Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — Q1 2022 Earnings Presentation
70 slides from Orion Oyj Class A's earnings presentation, 2022
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 1-3/2022 3) Research & Development 4) Sustainability 5) Appendices 6) Financial calendar Investor Presentation © Orion Corporation 3
Slide 4: Orion in brief
Orion in brief ORION Building well-being
Slide 5: Key messages
Key messages 1 Orion develops, 5 Strong position in 3 Growth targeted 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 (2021 figures)
Orion at a glance (2021 figures) Sales by business Sales by market area Net sales 1,041 MEUR 7% 13% Operating profit 243 MEUR 7% 30% 37% 9% Personnel 3,355 49% R&D investments 118 MEUR 34% 14% 6 production sites in Finland Proprietary Products Finland Specialty Products Scandinavia Other Europe Own
Slide 7: Financial development between 2008 and 2021
Financial development between 2008 and 2021 Net sales Operating profit 1 200 12% 350 35% 1 000 9% 300 30% 250 25% 800 6% EUR million EUR million 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 2021 2008 2009 2010 2011 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 2022
Outlook for 2022 (published on 10 February 2022) Orion estimates that in 2022 net sales will be Net sales at a similar level as in 2021 (in 2021 net sales were EUR 1,041 million). Operating profit is estimated to be at a Operating similar level as in 2021 profit (in 2021 operating profit was EUR 243
Slide 10: Key assumptions impacting the outlook
Key assumptions impacting the outlook Operating Net sales profit + Nubeqa® + Nubeqa® - Simdax® - Simdax® - dexdor® - dexdor® - Cost inflation - Price competition in generics - Sales & marketing expenses Investor Presentation © Orion Corporation 10
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) 2018-2021 Geographical 1 200 expansion Positives 1 000 Repatriation of Parkinson product 800 EUR million New in-licensed products rights in Europe 600 400 Generics pricing ODM-109 pressure 200 Negatives Loss of
Slide 14: Path to the 2025 target from 2022 onwards – main drivers
Path to the 2025 target from 2022 onwards – main drivers Organic growth in all units Estimated growth will not be linear* – including new in-licensed Building blocks products for growth Geographical expansion In-licensing & M&As are options in all units Darolutamide ARANOTE* Net sales Unknowns Easyh
Slide 15: Key clinical development pipeline
Key clinical development pipeline Project/compound Indication Phase I Phase II Phase III Registration ARASENS / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III Registration ARANOTE / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III ODM-208 Prostate cancer (CRPC) Ph
Slide 16: Orion had 79,637 shareholders on 31 March 2022
Orion had 79,637 shareholders on 31 March 2022 By number of shares By number of votes Households (Finnish 5% 3% retail) 8% 2% 6% 6% Non-Finnish holders and nominee-registered 6% 39% Private corporations 13% 61% Public sector 10% Non-profit institutions 40% Financial and insurance corporations Invest
Slide 17: Largest shareholders by votes and shares on 31 March 2022
Largest shareholders by votes and shares on 31 March 2022 # Shareholder % of votes Number of votes # Shareholder % of shares Number of shares 1 Erkki Etola and companies 6.28 50,325,000 1 Ilmarinen Mutual Pension Insurance Company 2.29 3,235,629 2 Maa- ja vesitekniikan tuki r.y. and companies 5.20 4
Slide 18: Orion B share performance January 2016 – March 2022
Orion B share performance January 2016 – March 2022 Index 31/12/2015=100 65 195 60 180 165 55 Share price, EUR 150 50 45 Index 135 120 40 105 35 90 30 75 25 60 20 31-Dec-15 31-Mar-16 30-Jun-16 30-Sep-16 31-Dec-16 31-Mar-17 30-Jun-17 30-Sep-17 31-Dec-17 31-Mar-18 30-Jun-18 30-Sep-18 31-Dec-18 31-Mar-
Slide 19: Highlights in January−March 2022
Highlights in January−March 2022
Slide 20: Nubeqa the spearhead of Orion's growth
Nubeqa the spearhead of Orion’s growth - war and ever more stressed supply chains causing concerns R&D • ARASENS results published at ASCO GU and in New England Journal of Medicine • Orion is planning to refocus R&D in the future on cancer and pain Business • Nubeqa® sales booked by Orion showed str
Slide 21: Key figures 1−3/2022
Key figures 1−3/2022 Net sales Operating profit Operating profit Cash flow per share margin before financial items 271 71 26% 0.13 MEUR (269) MEUR (75) (28%) EUR (0.19) +1% -5% -30% Investor Presentation © Orion Corporation 21
Slide 22: Development of net sales in 1−3/2022 vs. 1−3/2021
Development of net sales in 1−3/2022 vs. 1−3/2021 12 5 3 -7 -4 269 -7 -1 271 * Nubeqa® product sales & royalty ** Proprietary Products and Specialty Products *** Animal Health, Fermion and Contract Manufacturing **** Without Nubeqa® royalties The figures in the chart are rounded, which is why the to
Slide 23: Development of operating profit in 1−3/2022 vs. 1−3/2021
Development of operating profit in 1−3/2022 vs. 1−3/2021 75 11 -3 6 0 -14 -4 71 * 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 The
Slide 24: Geographical breakdown and development of net sales
Geographical breakdown and development of net sales 1−3/2022 1−3/2021 1−3/2022 15% 120 28% +5% 8% 100 +2% 99 94 80 74 76 MEUR 60 +4% -1% -21% 13% 40 37 36 38 40 36% 20 26 20 Finland Scandinavia 0 Other Europe North America RoW RoW = Rest of the World Investor Presentation © Orion Corporation 24
Slide 25: Solid development in Specialty and Proprietary Products
Solid development in Specialty and Proprietary Products – Animal Health decline due to timing of deliveries to partners 1−3/2021 1−3/2022 1−3/2022 +5% 140 7% +7% 5% 120 124 130 100 111 40% 103 80 MEUR 60 -31% -5% 48% 40 20 Proprietary Products 19 13 21 20 0 Specialty Products Specialty Proprietary A
Slide 26: TOP 10 products in 1−3/2022
TOP 10 products in 1−3/2022 EUR million vs. 1−3/2021 1. Easyhaler® product portfolio 31 +20% 2. Stalevo®, Comtess®, Comtan® 30 +4% 3. Nubeqa® 20 +142% 4. Simdax® 12 -15% 5. Solomet® 9 +53% 6. dexdor® 7 -38% 7. Divina® series 7 +17% 8. Burana® 6 +15% 9. Dexdomitor®, Domitor®, Domosedan®, Antisedan® 6
Slide 27: Proprietary Products
Proprietary Products Investor Presentation © Orion Corporation
Slide 28: Nubeqa the spearhead of growth
Nubeqa® the spearhead of growth Proprietary Products sales split 1−3/2022 35 +20% +4% 9% 30 27% 31 25 29 30 18% +142% 26 20 -15% -38% -31% MEUR 20 15 15 14 10 12 12 11% 5 8 9 7 7% 28% 0 Easyhaler® Parkinson's Nubeqa® Simdax® Dexdor® Others* portfolio franchise Parkinson's Easyhaler® Dexdor® Simdax®
Slide 29: Nubeqa sales booked by Orion showing strong growth
Nubeqa® sales* booked by Orion showing strong growth +142% 25 20 20 15 MEUR MEUR 10 5 8 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 Q1'21 Q1'22 * Orion’s sales to Bayer for commercial use + royalties from Bayer Investor Presentation © Orion Corporation 29
Slide 30: Easyhaler continued on a growth path
Easyhaler® continued on a growth path 40 35 20 30 25 16 MEUR 20 MEUR +22% 15 10 5 12 10 0 +17% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 Q1'21 Q1'22 Other Budesonide-formoterol Easyhaler® Investor Presentation © Orion Corporation 30
Slide 31: Sales of Parkinson's franchise
Sales of Parkinson's franchise +4% 40 35 30 29 30 25 MEUR 20 MEUR 15 +4% 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1'21 Q1'22 2019 2020 2021 2022 Investor Presentation © Orion Corporation 31
Slide 32: Dexdor and Simdax - declining as expected
Dexdor® and Simdax® - declining as expected Dexdor® Simdax® -15% 20 -38% 20 15 15 12 15 12 MEUR MEUR 10 10 MEUR MEUR 7 5 5 0 0 Q1'21 Q1'22 Q1'21 Q1'22 2019 2020 2021 2022 2019 2020 2021 2022 Investor Presentation © Orion Corporation 32
Slide 33: Specialty Products
Specialty Products GRION Building well-being
Slide 34: Growth in all main markets
Growth in all main markets Sales split 1−3/2022 80 +4% 70 13% 60 68 65 50 20% MEUR 40 +2% +17% -3% 52% 30 20 26 20 22 19 17 17 10 15% 0 Finland Scandinavia Eastern RoW Finland Europe & Scandinavia Russia Eastern Europe & Russia 1−3/2021 1−3/2022 Rest of the World (RoW) Investor Presentation © Orion
Slide 35: Self care products driving the growth
Self care products driving the growth +2% Sales split 1−3/2022 100 90 95 92 80 27% 70 60 MEUR 50 +14% 40 30 36 31 20 10 0 73% Generic Self Care prescription drugs products Generic drugs Self-care products 1−3/2021 1−3/2022 Investor Presentation © Orion Corporation 35
Slide 36: In Finland, Orion's reference priced prescription drugs developed better than market
In Finland, Orion’s reference priced prescription drugs developed clearly better than the market The market for reference priced The sales of Orion's reference prescription drugs in Finland* priced prescription drugs in (1−3/2022) Finland MEUR 109 (114) MEUR 26 (25) Market development Orion’s develo
Slide 37: Orion is strong in home market Finland
Orion is strong in home market Finland Human pharma market in Finland 1−3/2022 Reference Self-care Medicinal and non-medicinal products priced products in hospital and pharmacy channels: EUR 728 million prescription Orion market share in drugs pharmacy 90 Orion market share in 80 80 70 pharmacy 25%
Slide 38: Orion's Sustainability Agenda and the war in Ukraine
Active work for a Patient safety as better a top priority environment Orion’s Sustainability Agenda and the war Investor Presentation © in Ukraine Ethics at the Care for well-being core of our professionals business 38
Slide 39: Focus areas in 2022
Focus areas in 2022 Status on 31 TARGET KPIs 2022 March 2022 Increasing the sales of Significant increase in sales of Nubeqa® booked by Orion the current product portfolio Easyhaler® product portfolio sales increase by more than 5% In-licensing of new products Portfolio enhancement through product a
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 Project/compound Indication Phase I Phase II Phase III Registration ARASENS / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III Registration ARANOTE / darolutamide 1 Prostate cancer (mHSPC) Phase I Phase II Phase III ODM-208 Prostate cancer (CRPC) Ph
Slide 50: ARASENS & ARANOTE trials expanding darolutamide indication
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 Completed – Darolutamide + ARASENS mHSPC Overall survival primary ADT + Doceta
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: CYP11A1 inhibitor for mCRPC
ODM-208: CYP11A1 inhibitor to treat patients with metastatic castration-resistant prostate cancer (mCRPC) 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 the sy
Slide 53: Sustainability is built into Orion's mission
Sustainability is built into Orion’s mission
Slide 54: 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 We maintain strict ethical Patient safety has been a environmental leaders in our Orionee
Slide 55: Orion's Sustainability Agenda and indicators 2021
Orion’s Sustainability Agenda and indicators 2021 Active work for a Patient safety as a top priority better environment Care for well-being professionals Ethics at the core of our business Customer Greenhouse gas Energy savings Injury rate Code of Conduct complaints GxP* audits emissions target set
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 10% 1,30 1,25 200 -3% 50 5% 1,20 0 -6% 0 0% 1,15 2016* 2021** 2015 2012 2013 2014 2017 2018 2019 2020 2013 2016 2012
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 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 34 2021 269 255 241 277 2021 75 71 57
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 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Animal Health Fermion & Contract Manufacturing 30 30 20 20 10 10 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 2018 20
Slide 60: Key figures
Key figures Change vs. Orion’s key figures 2018 2019 2020 2021 Q1’22 Q1’21 Net sales, EUR million 977.5 1,051.0 1,078.1 1,041.0 270.6 +0.7% EBITDA 293.9 308.9 336.5 289.1 83.0 -3.5% Operating profit, EUR million 252.8 252.8 280.1 243.3 71.5 -4.7% Profit before taxes, EUR million 248.4 250.8 278.3 24
Slide 61: Income statement
Income statement Change vs. Formation of profits, EUR million 2018 2019 2020 2021 Q1’22 Q1’21 Net sales 977.5 1,051.0 1,078.1 1,041.0 270.6 +0.7% Cost of goods sold -387.9 -417.6 -434.4 -447.5 -106.1 -7.5% Gross profit 589.6 633.4 643.7 593.5 164.5 +6.9% Other operating income and expenses 5.5 2.2 5
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 first commercial sales of darolutamide in EU and JPN 70 60 Includes EUR 45 million milestone from Bayer for the first commer
Slide 63: Development of Proprietary Products net sales
Development of Proprietary Products net sales 450 2 17 400 24 Nubeqa® 26 65 61 39 350 44 56 18 46 26 25 31 Other 27 20 59 62 300 13 29 47 56 57 68 57 EUR million 48 25 51 Simdax® 250 35 59 51 64 77 90 115 35 105 Easyhaler® 200 117 30 45 57 150 18 64 63 Dexdor® 249 20 57 55 37 206 25 26 13 12 100 11
Slide 64: Financial position
Financial position EUR million 3/22 3/21 Change % EUR million 3/22 3/21 Change % Non-current assets total 479.1 406.5 +17.9% Inventories 274.8 255.4 +7.6% Equity total 639.9 628.9 +1.7% Interest-bearing non-current Trade receivables 178.1 166.9 +6.7% liabilities 86.6 105.0 -17.7% Other receivables 3
Slide 65: Development of capital expenditure
Development of capital expenditure 90 80 70 60 EUR million 50 40 30 20 10 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q1'22 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 Jun15 Jun16 Jun17 Jun18 Jun19 Jun21 Jun 20 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Sep15 Sep16 Sep17 Sep18 Sep19 Se
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 1,75 110% 0.12 0.20 105% 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 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