Slide 1: Orion Interim Report Q1─Q2/2011
Orion Interim Report Q1─Q2/2011 2 August 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: Solid growth continued
Solid growth continued • Net sales and operating profit continued to grow well – Sales of Parkinson’s drugs continued to rise – Sales from other product ranges grew well – Orion’s sales of human pharmaceuticals in Finland up by 8% • Committee for Medicinal Products for Human Use (CHMP) of European M
Slide 4: Net sales and operating profit grew
Net sales and operating profit grew Group key figures Q1─Q2/11 Q1─Q2/10 Change % 2010 Net sales, EUR million 471 422 +12% 850 Operating profit, EUR million 158 131 +21% 254 Basic earnings per share, EUR 0.83 0.68 +21% 1.31 Cash flow per share before financial items, EUR 0.54 0.48 +13% 1.26 • Net sal
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 Sales 4% 5% through 14% partners 5% 31 % 25% 7% 14% 45% 14% 34% 33
Slide 6: Business Reviews
Business Reviews GRION Building well-being
Slide 7: Pharmaceuticals sales performed well
Pharmaceuticals sales performed well Key figures for Pharmaceuticals business Q1─Q2/2011 Q1─Q2/2010 Change % 2010 Net sales of Pharmaceuticals, EUR million 447 399 +12% 806 Proprietary Products 214 184 +16% 371 Specialty Products 158 144 +10% 299 Animal Health 34 33 +5% 68 Fermion 25 26 -4% 45 Contr
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, EUR million Q1─Q22011 Q1─Q2/2010 Change % 2010 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) 142.5 125.6 +14% 253 2. Simdax® (acute decompensated heart failure) 21.2 20.2 +5% 40 3. Easyhaler® product family (asthma, COPD) 1
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finland’s biggest Finnish human pharmaceuticals market pharmaceutical companies in in Q1─Q2/2011 Q1─Q2/2011 EUR million • Wholesale EUR 967 million (+3%) 120 100 Orion in Finnish human pharmaceuticals 100 market • Quarter of Orion’s net sales from 80 Finland 57 5
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 April 2010 ─ March 2011 Parkinson’s drugs 3/11 3/10 Finland 2) 23% 27% • United States 3) USD 836 million (-18%) Sweden 2) 15% 16% • Five largest European markets 1) 3) EUR 1,035 million (+8%) Nor
Slide 11: Precedex maintains strong growth
Precedex maintains strong growth Markets for intensive care sedative Breakdown of Precedex USD million Precedex April 2010 ─ March 2011 markets 160 • Total USD 175 million (+51%) 140 120 • United States USD 141 million (+42%) 100 80 60 40 20 0 USA Other countries 11 2 August 2011 Orion Interim Repor
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 Easyhaler® combined formulations Asthma, COPD Stalevo® for Japanese market Parkinson’s disease Partner: Endo And
Slide 13: Diagnostics business
Diagnostics business Key figures for Diagnostics business Q1-Q2/2011 Q1-Q2/2010 Change % Net sales, EUR million 25 24 +6% Operating profit, EUR million 3.4 4.1 -17% • QuikRead® tests remained main product – Launches of QuikRead go® progressed as planned and moving into the next geographical phase •
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 Report January-September 2011 25 October 2011 • Financial Statements 2011 7 February 2012 • Annual General Meeting 2012 20 March 2012 • Interim Report January–March 2012 24 April 2012 • Capital Markets Day in Helsinki 24 May 2012 • Interim Report January–June 2012 31 July 20
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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 EUR million Net sales Operating profit 900 850 300 800 772 254 711 215 250 680 700 193 185 53 192 207 600 173 180 200 213 471 Q4 44 158 Q4 500 39 33 71 192 163 170 Q3 150 Q3 400 49 44 56 65 227 Q2 Q2 300 207 100 60 166 181 196 44 45 50 200 Q1 Q1 50 93 100 190 215 2
Slide 19: Key figures for 2007─Q2/2011
Key figures for 2007─Q2/2011 Orion’s key figures 2007 2008 2009 2010 Q1─Q2/2011 Q1─Q2/2010 Change % Net sales, EUR million 680.0 710.7 771.5 849.9 471.2 421.9 +11.7% Operating profit, EUR million 192.0 185.0 207.0 254.2 158.0 131.0 +20.6% Profit before taxes, EUR million 193.4 184.2 203.7 252.6 157.
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─Q2/2011 Q1–Q2/2010 Change % 2010 Stalevo®, Comtess® and Comtan® Parkinson’s disease 142.5 125.6 +13.5% 252.7 Acute decompensated Simdax® heart failure 21.2 20.2 +5.1% 39.9 Easyhaler® product fami
Slide 21: Income Statement 2007 ─ Q2/2011
Income Statement 2007 ─ Q2/2011 Formation of profits, EUR million 2007 2008 2009 2010 Q1─Q2/2011 Q1─Q2/2010 Change % Net sales 680.0 710.7 771.5 849.9 471.2 421.9 +11.7% Cost of goods sold -232.8 -243.4 -265.2 -283.2 -147.5 -137.8 +7.0% Gross profit 447.2 467.4 506.3 566.8 323.7 284.0 +14.0% Other o
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. After the review period, in July Orion was informed that the Committee for Medicinal Products for Human Use (CHMP) of the European
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 2) 2015 3) 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 % 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 0.60 60 % ach
Slide 25: Building well-being
Building well-being