Slide 1: Orion Interim Report January─June 2013
Orion Interim Report January─June 2013 30 July 2013 Timo Lappalainen President & CEO
Slide 2: Forward-looking statements 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 these strat
Slide 3: First half of the year progressed as anticipated
First half of the year progressed as anticipated • Net sales were at similar level to comparative period of previous year • Operating profit was slightly lower than in previous year as expected • Novartis has submitted application for marketing authorisation for Stalevo in Japan • Orion Diagnostica’
Slide 4: Net sales and operating profit
Net sales and operating profit Group key figures Q1─Q2/2013 Q1─Q2/2012* Change % 2012* Net sales, EUR million 497 480 +4% 980 Operating profit, EUR million 135 144 -6% 278 Basic earnings per share, EUR 0.72 0.77 -6% 1.47 Cash flow per share before financial items, EUR 0.27 0.50 -46% 1.23 • Net sales
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% 14% 4% 27% 7% 39% 14% 7% 13% 37% 32% 5 30 July 2013 Orion Inter
Slide 6: Business Reviews
Business Reviews
Slide 7: Pharmaceuticals business
Pharmaceuticals business Key figures for Pharmaceuticals business Q1─Q2/2013 Q1─Q2/2012* Change % 2012* Net sales of Pharmaceuticals, EUR million 469 453 +4% 929 Proprietary Products 193 193 404 Specialty Products 188 177 +6% 367 Animal Health 35 34 +1% 69 Fermion 34 28 +21% 48 Contract manufacturin
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, Business EUR million Division Q1─Q2/2013 Q1─Q2/2012 Change % 2012 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) PP 111 118 -6% 250 2. Precedex® (intensive care sedative) PP 23 21 +8% 45 3. Simdax® (acute decompensated heart
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals Finland’s biggest pharmaceutical market in Q1─Q2/2013 companies in Q1─Q2/2013 • Wholesale EUR 1,010 million (+1%) EUR million 140 120 116 Orion in Finnish human pharmaceuticals market 100 • Sales growth 7% • 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 2012 ─ March 2013 branded Parkinson’s drugs 2013 2012 • United States 3) USD 783 million (+10%) Finland 2) 24% 25% Sweden 2) 14% 14% • Five largest European markets 1) 3) EUR 96
Slide 11: Precedex and dexdor growing strongly
Precedex® and dexdor® growing strongly Markets for Precedex® intensive Breakdown of Precedex care sedative April 2012 ─ March 2013 markets USD million 300 • Total USD 301 million (+39%) 250 • United States USD 242 million 200 (+44%) 150 Sales of dexdor® intensive care 100 sedative April 2012 ─ March
Slide 12: Key clinical pharmaceutical development projects
Key clinical pharmaceutical development projects Clinical phases Project Indication I II III Registration Easyhaler® budesonide-formoterol Asthma, COPD Stalevo® for Japanese markets 1) Parkinson’s disease Easyhaler® salmeterol-fluticasone Asthma, COPD ODM-101 (more effective levodopa product) Parkin
Slide 13: Diagnostics business
Diagnostics business Key figures for Diagnostics business Q1─Q2/2013 Q1─Q2/2012* Change % 2012* Net sales, EUR million 30 29 +3% 54 Operating profit, EUR million 1.9 2.9 -37% 2.3 • QuikRead® tests remained main product – Launching of QuikRead go® hsCRP+Hb test started during review period • Followin
Slide 14: Outlook for 2013 (unchanged)
Outlook for 2013 (unchanged) • 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 c
Slide 15: Orion Calendar 2013─2014
Orion Calendar 2013─2014 • Interim Report January─September 2013 22 October 2013 • Capital Markets Day in Helsinki 20 November 2013 • Financial Statement Release for 2013 4 February 2014 • Annual General Meeting 25 March 2014 • Interim Report January─March 2014 29 April 2014 • Interim Report January
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Slide 17: 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 18: 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 71 135 Q3 600 246 Q3 150 211 497 56 213 65 192 Q2 65 Q2 400 100 60 61 227 233 248 50 196 207 Q1 Q1 200 50 93 71 79 74 190 215 2
Slide 19: Key figures for 2009─Q2/2013
Key figures for 2009─Q2/2013 Orion’s key figures 2009 2010 2011 2012* Q1─Q2/2013 Q1─Q2/2012* Change % Net sales, EUR million 771.5 849.9 917.9 980.4 497.4 480.2 +3.6% Operating profit, EUR million 207.0 254.2 282.9 278.3 135.2 143.9 -6.0% Profit before taxes, EUR million 203.7 252.6 282.0 276.6 134.
Slide 20: Income Statement 2009─Q2/2013
Income Statement 2009─Q2/2013 Formation of profits, EUR million 2009 2010 2011 2012* Q1─Q2/2013 Q1─Q2/2012* Change % Net sales 771.5 849.9 917.9 980.4 497.4 480.2 +3.6% Cost of goods sold -265.2 -283.2 -305.1 -350.8 -190.6 -169.0 +12.8% Gross profit 506.3 566.8 612.8 629.6 306.8 311.2 -1.4% Other op
Slide 21: Main pharmaceutical development projects
Main pharmaceutical development projects • Expansion of Easyhaler® product family. Under development are new budesonide-formoterol and fluticasone- salmeterol combined formulations for treatment of asthma and COPD – Orion submitted the marketing authorisation application for the budesonide-formotero
Slide 22: 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 23: 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
Slide 24: Orion - Building well-being
S RION ing well-being Buildi