Jefferies Global Healthcare Conference London 20 November 2014 1300 2 Orion.pdf · generics and OTC business -Generic competition to Stalevo has begun in Germany -Precedex® molecule

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


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


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%


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%


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


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


Partnership with Janssen on ORM-12741

for treatment of symptoms of AD

Partnership with Bayer on ODM-201 for

treatment of prostate cancer


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


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


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%


Sales growth

Product mix change

Main drivers

Dividend distribution policy


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!

Jefferies Global Healthcare Conference London 20 November 2014 1300 2 Orion.pdf · generics and OTC business -Generic competition to Stalevo has begun in Germany -Precedex® molecule

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