Slide 1: Orion Interim Report Q1/2011
Orion Interim Report Q1/2011 27 April 2011 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: Strong growth in sales
Strong growth in sales • Growth in net sales and operating profit better than expected – Sales grew well in almost all business divisions – Includes EUR 7 million non-recurring payment from Endo Pharmaceuticals – Good profit was supported by lower than expected growth in R&D expenses due to timing a
Slide 4: Operating profit grew strongly
Operating profit grew strongly Group key figures Q1/11 Q1/10 Change % 2010 Net sales, EUR million 244 215 +14% 850 Operating profit, EUR million 93 71 +31% 254 Basic earnings per share, EUR 0.49 0.37 +31% 1.31 Cash flow per share before financial items, EUR 0.34 0.22 +55% 1.26 • Net sales grew by 14
Slide 5: Breakdown of net sales
Breakdown of net sales By business divisions By market area 3% 6% Sales 13% through partners 24% 5% 29% 7% 46% 16% 14% 33% 33% Proprietary Products Specialty Products Animal Health Fermion Finland Scandinavia Other Europe Contract manufacturing & other Orion Diagnostica North America Other Markets 5
Slide 6: Business Reviews
Business Reviews GRION Building well-being
Slide 7: Pharmaceuticals sales continued to grow strongly
Pharmaceuticals sales continued to grow strongly Key figures for Pharmaceuticals business Q1/2011 Q1/2010 Change % 2010 Net sales of Pharmaceuticals, EUR million 231 203 +14% 806 Proprietary Products 113 94 +21% 371 Specialty Products 80 73 +10% 299 Animal Health 17 15 +12% 68 Fermion 13 14 -5% 45 C
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, EUR million Q1/2011 Q1/2010 Change % 2010 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) 73.6 65.8 +12% 253 2. Simdax® (acute decompensated heart failure) 10.6 10.3 +3% 40 3. Easyhaler® product family (asthma, COPD) 8.5 7.2
Slide 9: Orion's market leadership in Finland strengthened
Orion’s market leadership in Finland strengthened Finnish human pharmaceuticals market Finland’s biggest pharmaceutical in Q1/2011 companies in Q1/2011 • Wholesale EUR 474 million (+2%) EUR million 60 Orion in Finnish human pharmaceuticals 49 50 market • Quarter of Orion’s net sales from 40 Finland
Slide 10: Sales of Parkinson's drugs still growing
Sales of Parkinson’s drugs still growing Overall markets for Parkinson’s drugs Market shares of Orion’s January–December 2010 Parkinson’s drugs 2010 2009 Finland 2) 24% 28% • United States 3) USD 928 million (-7%) Sweden 2) 16% 17% • Five largest European markets 1) 3) EUR 1,017 million (+12%) Norwa
Slide 11: Precedex maintains strong growth
Precedex maintains strong growth Markets for intensive care sedative Breakdown of Precedex USD million Precedex January–December 2010 markets 140 • Total USD 160 million (+59%) 120 100 • United States USD 132 million (+55%) 80 60 40 20 0 USA Other countries 11 27 April 2011 Orion Interim Report Q1/2
Slide 12: Orion's pharmaceutical research pipeline
Orion’s pharmaceutical research pipeline Clinical phases Regis- Project Indication Pre-clinical I II III tration Dexmedetomidine (intravenous) Intensive care sedative for European markets Canine mastocytoma (skin cancer) Paclitaxel for dogs (Paccal® Vet) Partner: Oasmia Easyhaler® combined formulati
Slide 13: Clear growth in Diagnostics business
Clear growth in Diagnostics business Key figures for Diagnostics business Q1/2011 Q1/2010 Change % Net sales, EUR million 14 12 +17% Operating profit, EUR million 2.8 2.2 +23% • QuikRead® tests remained main product – Launches of QuikRead go new generation testing instrument progressed as planned in
Slide 14: Outlook for 2011
Outlook for 2011 • Net sales slightly higher than in 2010 – marketing expenditure will be higher due to the increased number of product launches – research expenditure will be higher than in 2010 • Operating profit excluding non-recurring items higher than in 2010 • Group capital expenditure about E
Slide 15: Orion calendar
Orion calendar Interim Reports • Interim Report January–June 2011 2 August 2011 • Interim Report January–September 2011 25 October 2011 15 27 April 2011 Orion Interim Report Q1/2011
Slide 16: <4 RION
<4 RION GRIoN Building well-being
Slide 17: Orion's financial objectives
Orion’s financial objectives Net sales and profitability in next few years depend on rate of: • Decline in sales of Parkinson’s drugs • Growth in sales of other products Orion’s financial objectives: 1. Ensuring financial stability 2. Creating foundation for long-term profitable growth Principal mea
Slide 18: Key figures by quarter
Key figures by quarter EUR million Net sales EUR million Operating profit 900 850 300 800 772 254 711 215 250 680 700 193 185 53 192 207 600 173 180 200 213 Q4 44 Q4 500 39 33 71 192 170 Q3 150 Q3 400 163 49 44 56 207 Q2 Q2 300 196 100 60 166 181 44 45 50 200 Q1 Q1 50 93 100 190 215 244 63 71 179 18
Slide 19: Key figures for 2007–Q1/2011
Key figures for 2007–Q1/2011 Orion’s key figures 2007 2008 2009 2010 Q1/2011 Q1/2010 Change % Net sales, EUR million 680.0 710.7 771.5 849.9 244.1 214.5 +13.8% Operating profit, EUR million 192.0 185.0 207.0 254.2 92.9 71.0 +30.7% Profit before taxes, EUR million 193.4 184.2 203.7 252.6 92.7 70.8 +3
Slide 20: Growth in sales of own proprietary products
Growth in sales of own proprietary products Net sales of proprietary products, EUR million Indication Q1/2011 Q1/2010 Change % 2010 Stalevo®, Comtess® and Comtan® Parkinson’s disease 73.6 65.8 +11.8% 252.7 Acute decompensated Simdax® heart failure 10.6 10.3 +3.1% 39.9 Easyhaler® product family Asthm
Slide 21: Income Statement 2007–Q1/2011
Income Statement 2007–Q1/2011 Formation of profits, EUR million 2007 2008 2009 2010 Q1/2011 Q1/2010 Change % Net sales 680.0 710.7 771.5 849.9 244.1 214.5 +13.8% Cost of goods sold -232.8 -243.4 -265.2 -283.2 -72.7 -69.7 +4.3% Gross profit 447.2 467.4 506.3 566.8 171.4 144.8 +18.4% Other operating i
Slide 22: Orion's main research programmes
Orion’s main research programmes • Processing of marketing authorisation application for intensive care sedative dexmedetomidine by European Medicines Agency continues as anticipated and in accordance with earlier announced schedule. • Expansion of Easyhaler product family. Under development are new
Slide 23: Patent situation of key products
Patent 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 1) 2015 2) Comtess® and Comtan® October 2013 1) Acute decompensated September Levosimendan Simdax® Not marketed Not
Slide 24: Dividend distribution policy
Dividend distribution policy Dividend distribution policy Dividend distribution policy EUR 1.40 140 % Orion’s dividend distribution takes into account distributable funds and capital 1.20 120 % expenditure and other financial 1.00 100 % requirements in medium and long term to 0.80 80 % achieve the f
Slide 25: y £ ov = = a
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