Orion Investor
Presentation
Jefferies Global Healthcare Conference
London 20 November 2014
Forward-looking statements
20 November 2014 2 Orion Investor Presentation | Jefferies Global Healthcare Conference London
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 strategies.
These statements are subject to risks and uncertainties. Actual results may differ substantially from those stated in any forward-looking statement. This is due to a number of factors, including the possibility that Orion may decide not to implement these strategies and the possibility that the anticipated benefits of implemented strategies are not achieved. Orion assumes no obligation to update or revise any information included in this presentation.
Highlights of Q1-Q3/2014
+ Global partnership with Bayer
on ODM-201
+ Milestones of EUR 32 million
received from partners
+ First approvals for Bufomix
Easyhaler® in Europe
+ Stalevo® granted marketing
authorisation in Japan in July
+ Strong development of
generics and OTC business
- Generic competition to Stalevo
has begun in Germany
- Precedex® molecule patent
expired in the US in January
- Exchange rates
20 November 2014 3 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Group key figures Q1-Q3/2014 Q1-Q3/2013 Change % 2013
Net sales, EUR million 760 734 +4% 1,007
Operating profit, EUR million 217 202 +8% 268
20 November 2014 4 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Net sales originate mainly in Europe Breakdown of EUR 760 million net sales in Q1-Q3/2014
28%
13% 35%
11%
13%
Sales split by market area
Finland Scandinavia
Other Europe North America
Other countries
Key figures by business divisions Q1-Q3/
2014 Change %
Net sales of Pharmaceuticals,
EUR million 721 +4%
Proprietary Products 285 -0%
Specialty Products 310 +11%
Animal Health 50 -5%
Fermion 46 -1%
Contract manufacturing &
other 29 -5%
Pharmaceuticals operating
profit, EUR million 219 +7%
Net sales of Diagnostics business,
EUR million 42 -4%
Operating profit of Diagnostics
business, EUR million 4.9 +25%
20 November 2014 5 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Best-selling pharmaceuticals Q1-Q3/2014 Best-selling pharmaceuticals Q1-Q3/2014
Net sales, EUR million 2013
Stalevo®, Comtess® & Comtan® (Parkinson’s disease) 207
Simdax® (acute decompensated heart failure) 46
Precedex® (intensive care sedative) 59
dexdor® (intensive care sedative) 25
Easyhaler® product family (asthma, COPD) 29
Generic entacapone products (Parkinson’s disease) 10
Burana® (inflammatory pain) 23
Dexdomitor®, Domitor®, Domosedan® and Antisedan®
(animal sedatives) 25
Marevan® (anticoagulant) 16
Divina® (menopausal symptoms) 15
Total
35
25
25
25
20
17
16
13
10
130
44% of pharmaceuticals net sales
Products based on Orion’s inventions in blue
314
-17%
+5 %
-39%
+37%
+18%
+187%
-2%
-12%
+7%
-3%
20 November 2014 6 Orion Investor Presentation | Jefferies Global Healthcare Conference London
0
1
Category 1 Category 2 Category 3 Category 4
Proprietary Products Specialty Products (generics+OTC)
Animal Health Fermion
Contract Manufacturing & other Orion Diagnostica
Product mix is changing
45%
35%
7%
5% 3%
5%
Sales split by business 2011
37%
41%
7%
6%
4% 5%
Sales split by business Q1-Q3/2014
Partnering at the core of strategy
• Risk and reward sharing model
• Own focus on late-stage research and early-stage development
R&D
• Ex-European sales through partners
• Orion has extensive sales network in Nordic countries and Eastern Europe
S&M
20 November 2014 7 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Orion’s own sales organisation’s areas
Sales areas of partners
Key late stage development partnerships
Commercial territories
• Orion: Europe
• Janssen: RoW
Development cost sharing
• Development co-funded after Orion
has successfully completed additional
phase IIa study
Financials
• Upfront payment of MEUR 23 (MEUR 3
booked as revenues in 2013, MEUR 20
to be used against Phase IIa costs)
• Orion entitled to milestones and
royalties based on development and
commercial success
Commercial territories
• Bayer: Global rights
• Orion: Co-promotion option in Europe
Development cost sharing
• Bayer contributes major share of
development costs from 2015 onwards
Financials
• Upfront payment of MEUR 50 (MEUR 27
to be used against development costs
in 2014)
• Orion entitled to milestones and
royalties based on development and
commercial success
20 November 2014 8 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Partnership with Janssen on ORM-12741
for treatment of symptoms of AD
Partnership with Bayer on ODM-201 for
treatment of prostate cancer
20 November 2014 9 Orion Investor Presentation | Jefferies Global Healthcare Conference London
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
Levosimendan 3) Low Cardiac Output
Syndrome I II III
ORM-12741 (alpha-2c adrenoceptor antagonist) 4) Alzheimer’s disease I IIa
Dexmedetomidine 5) (intranasal) Treatment of pain I IIb
ODM-104 (more effective COMT inhibitor) Parkinson’s disease I
ODM-203 (targeted FGFR+VEGFR inhibitor) Solid tumors I
1) Aim is to obtain marketing authorisation for product in at least some European
countries not included in decentralised marketing authorisation application
process. 2) In collaboration with Bayer 3) Partner: Tenax Therapeutics, Inc. 4) In collaboration with Janssen Pharmaceuticals 5) Partner: Recro Pharma, Inc.
= Phase completed
= Phase ongoing
Orion’s financial objectives
20 November 2014 10 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Orion’s financial objectives are:
• Ensuring financial stability
• Profitable growth
The objectives are achieved through:
• Increasing net sales. Achievement of
this objective requires continuous
investment in development of the
product portfolio.
• Maintaining profitability at a good level,
the aim being operating profit that
exceeds 20% of net sales.
• Keeping the equity ratio at least 50%.
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
50
100
150
200
250
300
2009 2010 2011 2012 2013 YTD92014
Equity ratio and interest-bearing liabilities
Interest-bearing liabilities, EUR million
Equity ratio, %
Equity ratio target >50 %
Financial objectives: Increasing net sales
0%
2%
4%
6%
8%
10%
12%
0
200
400
600
800
1,000
1,200
Net sales, EUR million
Growth, %
Generics
dexdor®
Easyhaler®
Stalevo®
Precedex®
Exchange rates
20 November 2014 11 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Main drivers
Financial objectives: Maintaining good profitability
0%5%10%15%20%25%30%35%
050
100150200250300
Operating profit, EUR million
Operating profit, % of net sales
Operating profit target >20%
20 November 2014 12 Orion Investor Presentation | Jefferies Global Healthcare Conference London
Sales growth
Product mix change
Main drivers
Dividend distribution policy
20 November 2014 13 Orion Investor Presentation | Jefferies Global Healthcare Conference London
1.0
0
0.9
5
1.0
0
1.2
0
1.3
0
1.3
0
1.2
5
0.10
0.06 0.12
60%
65%
70%
75%
80%
85%
90%
95%
100%
EUR 0.00
EUR 0.20
EUR 0.40
EUR 0.60
EUR 0.80
EUR 1.00
EUR 1.20
EUR 1.40
EUR 1.60
2007 2008 2009 2010 2011 2012 2013
Repayment of capital pershare
Dividend per share
Dividend payout ratio
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
Thank You!