Paths to reach Orion’s growth target 2025 · Paths to reach Orion’s growth target 2025 Jari Karlson, CFO Jefferies 2019 Healthcare Conference. New York, 5 June 2019

Paths to reach Orion’sgrowth target 2025

Jari Karlson, CFO

Jefferies 2019 Healthcare Conference

New York, 5 June 2019

This presentation contains forward-looking statements which involve risks and uncertainty factors. These statements are not based on historical facts but relate to the Company’s future activities and performance. They include statements about future strategies and anticipated benefits of these strategies.

These statements are subject to risks and uncertainties. Actual results may differ substantially from those stated in any forward-looking statement. This is due to a number of factors, including the possibility that Orion may decide not to implement these strategies and the possibility that the anticipated benefits of implemented strategies are not achieved. Orion assumes no obligation to update or revise any information included in this presentation.

Jefferies 2019 Healthcare Conference, New York © Orion Corporation 5 June 2019 2

Disclaimer

37%

48%

8%5% 2%

Sales by business

Proprietary ProductsSpecialty ProductsAnimal HealthFermionContract manufacturing

3

Orion at a glance (2018 figures)

32%

16%31%

6%

15%

Sales by market area

FinlandScandinaviaOther EuropeNorth AmericaROW

Jefferies 2019 Healthcare Conference, New York © Orion Corporation 5 June 2019

On 21 April 2018, Orion signed an agreement on the sale of all shares in Orion Diagnostica Oy (i.e. the Orion Diagnostica business division). Following the transaction, that was completed on 30 April 2018, Orion Diagnostica business is reported as discontinued operation. All figures in this presentation are for continuing operations, if not otherwise stated.

Net sales

Operating profit

Personnel

R&D investments

6 production sites in Finland

Own sales unit

in 26 European countries

977 MEUR

253 MEUR

3,154

104 MEUR

Strategic growth target: Net sales EUR 1.5 billion in 2025

Financial objectives:

Growing net sales more rapidly than growth of the pharma market. Achievement of this objective requires continuous investment in development of the product portfolio.

≥ Keeping the equity ratio at least 50%.

> Maintaining profitability at a good level. The aim is operating profit that exceeds 25% of net sales. €

Distributing an annual dividend that in the next few years will be at least EUR 1.30 per share, and increasing the dividend in the long term.


Orion’s financial objectives remain the same –Strategic growth target just made more tangible


Today’s agenda – key elements of Orion’s growth

Proprietary Products and R&D

Specialty Products

Growth drivers

Generate cash flow to fund growth

investments

Support growth

Animal Health

Fermion

Defensiveindustry

Support growth

APIs for R&D and Proprietary

Products

Less vulnerable to

macroeconomic volatility

Grow Grow and defend Maintain and defend

Sales in 2018:mEUR 90 (+18%)

Sales in 2018:mEUR 59 (+4%)

Sales in 2018:mEUR 100 (-3%)

Sales in 2018:mEUR 63 (-2%)


Proprietary Products growth driven by Easyhaler in theshort term – mid and long term growth from pipeline

Late stage clinical development pipeline In-licensing

Darolutamide (nmCRPC) Filed, 1st approval late 2019e

Darolutamide (mHSPC)Ph III (completion 2022 H2e) Product acquisitions

ODM-109 (REFALS study)Ph III (completion 2020 H2e)

Easyhaler tiotropiumBioequivalence study Collaboration projects

Project Indication Phase Registration

Easyhaler® tiotropium COPD Bioequivalence study

Darolutamide 1) ARAMIS study Prostate cancer (nmCRPC) I II III FDA Priority Review

Darolutamide 1) ARASENS study Prostate cancer (mHSPC) I II III

ODM-109 (oral levosimendan) ALS I II III

ODM-203 (targeted FGFR+VEGFR inhibitor) Solid tumours I II

ODM-207 (BET protein inhibitor) Cancer I

ODM-208 (CYP11A1 inhibitor) Prostate cancer (CRPC) I

ODM-209 (CYP11A1 inhibitor) Prostate cancer (CRPC), breast cancer

I

1) In collaboration with Bayer

= Completed

= Ongoing

Orion’s key clinical drug development programs


More information on R&D projects: www.orion.fi/en/rd/orion-rd/pipeline/

● A structurally unique androgen-receptor antagonist

● Ongoing trials: ARAMIS for nmCRPC and ARANSENS for mHSPC

● Bayer has global commercial rights.

● Orion to co-promote in 16 European countries.

● Orion will manufacture the product.

● Milestone payments upon first commercial sales:

– mEUR 45 in the US, mEUR 20 in the EU and mEUR8 in Japan

● Tiered royalties on product sales

– Approx. 20%, including production revenue.

– Global in-market peak sales potential ≥ EUR 1bn

● Potential one-off payments if certain sales targets are met.


Darolutamide: Invented at Orion, co-developed with Bayer

N N

NC

F3C

S

OO

HNF

Enzalutamide (MDV-3100)EnzalutamideN

N N

NC

F3C

S

OO

HNF

ARN-509Apalutamide

Cl

NC

NN N

H

O

N NH

OH

ODM-201 Darolutamide(development phase product)

About darolutamide Collaboration with Bayer

Key findings of ARAMIS phase III trial: Darolutamide shows substantial efficacy and favourable safety profile

HR = Hazard ratio; RR = Risk reduction1N Engl J Med; DOI: 10.1056/NEJMoa1815671

● Positive trend in overall survival (OS):

– 29% reduction in risk of death at interim analysis (P=0.045).

● Darolutamide has a favorablesafety profile:

– It didn’t increase rates of critical adverse events compared to placebo.

– Discontinuation rates weresimilar between darolutamide and placebo.

30Jefferies 2019 Healthcare Conference, New York © Orion Corporation 5 June 2019

40.4

18.4

Darolutamide Placebo

Metastasis freesurvival1 (months)

40.3

25.4

Darolutamide Placebo

Time to pain progression1 (months)

HR=0.41 59% RR

HR=0.65 35% RR


REFALS phase III trial – oral levosimendan for ALS

450 patients

• Levosimendan 1-2mg/day(300 patients)

• Placebo (150 patients)

Primary endpoints

• 12 weeks: Slow vital capacity(Breathing capacity compared to normal subjects)

• 48 weeks: ALS functional rating scale (Overall assessment of ALS symptoms)

104 ALS centres in 14 countries

10

Objective

• Demonstrate benefit of oral levosimendan on respiratory and overall function in ALS

Levosimendan originally developed for the treatment of acute decompensated heart failure.

Orphan Drug Designation in the US and in the EU.

Phase III trial conducted by Orion

Specialty Products Business as Orion’s bedrock

Net sales by region 2019 MAT3

466 MEUR 58%

15%

14%

13%

Net sales by product 2019 MAT3

71%

24%

5%

Generic drugsSelf-care productsBiosimilars

FinlandScandinaviaEastern Europe and RussiaOther markets


466 MEUR

ORION’S STRENGHTS

Known and trusted local brand

In-depth Nordic market understanding

Broad portfolio with constant flow of new products

Competitive supply chain management


Specialty Products growth opportunities

Generic prescriptiondrugs

OTC and self-care drugs

Biosimilars

In-licensing & product acquisitionsNiche generics

Expand to new market areas

Build strong brands in selectedmarkets

Expand business by collaborationarrangements

Be the commercial partner of choiceespecially in the Nordic


Growth opportunities for Animal Health and Fermion

Animal Health Fermion

Maximise currentproprietaryportfolio

Utilise strong localpresence in theNordic and Eastern Europe

In-licensingStrong brandCollaboration arrangements

R&D Deliver late stage pipeline

• APIs for Orion’sproprietary products

• Utilise third party sales opportunities

• While Orion invests in growth, we will also highly value the ability to pay dividends.

• Orion’s financial objective is to distribute an annual dividend that in the next few years will be at least EUR 1.30 per share, and increasing the dividend in the long term.


Orion creates shareholder value also through dividends

14

1.00

0.95

1.00

1.20

1.30

1.30

1.25

1.30

1.30

1.55

1.45

1.50

0.100.06

0.12

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividend per share Repayment of capital per share

Last 5 years*

TSR for the last 5 years +70%

+50% stock price increase +19% dividend return

Average annual TSR is +11.1%


…with a healthy total return for shareholders

Last 10 years*

TSR for the last 10 years +365%

+214% stock price increase+151% dividend return

Average annual TSR is +16.6%

*)All TSR figures are calculated for Orion’s B stock to end of Q1/19 (31 March 2019)

15

• Maintain solid profitability and generate cash for growth investments

• Smart portfolio management• New market entries

• Darolutamide M0• Darolutamide M1• Easyhaler tiotropium• ODM-109• Animal Health projects

• Maximise current portfolio • Successful commercialization

of pipeline products• Utilise in-licensing

opportunities

Proprietary Products R&D

Specialty Products

Animal HealthFermion


Key takeaways: Growth driven by R&D and Proprietary Products

Animal Health: • Maximise current portfolio• Successful commercialization of

pipeline products• Collaboration and in-licensing

opportunitiesFermion: APIs for proprietary products

Net salesOrion estimates that in 2019 net sales will be slightly higher than in 2018 (net sales in 2018 were EUR 977 million).

The estimated net sales include the possible EUR 45 million milestone payment associated with the commercialisation of darolutamide.

Operating profit

Operating profit is estimated to be at the same level as in 2018 (operating profit in 2018 was EUR 253 million).

The estimated operating profit includes the possible EUR 45 million milestone payment associated with the commercialisation of darolutamide as well as significant investments in actions to generate growth.

Outlook for 2019

17

=+


Thank you!

Documents

Paths to reach Orion’s growth target 2025 · Paths to reach Orion’s growth target 2025 Jari Karlson, CFO Jefferies 2019 Healthcare Conference. New York, 5 June 2019