cancer Pharmaceuticals Alpha 2
Slide 13: Net sales grew in Diagnostics business
Net sales grew in Diagnostics business Key figures for Diagnostics business Q1─Q2/2012 Q1─Q2/2011 Change % 2011 Net sales, EUR million 29 25 +14% 50 Operating profit, EUR million 3.1 3.4 -11% 4.9 • QuikRead® tests remained main product – Sales of more user-friendly prefilled QuikRead 101 system in p
Slide 14: Outlook for 2012
Outlook for 2012 (updated on 3 July) • Net sales will be slightly higher than in 2011 • Operating profit will be slightly higher than in 2010 • Group’s capital expenditure about EUR 50 million excluding substantial corporate or product acquisitions 14 31 July 2012 Orion Interim Report Q1─Q2/2012
Slide 15: 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 16: Orion Calendar
Orion Calendar • Interim Report January─September 2012 23 October 2012 • Financial Statements 2012 5 February 2012 • Annual General Meeting 2013 19 March 2013 • Interim Report January─March 2013 23 April 2013 • Interim Report January─June 2013 30 July 2013 • Interim Report January─September 2013 22
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Slide 18: Key figures by quarter
Key figures by quarter EUR million Net sales EUR million Operating profit 1000 300 283 918 900 850 254 772 60 250 800 711 236 53 215 207 700 193 200 185 Q4 65 Q4 600 180 44 211 33 71 145 500 213 480 Q3 150 Q3 192 56 170 44 65 400 Q2 66 Q2 227 233 100 60 300 196 207 45 50 181 Q1 Q1 200 50 93 79 100 2
Slide 19: Key figures for 2008─Q2/2012
Key figures for 2008─Q2/2012 Orion’s key figures 2008 2009 2010 2011 Q1─Q2/2012 Q1─Q2/2011 Change % Net sales, EUR million 710.7 771.5 849.9 917.9 480.2 471.2 +1.9% Operating profit, EUR million 185.0 207.0 254.2 282.9 145.2 158.0 -8.1% Profit before taxes, EUR million 184.2 203.7 252.6 282.0 144.5
Slide 20: Development of sales of own proprietary products
Development of sales of own proprietary products Net sales of proprietary products, EUR million Indication Q1─Q2/2012 Q1─Q2/2011 Change % 2011 Stalevo®, Comtess® and Comtan® Parkinson’s disease 118.1 142.5 -17.2% 266.7 Acute decompensated Simdax® 21.8 21.2 +2.6% 44.0 heart failure Intensive care Pre
Slide 21: Income Statement 2008─Q2/2012
Income Statement 2008─Q2/2012 Formation of profits, EUR million 2008 2009 2010 2011 Q1-Q2/2012 Q1-Q2/2011 Change % Net sales 710.7 771.5 849.9 917.9 480.2 471.2 +1.9% Cost of goods sold -243.4 -265.2 -283.2 -305.1 -168.5 -147.5 +14.3% Gross profit 467.4 506.3 566.8 612.8 311.6 323.7 -3.7% Other oper
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. • Orion and Novartis are developing Parkinson’s drug Stalevo® for Japanese markets. – Timeline
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 Levosimendan Simdax® decompensated September 2015
Slide 24: Dividend distribution policy
Dividend distribution policy Dividend distribution history 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 achieve the fina
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