Slide 1: Orion Financial Review for 2011
Orion Financial Review for 2011 7 February 2012 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 year for Orion
Strong year for Orion • Further growth in net sales and operating profit • Developments significant for our future – dexdor® gained centralised marketing authorisation in Europe – Novel collaboration on research with Endo Pharmaceuticals – Pharmaceutical research programmes progressed as planned – C
Slide 4: Net sales and operating profit grew
Net sales and operating profit grew Group key figures 2011 2010 Change % Net sales, EUR million 918 850 +8% Operating profit, EUR million 283 254 +11% Basic earnings per share, EUR 1.49 1.31 +14% Cash flow per share before financial items, EUR 1.10 1.26 -13% • Net sales grew by 8% – Sales of product
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 Orion Diagnostica and other 13 % 3% 5% 5% 26 % 7% 14 % 45 % 13 % 35 % 34 % 5 7 February 2012
Slide 6: Business Reviews
Business Reviews
Slide 7: Growth in human pharmaceuticals continued
Growth in human pharmaceuticals continued Key figures for Pharmaceuticals business 2011 2010 Change % Net sales of Pharmaceuticals, EUR million 871 806 +8% Proprietary Products 409 371 +10% Specialty Products 321 299 +7% Animal Health 68 68 – Fermion 43 45 -4% Contract manufacturing and other 30 24
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, EUR million 2011 2010 Change % 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) 267 253 +6% 2. Simdax® (acute decompensated heart failure) 44 40 +10% 3. Precedex® (intensive care sedative) 33 27 +21% 4. Easyhaler® product fami
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals Finland’s biggest pharmaceutical market in 2011 companies in 2011 EUR million • Wholesale EUR 1,972 million (+2%) 250 Orion in Finnish human 202 pharmaceuticals market 200 • Sales growth 6% 150 129 • Orion again clear market leader 1
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 MAT MAT October 2010–September 2011 Parkinson’s drugs 9/11 9/10 Finland 2) 23% 25% • United States 3) USD 682 million (-32%) • Five largest European markets 1) 3) Sweden 2) 14% 16% EUR 989 mill
Slide 11: Precedex maintains strong growth
Precedex maintains strong growth Markets for intensive care sedative Breakdown of Precedex Precedex USD million markets October 2010–September 2011 180 160 • Total USD 194 million (+37%) 140 120 • United States USD 153 million (+24%) 100 80 60 40 20 0 USA Other countries 11 7 February 2012 Orion Fin
Slide 12: Orion's pharmaceutical research pipeline
Orion’s pharmaceutical research pipeline Clinical phases Regis- Project Indication Pre-clinical I II III tration Easyhaler® combined formulations Asthma, COPD Stalevo® for Japanese market Parkinson’s disease Partner: Endo Androgen receptor antagonist Advanced prostate cancer Pharmaceuticals Alpha 2c
Slide 13: Net sales grew in Diagnostics business
Net sales grew in Diagnostics business Key figures for Diagnostics business 2011 2010 Change % Net sales, EUR million 50 46 +8% Operating profit, EUR million 4.9 6.1 -20% • QuikRead® tests remained main product. – Launching of QuikRead go® new generation testing instrument progressed as planned duri
Slide 14: Outlook for 2012
Outlook for 2012 • Net sales at similar level to 2011 • Operating profit at similar level to 2010 • Group’s capital expenditure about EUR 50 million excluding substantial corporate or product acquisitions 14 7 February 2012 Orion Financial Review for 2011
Slide 15: Orion Calendar
Orion Calendar • Annual General Meeting registration deadline 15 March 2012 at 10:00 • Annual General Meeting 20 March 2012 at 14:00 • Record date for dividend distribution 23 March 2012 • Dividend payment date 4 April 2012 • Interim Report January–March 2012 24 April 2012 • Capital Markets Day in H
Slide 16: Building well-being
RION 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. Long-term profitable growth Principal means of achieving objectiv
Slide 18: Key figures by quarter
Key figures by quarter EUR million Net sales EUR million Operating profit 1000 918 300 283 850 900 254 772 800 711 236 250 60 680 215 192 185 207 53 700 193 Q4 200 Q4 600 173 180 44 65 211 39 33 213 Q3 71 Q3 500 192 150 163 170 49 44 56 400 Q2 65 Q2 227 300 196 207 100 60 166 181 Q1 44 45 50 Q1 200
Slide 19: Key figures for 2007–2011
Key figures for 2007─2011 Orion’s key figures 2007 2008 2009 2010 2011 Change % Net sales, EUR million 680.0 710.7 771.5 849.9 917.9 +8.0% Operating profit, EUR million 192.0 185.0 207.0 254.2 282.9 +11.3% Profit before taxes, EUR million 193.4 184.2 203.7 252.6 282.0 +11.6% R&D expenses, EUR millio
Slide 20: Growth in sales of own proprietary products
Growth in sales of own proprietary products Net sales of proprietary products, EUR million Indication 2011 2010 Change % Stalevo®, Comtess® and Comtan® Parkinson’s disease 267 253 +6% Acute decompensated Simdax® 44 40 +10% heart failure Precedex® Intensive care sedative 33 27 +21% Easyhaler® product
Slide 21: Income Statement 2007–2011
Income Statement 2007─2011 Formation of profits, EUR million 2007 2008 2009 2010 2011 Change % Net sales 680.0 710.7 771.5 849.9 917.9 +8.0% Cost of goods sold -232.8 -243.4 -265.2 -283.2 -305.1 +7.7% Gross profit 447.2 467.4 506.3 566.8 612.8 +8.1% Other operating income and 12.0 3.1 6.0 1.2 3.0 +1
Slide 22: Orion's main research programmes
Orion’s main research programmes • Expansion of Easyhaler® product family. Under development are new budesonide-formoterol and fluticasone-salmeterol combined formulations for treatment of asthma and COPD. – Study results concerning the budesonide-formoterol combined formulation received early in 20
Slide 23: 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 October Entacapone Parkinson’s disease 2015 3) Comtess® and Comtan® October 2013 1) 2013 2) Acute decompensated September Not Not Levosimendan Simda
Slide 24: 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 25: Slide 25