CFO s presentation. CFO Jari Karlson

Transcription

1 CFO s presentation CFO Jari Karlson

2 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 May 2015

3 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 May 2015

4 Orion s financial objectives and outlook 2015 Net sales % % 8% 6% 4% 2% Net sales, EUR million Growth, % Net sales Net sales will be slightly lower than in 2014 (net sales were EUR 1,015 million in 2014). - 0% Operating profit % % 25% 20% 15% 10% 5% Operating profit, EUR million Operating profit, % of net sales Operating profit target >20% Operating profit Operating profit is estimated to exceed EUR 230 million May 2015

5 Turning points of Parkinson s franchise Annual in-market sales, EUR million* Orion sales, EUR million Comtan USA Stalevo USA Comtess/Comtan Europe Comtan Japan Stalevo Europe Stalevo Japan Generic entacapone Stalevo, Comtess & Comtan Comtan ROW Stalevo ROW USA EUROPE JAPAN STALEVO First generics in April 2012 First generics in Q2/2014 COMTESS/COMTAN First generics in October 2012 First generics in Q4/2012 Data protection ended in January May 2015 * ) Source: IMS Health

6 Balancing mid-term building long-term Long-term growth opportunities from R&D pipeline. Milestone payments. Generic competition for Parkinson s franchise and Precedex. Timing of milestone payments. Generic drugs and self-care products. Easyhaler combinations and dexdor for European markets. Global pricing pressure, especially on new products. Operational flexibility and efficiency May 2015

7 Collaborative networks across the R&D value chain Research Early development Late stage development Target identification and validation 8 24 mth Hit to Lead generation mth Lead optimisation mth Candidate selection, preclinical dev mth Phase I mth Phase II mth Phase III mth Partnering and moving further and moving earlier Partnering Partnering and outsourcing Generics Development and Product Lifecycle Management 7 26 May 2015

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 May 2015

9 Orion s financial objectives and outlook ,40 1,20 1,00 0,80 0,60 0,40 0,20 0,00 Equity ratio and interest-bearing liabilities Dividend % 60% 50% 40% 30% 20% 10% Interest-bearing liabilities, EUR million Equity ratio, % Equity ratio target >50 % Dividend per share Dividend target >EUR 1.20 Group s capital expenditure The Group s capital expenditure will be about EUR 50 million excluding substantial corporate or product acquisitions (The Group s capital expenditure was EUR 57 million in 2014) May 2015

10 Capex normalising after investment program EUR million * Intangible assets Property, plant and equipment Depreciation, amortisation and impairment * ) Estimate for May 2015

11 Development of Net working capital % of net sales 40% 30% 20% 10% 0% -10% -20% EUR million Receivables Inventories Short-term non-interest bearing liabilities Net Working Capital Receivables Inventories Short-term non-interest bearing liabilities Net Working Capital May 2015

12 Development of Net working capital (Indexed 12/2012=100) 12/2012 = /12 3/13 6/13 9/13 12/13 3/14 6/14 9/14 12/14 Receivables Inventories Liabilities Rolling 12mth Net sales Net Working Capital May 2015

13 Equity structure and Profit distribution 31 Dec 2014 (EUR million) Orion Corporation Orion Group Share capital Reserves Retained earnings Orion Corporation Subsidiaries 75.7 Consolidation and IFRS adjustments Translation adjustments -5.4 Non-controlling interests 0.0 Total equity Of these 183 million was distributed in March 2015 left EUR 0,51/share IFRS and consolidation items not available for profit distribution May 2015

14 Funding of dividends EUR/share 2,50 2,25 2,00 1,75 1,50 1,25 1,00 0,75 0,50 0,25 0, Minimum dividend target (1,20/share) Repayment of current debt EPS with 230 million EBIT EPS with 230 million EBIT + cash after 2014 dividends EPS to be quite close to free cash flow assuming Capital expenditure is quite close to depreciation Net working capital management is successful May 2015

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