Orion Corporation. Jefferies Healthcare Conference New York 9 June Tuukka Hirvonen Manager, Investor Relations

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1 Orion Corporation Jefferies Healthcare Conference New York 9 June 2016 Tuukka Hirvonen Manager, Investor Relations

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 strategies. These statements are subject to risks and uncertainties. Actual results may differ substantially from those stated in any forwardlooking 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. 2 9 June 2016

3 Orion today building well-being since 1917 Specialty Products (Gx + OTC) Animal Health Proprietary Products Net sales ~meur 1,000 Personnel ~3,400 R&D expenses ~11% of net sales Six production sites in Finland Sales organisation in >20 European countries Fermion (API production) Contract Manufacturing Orion Diagnostica 3 9 June 2016

4 1 0 Category 1 Category 2 Category 3 Category 4 Product mix is changing Sales split by business 2011 Sales split by business % 3% 5% 5% 4% 6% 7% 45% 7% 32% 35% 46% Proprietary Products Animal Health Contract Manufacturing & other Specialty Products (generics+otc) Fermion Orion Diagnostica 4 9 June 2016

5 Steady development despite patent expiries Net sales Operating profit 1200 EUR million 12% 300 EUR million 32% % % 800 8% % 600 6% % 400 4% % 200 2% 50 27% % % Parkinson's franchise + Precedex Other products Growth, % Operating profit Operating profit margin 5 9 June 2016

6 Breakdown of net sales Net sales, EUR million Q1/16 Change vs. Q1/ Change vs Pharmaceuticals % 961-0% Proprietary Products 88-1% % Specialty Products % % Sales split by market area in % 14% 31% Animal Health 18-16% % Fermion 11-28% 53-8% Contract manufacturing & other 10-6% 37 +9% Orion Diagnostica 14-17% 58 +3% Group items -1-3% -3 +1% Group total % 1,016 +0% 31% Finland Other Europe Other countries 16% Scandinavia North America 6 9 June 2016

7 Best-selling pharmaceuticals Product Indication Net sales EUR million Q1/16 Change vs. Q1/15 Net sales EUR million 2015 Parkinson s disease 33-23% 138 Asthma, COPD % 51 Intensive care sedative % 45 Acute decompensated heart failure Rheumatoid arthritis, inflammatory bowel diseases 14 +8% % 28 Animal sedatives 7-1% 27 Anticoagulant 5 +3% 19 Inflammatory pain 5-7% 23 Rheumatoid arthritis, cancer 4 +11% June 2016 Intensive care sedative 4-17% 18

8 Orion s financial objectives > Increasing net sales. Achievement of this objective requires continuous investment in development of the product portfolio. Maintaining profitability at a good level. The aim is operating profit that exceeds 20% of net sales. Keeping the equity ratio at least 50%. Distributing an annual dividend that in the next few years will be at least EUR 1.20 per share, and increasing the dividend in the long term. 8 9 June 2016

9 Outlook for 2016 Net sales Net sales are estimated to be at similar level to 2015 (net sales were EUR 1,016 million in 2015). Operating profit Operating profit estimated to exceed EUR 240 million. 9 9 June 2016

10 Strong development pipeline provides growth and partnering opportunities

11 Partnering at the core of strategy R&D Risk and reward sharing model Own focus on latestage research and early-stage development S&M Ex-European sales through partners Orion has extensive sales network in Nordic countries and Eastern Europe Orion s own sales organisation s areas Sales areas of partners 11 9 June 2016

12 Key clinical pharmaceutical development projects 1/2 Project Indication PHASE Registration Easyhaler budesonide-formoterol 1) Asthma, COPD I II III Registration Easyhaler salmeterol-fluticasone Asthma, COPD I II III ODM-201 (androgen receptor antagonist) 2) ODM-201 (androgen receptor antagonist) 2) Levosimendan 3) Prostate cancer (nmcrpc) I II III Prostate cancer (mhspc) I II Low Cardiac Output Syndrome I II III ORM (alpha-2c adrenoceptor antagonist) 4) Alzheimer s disease I IIa Dexmedetomidine (intranasal) 5) Treatment of pain I IIb ODM-109 (oral levosimendan) ALS I II 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 = New project More info about R&D projects at: June 2016

13 Key clinical pharmaceutical development projects 2/2 Project Indication PHASE Registration ODM-104 (more effective COMT inhibitor) Parkinson s disease I II ODM-203 (targeted FGFR+VEGFR inhibitor) Solid tumours I II ODM-204 (CYP17 enzyme and androgen receptor inhibitor) Prostate cancer I ODM-108 (negative allosteric modulator of TRPA1 ion channel) Neuropathic pain I = Phase completed = Phase ongoing More info about R&D projects at: June 2016

14 Balancing mid-term building long-term Reach financial objectives maintain dividend and increase it in the long term Long-term growth opportunities from R&D pipeline. Milestone payments. Generic drugs and self-care products. (Specialty Products) Generic competition for Parkinson s franchise. Easyhaler combinations and dexdor for European markets. Global pricing pressure. Operational flexibility and efficiency June 2016

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