Orion Oyj Class A · OMXHEX:ORNAV
Orion Oyj Class A — Orion Corp New B Shs — Q4 2024 Earnings Presentation
61 slides from Orion Oyj Class A's earnings presentation, Feb 25, 2025
Slide 1: Orion Equity story
GRION Orion Equity story »
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: Orion today – building well-being since 1917
Orion today – building well-being since 1917 Diversified R&D focus in pharmaceutical company oncology and pain ~3,700 employees Operations in more than 35 countries Net sales1 EUR 1,542 million Impacting millions of Operating profit1 417 million lives globally 3 Investor Presentation © Orion Corpora
Slide 4: Our diversified and balanced businesses
Our diversified and balanced businesses Innovative Generics and Branded Products Animal Health Fermion Medicines Consumer Health Respiratory Companion API Portfolio CNS 300+ products animals & manufacturing highlights Women’s Health livestock & CDMO Nordics & Geographies Global Europe & APAC Global
Slide 5: With strong track record in delivering financial results, we have entered a new growth era
With strong track record in delivering financial results, we have entered a new growth era Net sales Operating profit (EUR million) (EUR million) 1,600 +7.2% 1,542 500 130 440 1,400 1,341 417 1,190 400 1,200 228 1,078 30 1,051 1,041 130 45 28 228 1,000 300 280 275 +12.6% 253 28 243 800 30 1,412 45 6
Slide 6: From local to global step by step
From local to global step by step 4 5 1 2 1. 2008-2011: Southern Europe 2. 2020: Thailand, Singapore & Malesia 3. 2021: Australia & New Zealand 4. 2023: R&D Hub in USA 3 5. 2024: Japan Sales operations Production and supply chain operations 6 Investor Presentation © Orion Corporation R&D operations
Slide 7: Geographic split has become more balanced
Geographic split has become more balanced Net sales split by geography, EUR million Net sales split by geography, % 1,542 232 15% 12% 13% 14% 11% 15% 15% 1,341 142 1,190 6% 10% 8% 9% 25% 15% 1,051 1,078 1,041 173 369 24% 977 135 335 129 141 31% 32% 34% 148 83 175 34% 103 90 31% 58 30% 431 28% 334 36
Slide 8: Innovative Medicines growth driven by Nubeqa and opevesostat
Innovative Medicines short and mid-term growth driven by key assets Nubeqa® and opevesostat Net sales 498 (EUR million) 60 Nubeqa® Opevesostat 70 315 Partner Partner 213 Annually tiered royalty Annually tiered royalty from Annual average now >20%, low double-digit to low 228 30 with EUR 3 billion in
Slide 9: Branded Products build on innovative legacy products with Easyhaler
Branded Products build on innovative legacy products with Easyhaler® leading the way 287 166 279 8 261 13 14.0% 144 28 7 24 130 21 115 117 105 84 90 88 77 113 64 EUR million 51 166 EUR million 144 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 130 2022 2023 2024 Easyhaler® Divina® series Entacapo
Slide 10: Research & Development
GRIoN Research & Development
Slide 11: We have a long history of bringing innovative treatments to market
We have a long history of bringing innovative treatments to market Nubeqa® reached blockbuster status in Proprietary human pharmaceuticals developed by Orion September 2024 1993 1998 2000 2003 2011 2018 1988 1994 1999 2002 2004 2014 2019 11 Investor Presentation © Orion Corporation
Slide 12: Key clinical development pipeline
Key clinical development pipeline Partner Project/compound Indication PHASE I PHASE II PHASE III REGISTRATION ARANOTE / darolutamide Prostate cancer (mHSPC) Ongoing ARASTEP / darolutamide Prostate cancer (BCR) OMAHA1 / opevesostat Prostate cancer (mCRPC) OMAHA2a / opevesostat Prostate cancer (mCRPC)
Slide 13: Orion's key clinical trials with darolutamide
Orion’s key clinical trials with darolutamide Clinical trial and Indication Primary endpoint and results Key secondary endpoints Status treatment ARAMIS Metastasis free survival Overall survival darolutamide + ADT nmCRPC prolongation by 22.0 months, 31% risk reduction (HR=0.69, p=0.003) Approved 59%
Slide 14: ODM-105 (tasipimidine) – a novel treatment for insomnia
ODM-105 (tasipimidine) – a novel treatment for insomnia Why insomnia? Huge unmet need ODM-105 has potential to differentiate • Insomnia is underdiagnosed and undertreated ODM-105 expectations – aiming to • Current medications have shortcomings be first-in-class treatment • Insomnia with co-morbiditi
Slide 15: ODM-212 – a TEAD inhibitor with best-in-class potential
ODM-212– a TEAD inhibitor with best-in-class potential Mode of action ODM-212 has potential to be best-in-class • Hippo-pathway is a signaling route that controls organ size in Evidence of clinical benefit (tumor shrinkage) Efficacy humans through the regulation of cell proliferation and death alrea
Slide 16: We are a trusted innovator in animal health products
We are a trusted innovator in animal health products Main Orion Animal Health marketing authorisations Kefavet Comforion 1987 1998 2008 2015 2019 2021 1983 1989 2002 2012 2018 2020 Geepenil Benzorion 16 Investor Presentation © Orion Corporation
Slide 17: Strategy and financial targets
Strategy and financial targets
Slide 18: Building well-being
Building well-being Inspired by our Nordic heritage, we strive to empower people around the world to live their lives to the fullest – today and tomorrow. Build a customer-driven Expand to new geographies and Develop Inn portfolio strengthen global partnerships growth enablers ov tiv a e a lt h M r
Slide 19: The dream of a truly global Finnish pharma company – why now?
The dream of a truly global Finnish pharma company has existed for a long time – why now? Promising R&D capabilities and All of our business areas projections for the quality have been have demonstrated coming decade: validated. resilience by establishing The stellar success of We have excelled in g
Slide 20: Building well-being
Building well-being Inspired by our Nordic heritage, we strive to empower people around the world to live their lives to the fullest – today and tomorrow. • Innovative Medicines for Oncology and Pain Build a customer- • Brand products for Respiratory, Central Nervous Innovative Branded driven portfo
Slide 21: Our growth will come in three phases
Our growth will come in three phases STRENGTHEN & BUILD & INVEST ACCELERATE EXPAND Build and invest into Grow & maximize value Strengthen European & global commercial assets of global assets APAC market position and capabilities Inspired by our Nordic heritage, we strive to empower people around the
Slide 22: Financial objectives
Financial objectives Strategy period 2024–2028 Net sales Operating profit CAGR ≥8%1 To grow faster than net sales1,2 Equity ratio Return on equity (ROE) ≥50% ≥25% Dividend Annually increasing dividend – payout ratio 50%–100% 1 Base year 2023 22 Investor Presentation © Orion Corporation 2 Without EUR
Slide 23: Strategy period 2024–2028 – key takeaways
Orion’s strategy period 2024–2028 – key takeaways Financial objectives provide us a framework to operate and maintain the right balance between expenditure and profitability Increasing Growing EBIT Growing investments to and annually Enable AND revenues build the future increasing of Orion dividend
Slide 24: Capital allocation focus
Capital allocation focus In-licensing / Focused Maintaining In-licensing / Internal R&D acquiring M&As to gain Dividends & increasing acquiring pipeline commercial strategic capacity R&D assets assets competences Higher Lower 24 Investor Presentation © Orion Corporation
Slide 25: 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 1.75 120% 0.20 1.50 0.12 11
Slide 26: Our Sustainability Agenda
GRIoN Our Sustainability Agenda
Slide 27: Orion's Sustainability Agenda
Orion’s Sustainability Agenda Patient safety has We want to be the We want to take We maintain strict been a priority for us environmental care of Orionees – ethical standards and for a hundred years leaders in our industry. professionals who put act responsibly in all and it continues to be the the
Slide 28: Orion's climate targets are backed by science
Orion’s climate targets are backed by science Validation from the Science Based Targets initiative (SBTi) confirms that our near-term emissions reduction targets are in line with the latest climate science 70% 78% Orion commits to reduce absolute scope Orion commits that 78% of its suppliers by emis
Slide 29: Orion Full-Year 2024 Result presentation
Orion Full-Year 2024 Result presentation 25 February 2025
Slide 30: Some highlights from news flow in 2024 and early 2025
Some highlights from news flow in 2024 and early 2025 • Refined strategy and financial targets New R&D collaborations • Orion and MSD collaboration agreement converted to global Becomes a blockbuster exclusive license to MSD • Positive read-out from Phase III Corporate responsibility ARANOTE trial •
Slide 31: Q4 2024 – Very strong sales growth in all fronts
Q4 2024 – Very strong sales growth in all fronts • Four of five business divisions showed strong 10–12/ 10–12/ growth 2024 2023 Change • Nubeqa®again the leading growth driver but many other products also recorded very good growth Net sales, EUR million 434.4 321.1 +35.3% • Operating profit was at s
Slide 32: Full-Year 2024 results
Full-Year 2024 results • Nubeqa® and two significant milestone payments, 1–12/ 1–12/ in total EUR 130 million, driving the growth Change 2024 2023 • Branded Products, Generics and Consumer Health, and Animal Health business divisions also Net sales, EUR million 1,542.4 1,189.7 +29.6% developed favou
Slide 33: Underlying net sales and operating profit showing strong growth
Underlying net sales and operating profit showing strong growth Net sales, EUR million Operating profit, EUR million 1,542.4 416.6 3.4 130.0 1,189.7 130.0 30.0 274.9 30.7 30.0 1,412.4 1,159.7 283.2 214.2 2023 2024 2023 2024 Major milestones Pension fund items Underlying net sales Major milestones Un
Slide 34: Year back-end loaded – mainly due to Nubeqa royalty structure
Year back-end loaded – mainly due to Nubeqa® royalty structure Net sales, EUR million Operating profit, EUR million 471.3 202.0 434.4 3.4 130.0 35.8 328.2 116.2 308.5 20.8 26.4 17.8 130.0 31.7 50.8 68.7 92.7 65.8 282.4 56.0 259.0 256.6 246.2 68.6 Q1’2024 Q2’2024 Q3’2024 Q4’2024 Q1’2024 Q2’2024 Q3’20
Slide 35: Net sales bridge (MEUR)
Net sales bridge (MEUR) 101.4 3.9 1,542.4 22.9 32.4 22.2 185.8 -4.3 1,189.7 -11.6 1–12/2023 1 2 3 4 5 6 7 8 1–12/2024 1 Simdax® and dexmedetomidine for human use 5 Other products and services (excl. Animal Health and Fermion) 2 Nubeqa® (product sales and royalty) 6 Animal Health and Fermion 3 Entaca
Slide 36: Operating profit bridge (MEUR)
Operating profit bridge (MEUR) -6.9 EUR -41.0 million write 101.4 -112.9 downs included -27.3 416.6 147.1 -31.6 68.8 3.1 274.9 1–12/2023 1 2 3 4 5 6 7 8 1–12/2024 1 Product & service sales without sales margin and product mix change and exchange rate effect 5 Milestones 2 Product sales margin and pr
Slide 37: Innovative Medicines
Innovative Medicines +123.4% Nubeqa® sales (MEUR) 525.2 152 60.0 • Underlying business (Nubeqa®) 36 showed very strong growth 70.0 26.9 • Due to the Nubeqa® royalty 95 structure, sales accelerated MEUR 72 26 towards the end of the year 235.1 62 30.0 21 116 • Ganaxolone contract with 22.6 368.3 45 50
Slide 38: Branded Products
Branded Products +10.2% • Easyhaler® product portfolio 287.4 Sales split 260.9 12.7 (+15.4%) continued strong 7.3 24.2 growth with budesonide- 4% 21.0 8% formoterol combination product 84.1 (+22.3%) as a driver 88.4 • Sales volume of the entacapone MEUR products increased but due to 29% declining pr
Slide 39: Generics and Consumer Health
Generics and Consumer Health +2.1% Sales split by geographic areas • H2 and especially Q4 were 517.6 528.4 strong 13% • All key markets performing well 130.9 132.1 9% MEUR 396.3 17% 61% 386.7 1–12/2023 1–12/2024 Generic prescription drugs Finland and Baltics Eastern Europe Self-care products Scandin
Slide 40: Animal Health and Fermion
Animal Health and Fermion Animal Health Fermion • Animal Health recovering from weak 2023 +23.4% • Animal Health growth came 128.2 from various sources with animal sedatives being the single 103.9 31.9 largest contributor 22.8 -1.8% • Fermion’s capacity allocated MEUR 73.7 72.3 more to internal use
Slide 41: TOP products and total sales split by division
TOP 10 products and total sales split by division EUR vs. Product or product portfolio million 1–12/2023 1. Nubeqa® 368.3 >100% 5% 8% 2. Easyhaler® product portfolio 166.4 +15.4% 3. Entacapone products1 84.1 -4.8% 34% 4. Dexdomitor®, Domitor®, Domosedan®, Antisedan® 31.9 +40.4% 5. Burana® 24.6 -2.0%
Slide 42: Key collaboration agreements
Key collaboration agreements
Slide 43: Global agreement with Bayer for development and commercialisation of darolutamide
Global agreement with Bayer for development and commercialisation of darolutamide (Nubeqa®) Annually tiered royalties to Orion Milestone payments to Orion Amount Year received Initially the average annual royalty rate is ~20% Upfront payment EUR 50 million 2014 ✓ If annual global sales of darolutami
Slide 44: Exclusive global license agreement with MSD/Merck
Exclusive global license agreement with MSD/Merck on opevesostat (ODM-208/MK-5684) and other drugs targeting CYP11A1 Financial terms Key clinical development projects Upfront payment USD 290 million 2022 ✓ Project Phase Indication Trial on Potential milestone payments to Orion total up to USD 1.63 b
Slide 45: Appendices
GRIoN Appendices
Slide 46: Outlook for 2025
Outlook for 2025 Net sales EUR 1,550–1,650 million Operating profit EUR 350–450 million 46 Investor Presentation © Orion Corporation
Slide 47: Underlying net sales and operating profit estimated to show strong growth
Underlying net sales and operating profit estimated to show strong growth Operating profit, EUR million Net sales, EUR million 1,650 450 417 • Nubeqa® most significant 3 1,542 variable in net sales range 130 • Nubeqa®, timing of R&D costs 130 and USD Fx most significant variables in operating profit
Slide 48: 89,464 registered shareholders on 31 January 2025
89,464 registered shareholders on 31 January 2025 By number of shares By number of votes Households (Finnish retail) 5% 2% 5% 7% 7% 10% Non-Finnish holders and nominee-registered 38% 6% Private corporations 13% 61% Public sector 10% Non-profit institutions 36% Financial and insurance corporations 48
Slide 49: Largest shareholders by votes and shares on 31 January 2025
Largest shareholders by votes and shares on 31 January 2025 # Shareholder % of votes # Shareholder % of shares 1 Erkki Etola and companies 6.59% 1 Ilmarinen Mutual Pension Insurance Company 3.66% 2 Maa- ja vesitekniikan tuki r.y. and companies 5.46% 2 Varma Mutual Pension Insurance Company 3.13% 3 I
Slide 50: Orion B share performance
Share price, EUR 65 60 55 50 45 40 35 30 25 20 31-Dec-24 30-Sep-24 30-Jun-24 Orion B share price 31-Mar-24 31-Dec-23 30-Sep-23 30-Jun-23 31-Mar-23 31-Dec-22 30-Sep-22 OMXH-portfolio 30-Jun-22 31-Mar-22 31-Dec-21 30-Sep-21 30-Jun-21 31-Mar-21 from January 2016 to January 2025 Europe/Pharmaceutical 31
Slide 51: Net sales and operating profit by quarter (MEUR)
Net sales and operating profit by quarter (MEUR) Net sales Operating profit 500 250 450 400 200 350 300 150 250 200 100 150 100 50 50 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 280 292 250 255 2020 84 96 65 34 2021 269 255 241 277 2021 75 71 57 40 2022 271 284 492 295 2022 71 82 245 41 2023 278 290 301 321 20
Slide 52: Quarterly net sales by business division (MEUR)
Quarterly net sales by business division (MEUR) Innovative Medicines Branded Products Generics and Consumer Health 250 100 160 90 140 200 80 120 70 150 60 100 50 80 100 40 60 30 40 50 20 10 20 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 2024 2022 2023 2024 2022 2023 2024 Due to the change in
Slide 53: Quarterly net sales by business division (MEUR)
Quarterly net sales by business division (MEUR) Animal Health Fermion 40 40 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 53 Investor Presentation © Orion Corporation
Slide 54: Fixed costs
Fixed costs 10–12/2024 10–12/2023 Change 1–12/2024 1–12/2023 Change Sales and marketing, EUR million -94.2 -62.3 +51.2% -278.1 -224.8 +23.7% Research and development, EUR million -62.5 -36.6 +70.6% -179.6 -126.9 +41.5% Administrative, EUR million -20.7 -20.8 -0.4% -81.7 -74.8 +9.2% 100 80 60 40 20 0
Slide 55: Key financial figures
Key financial figures 2020 2021 2022 2023 1–12/24 1–12/23 Change % Net sales, EUR million 1,078.1 1,041.0 1,340.6 1,189.7 1,542.4 1,189.7 +29.6% EBITDA, EUR million 336.5 289.1 487.1 326.4 509.4 326.4 +56.0% % of net sales 31.2% 27.8% 36.3% 27.4% 33.0% 27.4% Operating profit, EUR million 280.1 243.3
Slide 56: Income statement
Income statement EUR million 2020 2021 2022 2023 1–12/24 1–12/23 Change % Net sales 1,078.1 1,041.0 1,340.6 1,189.7 1,542.4 1,189.7 +29.6% Cost of goods sold -434.4 -447.5 -489.0 -531.9 -596.0 -531.9 +12.0% Gross profit 643.7 593.5 851.6 657.7 946.4 657.7 +43.9% Other operating income and expenses 5
Slide 57: Royalties and milestones
Royalties and milestones Includes EUR 70 million Nubeqa® sales milestone from Bayer and EUR 60 million related to conversion of collaboration agreement to 450 exclusive licece agreement for MSD 400 350 Includes EUR 228 million upfront payment from Includes EUR 30 MSD regarding ODM-208 collaboration
Slide 58: Financial position
Financial position EQUITY AND LIABILITIES ASSETS EUR million 12/24 12/23 Change % 12/23 EUR million 12/24 12/23 Change % 12/23 Share capital 92.2 92.2 92.2 Property, plant and equipment 417.6 400.9 +4.2% 400.9 Other reserves 5.3 4.6 +15.2% 4.6 Cumulative translation adjustments -10.6 -9.8 +9.2% -9.8
Slide 59: Development of capital expenditure
Development of capital expenditure 250 200 150 EUR million 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Property, plant and equipment Intangible assets VMD (Inovet) acquisition Depreciation, amortisation and impairment 59 Investor Presentation ©
Slide 60: Development of net working capital
Development of net working capital % of net sales EUR million 700 40% 600 30% 500 20% 400 300 10% 200 0% 100 0 -10% -100 -20% -200 -30% -300 Mar18 Mar19 Mar20 Dec20 Mar21 Mar22 Mar23 Mar24 Dec17 Jun18 Dec18 Jun19 Dec19 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun 20 Sep22 Sep17 Sep18 Sep19 Se
Slide 61: Upcoming events
Upcoming events AGM 2025 planned to be held 3/4/2025 Interim Report 1–3/2025 23/4/2025 Capital Markets Day 22/5/2025 Half-Year Financial Report 1–6/2025 18/7/2025 Interim Report 1–9/2025 28/10/2025 61 Investor Presentation © Orion Corporation