2012-02-07 11:00:00 CET
2012-02-07 11:01:30 CET
REGULATED INFORMATION
Orion - Financial Statement Release
Orion Group Financial Statement Release for 2011
ORION CORPORATION FINANCIAL STATEMENT RELEASE 2011 7 FEBRUARY
2012 at 12:00 noon EET
Orion's net sales in 2011 totalled EUR 918 million (EUR 850 million in 2010), up
by 8% on the previous year.
* Operating profit was EUR 283 (254) million.
* Profit before taxes was EUR 282 (253) million.
* Equity ratio was 64% (63%).
* ROCE before taxes was 49% (45%).
* ROE after taxes was 43% (41%).
* Basic earnings per share were EUR 1.49 (1.31).
* Cash flow per share before financial items was EUR 1.10 (1.26).
* Board's proposal for dividend per share is EUR 1.30 (1.20) per share.
* Board proposes that EUR 0.12 (0.06) per share be distributed from the
distributable equity as a repayment of capital.
* Orion estimates that net sales in 2012 will be at similar level to 2011 and
operating profit at similar level to 2010.
ORION'S KEY FIGURES FOR THE REVIEW PERIOD
Q4/11 Q4/10 Change % 2011 2010 Change %
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Net sales, EUR million 236.1 214.9 +9.9% 917.9 849.9 +8.0%
--------------------------------------------------------------------------------
International operations, EUR million 174.3 153.9 +13.2% 677.2 620.7 +9.1%
--------------------------------------------------------------------------------
% of net sales 73.9% 71.6% 73.8% 73.0%
--------------------------------------------------------------------------------
Operating profit, EUR million 59.6 52.6 +13.2% 282.9 254.2 +11.3%
--------------------------------------------------------------------------------
% of net sales 25.2% 24.5% 30.8% 29.9%
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Profit before taxes, EUR million 59.5 52.4 +13.7% 282.0 252.6 +11.6%
--------------------------------------------------------------------------------
% of net sales 25.2% 24.4% 30.7% 29.7%
--------------------------------------------------------------------------------
Income tax expense, EUR million 14.3 15.7 -9.0% 72.4 67.9 +6.6%
--------------------------------------------------------------------------------
R&D expenses, EUR million 25.4 26.6 -4.5% 87.5 85.5 +2.3%
--------------------------------------------------------------------------------
% of net sales 10.8% 12.4% 9.5% 10.1%
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Capital expenditure, EUR million 12.9 11.3 +14.5% 49.5 39.2 +26.4%
--------------------------------------------------------------------------------
% of net sales 5.5% 5.2% 5.4% 4.6%
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Assets total, EUR million 779.1 745.8 +4.5%
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Equity ratio, % 64.2% 62.7%
--------------------------------------------------------------------------------
Gearing, % -6.9% -12.2%
--------------------------------------------------------------------------------
Interest-bearing liabilities, EUR 88.7 110.0 -19.4%
million
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Non-interest-bearing liabilities, EUR 190.5 168.4 +13.1%
million
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Cash and money market investments, 123.0 167.2 -26.4%
EUR million
--------------------------------------------------------------------------------
ROCE (before taxes), % 49.4% 45.0%
--------------------------------------------------------------------------------
ROE (after taxes), % 43.3% 40.7%
--------------------------------------------------------------------------------
Basic earnings per share, EUR 0.32 0.26 +23.3% 1.49 1.31 +13.5%
--------------------------------------------------------------------------------
Diluted earnings per share, EUR 0.32 0.26 +23.3% 1.49 1.31 +13.5%
--------------------------------------------------------------------------------
Cash flow per share before financial 0.33 0.45 -26.0% 1.10 1.26 -13.0%
items, EUR
--------------------------------------------------------------------------------
Equity per share, EUR 3.55 3.32 +6.9%
--------------------------------------------------------------------------------
Proposed dividend per share, EUR(1)) 1.30 1.20 +8.3%
--------------------------------------------------------------------------------
Personnel at the end of the period 3,425 3,131 +9.4%
--------------------------------------------------------------------------------
Average personnel during the period 3,328 3,137 +6.1%
--------------------------------------------------------------------------------
Personnel expenses, EUR million 186.0 170.3 +9.2%
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(1))In addition, the Board of Directors proposes to the Annual General Meeting
that EUR 0.12 (0.06) per share be distributed from the reserve for invested
unrestricted equity as a repayment of capital.
President and CEO Timo Lappalainen's review"Strong year for Orion""Our net sales and operating profit were higher than in the previous year."Deliveries of our Parkinson's drugs to Novartis continued to grow in the past
year. However, as anticipated, total in-market sales of the product family and
sales of Stalevo(®) and Comtess(®) through Orion's own marketing were slightly
lower. Sales from the rest of our product range grew well throughout the year.
We succeeded in further strengthening our market position because in many
markets our growth was faster than growth of the overall pharmaceuticals market.
This was true of Finland too, where the pharmaceuticals market as a whole
resumed growth after several years of contraction."One event important for Orion's future was in September, when the European
Commission granted centralised marketing authorisation for the intensive care
sedative dexdor(®) (dexmedetomidine). Launching of the product and launch
preparations in various parts of Europe towards the end of the year progressed
as planned. Dexmedetomidine (Precedex(®)) sold by our partner Hospira has
performed well in recent years, especially in the United States, and we believe
that in the coming years it will bring us considerable sales in Europe too,
where we will generally be marketing it ourselves."Our research projects started later in the previous year progressed as planned
in 2011. They included Phase I and II clinical trials with an alpha 2(c)
receptor antagonist, an androgen receptor antagonist and a new more effective
levodopa product, and projects to broaden the Easyhaler(®) product family into
combination products. Last year we also entered into some collaboration
agreements important for our future. We began extensive collaboration with the
US company Endo Pharmaceuticals for discovery, development and commercialisation
of assets in oncology, and in the summer we entered into an agreement with
Nycomed for marketing Easyhaler(®) combination products under development."A fire at Orion's manufacturing plant in Turku in November caused some problems
in deliveries of certain products late in the year, especially in Finland.
Although we were able to restart production even faster than anticipated, we
will not achieve normal delivery reliability in the first months of the current
year. Nevertheless, the overall financial effects of the accident are expected
to remain relatively small."In 2012 the first generic competitors for our Parkinson's drugs will enter the
markets. As a result, we estimate that our net sales will be at similar level to
the previous year and our operating profit at similar level to 2010. More
information on the outlook estimate and the basis for it can be found on pages
6-7 of this report."
Events in 2011
On 24 January Orion filed a patent infringement lawsuit in the United States to
enforce Orion's US patent covering Comtan(®) against Mylan Pharmaceuticals Inc.
On 28 January Orion and Endo Pharmaceuticals Inc. announced that they had signed
a novel collaboration agreement for the discovery, development and
commercialisation of assets in oncology.
On 22 July Orion Diagnostica strengthened its research and product development
base by acquiring new early-phase technology through purchasing all the shares
of English technology company GeneForm Technologies Ltd.
On 4 August Orion announced that it had entered into a collaboration agreement
with Nycomed for co-marketing of Easyhaler(®) combination products for treatment
of asthma and chronic obstructive pulmonary disease in the major European
countries, and an exclusive licensing and distribution arrangement in the Middle
East and North Africa region.
On 21 September Orion announced that it had been informed that the European
Commission had granted centralised marketing authorisation for Orion's intensive
care sedative dexdor(®) (dexmedetomidine).
On 25 October Orion announced that Mrs. Virve Laitinen, M.Sc. (Tech.), MBA, has
been appointed Senior Vice President responsible for the Supply Chain line
function and member of the Executive Management Board of the Orion Group, as of
1 January 2012.
On 22 November production at Orion's manufacturing plant in Turku was halted due
to a fire.
On 21 December Orion announced that most production at its manufacturing plant
in Turku had resumed following the fire in November.
Events after the period
On 7 February Orion announced that study results received early in 2012 on a
budesonide-formoterol formulation product under development for broadening the
range of the Easyhaler(®) product family were promising, but yet insufficient
for submission of an application for marketing authorisation. The Company will
continue development of the product in 2012.
News conference and teleconference
A news conference and teleconference on the published results will be held
today, Tuesday 7 February 2012, at 13:30 EET in Hotel Kämp, address:
Pohjoisesplanadi 29, Helsinki. President and CEO Timo Lappalainen will give a
brief presentation in English on the financial review.
The event can be followed live as a webcast accessible via the Orion website at
http://www.orion.fi/en/. After the presentation, questions can be asked by
telephone in Finnish and English.
The teleconference code is 910481 and to participate in the teleconference
please call:
from United States: +1 866 803 8344
from other countries: +44 (0)20 7162 0125
News conference recordings
A recording of the webcast of the event in English can be viewed through a link
on the Orion website later today. A recording of the presentation by the
President and CEO in Finnish will be available on the Orion website later today.
Financial report material
Financial reports and related presentation material are available at
www.orion.fi/en/ promptly after publication. The website also has a form for
subscribing to Orion's releases.
Dates in Orion Calendar 2012
Deadline for registering for Annual General Meeting Thursday 15 March
2012 at 10:00
Annual General Meeting Tuesday 20 March
2012 at 14:00 in Helsinki
Record date for dividend distribution Friday 23 March
2012
Dividend payment date Wednesday 4 April
2012
Interim Report January-March 2012 Tuesday 24 April 2012
Capital Markets Day in Helsinki Thursday 24 May 2012
Interim Report January-June 2012 Tuesday 31 July 2012
Interim Report January-September 2012 Tuesday 23 October 2012
The Annual Report 2011 will be published on the Company's website at the latest
in week 10/2012.
A separate release will be published today on the matters to be handled at the
Annual General Meeting.
For additional information about the financial review:
Jari Karlson, CFO, tel. +358 10 426 2883
www.orion.fi/en
www.orion.fi/en/investors/
Financial review 2011
Net sales
The Orion Group's net sales in January-December 2011 were up by 8% at EUR 918
million (EUR 850 million in 2010). Foreign exchange rates had no significant
effect on net sales in the review period.
The Pharmaceuticals business's net sales were up by 8% at EUR 871 (806) million.
The products based on in-house R&D accounted for EUR 420 (397) million, or 48%
(49%) of the Pharmaceuticals business's net sales. Net sales of Orion's
Parkinson's drugs were up by 6% at EUR 267 (253) million, which is 31% (31%) of
the Pharmaceuticals business's net sales. The net sales of other products in the
portfolio (excluding Parkinson's drugs) were up by 9% at EUR 604 (554) million.
The Diagnostics business's net sales were up by 8% at EUR 50 (46) million.
Operating profit
The Orion Group's operating profit was up by 11% at EUR 283 (254) million.
The Pharmaceuticals business's operating profit was EUR 288 (252) million, up by
14% on the comparative period. The fixed costs of the business operations were
as anticipated higher than in the comparative period.
The Diagnostics business's operating profit was EUR 4.9 (6.1) million, down by
20% on the comparative period due to a decrease in margins on products and
higher fixed costs.
Operating expenses
The Group's sales and marketing expenses were up by 8% at EUR 205 (189) million.
The expenses include EUR 6 (3) million of intangible asset impairment charges
recorded on product rights.
R&D expenses were up by 2% at EUR 88 (86) million and accounted for 10% (10%) of
the Group's net sales. Pharmaceutical R&D expenses amounted to EUR 81 (80)
million. Research projects are reported in more detail under Pharmaceuticals in
the Business Reviews.
Administrative expenses were EUR 41 (39) million.
Other operating income and expenses increased profit by EUR 3 (1) million. They
comprise items arising mainly from foreign exchange hedges. The figure for the
comparative period also includes EUR 4 million profit from the sale of a real
estate company in the second half of 2010.
Group's profit
The Group's profit before taxes totalled EUR 282 (253) million. Basic earnings
per share were EUR 1.49 (1.31) and diluted earnings per share were EUR 1.49
(1.31). Equity per share was EUR 3.55 (3.32). The return on capital employed
before taxes (ROCE) was 49% (45%) and the return on equity after taxes (ROE)
43% (41%).
Financial position
The Group's gearing was -7% (-12%) and the equity ratio 64% (63%).
The Group's total liabilities at 31 December 2011 were EUR 279 (278) million. At
the end of the period, interest-bearing liabilities amounted to EUR 89 (110)
million, including EUR 66 (88) million of long-term loans.
The Group had EUR 123 (167) million of cash and cash equivalents at the end of
the period, which are invested in short-term interest-bearing instruments issued
by financially solid financial institutions and corporations.
The share premium fund was reduced by transferring EUR 17,797,958.60 into the
reserve for invested unrestricted equity. The reduction was based on a decision
by the Annual General Meeting on 31 March 2011.
Cash flow
Cash flow from operating activities was slightly lower than in the comparative
period at EUR 199 (209) million. Operating profit improved in 2011, but the
amount tied up into working capital was EUR 15 million more than in the
comparative period at EUR 43 (28) million. The increase of trade receivables was
mainly due to greater sales at the end of the year than in the previous year and
a change in the payment schedules of certain distribution agreements.
Receivables overdue increased only a little during the year. Income taxes paid
were EUR 79 (50) million, up by EUR 29 million on the comparative period. The
increase was due to the improvement in profits and the timing of tax payments
for the financial year 2010.
Cash flow from investing activities was EUR -44 (-31) million. Cash flow from
financing activities was EUR -200 (-182) million. This change was due to the
higher dividend than in the previous year.
Capital expenditure
The Group's capital expenditure totalled EUR 50 (39) million. This comprised EUR
30 (23) million on property, plant and equipment, EUR 19 (15) million on
intangible assets and EUR 0 (1) million on investments.
Outlook for 2012
Net sales will be at similar level to 2011.
Operating profit will be at similar level to 2010.
The Group's capital expenditure will be about EUR 50 million excluding
substantial corporate or product acquisitions.
Basis for outlook
Price competition in the Finnish market will persist in 2012. However, product
launches will continue to support Orion's position as market leader.
The generic competition commencing in April 2012 in the United States will
decrease sales of Orion's Parkinson's drugs in 2012. In 2011 US markets
accounted for about EUR 60 million of the net sales of Orion's Parkinson's
drugs. Elsewhere in the world generic competition is not expected to have a
material impact on sales of these products in the current year.
Marketing expenditure will be similar to the previous year. Because the
registrations and launches of new products are projects that take more than a
year, the increases in resources and other inputs required in 2012 were planned
mainly during the previous year.
Research and development costs will be slightly higher than in 2011. They are
partly the Company's internal fixed cost items, such as salaries and maintenance
of the operating infrastructure, and partly external variable costs. External
costs arise from, among other things, long-term clinical trials, which are
typically performed in clinics located in several countries. The most important
clinical trials scheduled for 2012 are either ongoing from the previous year or
at an advanced stage of planning, therefore their cost level can be estimated
rather accurately.
The estimated costs of the ongoing patent litigation in the United States are
based on the planned timetables and work estimates. The costs due to the
litigation will depend on a number of factors, which are difficult to estimate
accurately.
Near-term risks and uncertainties relating to the outlook
The Company is not aware of any significant risk factors relating to the
earnings outlook for 2012. The effects of commencement of generic competition on
Orion's Parkinson's drugs have been taken into account in the outlook estimate.
Sales of individual products and also Orion's sales in individual markets may
vary, for example depending on the extent to which the ever-tougher price and
other competition prevailing in pharmaceutical markets in recent years will
specifically affect Orion's products. Deliveries to Novartis are based on
timetables that are jointly agreed in advance. Nevertheless, they can change,
for example as a consequence of decisions by Novartis concerning adjustments of
stock levels.
Most of the exchange rate risk relates to the US dollar. Typically, only less
than 15% of Orion's net sales come from the United States. As regards currencies
in European countries, the overall effect will be abated by the fact that Orion
has organisations of its own in most of these countries, which means that in
addition to sales income, there are also costs in these currencies.
Research projects always entail uncertainty factors that may either increase or
decrease estimated costs. The projects may progress more slowly or faster than
assumed, or they may be discontinued. Nonetheless, changes that may occur in
ongoing clinical studies are reflected in costs relatively slowly, and they are
not expected to have a material impact on earnings in the current year. Owing to
the nature of the research process, the timetables and costs of new studies that
are being started are known well in advance. They therefore typically do not
lead to unexpected changes in the estimated cost structure.
Financial objectives
Orion's financial objectives are ensuring the Group's financial stability and
creating long-term profitable growth.
The principal means of achieving these objectives are:
* improving the organic development of net sales and operating profit through
product, product portfolio and corporate acquisitions
* increasing the efficiency of operations and cost control
* maintaining a stable financial position, with the equity ratio at least 50%
Sales of Stalevo(®) and Comtess(®)/Comtan(®) currently account for approximately
one-third of Orion's net sales. The key patents for these Parkinson's drugs in
Orion's main markets will expire in 2012-2013, which is why their sales are
expected to decline over the next few years. Orion is continuously bringing new
products to the market to replace this drop in net sales.
The development of Orion's net sales and profitability in the next few years
will depend on how fast the sales of Parkinson's drugs will decline and, on the
other hand, how the sales of other products will increase in the future.
Dividend policy
Orion's dividend distribution takes into account the distributable funds and the
capital expenditure and other financial requirements in the medium and long term
to achieve the financial objectives.
Proposal by the Board of Directors for distribution of profit:
dividend per share EUR 1.30
The parent company's distributable funds are EUR 247,690,842.07, including EUR
197,005,059.17 of profit for the financial year.
The Board of Directors proposes that a dividend of EUR 1.30 per share be paid
from the parent company's distributable funds. No dividend shall be paid on
treasury shares held by the Company on the dividend distribution record date. On
the day when the profit distribution was proposed, the number of shares
conferring entitlement to receive dividend totalled 140,844,074, on which the
total dividend payment would be EUR 183,097,296.20. The Group's payout ratio for
the financial year 2011 would be 87.2% (91.6%).The dividend payment date would
be 4 April 2012, and shareholders registered in the Company's shareholder
register on 23 March 2012 would be entitled to the dividend payment.
The Board of Directors further proposes that EUR 250,000 be donated to medical
research and other purposes of public interest in accordance with a separate
decision by the Board and that EUR 64,343,545.87 would remain in the equity.
Proposal by the Board of Directors for distribution of equity:
EUR 0.12 per share
The Board of Directors proposes to the Annual General Meeting of Orion
Corporation to be held on 20 March 2012 that EUR 0.12 per share be distributed
from the reserve for invested unrestricted equity as a repayment of capital. The
repayment of distributable equity would be paid to the shareholders registered
in the Company's shareholder register maintained by Euroclear Finland on 23
March 2012, the record date for dividend distribution. The payment date would be
4 April 2012.
Shares and shareholders
On 31 December 2011 Orion had a total of 141,257,828 (141,257,828) shares, of
which 44,993,218 (47,563,565) were A shares and 96,264,610 (93,694,263) B
shares. The Group's share capital was
EUR 92,238,541.46 (92,238,541.46). At the end of 2011 Orion held 413,754
(516,654) B shares as treasury shares. On 31 December 2011 the aggregate number
of votes conferred by the A and B shares was 995,715,216 (1,044,448,909)
excluding treasury shares.
At the end of 2011, Orion had 57,188 (58,686) registered shareholders.
Voting rights conferred by shares
Each A share entitles its holder to twenty (20) votes at a General Meeting of
Shareholders and each B share one (1) vote. However, a shareholder cannot vote
more than 1/20 of the aggregate number of votes from the different share classes
represented at a General Meeting of Shareholders. Orion and Orion Pension Fund
do not have the right to vote at an Orion Corporation General Meeting of
Shareholders.
Both share classes, A and B, confer equal rights to the Company's assets and
dividends.
Conversion of shares
The Articles of Association entitle shareholders to demand the conversion of
their A shares to B shares within the limitation on the maximum number of shares
of a class. In 2011 a total of 2,570,347 shares were converted.
Trading in Orion's shares
Orion's A shares and B shares are quoted on NASDAQ OMX Helsinki in the Large Cap
group under the Healthcare sector heading under the trading codes ORNAV and
ORNBV. Trading in both of the Company's share classes commenced on 3 July 2006,
and information on trading in the Company's shares has been available since this
date.
On 31 December 2011 the market capitalisation of the Company's shares excluding
treasury shares was EUR 2,126 million.
In 2011 a total of 4,585,668 Orion A shares and 77,594,384 Orion B shares were
traded on NASDAQ OMX Helsinki. The total value of traded shares was EUR 1,322
million. During the year, 10% of A shares and 82% of B shares were traded. The
average turnover in Orion's shares was 58%.
The price of Orion's A shares decreased by 7% and the price of the B shares
decreased by 8% during 2011. On 31 December 2011 the closing quotation was EUR
15.18 for the A shares and EUR 15.05 for the B shares. The highest quotation for
Orion's A shares in 2011 was EUR 18.05 and the lowest quotation was EUR 13.10.
The highest quotation for the B shares in 2011 was EUR 18.14 and the lowest
quotation was EUR 13.19.
Orion shares are traded also on various alternative trading platforms. The
volume of Orion's A shares traded on the NASDAQ OMX Helsinki Stock Exchange
represented approximately 94% of the total volume of Orion's class A shares
traded in 2011. The volume of Orion's B shares traded on the NASDAQ OMX Helsinki
Stock Exchange represented approximately 51% of the total volume of Orion's
class B shares traded in 2011. (Source: Fidessa Fragmentation Index).
Authorisations of the Board of Directors
Orion's Board of Directors was authorised by the Annual General Meeting on 24
March 2010 to decide on a share issue in which shares held by the Company can be
conveyed. The authorisation to issue shares is valid for five years from the
decision taken by the Annual General Meeting.
The Board of Directors is authorised to decide on conveyance of no more than
500,000 Orion Corporation B shares held by the Company. Such shares held by the
Company can be conveyed either against or without payment. Such shares held by
the Company can be conveyed by selling them in public trading on NASDAQ OMX
Helsinki; in a share issue placement to the Company's shareholders in proportion
to their holdings at the time of the conveyance regardless of whether they own A
or B shares; or in a share issue placement deviating from shareholders' pre-
emptive rights if there is a weighty financial reason, such as the development
of the capital structure of the Company, using the shares to finance possible
corporate acquisitions or other business arrangements of the Company, financing
capital expenditure or as part of the Company's incentive plan. The share issue
placement can be without payment only if there is an especially weighty
financial reason in the view of the Company and to the benefit of all its
shareholders. The amounts paid for shares in the Company conveyed shall be
recorded in a distributable equity fund. The Board of Directors shall decide on
other matters related to the conveyance of shares held by the Company. The
authorisation was exercised as described below under the heading "Share-based
Incentive Plan". On 31 December 2011 the Board of Directors had outstanding
authorisation to convey 397,100 Orion Corporation B shares held by the Company.
The Board of Directors is not authorised to increase the share capital or to
issue bonds with warrants or convertible bonds or stock options.
Share-based Incentive Plan
In February 2010 the Board of Directors of Orion Corporation decided on a new
share-based incentive plan for the Group key persons. The Plan includes earning
periods and the Board of Directors will annually decide on the beginning and
duration of the earning periods in 2010, 2011 and 2012. The Board of Directors
will decide on the earnings criteria and on targets to be established for them
at the beginning of each earning period. The target group of the Plan consists
of approximately 30 people. The total maximum amount of rewards to be paid on
the basis of the Plan is 500,000 Orion Corporation B shares and a cash payment
corresponding to the value of the shares.
On 1 March 2011 Orion transferred altogether 102,900 Orion Corporation B shares
held by the Company as a share bonus for 2010 to the key persons employed by the
Group and belonging to the Share-based Incentive Plan of the Group. The transfer
was based on the authorisation by the Annual General Meeting on 24 March 2010.
The price per share of the transferred shares was EUR 16.7488, which was the
volume weighted average quotation of Orion Corporation B shares on 1 March
2011. The total transaction price of the transferred shares was therefore EUR
1,723,452.
Share ownership
Orion's shares are in the book-entry system maintained by Euroclear Finland Ltd,
and Euroclear Finland maintains Orion's official shareholder register.
At the end of 2011 Orion had a total of 57,188 (58,686) registered shareholders,
of whom 95% (95%) were private individuals holding 50% (52%) of the entire share
stock and 65% (65%) of the total votes. There were altogether 44 (36) million
nominee-registered shares, which is 31% (26%) of all shares, and they conferred
entitlement to 6% (5%) of the votes.
At the end of 2011 Orion held 413,754 (516,654) B shares as treasury shares,
which is 0.3% (0.4%) of the Company's total share stock and 0.04% (0.05%) of the
total votes.
Notification threshold
On 26 September 2011 Orion announced that that the total number of Orion
Corporation B shares owned by mutual funds under the management of Capital
Research and Management Company had increased to more than one-twentieth (1/20)
of the total number of Orion Corporation shares. According to the notification,
the mutual funds under the management of Capital Research and Management Company
owned 7,196,174 Orion Corporation B shares, which was 5.09% of Orion's share
stock and 0.71% of the total votes.
On 7 November 2011 Orion announced that a conversion of shares on 7 November
2011 in accordance with the Articles of Association of Orion Corporation
resulted in the aggregate number of votes conferred by Orion Corporation shares
owned by Erkki Etola and by a company controlled by him exceeding one-twentieth
(1/20) of all Orion Corporation votes. According to the notification, Erkki
Etola and a company controlled by him owned 2,500,000 Orion Corporation A
shares, which was 1.77% of Orion's share stock and 5.00% of the total votes.
Management's shareholdings
At the end of 2011, the members of the Board of Directors owned a total of
2,334,458 Orion Corporation shares, of which 1,915,836 were A shares and
418,622 B shares. At the end of 2011, the President and CEO owned 33,050 Orion
Corporation shares, which were all B shares. The members of the Executive
Management Board (excluding the President and CEO) owned a total of 101,853
Orion Corporation shares, of which 428 were A shares and 101,425 were B shares.
Thus, Orion's executive management held 1.76% of all shares and 3.90% of the
total votes. The figures also include the holdings of controlled entities.
The Company does not have stock option programmes.
Management
Changes in Executive Management Board
Pekka Konsi, Senior Vice President responsible for the Supply Chain line
function and member of the Executive Management Board of the Orion Group, left
the Executive Management Board at the end of 2011. He retired in January 2012.
Virve Laitinen, M.Sc. (Tech.), M.B.A., became Senior Vice President for the
Supply Chain line function and a member of the Executive Management Board of the
Orion Group on 1 January 2012. She was previously Director responsible for
Orion's Business Planning and Control function.
Corporate Governance Statement
Orion's Corporate Governance Statement for 2011 approved by the Board of
Directors is published on the Company's website as a separate report.
Personnel
The average number of employees in the Orion Group in 2011 was 3,328 (3,137). At
the end of 2011 the Group had a total of 3,425 (3,131) employees, of whom 2,705
(2,475) worked in Finland and 720 (656) outside Finland. The number of employees
increased mainly in manufacturing due to the increase in manufacturing output.
Salaries and other personnel expenses in 2011 totalled EUR 186 (170) million.
Significant legal proceedings
Legal proceedings against the Sandoz companies
On 4 September 2009 Orion Corporation and Hospira, Inc. filed together a patent
infringement lawsuit in the United States against Sandoz International GmbH and
Sandoz Inc. to enforce their patents valid in the United States. Sandoz Canada
Inc. has since been added as a defendant in the lawsuit. The legal proceedings
concern Orion's US Patent No. 4,910,214 and Orion's and Hospira's commonly owned
US Patent No. 6,716,867.
Sandoz Inc. has sought authorisation to produce and market in the United States
a generic version of Orion's proprietary drug Precedex(®) (dexmedetomidine
hydrochloride 100 µg/ml), which is marketed in the United States by Orion's
licensee Hospira.
Orion expects the costs of the legal proceedings against the Sandoz companies to
be substantially less than the costs of the entacapone patent litigation that
had previously been pending in the United States. According to the schedule
confirmed by the court, the main hearing of the case will commence on 27
February 2012.
Legal proceedings against Caraco Pharmaceutical Laboratories, Ltd.
On 12 November 2010 Orion Corporation and Hospira, Inc. jointly filed a patent
infringement lawsuit in the United States against Caraco Pharmaceutical
Laboratories, Ltd. to enforce Orion's and Hospira's joint patent No. 6,716,867
valid in the United States. Gland Pharma Ltd. has since been added as a
defendant in the lawsuit.
Caraco had submitted an application for authorisation to produce and market in
the United States a generic version of Orion's proprietary drug Precedex(®)
(dexmedetomidine hydrochloride 100 µg/ml), which is marketed in the United
States by Orion's licensee Hospira.
Orion expects the costs of the legal proceedings against Caraco to be
substantially less than the costs of the entacapone patent litigation that had
previously been pending in the United States. According to the schedule
confirmed by the court, the main hearing of the case has been rescheduled to
commence on 19 February 2013.
Legal proceedings against Mylan Pharmaceuticals Inc.
On 24 January 2011 Orion Corporation filed a patent infringement lawsuit in the
United States against Mylan Pharmaceuticals Inc. to enforce its US patent No.
5,446,194.
Mylan intends to market in the United States a generic version of entacapone
tablets with strength 200 mg like Orion's Comtan(®) proprietary drug. Comtan is
used as an adjunct to levodopa/carbidopa therapy to treat patients with
idiopathic Parkinson's disease who experience the signs and symptoms of end-of-
dose "wearing-off." Novartis is Orion's exclusive licensee for marketing the
drug Comtan in the United States.
Business Reviews
Pharmaceuticals
Review of human pharmaceuticals market
According to statistics collected by Finnish Pharmaceutical Data Ltd, Finnish
wholesale of human pharmaceuticals in 2011 totalled EUR 1,972 (1,926) million,
up by 2% on the previous year.
Finland is the most important individual market for Orion, generating about one-
quarter of the total net sales. Orion was able to increase its sales faster than
the markets as a whole, so it strengthened its position as leader in marketing
pharmaceuticals in Finland. According to statistics collected by Finnish
Pharmaceutical Data Ltd, Orion's wholesale of human pharmaceuticals in Finland
in 2011 amounted to EUR 202 (192) million, up by 6% compared with the previous
year. Orion's market share was 10% (10%), which was nearly four percentage
points higher than the second-largest company's market share.
According to IMS Health pharmaceutical sales statistics, in the 12-month period
ending in September 2011 the total sales of Parkinson's drugs in the United
States were down by 32% at USD 682 million (USD 1,001 million in the previous
12-month period). The decrease in in-market sales was due to commencement of
generic competition in certain products. The five largest European markets for
Parkinson's disease drugs were Germany, the United Kingdom, France, Spain and
Italy. In these countries, the combined sales of Parkinson's drugs in the 12-
month period ending in September 2011 totalled EUR 989 (1,018) million, and the
average market decline was 3%.
The most important individual therapy area for Orion is still the treatment of
Parkinson's disease. Orion's Parkinson's drugs account for just under one-third
of the Group's net sales. Sales of Orion's Parkinson's drugs in the United
States remained similar to the comparative period despite a clear decrease in
the market as a whole. In Japan sales continued to grow well and clearly better
than the market as a whole. According to IMS Health pharmaceutical sales
statistics, in the 12-month period ending in September 2011, sales of Orion's
Parkinson's drugs in the United States totalled USD 180 (180) million. Sales
were similar to the previous year at a total of EUR 157 (156) million in the
five largest markets in Europe, and up by 24% at EUR 53 (43) million in Japan.
The market share of Orion's Parkinson's drugs was 26% in the United States, on
average 16% in the five largest European markets and 11% in Japan.
According to IMS Health pharmaceutical sales statistics, sales of Orion's
Precedex(®) intensive care sedative (dexmedetomidine) were up by 37% at USD 194
million in the 12-month period ending in September 2011 (USD 142 million in the
previous 12-month period). About four-fifths of the sales amounting to USD 153
(123) million were in the United States, where Precedex sales grew by 24%.
Net sales and operating profit of the Pharmaceuticals business
Net sales of the Pharmaceuticals business in 2011 were EUR 871 (806) million, up
by 8% on the comparative period of the previous year. The operating profit of
the Pharmaceuticals business was up by 14% at EUR 288 (252) million. The
operating profit of the Pharmaceuticals business was 33% (31%) of the segment's
net sales.
Net sales of Orion's top ten best-selling pharmaceuticals in 2011 were up by 7%
at EUR 472 (442) million. They accounted for 54% (55%) of the total net sales of
the Pharmaceuticals business. During the year Solomet(®) (methylprednisolone)
for treatment of inflammatory diseases entered the list of the top ten best-
selling pharmaceutical products, replacing Fareston(®) which is used for
treatment of breast cancer.
Net sales of the products based on own in-house R&D were up by 6% at EUR 420
(397) million in 2011. These products accounted for 48% (49%) of the net sales
of the Pharmaceuticals business.
Proprietary Products
The product portfolio of Proprietary Products consists of patented prescription
products in three therapy areas: central nervous system diseases, oncology and
critical care, and Easyhaler(®) pulmonary drugs.
Net sales of Proprietary Products in 2011 were up by 10% at EUR 409 (371)
million.
Orion's drugs for treatment of Parkinson's disease are Stalevo(®) (active
ingredients carbidopa, levodopa and entacapone) and Comtess(®)/Comtan(®)
(entacapone), and their net sales in 2011 totalled EUR 267 (253) million. The
net sales of Parkinson's drugs were up by 6% and accounted for 31% (31%) of the
total net sales of the Pharmaceuticals business. Net sales from deliveries of
Stalevo and Comtan to Novartis were up by 12% at a total of EUR 171 (153)
million. Deliveries of Stalevo to Novartis increased by 7%, and deliveries of
Comtan by 21%. Total net sales generated by Stalevo and Comtess in Orion's own
sales organisation totalled EUR 96 (100) million. Sales through Orion's own
sales organisation totalled EUR 81 (82) million for Stalevo and EUR 15 (18)
million for Comtess.
The US Food and Drug Administration (FDA) has an ongoing safety review of
Stalevo, which began in spring 2009. Orion is assisting the FDA in undertaking
the safety review. The FDA has requested additional data based on databases
concerning the significance of the results of the STRIDE-PD study, and
consequently Orion and Novartis have decided to undertake two epidemiological
studies, which must be completed by July 2012 and will be reported to
authorities in the third quarter of the year.
Net sales of the Easyhaler(®) product family for treatment of asthma and chronic
obstructive pulmonary disease were up by 9% in 2011 at EUR 31(28) million. Sales
of Easyhaler(®) products through Orion's own sales network in Europe continued
to grow in 2011, and at the end of the year the Company was itself marketing the
Easyhaler(®) product family in 14 countries. Sales through partners also grew
well. In August Orion announced that it had entered into a collaboration
agreement with Nycomed for co-marketing of Easyhaler(® )combination products
under development in the major European countries, and an exclusive licensing
and distribution arrangement in the Middle East and North Africa region. Both
companies will market the products under the Easyhaler umbrella brand.
Net sales of Simdax(®), a drug for acute decompensated heart failure, were up by
10% at EUR 44 (40) million in 2011. Orion repurchased the rights to Simdax from
Abbott in 2009, and the transfer of the rights to the product was completed in
2011. The sales network of partners outside Europe was further developed in
2011.
Net sales of the Precedex(®) intensive care sedative (dexmedetomidine) were up
by 21% in 2011 at EUR 33 (27) million. In the United States and markets outside
Europe the sedative is sold by Orion's partner Hospira. US markets account for
about four-fifths of net sales of Precedex.
In September Orion's new dexdor(®) intensive care sedative (dexmedetomidine)
gained centralised marketing authorisation covering all 27 member states of the
European Union from the European Commission. During 2011 the product was
launched in Germany, Austria, Denmark, Sweden, Finland, the United Kingdom,
Ireland, Poland and Norway. The product will be launched in most European
countries during 2012 as pricing and reimbursement processes progress country by
country. In early 2012 Orion entered into a collaboration agreement with Baxter
concerning marketing of dexdor(®) in France.
Specialty Products
Net sales of the Specialty Products business division's off-patent, i.e.
generic, prescription drugs and self-care products in 2011 were up by 7% at EUR
321 (299) million. Net sales of the business division in markets outside Finland
were up by 9% compared with 2010. In 2011 Orion launched 135 (144) generic
prescription drugs and self-care products, which were divided evenly between
different market areas.
The halt in production at Orion's manufacturing plant in Turku due to a fire in
November affects mainly the Specialty Products business division. The production
stoppage caused some delivery problems at the end of 2011, especially in Finnish
markets, which are expected to continue into the first few months of the current
year. Production at the plant gradually resumed at the end of December and in
early January 2012.
Net sales of Orion's human pharmaceuticals in Finland were up by 5% at EUR 220
(210) million in 2011. Specialty Products accounted for the majority of sales.
Orion managed to increase its market share in substitutable prescription drugs
and in self-care products.
Net sales of Orion's human pharmaceuticals in Eastern Europe in 2011 were up by
9% at EUR 54 (50) million. Specialty Products account for the majority of sales
in the region. The underlying reasons for the sales growth were the development
and progress of the selected product portfolio and enhanced efficiency in
Orion's own operations in the region.
In 2011 Orion continued its long-term work to strengthen its market position in
Scandinavia. Thanks to steady growth in the product portfolio, the Specialty
Product business division succeeded in clearly increasing its net sales in
Scandinavia.
Animal Health
Net sales of the Animal Health business division in 2011 were EUR 68 (68)
million. Net sales of the animal sedatives at EUR 23 (24) million accounted for
34% (36%) of the division's net sales.
Product launches during the year and new distribution agreements strengthened
Orion's position in the Nordic veterinary drug market, where Orion was among the
three largest marketers of veterinary drugs.
According to statistics collected by Pharma Industry Finland, the Finnish market
for veterinary drugs was about EUR 50 (49) million in 2011, similar to the
previous year. Orion was the second-largest marketer, with a market share of
20% (20%).
Fermion
Fermion manufactures active pharmaceutical ingredients for Orion and other
pharmaceutical companies. Its product range comprises nearly 30 pharmaceutical
ingredients. The business division's net sales in 2011 excluding pharmaceutical
ingredients supplied for Orion's own use were EUR 43 (45) million and accounted
for about two-thirds of Fermion's entire net sales. Several key products
performed well, even though competition in the markets remained intense.
Research and development projects
The Group's R&D expenses in 2011 totalled EUR 88 (86) million, of which the
Pharmaceuticals business accounted for EUR 81 (80) million. The Group's R&D
expenses accounted for 10% (10%) of the Group's net sales. R&D expenses also
include expenses relating to development of the current portfolio.
In January Orion and Endo Pharmaceuticals Inc. signed a novel collaboration
agreement for the discovery, development and commercialisation of assets in
oncology.
Orion has ongoing projects to broaden the range of the inhalable Easyhaler(®)
drugs product family. Orion is developing a budesonide-formoterol formulation
that combines budesonide as an anti-inflammatory agent and formoterol as a long-
acting bronchodilator. Study results received early in 2012 were promising, but
yet insufficient for submission of an application for marketing authorisation.
The Company will continue development of the product in 2012. In addition, Orion
has another Easyhaler research programme in progress to develop a fluticasone-
salmeterol formulation. In this formulation fluticasone acts as an anti-
inflammatory agent and salmeterol acts as a long-acting bronchodilator.
Orion is collaborating with Novartis to develop Stalevo(®) for the Japanese
market. The timeline for regulatory submission is under evaluation by Novartis.
Orion is continuing to develop an androgen receptor antagonist for the treatment
of advanced prostate cancer jointly with Endo Pharmaceuticals Inc. with the
objective of approval of the drug globally. Clinical trials commenced in the
first quarter of 2011 in Europe.
Orion has Phase II clinical trials with the alpha 2(c) receptor antagonist in
progress. The trials are investigating the efficacy and safety of the drug
candidate in treating Alzheimer's disease. Orion has decided to end the
clinical trial with alpha 2(c )receptor antagonist in treating Raynaud's
phenomenon.
The Company is also developing a new more effective levodopa product based on
optimised new formulations and doses of known compounds. Product development is
in the clinical trials phase.
Orion has completed pre-clinical studies with another androgen receptor
antagonist molecule and another alpha 2(c) receptor antagonist molecule.
Progress of these drug candidates into clinical trials will depend on the
results of the ongoing androgen receptor antagonist and alpha 2(c) receptor
antagonist clinical trials.
In addition, Orion has several projects in the early research phase
investigating prostate cancer, neuropathic pain, Parkinson's disease and
Alzheimer's disease, among others.
In May the US pharmaceutical company GTx announced that it had ended studies on
the use of 80 mg doses of toremifene for treating the adverse effects of
prostate cancer treatment. Orion originally developed toremifene for treatment
of breast cancer.
Diagnostics
Orion Diagnostica manufactures convenient and quick in vitro diagnostic tests
and testing systems suitable for point-of-care testing. Net sales of the
Diagnostics business in 2011 were up by 8% at EUR 50 (46) million.
QuikRead(®) infection tests remained the main product, with sales continuing
strong in the review period.
Launching of the new more user-friendly prefilled QuikRead 101 system and
QuikRead go(®), a new generation testing instrument, that started in 2010 has
progressed as planned. Further progress was achieved in sales in the Nordic
countries and, for example, China and the Czech Republic. In July Orion
Diagnostica strengthened its research and product development base by acquiring
new early-phase technology through purchasing all the shares of English
technology company GeneForm Technologies Ltd.
The operating profit of the Diagnostics business was down by 20% at EUR 4.9
(6.1) million and accounted for 10% (13%) of the segment's net sales. The profit
decreased because expenditure on product development and marketing increased and
the margin structure of the product sales portfolio was weaker than in the
comparative period.
Espoo, 7 February 2012
Board of Directors of Orion Corporation
Orion Corporation
Timo Lappalainen Jari Karlson
President and CEO CFO
Tables
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million Q4/11 Q4/10 Change % 2011 2010 Change %
--------------------------------------------------------------------------------
Net sales 236.1 214.9 +9.9% 917.9 849.9 +8.0%
--------------------------------------------------------------------------------
Cost of goods sold -85.2 -73.7 +15.6% -305.1 -283.2 +7.7%
--------------------------------------------------------------------------------
Gross profit 150.8 141.2 +6.8% 612.8 566.8 +8.1%
--------------------------------------------------------------------------------
Other operating income and expenses 0.5 4.0 -87.9% 3.0 1.2 +160.9%
--------------------------------------------------------------------------------
Selling and marketing expenses -53.7 -55.0 -2.4% -204.8 -188.9 +8.4%
--------------------------------------------------------------------------------
R&D expenses -25.4 -26.6 -4.5% -87.5 -85.5 +2.3%
--------------------------------------------------------------------------------
Administrative expenses -12.7 -11.0 +15.0% -40.6 -39.3 +3.4%
--------------------------------------------------------------------------------
Operating profit 59.6 52.6 +13.2% 282.9 254.2 +11.3%
--------------------------------------------------------------------------------
Finance income 1.9 0.9 +117.1% 5.0 4.2 +18.1%
--------------------------------------------------------------------------------
Finance expenses -1.9 -1.1 +72.3% -6.0 -5.9 +2.0%
--------------------------------------------------------------------------------
Profit before taxes 59.5 52.4 +13.7% 282.0 252.6 +11.6%
--------------------------------------------------------------------------------
Income tax expense -14.3 -15.7 -9.0% -72.4 -67.9 +6.6%
--------------------------------------------------------------------------------
Profit for the period 45.2 36.7 +23.4% 209.5 184.7 +13.5%
--------------------------------------------------------------------------------
OTHER COMPREHENSIVE INCOME INCLUDING TAX EFFECTS
--------------------------------------------------------------------------------
Change in value of cash flow hedges -0.3 1.2 -126.7% -1.4 1.6 -191.2%
--------------------------------------------------------------------------------
Change in value of available-for- -0.1 -0.3
sale financial assets
--------------------------------------------------------------------------------
Translation differences 1.1 0.2 +603.5% 0.6 1.3 -53.8%
--------------------------------------------------------------------------------
Other comprehensive income net of 0.7 1.4 -52.5% -1.1 2.9 -138.3%
tax
--------------------------------------------------------------------------------
Comprehensive income for the period 45.9 38.0 +20.7% 208.4 187.6 +11.1%
including tax effects
--------------------------------------------------------------------------------
PROFIT ATTRIBUTABLE TO:
--------------------------------------------------------------------------------
Owners of the parent company 45.3 36.7 +23.4% 209.5 184.7 +13.5%
--------------------------------------------------------------------------------
Non-controlling interests 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
COMPREHENSIVE INCOME ATTRIBUTABLE
TO:
--------------------------------------------------------------------------------
Owners of the parent company 45.9 38.0 +20.7% 208.4 187.6 +11.1%
--------------------------------------------------------------------------------
Non-controlling interests 0.0 0.0 0.0 0.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Basic earnings per share, EUR(1)) 0.32 0.26 +23.3% 1.49 1.31 +13.5%
--------------------------------------------------------------------------------
Diluted earnings per share, EUR(1)) 0.32 0.26 +23.3% 1.49 1.31 +13.5%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Depreciation, amortisation and 9.5 9.7 -2.0% 42.5 38.9 +9.5%
impairments
--------------------------------------------------------------------------------
Personnel expenses 51.7 47.0 +10.1% 186.0 170.3 +9.2%
--------------------------------------------------------------------------------
(1)) The figure has been calculated from the profit attributable to the owners
of the parent company.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS
EUR million 12/11 12/10 Change %
------------------------------------------------------------------------
Property, plant and equipment 190.7 187.1 +1.9%
------------------------------------------------------------------------
Goodwill 13.5 13.5
------------------------------------------------------------------------
Intangible rights 66.6 65.3 +2.0%
------------------------------------------------------------------------
Other intangible assets 4.8 4.2 +13.2%
------------------------------------------------------------------------
Investments in associates 1.4 1.3 +1.5%
------------------------------------------------------------------------
Available-for-sale financial assets 1.1 1.0 +10.7%
------------------------------------------------------------------------
Pension asset 37.4 31.6 +18.3%
------------------------------------------------------------------------
Deferred tax assets 1.4 2.9 -52.3%
------------------------------------------------------------------------
Other non-current assets 1.8 2.4 -23.5%
------------------------------------------------------------------------
Non-current assets total 318.6 309.3 +3.0%
------------------------------------------------------------------------
------------------------------------------------------------------------
Inventories 151.4 131.1 +15.5%
------------------------------------------------------------------------
Trade receivables 155.3 118.3 +31.2%
------------------------------------------------------------------------
Other receivables 30.8 20.0 +54.3%
------------------------------------------------------------------------
Money market investments 77.7
------------------------------------------------------------------------
Cash and cash equivalents 123.0 89.5 +37.4%
------------------------------------------------------------------------
Current assets total 460.5 436.5 +5.5%
------------------------------------------------------------------------
------------------------------------------------------------------------
Assets total 779.1 745.8 +4.5%
------------------------------------------------------------------------
EQUITY AND LIABILITIES
EUR million 12/11 12/10 Change %
------------------------------------------------------------------------
Share capital 92.2 92.2
------------------------------------------------------------------------
Share premium 17.8
------------------------------------------------------------------------
Expendable fund 0.5 8.9 -94.5%
------------------------------------------------------------------------
Other reserves 17.6 1.6
------------------------------------------------------------------------
Retained earnings 389.6 346.8 +12.3%
------------------------------------------------------------------------
Equity attributable to owners of the parent company 499.9 467.4 +7.0%
------------------------------------------------------------------------
Non-controlling interests 0.0 0.0 +22.9%
------------------------------------------------------------------------
Equity total 500.0 467.4 +7.0%
------------------------------------------------------------------------
------------------------------------------------------------------------
Deferred tax liabilities 42.2 44.8 -5.8%
------------------------------------------------------------------------
Pension liability 0.5 0.7 -30.9%
------------------------------------------------------------------------
Provisions 0.3 0.4 -38.3%
------------------------------------------------------------------------
Interest-bearing non-current liabilities 66.0 87.5 -24.6%
------------------------------------------------------------------------
Other non-current liabilities 0.3 0.1 +159.4%
------------------------------------------------------------------------
Non-current liabilities total 109.3 133.6 -18.2%
------------------------------------------------------------------------
------------------------------------------------------------------------
Trade payables 66.3 49.0 +35.4%
------------------------------------------------------------------------
Current income tax liabilities 6.4 12.7 -49.6%
------------------------------------------------------------------------
Other current liabilities 74.5 60.6 +22.8%
------------------------------------------------------------------------
Provisions 0.0
------------------------------------------------------------------------
Interest-bearing current liabilities 22.7 22.5 +0.7%
------------------------------------------------------------------------
Current liabilities total 169.9 144.8 +17.3%
------------------------------------------------------------------------
------------------------------------------------------------------------
Liabilities total 279.1 278.4 +0.3%
------------------------------------------------------------------------
------------------------------------------------------------------------
Equity and liabilities total 779.1 745.8 +4.5%
------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
a. Share capital
b. Share premium
c. Expendable fund
d. Other reserves
e. Translation differences
f. Retained earnings
g. Non-controlling interests
h. Equity total
Equity attributable to owners of the parent
company
----------------------------------------------
EUR million a. b. c. d. e. f. g. h.
--------------------------------------------------------------------------------
Equity at 1 January 2010 92.2 17.8 23.0 0.0 -5.7 311.7 0.0 439.1
--------------------------------------------------------------------------------
Profit for the period 184.7 184.7
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in value of cash 1.6 1.6
flow hedges
--------------------------------------------------------------------------------
Translation differences 1.3 1.3
--------------------------------------------------------------------------------
Transactions with owners:
--------------------------------------------------------------------------------
Dividend and capital -14.1 -141.0 -155.1
repayment
--------------------------------------------------------------------------------
Treasury shares -4.6 -4.6
--------------------------------------------------------------------------------
Share-based incentive 0.5 0.5
plan
--------------------------------------------------------------------------------
Other adjustments -0.0 -0.1 -0.1
--------------------------------------------------------------------------------
Equity at 31 December 92.2 17.8 8.9 1.6 -4.4 351.2 0.0 467.4
2010
--------------------------------------------------------------------------------
Profit for the period 209.5 209.5
--------------------------------------------------------------------------------
Other comprehensive
income:
--------------------------------------------------------------------------------
Change in value of cash -1.4 -1.4
flow hedges
--------------------------------------------------------------------------------
Change in value of -0.3 -0.3
available-for-sale
financial assets
--------------------------------------------------------------------------------
Translation differences 0.6 0.6
--------------------------------------------------------------------------------
Transactions with owners:
--------------------------------------------------------------------------------
Dividend and capital -8.5 -169.0 -177.5
repayment
--------------------------------------------------------------------------------
Share-based incentive 1.7 1.7
plan
--------------------------------------------------------------------------------
Transfer between -17.8 17.8 0.0
different components of
equity
--------------------------------------------------------------------------------
Other adjustments 0.0 -0.1 -0.1
--------------------------------------------------------------------------------
Equity at 31 December 92.2 0.0 0.5 17.6 -3.8 393.4 0.0 500.0
2011
--------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million 2011 2010
--------------------------------------------------------------------------------
Operating profit 282.9 254.2
--------------------------------------------------------------------------------
Adjustments 39.0 33.7
--------------------------------------------------------------------------------
Change in working capital -42.6 -27.6
--------------------------------------------------------------------------------
Interest paid -6.2 -5.7
--------------------------------------------------------------------------------
Interest received 5.0 4.3
--------------------------------------------------------------------------------
Dividends received 0.1 0.1
--------------------------------------------------------------------------------
Income taxes paid -79.3 -49.9
--------------------------------------------------------------------------------
Total net cash flow from operating activities 198.9 209.1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Investments in property, plant and equipment -25.6 -22.2
--------------------------------------------------------------------------------
Investments in intangible assets -19.9 -13.3
--------------------------------------------------------------------------------
Acquisition of an associate -0.0 -1.3
--------------------------------------------------------------------------------
Sale of a subsidiary less cash and cash equivalents at sale date 0.3 4.5
--------------------------------------------------------------------------------
Sales of property, plant and equipment
and available-for-sale investments 1.2 1.2
--------------------------------------------------------------------------------
Sales of intangible assets 0.0 0.2
--------------------------------------------------------------------------------
Total net cash flow from investing activities -43.9 -30.9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Short-term loans raised 0.8 0.6
--------------------------------------------------------------------------------
Repayments of short-term loans -2.1 -2.0
--------------------------------------------------------------------------------
Long-term loans raised 19.1
--------------------------------------------------------------------------------
Repayments of long-term loans -40.1 -21.0
--------------------------------------------------------------------------------
Repurchase of own shares -4.6
--------------------------------------------------------------------------------
Dividends paid and other distribution of profits -177.5 -155.3
--------------------------------------------------------------------------------
Total net cash flow from financing activities -199.7 -182.2
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net change in cash, cash equivalents and money market investments -44.7 -4.0
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Cash, cash equivalents and money market investments at the 167.2 170.5
beginning of the period
--------------------------------------------------------------------------------
Foreign exchange differences 0.5 0.7
--------------------------------------------------------------------------------
Net change in cash, cash equivalents and money market investments -44.7 -4.0
--------------------------------------------------------------------------------
Cash, cash equivalents and money market investments at the end of 123.0 167.2
the period
--------------------------------------------------------------------------------
Reconciliation of cash and cash equivalents in Statement of
Financial Position
--------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period in Statement of 123.0 89.5
Financial Position
--------------------------------------------------------------------------------
Money market investments at the end of the period( ) 77.7
--------------------------------------------------------------------------------
Cash and cash equivalents in Statement of Cash Flows 123.0 167.2
--------------------------------------------------------------------------------
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
EUR million 2011 2010
----------------------------------------------------------
Carrying amount at the beginning of the period 187.1 192.0
----------------------------------------------------------
Additions 30.3 23.3
----------------------------------------------------------
Sale of a real estate limited company -0.5
----------------------------------------------------------
Other disposals -1.4 -1.1
----------------------------------------------------------
Depreciation and impairments -25.3 -26.6
----------------------------------------------------------
Carrying amount at the end of the period 190.7 187.1
----------------------------------------------------------
CHANGES IN INTANGIBLE ASSETS (EXCLUDING GOODWILL)
EUR million 2011 2010
----------------------------------------------------------
Carrying amount at the beginning of the period 69.5 67.0
----------------------------------------------------------
Additions 19.1 14.6
----------------------------------------------------------
Disposals -0.0 -0.0
----------------------------------------------------------
Amortisation and impairments -17.2 -12.3
----------------------------------------------------------
Carrying amount at the end of the period 71.3 69.5
----------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
EUR million 12/11 12/10
-------------------------------------------------------------------
CONTINGENCIES FOR OWN LIABILITIES
-------------------------------------------------------------------
Mortgages on land and buildings 41.0 41.0
-------------------------------------------------------------------
of which those to Orion Pension Fund 9.0 9.0
-------------------------------------------------------------------
Guarantees 1.6 1.3
-------------------------------------------------------------------
OTHER LIABILITIES
-------------------------------------------------------------------
Leasing liabilities (excluding finance lease contracts) 4.5 4.1
-------------------------------------------------------------------
Other liabilities 0.3 0.3
-------------------------------------------------------------------
DERIVATIVES
EUR million 12/11 12/10
----------------------------------------------
CURRENCY FORWARD CONTRACTS AND CURRENCY SWAPS
----------------------------------------------
Fair value, EUR million -0.4 -0.8
----------------------------------------------
Nominal value, EUR million 40.7 56.1
----------------------------------------------
CURRENCY OPTIONS
----------------------------------------------
Fair value, EUR million -0.2 -0.0
----------------------------------------------
Nominal value, EUR million 63.1 33.4
----------------------------------------------
CROSS CURRENCY SWAPS
----------------------------------------------
Fair value, EUR million 0.3
----------------------------------------------
Nominal value, EUR million 19.1
----------------------------------------------
ELECTRICITY DERIVATIVES
----------------------------------------------
Fair value, EUR million -0.4 1.9
----------------------------------------------
Nominal value, GWh 153 171
----------------------------------------------
RELATED PARTY TRANSACTIONS
EUR million 2011 2010
------------------------------------------
Management's employment benefits 4.8 4.4
------------------------------------------
Operating segment performance
NET SALES BY BUSINESS DIVISIONS
EUR million Q4/11 Q4/10 Change % 2011 2010 Change %
--------------------------------------------------------------------------------
Pharmaceuticals 223.8 203.7 +9.9% 870.6 806.2 +8.0%
--------------------------------------------------------------------------------
Proprietary Products 103.4 89.9 +15.0% 408.9 370.9 +10.3%
--------------------------------------------------------------------------------
Specialty Products 82.5 77.1 +7.0% 320.8 298.6 +7.4%
--------------------------------------------------------------------------------
Animal Health 19.3 18.5 +4.8% 67.8 67.5 +0.4%
--------------------------------------------------------------------------------
Fermion 11.8 10.8 +9.6% 43.3 44.9 -3.5%
--------------------------------------------------------------------------------
Contract manufacturing and 6.8 7.5 -9.6% 29.7 24.4 +22.1%
others
--------------------------------------------------------------------------------
Diagnostics 12.9 11.8 +9.2% 49.5 46.1 +7.5%
--------------------------------------------------------------------------------
Group items -0.6 -0.6 -0.8% -2.2 -2.4 -6.5%
--------------------------------------------------------------------------------
Group total 236.1 214.9 +9.9% 917.9 849.9 +8.0%
--------------------------------------------------------------------------------
OPERATING PROFIT BY BUSINESS AREA
EUR million Q4/11 Q4/10 Change % 2011 2010 Change %
---------------------------------------------------------
Pharmaceuticals 61.4 49.9 +23.2% 287.6 252.2 +14.0%
---------------------------------------------------------
Diagnostics 0.7 1.0 -35.5% 4.9 6.1 -20.4%
---------------------------------------------------------
Group items -2.5 1.7 +247.3% -9.5 -4.1 +131.4%
---------------------------------------------------------
Group total 59.6 52.6 +13.2% 282.9 254.2 +11.3%
---------------------------------------------------------
NET SALES BY ANNUAL QUARTERS
2011 2010
+-----------------------+-----------------------+
EUR million | Q4 Q3 Q2 Q1| Q4 Q3 Q2 Q1|
---------------+-----------------------+-----------------------+
Pharmaceuticals|223.8 199.8 215.9 231.0|203.7 203.2 196.0 203.3|
---------------+-----------------------+-----------------------+
Diagnostics | 12.9 11.3 11.7 13.7| 11.8 10.5 12.1 11.7|
---------------+-----------------------+-----------------------+
Group items | -0.6 -0.5 -0.6 -0.6| -0.6 -0.5 -0.7 -0.6|
---------------+-----------------------+-----------------------+
Group total |236.1 210.7 227.0 244.1|214.9 213.2 207.4 214.5|
---------------+-----------------------+-----------------------+
OPERATING PROFIT BY ANNUAL QUARTERS
2011 2010
+-------------------+-------------------+
EUR million | Q4 Q3 Q2 Q1| Q4 Q3 Q2 Q1|
---------------+-------------------+-------------------+
Pharmaceuticals|61.4 66.8 67.1 92.3|49.9 71.5 60.4 70.5|
---------------+-------------------+-------------------+
Diagnostics | 0.7 0.8 0.7 2.8| 1.0 1.0 1.9 2.2|
---------------+-------------------+-------------------+
Group items |-2.5 -2.1 -2.7 -2.1| 1.7 -1.8 -2.3 -1.7|
---------------+-------------------+-------------------+
Group total |59.6 65.4 65.1 92.9|52.6 70.6 60.0 71.0|
---------------+-------------------+-------------------+
GEOGRAPHICAL BREAKDOWN OF NET SALES BY ANNUAL QUARTERS
2011 2010
+-----------------------+-----------------------+
EUR million | Q4 Q3 Q2 Q1| Q4 Q3 Q2 Q1|
-------------+-----------------------+-----------------------+
Finland | 61.7 60.1 59.8 59.1| 61.0 57.6 53.7 56.9|
-------------+-----------------------+-----------------------+
Scandinavia | 28.5 28.1 30.3 33.4| 28.6 28.4 28.1 29.0|
-------------+-----------------------+-----------------------+
Other Europe | 79.6 71.5 77.2 80.2| 77.4 70.0 72.7 72.1|
-------------+-----------------------+-----------------------+
North America| 36.0 24.0 29.2 38.7| 22.1 31.1 26.3 30.3|
-------------+-----------------------+-----------------------+
Other markets| 30.3 26.9 30.6 32.8| 25.8 26.0 26.7 26.1|
-------------+-----------------------+-----------------------+
Group total |236.1 210.7 227.0 244.1|214.9 213.2 207.4 214.5|
-------------+-----------------------+-----------------------+
Business reviews
KEY FIGURES FOR PHARMACEUTICALS BUSINESS
EUR million Q4/11 Q4/10 Change % 2011 2010 Change %
--------------------------------------------------------------------------------
Net sales 223.8 203.7 +9.9% 870.6 806.2 +8.0%
--------------------------------------------------------------------------------
Operating profit 61.4 49.9 +23.2% 287.6 252.2 +14.0%
--------------------------------------------------------------------------------
% of net sales 27.5% 24.5% 33.0% 31.3%
--------------------------------------------------------------------------------
R&D expenses 23.6 25.0 -5.6% 81.1 79.5 +2.1%
--------------------------------------------------------------------------------
% of net sales 10.6% 12.3% 9.3% 9.9%
--------------------------------------------------------------------------------
Capital expenditure 12.4 10.3 +21.1% 38.8 36.2 +7.3%
--------------------------------------------------------------------------------
% of net sales 5.6% 5.0% 4.5% 4.5%
--------------------------------------------------------------------------------
Sales revenue from proprietary 110.4 97.6 +13.2% 420.2 397.1 +5.8%
products
--------------------------------------------------------------------------------
Assets 597.5 527.7 +13.2%
--------------------------------------------------------------------------------
Liabilities 132.2 102.1 +29.5%
--------------------------------------------------------------------------------
Personnel at the end of the period 3,079 2,802
--------------------------------------------------------------------------------
NET SALES OF ORION'S TOP 10 PHARMACEUTICAL PRODUCTS
EUR million Q4/11 Q4/10 Change % 2011 2010 Change %
--------------------------------------------------------------------------------
Stalevo(®), Comtess(®) and Comtan(®) 64.3 59.4 +8.2% 266.7 252.7 +5.5%
(Parkinson's disease)
--------------------------------------------------------------------------------
Simdax(®) (acute decompensated heart 12.7 10.0 +26.8% 44.0 39.9 +10.4%
failure)
--------------------------------------------------------------------------------
Precedex(®) (intensive care sedative) 10.6 7.2 +46.9% 33.0 27.2 +21.3%
--------------------------------------------------------------------------------
Easyhaler(®) product family (asthma, 7.5 7.3 +2.2% 30.5 28.1 +8.6%
COPD)
--------------------------------------------------------------------------------
Burana(®) (inflammatory pain) 6.1 5.7 +6.2% 23.5 21.5 +9.2%
--------------------------------------------------------------------------------
Dexdomitor(®), Domitor(®), 8.9 8.0 +11.1% 23.2 24.2 -3.9%
Domosedan(®) and Antisedan(®) (animal
sedatives)
--------------------------------------------------------------------------------
Marevan(®) (anticoagulant) 4.0 3.4 +17.5% 15.6 13.1 +19.5%
--------------------------------------------------------------------------------
Divina(®) range (menopausal symptoms) 3.4 3.4 -1.0% 13.2 13.3 -0.7%
--------------------------------------------------------------------------------
Enanton(®) (prostate cancer) 2.9 3.4 -14.6% 12.0 13.0 -7.7%
--------------------------------------------------------------------------------
Solomet(®) (inflammatory diseases) 3.1 2.5 +25.9% 10.7 8.6 +24.8%
--------------------------------------------------------------------------------
Total 123.4 110.3 +11.9% 472.4 441.5 +7.0%
--------------------------------------------------------------------------------
Share of pharmaceutical net sales 55% 54% 54% 55%
--------------------------------------------------------------------------------
KEY FIGURES FOR DIAGNOSTICS BUSINESS
EUR million Q4/11 Q4/10 Change % 2011 2010 Change %
----------------------------------------------------------------------------
Net sales 12.9 11.8 +9.2% 49.5 46.1 +7.5%
----------------------------------------------------------------------------
Operating profit 0.7 1.0 -35.5% 4.9 6.1 -20.4%
----------------------------------------------------------------------------
% of net sales 5.1% 8.6% 9.9% 13.3%
----------------------------------------------------------------------------
R&D expenses 1.8 1.6 +13.1% 6.4 6.0 +6.2%
----------------------------------------------------------------------------
% of net sales 14.0% 13.5% 12.9% 13.1%
----------------------------------------------------------------------------
Capital expenditure 0.3 0.7 -51.3% 10.4 2.5 +315.1%
----------------------------------------------------------------------------
% of net sales 2.6% 5.9% 21.1% 5.5%
----------------------------------------------------------------------------
Assets 44.4 34.2 +29.9%
----------------------------------------------------------------------------
Liabilities 17.4 9.1 +91.6%
----------------------------------------------------------------------------
Personnel at the end of the period 322 302
----------------------------------------------------------------------------
Information on Orion's shares
BASIC SHARE INFORMATION 31 DECEMBER 2011
A shares B shares Total
--------------------------------------------------------------------------------
Trading code on NASDAQ OMX Helsinki ORNAV ORNBV
--------------------------------------------------------------------------------
Listing day 1 Jul 2006 1 Jul 2006
--------------------------------------------------------------------------------
ISIN code FI0009014369 FI0009014377
--------------------------------------------------------------------------------
ICB code 4500 4500
--------------------------------------------------------------------------------
Reuters code ORNAV.HE ORNBV.HE
--------------------------------------------------------------------------------
Bloomberg code ORNAV.FH ORNBV.FH
--------------------------------------------------------------------------------
Share capital, EUR million 29.4 62.8 92.2
--------------------------------------------------------------------------------
Counter book value per share, EUR 0.65 0.65
--------------------------------------------------------------------------------
Total number of shares 44,993,218 96,264,610 141,257,828
--------------------------------------------------------------------------------
% of total share stock 32% 68% 100%
--------------------------------------------------------------------------------
Number of treasury shares 413,754 413,754
--------------------------------------------------------------------------------
Total number of shares excluding 44,993,218 95,850,856 140,844,074
treasury shares
--------------------------------------------------------------------------------
Minimum number of shares 1
--------------------------------------------------------------------------------
Maximum number of A and B shares, and 500,000,000 1,000,000,000 1,000,000,000
maximum
number of all shares
--------------------------------------------------------------------------------
Votes per share 20 1
--------------------------------------------------------------------------------
Number of votes excluding treasury 899,864,360 95,850,856 995,715,216
shares
--------------------------------------------------------------------------------
% of total votes 90% 10% 100%
--------------------------------------------------------------------------------
Total number of shareholders 19,343 44,349 57,188
--------------------------------------------------------------------------------
A shares and B shares confer equal rights to the Company's assets and dividends.
INFORMATION ON TRADING ON NASDAQ OMX HELSINKI 1 JANUARY - 31 DECEMBER 2011
A shares B shares Total
--------------------------------------------------------------------------------
Shares traded 4,585,668 77,594,384 82,180,052
--------------------------------------------------------------------------------
% of the total number of shares 9.9% 81.8% 58.2%
--------------------------------------------------------------------------------
Trading volume, EUR million 73.8 1,248.2 1,322.0
--------------------------------------------------------------------------------
Closing quotation on 31 December 2010, EUR 16.40 16.37
--------------------------------------------------------------------------------
Lowest quotation, EUR (A and B 9 August 2011) 13.10 13.19
--------------------------------------------------------------------------------
Average quotation, EUR 16.09 16.09
--------------------------------------------------------------------------------
Highest quotation, EUR (A 3 June, B 1 June 2011) 18.05 18.14
--------------------------------------------------------------------------------
Closing quotation on 31 December 2011, EUR 15.18 15.05
--------------------------------------------------------------------------------
Market capitalisation on 31 December 2011 683.0 1,442.6 2,125.6
excluding treasury shares, EUR million
--------------------------------------------------------------------------------
PERFORMANCE PER SHARE Q4/11 Q4/10 Change % 2011 2010 Change %
--------------------------------------------------------------------------------
Basic earnings per share, EUR 0.32 0.26 +23.3% 1.49 1.31 +13.5%
--------------------------------------------------------------------------------
Diluted earnings per share, 0.32 0.26 +23.3% 1.49 1.31 +13.5%
EUR
--------------------------------------------------------------------------------
Cash flow per share before 0.33 0.45 -26.0% 1.10 1.26 -13.0%
financial items, EUR
--------------------------------------------------------------------------------
Equity per share, EUR 3.55 3.32 +6.9%
--------------------------------------------------------------------------------
Proposed dividend per share, 1.30 1.20 +8.3%
EUR(1))
--------------------------------------------------------------------------------
Proposed payout ratio, % 87.2% 91.6%
--------------------------------------------------------------------------------
Total proposed dividend, EUR 183.1 168.9 +8.4%
million
--------------------------------------------------------------------------------
Effective dividend yield
according to proposal, %
--------------------------------------------------------------------------------
A share 8.6% 7.3%
--------------------------------------------------------------------------------
B share 8.6% 7.3%
--------------------------------------------------------------------------------
Price/earnings ratio (P/E)
--------------------------------------------------------------------------------
A share 10.19 12.52
--------------------------------------------------------------------------------
B share 10.10 12.50
--------------------------------------------------------------------------------
Average number of shares 140,844 140,741 140,827 140,917
excluding treasury shares,
1,000 shares
--------------------------------------------------------------------------------
(1))In addition, the Board of Directors proposes to the Annual General Meeting
that EUR 0.12 (0.06) per share be distributed from the reserve for invested
unrestricted equity as a repayment of capital.
Appendices
Reporting
Orion Corporation is the parent company of the Orion Group. The Group consists
of two business areas, or operating segments, and five business divisions. Orion
reports on its operations segmentally.
* Pharmaceuticals business
* Proprietary Products (patented prescription products for three therapy
areas)
* Specialty Products (off-patent, generic prescription products and self-
care products)
* Animal Health (veterinary products for pets and production animals)
* Fermion (active pharmaceutical ingredients for Orion and other
companies)
* Diagnostics business
* Orion Diagnostica (diagnostic test systems for point-of-care in
healthcare and hygiene tests for industry).
Contract manufacturing and other, i.e. manufacturing for other companies, is
included in the Pharmaceuticals business segment, but it is not a separate
business division, it is part of the Group's Supply Chain organisation.
Accounting policies
The Consolidated Financial Statements of the Orion Group have been prepared in
accordance with International Financial Reporting Standards (IFRS) applying IAS
and IFRS standards as well as SIC and IFRIC interpretations effective on 31
December 2011.
The following new standards, interpretations and amendments to existing
standards endorsed by the EU have been adopted as of 1 January 2011. However,
they do not have material effects on the Consolidated Financial Statements:
* IAS 24 (Revised), Related Party Disclosures
* IAS 32 (Amendment), Financial Instruments: Presentation - Classification of
Rights Issues
* IFRIC 19, Extinguishing Financial Liabilities with Equity Instruments
* IFRIC 14 (Amendment), IAS 19, Prepayments of a Minimum Funding Requirement
IASB published changes to seven standards or interpretations in 2010 as part of
the annual improvements to standards. As of 1 January 2011 the Group has adopted
the following changes endorsed by the EU, but they do not have material effects
on the Consolidated Financial Statements.
* IFRS 3 (Amendments), Business Combinations
* IFRS 7 (Amendment), Financial Instruments: Financial Statement Disclosures
* IAS 1 (Amendment), Presentation of Financial Statements - Statement of
Changes in Equity
* IAS 27 (Amendment), Consolidated and Separate Financial Statements
* IAS 34 (Amendment), Interim Financial Reporting
* IFRIC 13 (Amendment), Customer Loyalty Programmes
The policies and calculation methods applied during the period can be found on
the Orion website atwww.orion.fi/en/investors.
Other matters
The data in this financial review are audited.
The figures in parentheses are for the comparative period of the previous year.
All the figures in this report have been rounded, which is why the total sums of
individual figures may differ from the total sums shown.
CALCULATION OF THE KEY FIGURES
= Profit before taxes + Interest x 100
Return on capital employed (ROCE), % and other finance expenses
-----------------------------------
Total assets - Non-interest-
bearing liabilities (average
during the period)
= Profit for the period x 100
Return on equity (ROE), % -----------------------------------
Total equity (average during the
period)
= Equity x 100
Equity ratio, % -----------------------------------
Total assets - Advances received
= Interest-bearing liabilities - x 100
Gearing, % Cash and cash equivalents - Money
Market Investments
-----------------------------------
Equity
= Profit available for the owners
Earnings per share, EUR of the parent company
-----------------------------------
Average number of shares during
the period, excluding treasury
shares
= Cash flow from operating
Cash flow per share before financial activities + Cash flow from
items, EUR investing activities
-----------------------------------
Average number of shares during
the period, excluding treasury
shares
= Equity of the owners of the
Equity per share, EUR parent company
-----------------------------------
Number of shares at the end of
the period, excluding treasury
shares
Dividend per share, EUR Dividend to be distributed for
the period
=-----------------------------------
Number of shares at the end of
the period, excluding treasury
shares
Payout ratio, % Dividend per share x 100
=-----------------------------------
Earnings per share
Effective dividend yield, % Dividend per share x 100
=-----------------------------------
Closing quotation of the period
Price/earnings ratio (P/E) Closing quotation of the period
=-----------------------------------
Earnings per share
= Total EUR value of shares traded
Average share price, EUR -----------------------------------
Average number of traded shares
during the period
= Number of shares at the end of
Market capitalisation, EUR million the period x Closing quotation of
the period
Publisher:
Orion Corporation
http://www.orion.fi/
Orion is an innovative European R&D-based pharmaceutical and diagnostic company
with a special emphasis on developing medicinal treatments and diagnostic tests
for global markets. Orion develops, manufactures and markets human and
veterinary pharmaceuticals, active pharmaceutical ingredients and diagnostic
tests. Orion's pharmaceutical R&D focuses on the following core therapy areas:
central nervous system drugs, oncology and critical care drugs, and inhalable
Easyhaler(®) pulmonary drugs.
The Group's net sales in 2011 amounted to EUR 918 million. The Company invested
EUR 88 million in research and development. At the end of 2011, the Group had
about 3,400 employees, of whom about 2,700 worked in Finland and the rest in
other countries. Orion's A and B shares are listed on NASDAQ OMX Helsinki.
[HUG#1583002]
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