Orion Stock Exchange Release 25 April 2007 at 11:00 EET
- Group net sales were EUR 179.2 (173.5) million, up by 3.2%.
- Operating profit declined by 2.9% to EUR 61.1 (62.9) million.
- Profit before taxes was EUR 61.9 (63.3) million.
- Earnings per share were EUR 0.32 (0.33).
- Equity ratio was 77.9% (64.3%).
- Return on capital employed (ROCE) was 52.4% (67.4%).
The figures for periods before the demerger on 1.7.2006 are based on
comparable ones carved out from the financial statements of the
demerged Orion.
Key figures on Orion Corporation for the review period
EUR million 1-3/2007 1-3/2006 Change 1-12/06 Financial
Proforma % Proforma period
7-12/2006
Net sales 179.2 173.5 +3.2% 641.1 311.2
Operating profit (EBIT) 61.1 62.9 -2.9% 196.7 90.9
% of net sales 34.1 % 36.2 % 30.7 % 29.2 %
Profit before taxes 61.9 63.3 -2.3% 197.3 91.4
% of net sales 34.5 % 36.5 % 30.8 % 29.4 %
R&D expenses 21.6 21.1 +2.7% 84.1 43.1
% of net sales 12.1 % 12.1 % 13.1 % 13.8 %
Capital expenditure 6.1 4.1 +46.8% 25.5 13.4
% of net sales 3.4 % 2.4 % 4.0 % 4.3 %
Balance Sheet total 627.4 518.6 +21.0% 588.1 588.1
Equity ratio, % 77.9 % 64.3 % 75.4 % 75.4 %
Gearing, % -27.6 % -3.6 % -22.6 % -22.6 %
Interest-bearing
liabilities 10.1 20.8 -51.3% 9.8 9.8
Non-interest-bearing
liabilities 128.6 164.2 -21.7% 134.8 134.8
Cash and cash
equivalents 145.1 32.7 +343.6% 110.0 110.0
ROCE (before taxes), % 52.4 % 67.4 % 46.5 % 44.1 %
ROE (after taxes), % 39.1 % 51.1 % 34.5 % 32.5 %
Earnings per share, EUR 0.32 0.33 -3.9% 1.03 0.47
Equity per share, EUR 3.46 2.38 +45.1% 3.14 3.14
Personnel at the end of
the period 3 127 3 025 +3.4% 3 061 3 061
Orion Corporation was established on 1 July 2006 as one of the two
new listed companies that resulted from the demerger of the former
Orion. The present Orion Corporation comprises the pharmaceuticals
and diagnostics businesses of the demerged Orion.
- The figures of this Interim Report have been prepared in accordance
with the IAS Standard 34 for Interim Financial Reporting. The
proforma figures have been carved out from the financial statements
of the demerged Orion Group. The principles and calculation methods
are the same as those applied in the Financial Statements 2006, and
they are available on the Orion homepage
www.orion.fi/english/investors.
- The figures have not been audited. Those in the parentheses are for
the comparative period. The per-share ratios for the comparative
periods have been adjusted.
- The figures have been rounded. Therefore, the total sums of
individual figures may differ from the total sums shown.
Orion Group structure
The parent company of the Orion Group is Orion Corporation. The Group
has two businesses and five business divisions:
1) Pharmaceuticals
- Proprietary Products (patented prescription products)
- Specialty Products (off-patent prescription products and
self-medication products)
- Animal Health
- Fermion (active pharmaceutical ingredients)
2) Diagnostics
- Orion Diagnostica.
Market overview
According to the preliminary total estimate published in March by IMS
Health, the world pharmaceutical sales for the full year 2006 grew by
about 7.0% to about USD 643 billion. The markets audited by IMS
developed as follows:
2006
Sales % of
USD Change global
billion on 2005 sales
North America 289.9 +8.0 % 47.7 %
Europe 181.8 +4.8 % 29.9 %
Japan 56.7 -0.7 % 9.3 %
Asia (excl. Japan), Africa and Australia 52.0 +9.8 % 8.6 %
Latin America 27.5 +12.9 % 4.5 %
Audited markets total 607.9 +6.5 % 100 %
In the USA, the sales volumes of prescription drugs are showing a
slight growth and boosting the growth rate, mainly due to the impact
of the Medicare reimbursement system. Oncology has risen to the
fastest-growing therapeutic category as new drug innovations have
been introduced for the treatment of cancer. In 2006, the world sales
of oncological drugs increased by over 20% to about USD 35 billion,
almost the same as the sales of cholesterol-lowering agents, the
biggest single category.
The global 2006 sales of medicines for Parkinson's Disease, which has
a central role in Orion's business, were about USD 3,122 (2,800)
million, up by 12% (10%). US sales were about USD 1,024 (837)
million, up by 22% (9%). The exceptionally high growth percentage is
explained by the broadened indication of one dopamine agonist to the
restless legs syndrome. In the top five European markets, the sales
of Parkinson's disease medicines were about EUR 745 (690) million and
they grew by 8% (10%). The global audited sales of Orion's Stalevo®
and Comtess®/Comtan®, were EUR 348.1 (285.5) million, of which
Stalevo accounted for EUR 144.3 (146.6) million and Comtess/Comtan
for EUR 145.2 (144.3) million.
According the sales statistics maintained by Finnish Pharmaceutical
Data Ltd., wholesales of pharmaceuticals in Finland in the period
1-3/2007 were EUR 443 (421) million, 5.1% up from those in the
comparative period. Selfcare products were drivers of the growth,
with 29% up from the comparative period. Orion contributed EUR 41.7
(38.1) million to the total Finnish pharmaceutical sales, about 9%
more than in the comparative period, during which the sales were
strongly affected by the removal of discounts grantable to pharmacies
on their purchases. Orion reinforced its position as the market
leader in Finland with a market share of 9.4% (9.1%). Orion's lead
over the second largest marketer was about 2 percentage units both
for the review period and on an annual level.
Financial performance in 1-3/2007
Net sales
Orion Group. The Group net sales in 1-3/2007 were EUR 179,2 million
(EUR 173.5 in 1-3/2006) million, up by 3.2% from the comparative
period. Currency exchange rates, mainly the US-dollar, had a net
negative impact of EUR 1.1 million.
Pharmaceuticals business. The net sales from pharmaceuticals
increased by 3.1% to EUR 167.9 (162.9) million. The products based on
in-house R&D accounted for EUR 76.9 (80.5) million, or 46% (49%) of
the total. The products for Parkinson's Disease, i.e. Stalevo® and
Comtess®/Comtan®, contributed EUR 54.6 (54.2) million, or 33% (33%)
of the total net sales.
Diagnostics business. Orion Diagnostica's net sales were EUR 11.8
(11.2) million and they grew by 5.0% from the comparative period.
QuikRead® infection tests continued to show the best growth. Sales in
the Nordic subsidiaries developed well, too.
Profits
The Pharmaceuticals business generated an operating profit of EUR
60.7 (62.0) million, down by
2.1%. The improvement of the gross margin was somewhat lower than
that of the net sales, because the proprietary products,
characterised by above-average margins, contributed less to the total
sales than in the comparative period. The expenses of sales,
marketing and R&D increased slightly, as was anticipated.
The Diagnostics business's operating profit rose by 14.8% to EUR 3.2
(2.8) million. The improvement resulted from increased sales with
operating expenses at the same level as in the comparative period.
Operating expenses
The consolidated operating expenses were EUR 64.8 (62.5) million, up
by 3.8% from the comparative period. Selling and distribution
expenses increased by 3.8% to EUR 33.6 (32.4) million. They include
the costs of sales and marketing as well as distribution and
logistics.
The Group's R&D expenditure was EUR 21.6 (21.1) million, up by 2.7%
and representing 12.1% (12.1%) of the Group net sales. Pharmaceutical
R&D expenses were EUR 20.7 million, or about 96% of the total. The
R&D function is reported in the segment review of the Pharmaceuticals
business.
Group profit before taxes was EUR 61.9 (63.3) million. Earnings per
share were EUR 0.32 (0.33). Equity per share was EUR 3.46 (2.38).
Group ROCE before taxes was 52.4% (67.4%) and ROE after taxes was
39.1% (51.1%). The decline in the return on capital is mainly due to
the greater cash and equivalents and shareholders' equity in the
Balance Sheet than in the comparative period. The growth of these
items is explained by the later payment of dividends than in 2006
when they were paid already in March.
Balance Sheet and financial position
The Group's gearing was -27.6% (-3.6%). Equity ratio was 77.9%
(64.3%). The improvement of the figures is consequence of the good
financial results and cash flows as well as the later timing, April
2007, of the dividend payment.
Total liabilities in the Balance Sheet of 31 March 2007 came to EUR
138.7 (184.9) million, of which interest- bearing liabilities
accounted for EUR 10.1 (20.8) million.
Trade payables at the end of the review period were EUR 26.2 (41.1)
million.
Cash and cash equivalents were EUR 145.1 (32.7) million. The cash
reserves are invested in short-term interest instruments issued by
solid financial institutions and corporations. The main reason for
the high increase is the fact that the dividends were paid in April,
while in 2006 they were paid already in March.
Cash flows
The cash flow from operations was EUR 42.4 (29.6) million. Operating
profit was at the same level as in the comparative period, whereas
working capital was about EUR 18.8 million lower.
Cash flow from investments was EUR -6,7 (-5,6) million, the same
level as in the comparative period.
Cash flow from financing activities was EUR -0.5 (-115.7) million.
The considerable improvement is mainly due to the fact that the cash
flows of the comparative period included the payment of the dividend
for 2005 as well as the repayment of short-term loans to the
companies which in the demerger became members in Oriola-KD
Corporation.
Capital expenditure
The capital expenditure of the Group came to EUR 6.1 (4.1) million,
of which machinery and equipment accounted for EUR 3.6 (2.7) million.
Personnel
The average number of personnel in the Group was 3,096 (3,020) for
the review period. In March 2007, the total number of employees was
3,127 (3,025). Personnel in the Pharmaceuticals business increased by
104 from March 2006, mainly in the R&D, production and quality
control. In the Diagnostics business the number of personnel
increased by 6 persons.
Financial objectives
The moderate organic growth of the net sales in the next few years is
accelerated via product, portfolio and company acquisitions.
Operating profit will be increased and Equity ratio is maintained at
the level of at least 50%.
Dividend policy
In the dividend distribution Orion takes into account the
distributable funds as well as the medium-long and long-term needs of
capital expenditure and other financial needs required for the
achievement of the financial objectives.
Events after the review period
In a separate stock exchange release published today, 25 April 2007,
Orion informed about the decision by its partner Abbott to
discontinue the development of levosimendan (Simdax) in the US.
Outlook for 2007 (proforma)
Net sales will grow somewhat from those of 2006. Sales of
pharmaceuticals via Orion's own marketing organisation are
anticipated to start showing moderate growth in Finland and to go on
showing growth in the markets outside Finland. In-market sales of the
entacapone product franchise will continue showing steady, although
slower growth than in the previous years. Deliveries to Novartis are
anticipated to be at the same level as in 2006, in which they
increased considerably, partly because of higher reserve stockpile
levels of Novartis.
Operating profit, one-off earnings excluded, is estimated to grow
somewhat from 2006, despite increased investments in marketing and
pharmaceutical research. Marketing expenses will grow especially due
to investments in product launches by Orion's own European marketing
units outside Finland. The higher R&D expenditure is mainly caused by
the new clinical research programmes being started in 2007.
Research and development expenditure will be about EUR 95 million, of
which pharmaceutical R&D will account for about EUR 90 million.
Capital expenditure will be about EUR 35 million.
Decisions by the AGM
The Annual General Meeting of Orion Corporation was held on 2 April
2007 in Helsinki. In addition to the matters in accordance with
section 10 of the Articles of Association, the meeting handled the
Board's proposals concerning amendments of the Articles of
Association, authorisations to the Board of Directors to acquire and
convey the company's own shares, and the election and remuneration of
the Board of Directors and the auditors.
Dividend EUR 1.00 per share
A dividend of EUR 1.00 per share was approved for 2006. The record
date for the dividend payment was
5 April 2007 and the payment date was 16 April 2007.
Amendments of the Articles of Association
The Articles of Association were decided to be amended as proposed by
the Board of Directors to be in line with the provisions set forth in
the Companies Act that entered into force on 1 September 2006. The
new Articles of Association were entered in the Trade Register on 19
April 2007.
Authorisations concerning the acquisition and conveyance of the
company's own shares
The Board of Directors was authorised by the AGM to decide on the
acquisition and conveyance of the company's own shares on the
proposed terms and conditions.
Hannu Syrjänen and Jukka Ylppö were elected as new members to the
Board.
Matti Kavetvuo was re-elected as Chairman
The number of members in the Board of Directors was confirmed to be
six. Eero Karvonen, Matti Kavetvuo, Leena Palotie and Vesa Puttonen
were re-elected, and Hannu Syrjänen and Jukka Ylppö were elected as
new members to the Board for the next term of office. Matti Kavetvuo
was re-elected as Chairman. At its first meeting, the Board elected
Jukka Ylppö as Vice Chairman.
Remuneration of the Board of Directors
As an annual fee for the term of office of the Board of Directors,
the Chairman shall receive EUR 68,000, the Vice Chairman shall
receive EUR 47,000 and the other members shall receive EUR 34,000
each. As a fee for each meeting attended, the Chairman shall receive
EUR 1,200, the Vice Chairman shall receive EUR 900 and the other
members shall receive EUR 600 each. In accordance with previously
adopted practice, the Chairman shall have a telephone as a fringe
benefit, and the travel expenses of all Board members shall be paid
in accordance with the travel policy of the company. The
afore-mentioned fees shall also be paid to the Chairmen and to the
members of the committees established by the Board, for each
committee meeting attended.
Of the annual fee, 60% shall be paid in cash and 40% in Orion
Corporation B-shares acquired to the members during from the Helsinki
Stock Exchange in amounts corresponding to EUR 27,200 for the
Chairman, EUR 18,800 for the Vice Chairman and EUR 13,600 for each of
the other members. The part of the annual fee that is to be paid in
cash corresponds to the approximate sum necessary for the payment of
the income taxes on the fees. The annual fees encompass the full term
of office of the Board of Directors.
Auditors
Ernst & Young Oy was re-elected as Auditor for the next term. Päivi
Virtanen, Authorised Public Accountant, was re-elected as Deputy
Auditor. The remuneration of the auditor shall be based on invoicing.
Share capital
The share capital of Orion Corporation is EUR 92,238,541.46. The
total number of shares is 141,257,828 shares consisting of 55,261,240
Class A shares and 85,996,588 Class B shares. The counter book value
of each share is approximately EUR 0.65. At General Meetings of
Shareholders, each Class A share provides 20 (twenty) votes and each
Class B share one (1) vote. Both share classes provide equal rights
to the company's assets and dividends. On the basis of the Articles
of Association, a shareholder can demand conversion of his/her Class
A shares into Class B shares. In 1-3/2007, a total of 293,000 Class A
shares were converted into Class B shares.
Authorisations of the Board of Directors
The Board of Directors has an authorisation by the Shareholders'
Meeting on 2 April 2007 to acquire and convey the company's own
shares. The Board has no existing authorisation to raise the share
capital or to issue a bond loan, convertible loan or stock options.
Ownership base
At the end of March 2007, Orion had altogether 37,968 shareholders,
of which 35,739 or 94.1% were private individuals. Their holdings
accounted for about 47.8% of the total number of shares and 57.0% of
the total votes. The number of nominee-registered shares was 32.4
million, representing 22.9% of the total shares and 5.4% of the total
votes. No treasury shares are held by the company.
No transactions exceeding the flagging limits set in the Finnish
Securities Market Act have been brought to the attention of the
company.
REVIEW OF THE SEGMENTS (PROFORMA)
Pharmaceuticals business
The net sales of the Pharmaceuticals business were EUR 167.9 (163.9)
million and they increased by 3.1% from the comparative period.
Operating profit decreased by 2.1% to EUR 60.7 (62.0) million, and
the EBIT margin was 36.1% (38.1%).
The combined net sales of Orion's proprietary products for
Parkinson's Disease, Stalevo (levodopa, entacapone, carbidopa) and
Comtess/Comtan (entacapone) were at the level of the comparative
period, contributing EUR 54.6 (54.2) million or about one-third of
the total pharmaceutical net sales in both periods. The net sales
from shipments of Stalevo and Comtan to Novartis, the marketing
partner, were EUR 32.9 (36.2) million, about 9% less than in the
comparative period, due to the timings of deliveries. The net sales
generated from Stalevo and Comtess by Orion's own sales organisation
were EUR 21.7 (18.0) million, up by 20.6%. Germany and the UK
continued to be strong growth areas. In Scandinavia, the performance
of Orion's own sales organisation is hampered by large-scale parallel
imports.
A Japanese marketing authorisation was granted for Comtan in late
January 2007, and, having received a price and reimbursement
decision, the product was launched by Novartis in April. In the
already established markets for the entacapone product franchise, the
emphasis of the marketing efforts is largely on Stalevo.
In the IMS sales statistics for 10-12/2006, the combined market share
of Stalevo and Comtess/Comtan of the total wholesales of Parkinson's
Disease medicines in the USA was about 18% (17%), in Germany about
16% (14%), Sweden 19% (19%), and in Finland 29% (32%).
The net sales from the 10 best-selling brands grew by 2.0% and they
accounted for about 51% (52%) of the total pharmaceutical net sales.
The purchases by pharmacies of Burana, a painkiller, have returned to
the long-term average levels since the downswing caused a year ago by
a change in the pharmaceuticals act.
Solomet (also Metypred), a newcomer on the top 10 for the review
period, is a glucocorticoid product family based on
methylprednisolone used for the treatment of a variety of
inflammatory diseases. Most of the sales increase came from the
eastern European markets.
Net sales from the proprietary products franchise were EUR 76.9
(80.5) million, down by 4.5% from the comparative period and
accounting for 46% (49%) of the total pharmaceutical net sales.
Stalevo and the animal sedatives showed growth.
The Specialty Products business generated EUR 61.7 (55.1) million in
net sales, up by almost 12% from the comparative period. A notable
part of the growth came from the successful sales in the domestic
market. The net sales from the Easyhaler franchise of asthma
medicines decreased from the comparative period, which included
stockpiling by the partners for their launch inventories. The
wholesales of Orion's pharmaceutical preparations in Finland were EUR
41.7 (38.1) million, up by about 9% from the comparative period while
the overall market growth was about 5%. Orion also strengthened its
position as the leading marketer of pharmaceuticals in Finland, with
a market share of 9.4% (9.1%) and two percentage units ahead of the
second-largest marketer.
Orion's own foreign sales organisation has increased sales
successfully, contributing about one-third of the total net sales
from human pharmaceuticals. Most positive performance went on in the
German and UK operations as well as in the eastern EU and Russia, the
markets emphasised by the strategy as primary geographic growth
areas.
Animal Health's net sales rose by 13.7%, mostly driven by the
successfully performing own Scandinavian-based sales organisation.
The division accounted for about 10% (9%) of the total pharmaceutical
net sales. The net sales of the animal sedatives Domitor®,
Dexdomitor®, Domosedan® and Antisedan® rose by 14% and they accounted
for about 45% (45%) of the total net sales of the animal health
products. The rights for marketing Domitor and Antisedan in Japan
were transferred to ZENOAQ as of February 2007.
Fermion's net sales from Group-external operations were EUR 11.1
(12.3) million. The impact of intra-Group transactions, i.e. supply
for Orion's own use, has been eliminated from the figures.
Pharmaceutical research and development
Pharmaceutical R&D expenses were EUR 20.7 (20.2) million for the
review period, and they represented 12.4% (12.4%) of the
pharmaceutical net sales.
The largest ongoing study, STRIDE-PD, is a major Phase 3 study on
Parkinson's Disease, seeking to investigate if Stalevo medication can
delay the onset of motor complications, i.e. dyskinesias compared
with conventional levodopa/carbidopa medication. The study, under way
since late 2004, is being carried out in collaboration with Novartis
in 14 countries. It involves altogether 740 patients, each being
treated at least two years. Results are anticipated in the first half
of 2008.
A research programme is under way in clinical Phase 1 for the
development of a more efficient COMT inhibitor than entacapone.
The clinical Phase 3 is being started in May with dexmedetomidine
(Precedex®) as a long-term infusion for the sedation of patients in
intensive care, with an objective to have the product registered in
the EU. The product is already available in the USA and Japan as a
sedative for patients in intensive care, administrable for up to 24
hours.
A separate stock exchange release has been published today about the
situation of the Simdax project.
The LEVET programme, which is studying the efficacy of levosimendan
in the treatment of heart diseases in dogs, is being taken to the
last research phase with an aim to receive marketing authorisations.
In early research phases, Orion is investigating molecules affecting
alpha 2 receptors in the central nervous system, and selective
androgen receptor modulators (SARM), among others.
Recently, Orion has entered into a research collaboration agreement
with Aurigene Discovery Technologies, Ltd, and Indian-based discovery
services company, with a goal to identify completely new medicinal
approaches to treat cancers. Orion will have exclusive worldwide
rights for the compounds developed under the collaboration.
Diagnostics business
Orion Diagnostica continued to show positive performance. The net
sales increased by 5.0% to EUR 11.8 (11.2) million, driven by
QuikRead tests which are used for the identification of infections on
the basis of the CRP content in a blood sample. The sales of Uricult,
a test for the detection of urinary tract infections, also showed
favourable development in the review period.
Product sales by the own sales organisation, which encompasses the
Nordic countries, went on showing good growth. In the export markets,
the best growth percentages were achieved in China, France, Czech,
Austria and the UK.
The operating profit improved by 14.8% from the comparative period to
EUR 3.2 (2.8) million, and the EBIT margin was 27.6%. The good
performance is mainly consequence of the strong focus of the sales
efforts on the most profitable products.
During the review period, a new rapid hygiene test, Hygicult ON, was
launched on the first markets. The product can be used, e.g., for
monitoring cleaning efficiency on the basis of the amount of proteins
remained on a purified surface.
Espoo, 25 April 2007
Board of Directors of Orion Corporation
Orion Corporation
Jukka Viinanen Jari Karlson
President and CEO CFO
Contact persons:
Jukka Viinanen, President and CEO, phone +358 10 426
3710
Jari Karlson, CFO, phone +358 10 426 2883, gsm +358 50 966 2883
Anne Allo, VP, Communications, phone +358 10 426 3735, gsm +358
50 966 3735
Press conference in Finnish
A Finnish press conference for the media and institutional investors
will be held today, Wednesday, 25 April 2007, starting at 14.30 p.m.
at the Diana Auditorium, address Erottajankatu 5, Helsinki. The
language of the event is Finnish. The Finnish presentation can be
followed on-line via the Internet homepage
www.orion.fi/sijoittajille, or via the Kauppalehti Live web service,
www.kauppalehti.fi/live.
Teleconference in English
A teleconference in English for questions and answers will be
arranged today, Wednesday, 25 April 2007, starting at 17.00 p.m.
Finnish time (15.00 GMT). Advice for participating in the conference
is provided on the front page of www.orion.fi/investors.
Webcasting
A webcast presentation of this financial review will become available
in English later in the evening of
25 April on www.orion.fi/investors and www.kauppalehti.fi/live.
Interim Reports for periods 1-6 and 1-9 of 2007 will be published as
follows:
Interim Report 1-6/2007 Monday, 6 August
2007
Interim Report 1-9/2007 Wednesday, 24
October 2007
The financial reviews, reports and the related presentation material
of Orion are available on the homepage www.orion.fi/investors as of
publication. The homepages also provide a facility for registration
on the respective companies' mailing lists for publications and news
releases.
TABLES
GROUP INCOME STATEMENT
EUR million 1-3/2007 1-3/2006 Change 1-12/06 Financial
Proforma % Proforma period
7-12/2006
Net sales 179.2 173.5 +3.2 % 641.1 311.2
Cost of goods sold -54.0 -49.7 +8.6 % -205.2 -105.2
Gross profit 125.2 123.8 +1.1 % 435.8 205.9
Other operating income 0.7 1.5 -54.1 % 13.8 11.6
Selling and marketing
expenses -33.6 -32.4 +3.8 % -128.9 -63.2
Research and development
expenses -21.6 -21.1 +2.7 % -84.1 -43.1
Administrative expenses -9.6 -9.0 +6.3 % -39.9 -20.4
Operating profit 61.1 62.9 -2.9 % 196.7 90.9
Financial income 1.3 1.3 +3.5 % 3.5 1.8
Financial expenses -0.5 -0.8 -38.2 % -3.0 -1.2
Profit before taxes 61.9 63.3 -2.3 % 197.3 91.4
Income tax expense -16.3 -16.6 -1.9 % -52.2 -24.8
Profit for the period 45.5 46.7 -2.4 % 145.1 66.6
of which attributable to:
Parent company
shareholders 45.5 46.7 -2.4 % 145.1 66.6
Minority 0.0 0.0 -43.9 % 0.0 0.0
Earnings per share, EUR* 0.32 0.33 -3.9 % 1.03 0.47
Depreciation and
amortisation 8.5 8.8 -3.0 % 34.7 17.2
Employee benefit expenses 36.1 34.7 +4.0 % 145.8 73.3
*) The figure has been calculated from the profit attributable to the
parent company.
GROUP BALANCE SHEET:
ASSETS
EUR million 3/2007 3/2006 Change 12/2006
Proforma %
Non-current assets
Property, plant and equipment 184.6 192.8 -4.3% 187.1
Goodwill 13.5 13.5 +0.0% 13.5
Other intangible assets 21.9 24.4 -10.6% 21.9
Investments in associates 0.1 0.1 +0.0% 0.1
Available-for-sale investments 1.0 1.0 -1.6% 1.0
Pension asset 54.2 47.7 +13.8% 52.7
Deferred tax assets 1.2 1.5 -22.7% 1.4
Other non-current receivables 3.8 4.3 -12.0% 3.8
Non-current assets total 280.2 285.4 -1.8% 281.4
Current assets
Inventories 106.6 105.2 +1.3% 107.2
Trade receivables 82.8 80.3 +3.1% 75.0
Other receivables 12.8 15.0 -14.5% 14.4
Cash and cash equivalents 145.1 32.7 +343.6% 110.0
Current assets total 347.2 233.2 +48.9% 306.6
ASSETS TOTAL 627.4 518.6 +21.0% 588.1
BALANCE SHEET:
EQUITY AND LIABILITIES
EUR million 3/2007 3/2006 Change 12/2006
Proforma %
Equity
Share capital 92.2 88.2 +4.6% 92.2
Share issue - 9.3 - -
Share premium 17.8 23.2 -23.3% 17.8
Expendable fund 23.0 - - 23.0
Other reserves 0.5 0.7 -35.5% 0.5
Retained earnings 355.2 212.2 +67.4% 309.9
Equity of the parent company
shareholders 488.7 333.6 +46.5% 443.5
Minority interest 0.0 0.0 -7.2% 0.0
Equity total 488.7 333.6 +46.5% 443.5
Non-current liabilities
Deferred tax liabilities 51.0 51.2 -0.5% 51.5
Pension liability 0.9 0.7 +16.6% 0.9
Provisions 0.4 2.0 -81.7% 0.6
Interest-bearing non-current
liabilities 7.8 8.2 -5.1% 7.5
Other non-current liabilities 1.8 1.4 +31.0% 1.8
Non-current liabilities total 61.8 63.5 -2.7% 62.3
Current liabilities
Trade payables 26.2 41.1 -36.4% 29.2
Other current liabilities 47.7 67.4 -29.3% 49.9
Provisions 0.7 0.3 +139.9% 0.9
Interest-bearing current liabilities 2.4 12.6 -81.3% 2.3
Current liabilities total 76.9 121.5 -36.7% 82.3
EQUITY AND LIABILITIES TOTAL 627.4 518.6 +21.0% 588.1
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Equity
of the
parent
Change in company
EUR million Share Share Expendable Other translation Retained share- Minority
capital premium fund reserves differences earnings holders interest Total
Equity
1 July 2006 92.2 17.8 23.0 0.5 -3.5 246.8 376.8 0.0 376.8
Change in
translation
differences 0.1 0.1 0.1
Profit for
the period 66.6 66.6 -0.0 66.6
Recognised
income and
expenses
total 0.1 66.6 66.7 -0.0 66.7
Other
changes -0.0 -0.0 -0.0
Equity
1 January
2007 92.2 17.8 23.0 0.5 -3.4 313.3 443.5 0.0 443.5
Change in
translation
differences -0.3 -0.3 -0.3
Profit for
the period 45.5 45.5 -0.0 45.5
Recognised
income and
expenses
total -0.3 45.5 45.3 -0.0 45.3
Other
changes -0.0 -0.0 -0.0
Equity
30 March
2007 92.2 17.8 23.0 0.5 -3.7 358.9 488.7 0.0 488.7
CASH FLOW STATEMENT
1-3/2007 1-3/2006 1-12/2006 Financial
Proforma Proforma period
EUR million 7-12/2006
Cash flow from operating
activities
Operating profit 61.1 62.9 196.7 90.9
Adjustments 6.2 5.8 16.0 4.3
Change in working capital -12.9 -31.7 -18.6 22.5
Interest paid 0.1 -0.7 -3.8 -1.5
Interest received 1.1 1.3 3.5 1.7
Income taxes paid -13.0 -8.1 -52.5 -36.3
Net cash from operating
activities 42.4 29.6 141.4 81.6
Cash flow from investing
activities
Purchases of property, plant
and equipment and intangible
assets -6.8 -4.7 -22.8 -12.3
Proceeds from sale of property,
plant and equipment, intangible
assets and available-for-sale
investments 0.0 -1.2 -1.2 -
Net cash used in investing
activities 0.1 0.3 13.0 12.3
Cash flow from financing
activities -6.7 -5.6 -10.9 0.0
Cash flow from financing
activities
Share issue and share capital
increase based on the use of
stock options 0.0 9.0 21.4 -
Change in short-term loans -0.3 -21.0 -47.5 -1.0
Repayments of long-term loans -0.2 -0.0 -0.6 -0.4
Dividends paid 0.0 -103.7 -118.2 0.0
Net cash used in financing
activities -0.5 -115.7 -144.9 -1.4
Net change in cash and cash
equivalents 35.3 -91.7 -14.4 80.2
Cash and cash equivalents at
the beginning
of the period 110.0 124.5 124.5 29.8
Foreign exchange adjustments -0.2 -0.1 -0.1 0.0
Net change in cash and cash
equivalents 35.3 -91.7 -14.4 80.2
Cash and cash equivalents at
the end of the period 145.1 32.7 110.0 110.0
CHANGES IN PROPERTY, PLANT AND EQUIPMENT
1-3/2007 1-3/2006 1-12/2006 Financial Proforma Proforma period
EUR million 7-12/2006
Carrying amount at the
beginning of the period 187.1 196.4 196.4 191.2
Additions 4.0 3.2 19.0 10.5
Disposals -0.2 -0.3 -2.7 -1.9
Depreciation -6.3 -6.5 -25.6 -12.7
Carrying amount at the end of
the period 184.6 192.8 187.1 187.1
CONTINGENT LIABILITIES
3/2007 3/2006 12/2006
EUR million Proforma
Contingent for own liabilities:
Mortgages on land and buildings 25.5 27.9 25.5
of which those on behalf of the Orion
Pension Fund 9.0 11.4 9.0
Guarantees 1.8 1.9 1.8
Contingent for liabilities of other parties:
Mortgages on land and buildings - - -
Guarantees - 7.1 -
Leasing liabilities (excl. finance leasing
contracts) 4.8 3.9 5.2
Other liabilities 0.3 0.3 0.3
Currency forward contracts:
- fair value 0.5 0.2 0.3
- nominal value 65.9 83.2 58.5
RELATED-PARTY TRANSACTIONS
1-3/2007 1-3/2006 1-12/2006 Financial
Proforma Proforma period
EUR million 7-12/2006
Management benefits 0.9 0.6 2.1 1.0
Non-current liabilities to the
pension fund
at the end of the period 6.0 6.0 6.0 6.0
NET SALES BY BUSINESS SEGMENTS
EUR million 1-3/2007 1-3/2006 Change 1-12/06 Financial period Proforma % Proforma 7-12/2006
Pharmaceuticals 167.9 162.9 +3.1% 601.4 292.0
Diagnostics 11.8 11.2 +5.0% 41.5 19.9
Group items -0.5 -0.5 -4.0% -1.8 -0.7
Group total 179.2 173.5 +3.2% 641.1 311.2
OPERATING PROFIT BY BUSINESS SEGMENTS
EUR million 1-3/2007 1-3/2006 Change 1-12/06 Financial period
Proforma % Proforma 7-12/2006
Pharmaceuticals 60.7 62.0 -2.1% 189.9 84.6
Diagnostics 3.2 2.8 +14.8% 6.6 2.1
Group items -2.9 -1.9 +46.7% 0.2 4.2
Group total 61.1 62.9 -2.9% 196.7 90.9
REVIEW BY ANNUAL QUARTERS
Net sales by business segments by annual quarters
4-6/05 7-9/05 10-12/05 1-3/06 4-6/06 7-9/06 10-12/06 1-3/07
EUR million Proforma Proforma Proforma Proforma Proforma
Pharmaceuticals 140.0 133.8 137.2 162.9 146.4 139.9 152.1 167.9
Diagnostics 10.3 9.5 10.5 11.2 10.4 9.5 10.4 11.8
Group items -0.6 -0.4 -0.5 -0.5 -0.5 -0.4 -0.4 -0.5
Group total 149.7 142.8 147.2 173.5 156.3 149.0 162.2 179.2
Operating profit by business segments by annual quarters
4-6/05 7-9/05 10-12/05 1-3/06 4-6/06 7-9/06 10-12/06 1-3/07
EUR million Proforma Proforma Proforma Proforma Proforma
Pharmaceuticals 39.1 42.7 27.7 62.0 43.3 45.1 39.5 60.7
Diagnostics 2.0 1.4 1.1 2.8 1.7 1.5 0.6 3.2
Group items -3.0 1.8 -2.9 -1.9 -2.1 7.7 -3.5 -2.9
Group total 38.1 45.9 25.9 62.9 42.9 54.3 36.6 61.1
Net sales by geographic segments by annual quarters
4-6/05 7-9/05 10-12/05 1-3/06 4-6/06 7-9/06 10-12/06 1-3/07
EUR million Proforma Proforma Proforma Proforma Proforma
Finland 46.9 44.8 52.6 44.8 45.4 45.2 49.0 50.1
Scandinavia 22.7 21.3 22.4 22.5 24.2 21.2 23.4 24.1
Other
Europe 44.7 51.4 46.1 69.6 52.7 52.8 58.4 63.7
North
America 21.8 14.2 15.6 20.4 20.5 20.1 22.0 24.1
Other
markets 13.6 11.2 10.4 16.2 13.4 9.7 9.4 17.1
Group total 149.7 142.8 147.2 173.5 156.3 149.0 162.2 179.2
REVIEW OF THE SEGMENTS
Pharmaceuticals business
Key figures
EUR million 1-3/2007 1-3/2006 Change 1-12/06 Financial
Proforma % Proforma period
7-12/2006
Net sales 167.9 162.9 +3.1% 601.4 292.0
Operating profit 60.7 62.0 -2.1% 189.9 84.6
% of net sales 36.1 % 38.1 % 31.6 % 29.0 %
Capital expenditure 5.7 3.8 +50.5% 23.1 11.8
Net sales from
proprietary products 76.9 80.5 -4.5% 274.9 131.0
R&D expenditure 20.7 20.2 +2.8% 79.7 40.6
Personnel at the end of
the period 2 805 2 701 +3.8% 2 742 2 742
Breakdown of pharmaceutical net sales by business areas
EUR million 1-3/2007 1-3/2006 Change 1-12/06
Proforma % Proforma
Proprietary Products 71.3 77.0 -7.4% 256.6
Specialty Products 61.7 55.1 +11.9% 218.7
Animal Health 17.5 15.4 +13.7% 63.3
Fermion 11.1 12.3 -9.5% 38.5
Other pharmaceutical business 6.3 3.0 +106.7% 24.2
Group total 167.9 162.9 +3.1% 601.4
Net sales from the 10 best-selling pharmaceutical brands of Orion
EUR million 1-3/2007 1-3/2006 Change 1-12/06
Proforma % Proforma
Stalevo (Parkinson's disease) 33.0 32.1 +3.0% 111.3
Comtess / Comtan (Parkinson's) 21.6 22.1 -2.6% 74.7
Domitor, Domosedan, Antisedan
(animal sedatives) 7.9 6.9 +13.9% 26.0
Burana (inflammatory pain) 4.1 2.3 +79.8% 12.0
Easyhaler (astma) 3.7 4.8 -21.6% 15.9
Divina series (menopausal symptoms) 3.6 3.9 -8.1% 16.2
Simdax (heart failure) 3.5 4.3 -18.0% 13.2
Calcimagon (osteoporosis) 3.4 3.6 -6.0% 11.7
Enanton (prostate cancer) 3.3 3.4 -3.8% 13.3
Solomet (inflammatory diseases) 2.3 1.3 +70.6% 6.5
Total 86.4 84.7 +2.0% 300.7
Share of total pharmaceutical
net sales 51 % 52 % 50 %
Diagnostics business
Key figures
EUR million 1-3/2007 1-3/2006 Change 1-12/06 Financial
Proforma % Proforma period
7-12/2006
Net sales 11.8 11.2 +5.0% 41.5 19.9
Operating profit 3.2 2.8 +14.8% 6.6 2.1
% of net sales 27.6% 25.3% 15.9% 10.6%
Capital expenditure 0.1 0.3 -46.6% 1.4 0.8
Personnel at the end of
the period 292 286 +1.9% 289 289
FACTS ABOUT ORION CORPORATION SHARES
as on 31 March 2007
+-------------------------------------------------------------------+
| | Class A | | Class B | | A and B total |
|---------------+---------+-------+---------+------+----------------|
| Share capital | 36.1 | MEUR | 56.1 | MEUR | 92.2 | MEUR |
|---------------+---------+-------+---------+------+---------+------|
| Total number | 55 261 | | 85 996 | | 141 257 | |
| of shares | 240 | pcs | 588 | pcs | 828 | pcs |
|---------------+---------+-------+---------+------+---------+------|
| Minimum share | | | | | | |
| capital | | | | | 50 | MEUR |
|---------------+---------+-------+---------+------+---------+------|
| Maximum share | | | | | | |
| capital | | | | | 2 000 | MEUR |
|---------------+---------+-------+---------+------+---------+------|
| Share of | | | | | | |
| total share | | | | | | |
| stock | 39 | % | 61 | % | 100.0 | % |
|---------------+---------+-------+---------+------+---------+------|
| Counter book | | | | | | |
| value of | ca | | ca | | | |
| share | 0.65 | EUR | 0.65 | EUR | | |
|---------------+---------+-------+---------+------+---------+------|
| Votes per | | | | | | |
| share | 20 | votes | 1 | vote | | |
|---------------+---------+-------+---------+------+---------+------|
| Trading code | | | | | | |
| on the | | | | | | |
| Helsinki | | | | | | |
| Stock | | | | | | |
| Exchange | ORNAV | | ORNBV | | | |
+-------------------------------------------------------------------+
Both share classes provide equal rights to the company assets and
dividends.
TRADING IN ORION CORPORATION SHARES IN 1 January - 31 March 2007
+-------------------------------------------------------------------+
| | Class A | Class B | A and B total |
|------------------+--------------+----------------+----------------|
| Total number of | 969 | | 27 323 | | 28 292 | |
| shares traded | 461 | pcs | 392 | pcs | 853 | pcs |
|------------------+-------+------+---------+------+---------+------|
| Share of total | | | | | | |
| stock | 1.8 | % | 31.8 | % | 20.0 | % |
|------------------+-------+------+---------+------+---------+------|
| Lowest quotation | 15.07 | EUR | 15.96 | EUR | | |
|------------------+-------+------+---------+------+---------+------|
| Highest | | | | | | |
| quotation | 18.15 | EUR | 18.16 | EUR | | |
|------------------+-------+------+---------+------+---------+------|
| Closing | | | | | | |
| quotation on 2 | | | | | | |
| Jan. 2007 | 16.50 | EUR | 16.50 | EUR | | |
|------------------+-------+------+---------+------+---------+------|
| Closing | | | | | | |
| quotation on 30 | | | | | | |
| March 2007 | 18.00 | EUR | 18.04 | EUR | | |
|------------------+-------+------+---------+------+---------+------|
| Market | | | | | | |
| capitalisation | | | | | | |
| on | | | | | | |
| 30 March 2007 | 994.7 | MEUR | 1 551.4 | MEUR | 2 546.1 | MEUR |
+-------------------------------------------------------------------+
PERFORMANCE PER SHARE
1-3/2007 1-3/2006 Change % 1-12/2006 Financial
Proforma Proforma period
7-12/2006
Earnings per share,
EUR 0.32 0.33 -3.9% 1.03 0.47
Equity per share, EUR 3.46 2.38 +45.1% 3.14 3.14
Average number of
shares,
1000 pcs 141,258 139,102 140,561 141,258
Distribution:
Helsinki Exchanges
Media
Publisher:
Orion Corporation
Orionintie 1 A, 02200 Espoo
Homepage: www.orion.fi
