Slide 1: Orion Financial Review for 2014
Orion Financial Review for 2014 4 February 2015 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: Good year in pharmaceutical development and commercialisation projects
Good year in pharmaceutical development and commercialisation projects • Marketing authorisations for Bufomix Easyhaler in Europe and Stalevo in Japan • Worldwide collaboration with Bayer on ODM-201 development and commercialisation • Early phase clinical development pipeline boosted • Specialty Pro
Slide 4: Net sales and operating profit
Net sales and operating profit Basic earnings per Laimentamaton Cash flow perrahavirta share Net sales, Operating profit, Osakekohtainen EUR million EUR million osakekohtainen tulos, € share, EUR before financial ennen items, rahoituseriä, € EUR 1,007 1,015 268 272 1.46 1.50 1.72 1.02 2013 2014 2013
Slide 5: Breakdown of net sales
Breakdown of net sales Group’s net sales in 2014 were EUR 1,015 million By business division By market area 5% 3% 13% 6% 29% 7% 37% 10% 13% 42% 35% Proprietary Products Specialty Products Animal Health Finland Scandinavia Fermion Other Europe North America Contract manufacturing & other Orion Diagno
Slide 6: Business Reviews
Business Reviews
Slide 7: Pharmaceuticals business
Pharmaceuticals business 2013 2014 Net sales split EUR million 2014 2013 Change % 953 962 Proprietary Products 373 390 -4% Specialty Products 427 385 +11% Animal Health 70 71 -1% Fermion 57 64 -10% 273 276 Contract manufacturing & other 34 43 -21% • Net sales of branded Parkinson’s drugs down by Net
Slide 8: Best-selling pharmaceuticals 2014
Best-selling pharmaceuticals 2014 2013 Net sales, EUR million Stalevo®, Comtess® & Comtan® (Parkinson’s disease) -18% 169 207 Simdax® (acute decompensated heart failure) +2% 47 46 Easyhaler® product family (asthma, COPD) +22% 35 29 dexdor® (intensive care sedative) +39% 35 25 Precedex® (intensive ca
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals Finland’s biggest pharmaceutical market in 2014 companies in 2014 EUR million • Wholesale EUR 2,167 million (+5%) 300 251 Orion in Finnish human 250 pharmaceuticals market 200 • Sales growth +8% 150 149 • Orion clear market leader 12
Slide 10: Review of Parkinson's drugs markets
Review of Parkinson’s drugs markets Overall markets for Parkinson’s drugs Market shares of Orion’s MAT9 MAT9 branded Parkinson’s drugs 2014 2013 USD / EUR million MAT9/2014 MAT9/2013 Change % Finland 2) 21% 23% USA USD 810 751 +8% Sweden 2) 14% 15% EU TOP 5 EUR 996 978 +2% Japan EUR 497 523 -5% Norw
Slide 11: Precedex and dexdor intensive care sedatives
Precedex® and dexdor® intensive care sedatives European sedative market MAT9/2014 Breakdown of Precedex USD million Total market value EUR 490 million (+3%) markets 450 400 5% 13% 66 350 +9% 60 300 15% 250 67% 200 +10% 335 150 305 100 50 Propofol EUR 330 million (+4%) 0 Midazolam EUR 74 million (-3%
Slide 12: Key clinical pharmaceutical development projects
Key clinical pharmaceutical development projects Project Indication PHASE Registration Bufomix Easyhaler® (budesonide-formoterol) 1) Asthma, COPD I II III Easyhaler® salmeterol-fluticasone Asthma, COPD I II III ODM-201 (androgen receptor inhibitor) 2) Prostate cancer I II III Low Cardiac Output Levo
Slide 13: Diagnostics business
Diagnostics business 2013 2014 • Net sales in 2013 include sales 57 56 of products discontinued in 2013 • Comparative period operating profit included costs related to contraction of product 6.4 portfolio, Turku manufacturing 4.6 plant closure and personnel reductions Net sales, EUR Operating profit
Slide 14: Outlook for 2015
Outlook for 2015 Net sales will be slightly lower than in 2014 (net sales Net sales were EUR 1,015 million in 2014). Operating profit Operating profit is estimated to exceed EUR 200 million. The Group’s capital expenditure will be about EUR 50 Group’s capital million excluding substantial corporate
Slide 15: Orion's financial objectives
Orion’s financial objectives Increasing net sales. Achievement of this objective requires continuous investment in development of the product portfolio. Maintaining profitability at a good level. The aim is operating profit that exceeds 20% of net sales. Keeping the equity ratio at least 50%. Distri
Slide 16: Challenges and opportunities in next few years
Challenges and opportunities in next few years Long-term growth opportunities from R&D pipeline. Milestone payments. Generic drugs and self-care products. Generic competition for Parkinson’s franchise and Precedex. Timing of milestone payments. Easyhaler® combinations and dexdor® for European market
Slide 17: Orion Calendar 2015
Orion Calendar 2015 Annual General Meeting 2015 24 March 2015 Interim Report January─March 2015 29 April 2015 Capital Market Day in Helsinki 26 May 2015 Interim Report January─June 2015 28 July 2015 Interim Report January─September 2015 27 October 2015 The Financial Statements and Report by the Boar
Slide 18: Orion - Building well-being
GRION Building well-being
Slide 19: Key figures by quarter
Key figures by quarter EUR million Net sales EUR million Operating profit 1,200 300 1,000 250 60 59 55 53 66 254 273 255 800 236 Q4 200 65 Q4 215 76 64 71 67 600 246 237 238 Q3 150 Q3 211 213 65 Q2 65 86 Q2 400 100 60 61 227 233 248 277 207 Q1 Q1 200 50 93 71 79 74 67 215 244 247 249 245 0 0 10 11 1
Slide 20: Key figures for 2010-2014
Key figures for 2010─2014 Orion’s key figures 2010 2011 2012 2013 2014 Change % Net sales, EUR million 849.9 917.9 980.4 1,006.9 1,015.3 +0.8% Operating profit, EUR million 254.2 282.9 278.3 267.7 272.4 +1.8% Profit before taxes, EUR million 252.6 282.0 276.6 264.0 267.8 +1.4% R&D expenses, EUR mill
Slide 21: Income Statement 2010-2014
Income Statement 2010─2014 Formation of profits, EUR million 2010 2011 2012 2013 2014 Change % Net sales 849.9 917.9 980.4 1,006.9 1,015.3 +0.8% Cost of goods sold -283.2 -305.1 -350.8 -393.5 -401.7 +2.1% Gross profit 566.8 612.8 629.6 613.4 613.6 Other operating income and expenses 1.2 3.0 6.3 5.6
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 January Entacapone Parkinson’s disease October 2013 Comtess® and Comtan® October 2013 1) 2015 2) Acute Levosimendan Simdax® decompensated September
Slide 23: Dividend distribution policy
Dividend distribution policy 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. Dividend distribution history EUR 1.60 100% 0.12 EUR 1.40 0.06 95% EUR 1.20 0.10 90%
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