Slide 1: Orion Interim Report Q1/2012
Orion Interim Report Q1/2012 24 April 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: Anticipated start for the year
Anticipated start for the year • Net sales remained at similar level to comparative period despite decline in sales of Parkinson’s drugs – First deliveries of generic entacapone products to North America • Operating profit down – Net sales and operating profit in the comparative period were increase
Slide 4: Net sales and operating profit
Net sales and operating profit Group key figures Q1/2012 Q1/2011 Change % 2011 Net sales, EUR million 247 244 +1.3% 918 Operating profit, EUR million 79 93 -14.7% 283 Basic earnings per share, EUR 0.42 0.49 -13.0% 1.49 Cash flow per share before financial items, EUR 0.27 0.34 -22.0% 1.10 • Net sales
Slide 5: Breakdown of net sales
Breakdown of net sales By business divisions By market area Proprietary Products Specialty Products Finland Scandinavia Animal Health Fermion Other Europe North America Contract manufacturing and other Orion Diagnostica Other countries 6% 14% 4% Sales through 7% partners 26% 28% 7% 40% 15% 13% 36% 3
Slide 6: Business Reviews
Business Reviews
Slide 7: Specialty Products growing well
Specialty Products growing well Key figures for Pharmaceuticals business Q1/2012 Q1/2011 Change % 2011 Net sales of Pharmaceuticals, EUR million 233 231 +1% 871 Proprietary Products 99 113 -13% 409 Specialty Products 90 80 +13% 321 Animal Health 18 17 +6% 68 Fermion 16 13 +24% 43 Contract manufactur
Slide 8: Best-selling pharmaceuticals
Best-selling pharmaceuticals Orion’s best-selling pharmaceuticals, EUR million Q1/2012 Q1/2011 Change % 2011 1. Stalevo®, Comtess® and Comtan® (Parkinson’s disease) 63.2 73.6 -14% 267 2. Simdax® (acute decompensated heart failure) 10.4 10.6 -2% 44 3. Precedex® (intensive care sedative) 10.3 8.3 +25%
Slide 9: Orion clear market leader in Finland
Orion clear market leader in Finland Finnish human pharmaceuticals market Finland’s biggest pharmaceutical in Q1/2012 companies in Q1/2012 EUR million • Wholesale EUR 493 million (+4%) 60 54 Orion in Finnish human pharmaceuticals 50 market • Sales growth 10% 40 31 • Orion clear market leader 29 29 3
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 January─December 2011 Parkinson’s drugs 2011 2010 Finland 2) 24% 24% • United States 3) USD 669 million (-28%) Sweden 2) 14% 16% • Five largest European markets 1) 3) EUR 955 million (-8%) Norw
Slide 11: Precedex maintains strong growth
Precedex maintains strong growth Markets for intensive care sedative Breakdown of Precedex USD million Precedex markets January─December 2011 180 160 140 • Total USD 206 million (+33%) 120 100 • United States USD 161 million (+22%) 80 60 40 20 0 USA Other countries 11 24 April 2012 Orion Interim Rep
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 markets Parkinson’s disease Partner: Endo Androgen receptor antagonist Advanced prostate cancer Pharmaceuticals Alpha 2
Slide 13: Net sales grew in Diagnostics business
Net sales grew in Diagnostics business Key figures for Diagnostics business Q1/2012 Q1/2011 Change % 2011 Net sales, EUR million 16 14 +14% 50 Operating profit, EUR million 2.5 2.8 -9% 4.9 • QuikRead® tests remained main product – Launching of QuikRead go® new generation testing instrument progresse
Slide 14: Outlook for 2012 (unchanged)
Outlook for 2012 (unchanged) • Net sales will be at similar level to 2011 • Operating profit will be at similar level to 2010 • Group’s capital expenditure about EUR 50 million excluding substantial corporate or product acquisitions 14 24 April 2012 Orion Interim Report Q1/2012
Slide 15: Orion Calendar
Orion Calendar • Capital Markets Day in Helsinki 24 May 2012 • Interim Report January─June 2012 31 July 2012 • Interim Report January─September 2012 23 October 2012 15 24 April 2012 Orion Interim Report Q1/2012
Slide 16: Building well-being
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 918 300 283 900 850 254 772 800 236 250 60 711 215 207 53 700 193 185 Q4 200 Q4 600 180 44 65 211 33 71 500 213 Q3 Q3 192 150 170 44 56 65 400 Q2 Q2 227 100 60 300 196 207 45 181 Q1 50 Q1 200 50 93 79 100 190 215 244 247
Slide 19: Key figures for 2008─Q1/2012
Key figures for 2008─Q1/2012 Orion’s key figures 2008 2009 2010 2011 Q1/2012 Q1/2011 Change % Net sales, EUR million 710.7 771.5 849.9 917.9 247.4 244.1 +1.3% Operating profit, EUR million 185.0 207.0 254.2 282.9 79.3 92.9 -14.7% Profit before taxes, EUR million 184.2 203.7 252.6 282.0 79.3 92.7 -14
Slide 20: Development of sales of own proprietary products
Development of sales of own proprietary products Net sales of proprietary products, EUR million Indication Q1/2012 Q1/2011 Change % 2011 Stalevo®, Comtess® and Comtan® Parkinson’s disease 63.2 73.6 -14.1% 267 Acute decompensated Simdax® 10.4 10.6 -1.8% 44 heart failure Intensive care Precedex® 10.3
Slide 21: Income Statement 2008─Q1/2012
Income Statement 2008─Q1/2012 Formation of profits, EUR million 2008 2009 2010 2011 Q1/2012 Q1/2011 Change % Net sales 710.7 771.5 849.9 917.9 247.4 244.1 +1.3% Cost of goods sold -243.4 -265.2 -283.2 -305.1 -86.6 -72.7 +19.1% Gross profit 467.4 506.3 566.8 612.8 160.8 171.4 -6.2% Other operating in
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 on budesonide-formoterol formulation received early in 2012 were promising, bu
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 Entacapone Comtess® and Parkinson’s disease October 2013 2) 2015 3) Comtan® October 2013 1) Acute decompensated September Levosimendan Simdax® Not m
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 1.00 100% into account distributable funds and capital expenditure and other 0.80 80% financial requirements in medium 0.60 60% and long term to achieve
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