Slide 1: Company presentation for investors Q1/2013
Company presentation for investors Q1/2013
Slide 2: Forward-looking statements
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 anticipa
Slide 3: Contents
Contents 4 Results & Outlook Q1/2013 11 Strategy and financial targets 15 Orion R&D – long term opportunities 23 Proprietary Products and Specialty Products update 31 Key financials 38 General info 3 Investor Presentation Q1/2013
Slide 4: Results & Outlook Q1/2013
Results & Outlook Q1/2013 — RION Building well-being
Slide 5: First quarter as anticipated
First quarter as anticipated • Net sales similar to comparative period of previous year • Operating profit slightly lower than in previous year as expected • In March Orion submitted a marketing authorisation application for a budesonide-formoterol combined formulation in the Easyhaler® product fami
Slide 6: Key figures for Q1/2013 and FY 2012
Key figures for Q1/2013 and FY 2012 Q1/13 Q1/12* Change % 2012* 2011 Change % Net sales, EUR million 249.4 247.4 +0.8% 980.4 917.9 +6.8% Operating profit, EUR million 74.1 78.6 -5.7% 278.3 282.9 -1.6% % of net sales 29.7% 31.8% 28.4% 30.8% R&D expenses, EUR million 24.6 23.1 +6.7% 105.8 87.5 +20.9%
Slide 7: Key figures by business areas
Key figures by business areas Key figures for Pharmaceuticals business Q1/13 Q1/12* Change % 2012* 2011 Change % Net sales of Pharmaceuticals, EUR million 234.2 232.5 +0.7% 928.9 870.6 +6.7% Proprietary Products 100.3 99.0 +1.4% 403.7 408.9 -1.3% Specialty Products 95.7 90.2 +6.1% 367.2 320.8 +14.4%
Slide 8: Net sales originate mainly in Europe
Net sales originate mainly in Europe Breakdown of EUR 249 million net sales in Q1/2013 By business division By market area 6% 4% 16 % 6% 27 % 6% 40 % 14 % 13 % 38 % 30 % Proprietary Products Specialty Products Animal Health Fermion Finland Scandinavia Other Europe Contract manufacturing & Other Orio
Slide 9: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, Business EUR million Division Q1/2013 Q1/2012 Change % 2012 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) PP 60.3 63.2 -4.7% 250 2. Precedex® (intensive care sedative) PP 12.0 10.3 +16.3% 45 3. Simdax® (acute decompensated
Slide 10: Outlook for 2013
Outlook for 2013 • Net sales will be at similar level to 2012 (net sales in 2012 were EUR 980 million) • Operating profit will be slightly lower than in 2012 (operating profit in 2012 was EUR 278 million*) • Group’s capital expenditure will be about EUR 80 million excluding substantial corporate or
Slide 11: Orion's strategy and financial targets
Orion’s strategy and financial targets
Slide 12: Profitable growth and increased shareholder value whilst keeping business risks under control
Profitable growth and increased shareholder value whilst keeping business risks under control Partners and networking Efficient and competitive operations M ANAGEMENT OF COMPLEXITY IN COST EFFICIENT WAY 12 Investor Presentation Q1/2013
Slide 13: Balancing mid-term − building long-term
Balancing mid-term − building long-term Upside potential from long-term portfolio management R&D pipeline Larger portfolio in the Nordics Parkinson’s franchise post patent Continued growth in Eastern Europe and Russia Precedex royalty stream post patent Contract Manufacturing Easyhaler combinations
Slide 14: Orion's financial objectives
Orion’s financial objectives Operating profit 300 35% Orion’s financial objectives are: 250 30% Operating • Ensuring financial stability profit, EUR 200 25% • Profitable growth million 150 20% Operating profit, % of net The objectives are achieved through: 100 15% sales • Increasing net sales. Achie
Slide 15: Orion R&D – long term opportunities
Orion R&D – long term opportunities
Slide 16: Orion's R&D strategy
Orion’s R&D strategy Increased productivity R&D operational model renewed in 2009 Focus on three core therapy areas + generics • Central nervous system diseases Focused therapy areas • Oncology and critical care • Easyhaler pulmonary drugs Emphasis on collaboration and partnerships • Clinical studie
Slide 17: Collaborative networks across the R&D value chain
Collaborative networks across the R&D value chain 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 dev. 8–24 mth 12–24 mth 18–36 mth 12–24 mth 12–14 mth 12–36 mt
Slide 18: Number of pre-clinical research projects has tripled since 2006
Number of pre-clinical research projects has tripled since 2006 HIT Finding Active-To-Hit Hit-To-Lead Lead Optimization ENDO collaboration in oncology 4x Oncology A Oncology B Oncology C Oncology D CNS A CNS B CNS B CNS C CNS D CNS E CNS F CNS G CNS H Super generic Oncology spin out for new indicati
Slide 19: Key clinical pharmaceutical development projects
Key clinical pharmaceutical development projects Clinical phases Project Indication I II III Registration Easyhaler® budesonide-formoterol Asthma, COPD Easyhaler® salmeterol-fluticasone Asthma, COPD Stalevo® for Japanese market 1) Parkinson’s disease ODM-101 Parkinson’s disease (more effective levod
Slide 20: ORM-12741, alpha-2c adrenoceptor antagonist
ORM-12741, alpha-2c adrenoceptor antagonist • Background: ORM-12741 is a highly potent and selective alpha-2c adrenoceptor (AR) antagonist that has demonstrated efficacy in rodent models • Indication: Cognitive and behavioral symptoms in patients with Alzheimer’s disease • Promising results from pha
Slide 21: ODM-201, androgen receptor antagonist
ODM-201, androgen receptor antagonist • A novel antiandrogen intended for patients with progressive metastatic castration-resistant prostate cancer mCRPC • Joint collaboration with Endo Pharmaceuticals – more about the collaboration at www.orion.fi/orion-and-endo • Phase I/II study results published
Slide 22: ODM-101 and ODM-103 for Parkinson's disease
ODM-101 and ODM-103 for Parkinson’s disease ODM-101, more effective levodopa product ODM-103, more effective COMT-inhibitor Phase II Proof of Concept study Pre-clinical study • Over 100 patients in Europe • Pre-clinical study results indicated that • Key results indicate that ODM-101 is more ODM-103
Slide 23: Proprietary Products and Specialty Products update
Proprietary Products and Specialty Products update
Slide 24: Turning points of Parkinson's franchise
Turning points of Parkinsons’s franchise 2011 2012 2013 2014 2015 Comtess / Comtan in-market sales EUR 35 million in 2011 Entacapone molecule patent Generic versions of Comtess Europe EUR 30 million in 2012 expired 11/2012 Stalevo in-market sales EUR 250 million in 2011 Generic versions of Stalevo d
Slide 25: Rx value shares in USA after generic launches
Rx value shares in USA after generic launches Total Rx value in USA - all entacapone products 120% 100% 80% 60% 48% 40% Generic Stalevo products launched in April 28% 20% Wockhardt’s generic Comtan launched in October 25% 0% Novartis Sun Wockhardt 25 Investor Presentation Q1/2013
Slide 26: Precedex has captured a significant market share in the USA
Precedex has captured a significant market share in the USA Sedation market in USA in 2003 Sedation market in USA in MAT9/2012 Total market value USD 594 million in 2003 Total market value USD 459 million in 2011 Propofol Midazolam Propofol Midazolam Dexmedetomidine Remifentanil Dexmedetomidine Remi
Slide 27: dexdor has growth potential in Europe
dexdor® has growth potential in Europe European sedation market 2012 Precedex® and dexdor® in brief Total market value EUR 474 million, growth -3% • API is dexmedetomidine which is a sedative agent originated by Orion’s Dexmedetomidine R&D 2% Remifentanil • Precedex available in more than 30 17% cou
Slide 28: Global coverage with well-known Easyhaler device
Global coverage with well-known Easyhaler device • Easyhaler® is authorised in 30 countries and coverage expanding, excl. USA and Japan • Targeting the pulmonologists and general practitioners • Favorable results from budesonide/formoterol combination development study. Marketing authorisation appli
Slide 29: Retail sales of inhaled respiratory drugs market in Top 5 Europe
Retail sales of inhaled respiratory drugs market in Top 5 Europe EUR (1,000) In value Units (1,000) In units 3 000 000 90 000 80 000 2 500 000 70 000 2 000 000 60 000 50 000 1 500 000 40 000 1 000 000 30 000 20 000 500 000 10 000 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2004 2005 2006 2007 2
Slide 30: Launches are basis for future growth in SpP
Launches are basis for future growth in SpP EUR million Specialty Products launches 400 16% Number of product/country combinations 350 14% 160 140 300 12% 120 250 10% 100 80 200 8% 60 150 6% 40 20 100 4% 0 50 2% 2005 2006 2007 2008 2009 2010 2011 2012 0 0% SpP launches in 2012 2008 2009 2010 2011 20
Slide 31: Key financials
Key financials — RION Building well-being
Slide 32: Key figures by quarter
Key figures by quarter* EUR million Net sales EUR million Operating profit 1200 300 283 278 980 254 1000 918 250 60 59 850 207 53 772 254 200 800 236 Q4 65 Q4 215 44 76 193 71 Q3 600 246 Q3 150 211 56 213 65 192 Q2 65 Q2 400 100 60 227 233 50 Q1 196 207 Q1 200 50 93 71 79 74 190 215 244 247 249 57 0
Slide 33: Key figures for 2009─Q1/2013
Key figures for 2009─Q1/2013 Orion’s key figures 2009 2010 2011 2012* Q1/2013 Q1/2012* Change % Net sales, EUR million 771.5 849.9 917.9 980.4 249.4 247.4 +0.8% Operating profit, EUR million 207.0 254.2 282.9 278.3 74.1 78.6 -5.7% Profit before taxes, EUR million 203.7 252.6 282.0 276.6 73.8 78.7 -6
Slide 34: Income Statement 2009─Q1/2013
Income Statement 2009─Q1/2013 Formation of profits, EUR million 2009 2010 2011 2012* Q1/2013 Q1/2012* Change % Net sales 771.5 849.9 917.9 980.4 249.4 247.4 +0.8% Cost of goods sold -265.2 -283.2 -305.1 -350.8 -91.8 -86.8 +5.8% Gross profit 506.3 566.8 612.8 629.6 157.6 160.6 -1.9% Other operating i
Slide 35: Financial position
Financial position EUR million 3/13 3/12 Change% EUR million 3/13 3/12 Change% Non-current assets total 334.2 292.9 +14.1% Inventories 189.2 156.9 +20.6% Equity total 382.4 341.1 +12.1% Interest-bearing non-current Trade receivables 164.4 165.1 -0.4% liabilities 103.4 134.0 -22.8% Other receivables
Slide 36: Development of Net working capital
Development of Net working capital % of net sales EUR million 40% 300 250 30% 200 20% 150 100 10% 50 0% 0 -50 -10% -100 -20% -150 Dec07 Sep08 Jun09 Mar10 Dec10 Sep11 Jun12 Mar13 Dec07 Sep08 Jun09 Mar10 Dec10 Sep11 Jun12 Mar13 Receivables Receivables Inventories Inventories Short-term non-interest be
Slide 37: Dividend distribution
Dividend distribution Dividend distribution history Dividend distribution policy EUR 1,60 160% 1,40 140% Orion’s dividend distribution takes into 1,20 120% account distributable funds and capital 1,00 100% expenditure and other financial requirements in medium and long term to 0,80 80% achieve the f
Slide 38: General info
General info GRION Building well-being
Slide 39: Building well-being is Orion's Mission
Building well-being is Orion’s Mission Orion is an innovative, European, R&D-based, pharmaceutical and diagnostic company with a special emphasis on developing medicinal treatments and diagnostic tests for global markets Orion in brief 2012 Net sales EUR 980 million Operating profit EUR 278 million
Slide 40: Business divisions
Business divisions Proprietary Products Fermion • Patented prescription drugs • Active pharmaceutical ingredients • CTAs: CNS, oncology & critical (API’s) for Orion and other companies care, Easyhaler pulmonary drugs • Net sales in 2012 EUR 48 million (excluding supplies for own use) • Net sales in
Slide 41: Market position strengthened in Europe
Market position strengthened in Europe Finland Market leader Scandinavia Strong domestic market position Eastern Europe Branded generics Western and Central Europe Strong position with proprietary products Southern Europe Progress with proprietary products in hospital markets 41 Investor Presentatio
Slide 42: Orion shares are broadly held
Orion shares are broadly held By number of shares on 31 Mar By number of votes on 31 Mar 5% 2% 7% 2% 4% 8% 7% 46 % 13 % 63 % 7% 36 % Households Households Non-Finnish holders and nominee registered Non-Finnish holders and nominee registered Private corporations Private corporations Public sector Pub
Slide 43: Orion B share performance July 2006─April 2013
Orion B share performance 3 July 2006─ 15 April 2013 Index 3 July 2006 = 100 230 210 190 170 MSCI Europe Pharmaceuticals 150 OMX Helsinki Cap 130 Orion B 110 90 Orion B total return 70 50 43 Investor Presentation Q1/2013
Slide 44: Orion Investor Relations
Jari Karlson CFO jari.karlson@orion.fi +358 10 426 2883 Orion Investor Tuukka Hirvonen Communications Manager Relations tuukka.hirvonen@orion.fi +358 10 426 2721 Heidi Ahti Executive Assistant (Investor meeting requests) heidi.ahti@orion.fi +358 10 426 2169 www.orion.fi/EN/Investors twitter.com/Orio