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Orion Oyj : Orion Group Financial Statement Release for 2012

         Orion Oyj : Orion Group Financial Statement Release for 2012

ORION CORPORATION  FINANCIAL STATEMENT RELEASE 2012  5 FEBRUARY 2013 at
12:00 noon EET

Orion's net sales in 2012 totalled EUR 980 million (EUR 918 million in 2011),
up by 7% on the previous year.

  *Operating profit was EUR 281 (283) million.

  *Profit before taxes was EUR 279 (282) million.

  *Equity ratio was 61% (64%).

  *ROCE before taxes was 46% (49%).

  *ROE after taxes was 41% (43%).

  *Basic earnings per share were EUR 1.48 (1.49).

  *Cash flow per share before financial items was EUR 1.23 (1.10). 

  *Board's proposal for dividend per share is EUR 1.30 (1.30) per share.

  *Orion estimates that in 2013 net sales will be at similar level to 2012
    and operating profit will be slightly lower than in 2012.

ORION'S KEY FIGURES FOR THE REVIEW PERIOD

                                     Q4/12 Q4/11 Change %  2012  2011 Change %
Net sales, EUR million               254.4 236.1    +7.8% 980.4 917.9    +6.8%
International operations, EUR
million                              187.1 174.3    +7.3% 723.1 677.2    +6.8%
 % of net sales                     73.5% 73.9%          73.8% 73.8%
Operating profit, EUR million         59.4  59.6    -0.2% 280.9 282.9    -0.7%
 % of net sales                     23.4% 25.2%          28.7% 30.8%
Profit before taxes, EUR million      58.8  59.5    -1.2% 279.3 282.0    -0.9%
 % of net sales                     23.1% 25.2%          28.5% 30.7%
Income tax expense, EUR million       15.8  14.3   +10.8%  70.4  72.4    -2.8%
R&D expenses, EUR million             31.7  25.4   +24.7% 104.8  87.5   +19.8%
 % of net sales                     12.4% 10.8%          10.7%  9.5%
Capital expenditure, EUR million      10.8  12.9   -16.3%  46.8  49.5    -5.3%
 % of net sales                      4.2%  5.5%           4.8%  5.4%
Assets total, EUR million                                 836.9 779.1    +7.4%
Equity ratio, %                                           61.1% 64.2%
Gearing, %                                                -1.7% -6.9%
Interest-bearing liabilities, EUR
million                                                   136.7  88.7   +54.1%
Non-interest-bearing liabilities,
EUR million                                               189.0 190.5    -0.8%
Cash and money market investments,
EUR million                                               145.2 123.0   +18.1%
ROCE (before taxes), %                                    46.2% 49.4%
ROE (after taxes), %                                      41.3% 43.3%
Basic earnings per share, EUR         0.30  0.32    -5.1%  1.48  1.49    -0.4%
Diluted earnings per share, EUR       0.30  0.32    -5.1%  1.48  1.49    -0.4%
Cash flow per share before financial
items, EUR                            0.32  0.33    -4.6%  1.23  1.10   +12.1%
Equity per share, EUR                                      3.63  3.55    +2.2%
Proposed dividend per share, EUR                           1.30  1.30
Personnel at the end of the period                        3,486 3,425    +1.8%
Average personnel during the period                       3,495 3,328    +5.0%
Personnel expenses, EUR million                           212.1 186.0   +14.0%

President and CEO Timo Lappalainen's review

"Significant progress in Orion's research projects"

"Our net sales were higher than in the previous year and our operating profit
was similar to 2011 despite clearly higher research expenses.

"As anticipated, deliveries of our Parkinson's drugs to Novartis were lower
than in the previous year. Total sales generated by Stalevo^® and Comtess^® in
Orion's own sales organisation were, however, slightly higher. We were also
able to compensate for a significant part of the decrease in deliveries to
Novartis through sales of generic entacapone products to the USA.

"Sales from the rest of our pharmaceuticals product portfolio grew well
throughout the year. We were able to strengthen our market position because in
most markets our growth was faster than general growth of the pharmaceuticals
market. This was the case in all the Nordic markets, for example. Sales also
grew strongly in our other divisions, such as Fermion, which manufactures
active pharmaceutical ingredients, Contract Manufacturing and Orion
Diagnostica.

"Sales of Dexdor^® intensive care sedative (dexmedetomidine) launched at the
end of 2011 developed better than expected during the year and it is now
available in most European countries. Dexmedetomidine (Precedex^®) sold
through our partner Hospira outside Europe also continued to perform well
during the year.

"We made significant progress in our research projects in 2012. We received
positive Phase I and II results with an alpha-2c adrenoceptor antagonist
developed for the treatment of Alzheimer's disease, an androgen receptor
antagonist developed for the treatment of advanced prostate cancer and a new
more effective levodopa product. Our project to expand the Easyhaler^® product
family into combined formulations advanced to the stage of preparing the
application for marketing authorisation for the first product
(budesonide-formoterol), which we intend to submit in Europe in the first
quarter of 2013. We also began Phase I trials with a new COMT inhibitor for
Parkinson's disease. As the number of research projects increased, our
research expenses were also clearly higher in the past year than in 2011.

"Following the increase in sales in recent years, Orion's production capacity
reached almost full utilisation rate in 2012. To develop and ensure future
growth, delivery reliability and quality standards, we started investment
projects in 2012, one significant project being the packaging and logistics
centre to be established in Salo.

"Sales of our Parkinson's drugs will continue to decline due to generic
competition. The rest of the product portfolio will continue to grow, but
products with lower margins will account for an increasing proportion of
sales. Progress in our research projects will increase our research expenses.
For reasons such as these, we estimate that our net sales will be at similar
level to the previous year and our operating profit will be slightly lower
than in 2012. More information on the outlook estimate and the basis for it
can be found on pages 6-7 of this report."

Events in 2012

On 7 February Orion announced that it would continue development of an
inhalable budesonide-formoterol combined formulation.

On 26 April Orion announced that it was suing Mylan in the United States to
enforce its US patents covering the proprietary drug Stalevo^®.

On 1 May the United States District Court gave its decision on the US patent
infringement lawsuit concerning Orion's proprietary drug Precedex^®.

On 3 July Orion upgraded its full-year outlook for 2012.

On 5 September Orion announced that the total number of Orion Corporation B
shares under the management of The Capital Group Companies, Inc. had increased
to more than one-twentieth (1/20) of the total number of Orion Corporation
shares.

On 9 October Orion upgraded its full-year outlook for 2012.

On 30 November Orion announced that it planned to apply for marketing
authorisation for a combined budesonide-formoterol formulation in the
Easyhaler^® product family.

On 20 December Orion announced that it had reached a settlement with Mylan
Pharmaceuticals Inc. to a patent dispute over the proprietary drug Comtan^®.

Events after the period

There were no significant events after the period.

News conference and teleconference

A news conference and teleconference on the published results will be held
today, Tuesday 5 February 2013, 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 927747 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 and 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 2013

Deadline for registering for Annual General Meeting  Thursday 14 March 2013
at 10:00

Annual General Meeting    2013                Tuesday 19
March 2013 at 14:00 in Helsinki

Record date for dividend distribution    Friday 22 March 2013

Dividend payment date      Thursday 4 April 2013

Interim Report January-March 2013    Tuesday 23 April 2013

Interim Report January-June 2013    Tuesday 30 July 2013

Interim Report January-September 2013   Tuesday 22 October 2013

Capital Markets Day in Helsinki     Wednesday 20 November 2013

The Annual Report 2012 will be published on the Company's website at the
latest in week 9/2013.

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 2012

Net sales

The Orion Group's net sales in 2012 were up by 7% at EUR 980 million (EUR 918
million in 2011). The net effect of currency exchange rates was plus EUR 16
million.

The Pharmaceuticals business's net sales were up by 7% at EUR 929 (871)
million. Net sales of Orion's Stalevo^® (carbidopa, levodopa and entacapone)
and Comtess^®/Comtan^® (entacapone) Parkinson's drugs were down by 6% at EUR
250 (267) million, which was 27% (31%) of the Pharmaceuticals business's net
sales. The net sales of other products in the portfolio, including EUR 17
million of net sales of generic entacapone products, were up by 12% at EUR 679
(604) million. The branded products based on in-house R&D accounted for EUR
429 (421) million, or 46% (48%) of the Pharmaceuticals business's net sales.

The Diagnostics business's net sales were up by 9% at EUR 54 (50) million.

Operating profit

The Orion Group's operating profit was EUR 281 (283) million.

The Pharmaceuticals business's operating profit was EUR 289 (288) million. Net
sales and operating profit were enhanced by long-term compensatory payments of
EUR 10 million related to the pricing of partner deliveries. In the
comparative period net sales and operating profit were enhanced by a
non-recurring payment of EUR 7 million. The gross profit percentage was lower
than in the comparative period because products with lower margins accounted
for an increasing proportion of sales. As anticipated, research and
development costs were higher than in the comparative period.

The Diagnostics business's operating profit was down by 47% at EUR 2.6 (4.9)
million as marketing and product development costs increased, although sales
grew well.

Operating expenses

The Group's sales and marketing expenses were EUR 206 (205) million.

R&D expenses were up by 20% at EUR 105 (88) million and accounted for 11%
(10%) of the Group's net sales. Pharmaceutical R&D expenses amounted to EUR 97
(81) million. Research projects are reported in more detail under
Pharmaceuticals in the Business Reviews.

Administrative expenses were up at EUR 45 (41) million.

Other operating income and expenses increased profit by EUR 6 (3) million. The
income includes EUR 3 million insurance compensation payments relating to the
fire at the Turku manufacturing plant in 2011.

Group's profit

The Group's profit before taxes totalled EUR 279 (282) million. Basic earnings
per share were EUR 1.48 (1.49) and diluted earnings per share were EUR 1.48
(1.49). Equity per share was EUR 3.63 (3.55). The return on capital employed
before taxes (ROCE) was 46% (49%) and the return on equity after taxes (ROE)
41% (43%).

Financial position

The Group's gearing was -2% (-7%) and the equity ratio 61% (64%).

The Group's total liabilities at 31 December 2012 were EUR 326 (279) million.
At the end of the period, interest-bearing liabilities amounted to EUR 137
(89) million, including EUR 107 (66) million of long-term loans.

The Group had EUR 145 (123) 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.

Cash flow

Cash flow from operating activities was higher than in the comparative period
at EUR 221 (199) million. Cash flow was higher because the amount tied up into
working capital grew by less than in the comparative period and the amount of
taxes paid was lower.

Cash flow from investing activities was EUR -47 (-44) million.

Cash flow from financing activities was EUR -152 (-200) million. Cash flow
from financing activities improved on the comparative period because new
long-term loans were raised.

Capital expenditure

The Group's capital expenditure totalled EUR 47 (50) million. This comprised
EUR 40 (30) million on property, plant and equipment and EUR 7 (19) million on
intangible assets.

Outlook for 2013

Net sales will be at similar level to 2012 (net sales in 2012 were EUR 980
million).

Operating profit will be slightly lower than in 2012 (operating profit in 2012
was EUR 281 million).

The Group's capital expenditure will be about EUR 80 million excluding
substantial corporate or product acquisitions (the Group's capital expenditure
in 2012 was EUR 47 million).

Basis for outlook

Competition in the Finnish market will remain intense in 2013. However,
product launches will continue to support Orion's position as market leader.

The generic competition that commenced in April 2012 in the United States
decreased sales of Orion's Parkinson's drugs. The decrease will continue in
2013 because generic products will be in the markets during the whole year
and, in addition, the number of competitors will be greater than in 2012. US
markets accounted for about EUR 60 million of the net sales of Orion's
Parkinson's drugs in 2011 and about EUR 33 million in 2012. In addition, sales
of generic entacapone products to the United States amounted to about EUR 17
million in 2012.

The entacapone molecule patent expired in November 2012 in the main European
countries for Orion, and as a result there will be generic competitors to
Comtan and Comtess in these markets in 2013. Data protection of Stalevo will
remain valid in the European Union until October 2013 and generic competition
is not expected to commence in Europe during the current year, even though the
first generic marketing authorisation application in Europe has already been
submitted. The total sales of Orion's Parkinson's drugs in Europe are expected
to be slightly lower than in 2012. Elsewhere in the world generic competition
is not expected to have a material impact on sales of these products in the
current year.

A slight decrease in the gross profit as percentage of net salesis expected
because sales of generic products will account for an even greater proportion
of Orion's total sales and price competition will remain intense in many
markets.

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 in2013 were planned
mainly during the previous year.

Research and development costs will be higher than in 2012. 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 2013 are either ongoing from the
previous year or at an advanced stage of planning, therefore their cost level
can be estimated rather accurately. The accrued costs are materially affected
by how the costs arising are allocated between Orion and its collaboration
partners. The outlook estimate does not assume that Orion receives any
material milestone payments from collaboration partners in 2013.

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.

Orion's production capacity is nearly fully utilised following the increase in
sales in recent years. Orion will make greater investments in production in
2013 than in recent years to develop and ensure future growth, delivery
reliability and quality standards. One significant project is the packaging
and logistics centre to be established in Salo, but significant investments
will be also made in current manufacturing plants, for instance to increase
the production capacity in Easyhaler drugs.

Near-term risks and uncertainties relating to the outlook

Sales of Orion's Parkinson's drugs will decrease in 2013 due to generic
competition. The effects of the competition 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. Royalties from Precedex may decrease materially in mid 2013
if Hospira is not granted six months of pediatric exclusivity for the product
in the United States.

Most of the exchange rate risk relates to the US dollar. Typically, only less
than 15% of Orion's net sales comes 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.

Orion's currently high production capacity utilisation rate and its broad
product range may cause risks to the delivery reliability and make it more
challenging than before to maintain the very high quality standard required.
Authorities and key customers in different countries undertake regular and
detailed inspections of development and manufacturing of drugs. Possibly
required corrective actions may at least temporarily reduce delivery
reliability.

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.
Orion generally undertakes Phase III clinical trials in collaboration with
other pharmaceutical companies. Commencement of these collaboration
relationships and their structure also materially affect the schedule and cost
level of research projects.

Group's financial objectives

Orion's financial objectives are ensuring the Group's financial stability and
profitable growth.

These objectives are achieved through:

  *Increasing net sales. Achievement of this objective requires continuous
    investment in development of the product portfolio.

  *Maintaining profitability at a good level, the aim being operating profit
    that exceeds 20% of net sales.

  *Keeping the equity ratio at least 50%.

Orion's dividend distribution 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 246,624,622.55, including EUR
197,740,936.54 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 140,931,837, on which the
total dividend payment would be EUR 183,211,388.10. The Group's payout ratio
for the financial year 2012 would be 87.8% (87.2%). The dividend payment date
would be 4 April 2013, and shareholders registered in the Company's
shareholder register on 22 March 2013 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 63,163,234.45 remain in equity.

Strategy

In November 2012, Orion's Board of Directors confirmed that the strategic
focus remains the same for 2013-2017. Orion's strategic aims are profitable
growth and increased shareholder value, whilst keeping business risks under
control.

Orion's strategic focus continues to be on:

  *growth of business operations through a competitive product portfolio

  *strengthening market position in Europe

  *improving the flexibility and efficiency of operations

All of Orion's business divisions have a major role in achieving the financial
objectives of the Group, but the two largest divisions, Proprietary Products
and Specialty Products, are crucial. Orion strives to enhance synergies
between patent-protected proprietary drugs, off-patent (i.e. generic)
prescription drugs and self-care products.

Competitive product portfolio

Growth is based on a competitive product portfolio developed through Orion's
in-house R&D, collaborative research and active product acquisition. Potential
corporate acquisitions are also continually evaluated.

Orion's core therapy areas are central nervous system drugs, oncology and
critical care drugs, and inhalable Easyhaler pulmonary drugs. Orion's R&D
operations concentrate on early-phase development. In addition to in-house
research, Orion invests in early-phase research jointly with universities and
other pharmaceutical companies. In the late phase of clinical development,
Orion aims to share the costs with other pharmaceutical companies. Orion
generally seeks partnerships for undertaking at least Phase III clinical
trials, which are the final phase, especially for projects oriented towards
markets outside Europe. Orion also seeks to acquire new early-phase product
candidates and further developed products to reinforce the research pipeline
based on its own research projects.

Orion continues the work to build up a competitive product portfolio. As
regards Proprietary Products customers, the focus is on neurologists,
urologists, pulmonary doctors, critical care doctors and other health care
professionals in these specialised fields. For Specialty Products, important
customer groups in Finland, for example, are general practitioners and
pharmacy staff. Orion's primary aim is to exploit all business opportunities
from the drugs in the current product portfolio, such as Dexdor^®, Stalevo^®,
Simdax^® and the Easyhaler product family. Orion's next projects in late-phase
development and commercialisation are development of inhalable Easyhaler
combined formulation products, development of the Parkinson's drug Stalevo for
Japanese markets, development of a more effective levodopa product (ODM-101)
and development of a drug (ORM-12741) for treatment of Alzheimer's disease. In
early clinical phases Orion is developing drugs for treatment of advanced
prostate cancer (ODM-201) and for treatment of Parkinson's disease (ODM-103, a
new more effective COMT inhibitor). Orion also aims to ensure continuance of
clinical trials through active early-phase research.

To be successful in the generic (i.e. off-patent) prescription drug and
self-care product sector, it is especially important to have a broad and
continually renewed portfolio. Orion seeks to secure a continuous stream of
product launches through active product acquisition and its own development
work. Orion determines the product portfolios individually for each market. In
Finland Orion strives to maintain a broad range of prescription drugs and
self-care products. In other key markets, such as Scandinavia, Eastern Europe
and Russia, Orion's product portfolio focuses on generic prescription drugs in
certain therapy areas.

Strengthening market position in Europe

In specialised medical care, Orion concentrates on certain customer groups
through its own sales network throughout Europe and through partners
worldwide. Orion markets generic prescription drugs and self-care products
mainly in the Nordic countries and Eastern Europe through its own sales
network. Orion aims to strengthen its market leadership in Finland and make
the Scandinavian countries a domestic market in which it has a strong
presence. Orion's aim in all the Nordic countries is to have a presence with a
broad product range. In Central and Southern Europe the emphasis is on
proprietary products and in Eastern Europe on generic products. Outside
Europe, Orion operates mainly with partners.

Flexible and efficient operations

Because the operating environment changes all the time, the agility and
flexibility of operations will in future be as crucial as cost-effectiveness.
Orion's key projects to improve operating efficiency have been implementing a
new research and development model, building up partnership models for
early-phase research, maintaining high delivery reliability in the supply
chain cost efficiently, capacity reorganisation (including investment in
Salo), managing diversification, improving the competitiveness of sales
operations and general simplification and streamlining of operating practices.

Networking and seeking partners throughout the value chain will facilitate
improvements to competitiveness and establishing a foundation for profitable
future growth. R&D collaboration and active networking will enable Orion to
increase the number of new research projects and balance the risks of projects
in the research pipeline. Through partnerships in the supply chain, Orion will
improve the efficiency of its operations by determining which products it will
manufacture itself and to what extent products or semi-finished products will
be acquired through its collaboration network. Partnerships in sales and
marketing will ensure a broad network of distribution channels through which
proprietary drugs developed by Orion will be distributed worldwide. Moreover,
the product portfolio can be expanded by selling the partners' products
through Orion's own sales network.

Through these strategic actions, Orion seeks to enhance its capability to
continue operating as a pharmaceuticals and diagnostics company that provides
new products and engages in R&D.

Shares and shareholders

On 31 December 2012 Orion had a total of 141,257,828 (141,257,828) shares, of
which 43,267,218 (44,993,218) were A shares and 97,990,610 (96,264,610) B
shares. The Group's share capital was EUR 92,238,541.46 (92,238,541.46). At
the end of December 2012 Orion held 325,991 (413,754) B shares as treasury
shares. On 31 December 2012 the aggregate number of votes conferred by the A
and B shares was 963,008,979 (995,715,216) excluding treasury shares.

At the end of December 2012, Orion had 56,519 (57,188) registered
shareholders.

Voting rights conferred by shares

Each A share entitles its holder to twenty (20) votes at General Meetings 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 the General Meetings of Shareholders. The Company
itself and Orion Pension Fund do not have the right to vote at Orion
Corporation's General Meetings 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 2012 a total of 1,726,000 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 2012 the market capitalisation of the Company's shares
excluding treasury shares was EUR 3,120 million.

In 2012 a total of 4,054,722 A shares and 84,056,278 B shares were traded on
NASDAQ OMX Helsinki. The total value of the shares traded was EUR 1,435
million. During the year, 9% of the A shares and 87% of the B shares were
traded. The average turnover in Orion's shares was 62%.

The price of Orion's A shares rose by 45% and the price of its B shares rose
by 47% during 2012. On 31 December 2012 the closing quotation was EUR 22.05
for the A shares and EUR 22.18 for the B shares. The highest quotation for
Orion's A shares in 2012 was EUR 22.57 and the lowest quotation was EUR 13.31.
The highest quotation for the B shares in 2012 was EUR 22.74 and the lowest
quotation was EUR 13.31.

Orion shares are also traded on various alternative trading platforms in
addition to NASDAQ OMX Helsinki. In 2012 NASDAQ OMX Helsinki accounted for
about 95% of the entire trading volume in Orion A shares. In 2012 NASDAQ OMX
Helsinki accounted for about 50% of the entire trading volume in Orion B
shares (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 2012 the Board of
Directors had outstanding authorisation to convey 309,337 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
share-based incentive plan for the Group key persons. The Plan includes
earning periods and the Board of Directors annually decided on the beginning
and duration of the earning periods in 2010, 2011 and 2012. The Board of
Directors decided 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 12 March 2012 Orion transferred altogether 87,763 Orion Corporation B
shares held by the Company as a share bonus for 2011 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 16.3848, which was the volume weighted average quotation of Orion
Corporation B shares on 12 March 2012. The total transaction price of the
transferred shares was therefore EUR 1,437,979.20.

Share ownership

Orion's shares are in the book-entry system maintained by Euroclear Finland,
and Euroclear Finland maintains Orion's official shareholder register.

At the end of December 2012 Orion had a total of 56,519 (57,188) registered
shareholders, of whom 95% (95%) were private individuals holding 48% (50%) of
the entire share stock and 64% (65%) of the total votes. There were altogether
47 (44) million nominee-registered shares, which was 33% (31%) of all shares,
and they conferred entitlement to 7% (6%) of the total votes.

At the end of December 2012 Orion held 325,991 (413,754) B shares as treasury
shares, which is 0.2% (0.3%) of the Company's total share stock and 0.03%
(0.04%) of the total votes.

Notification threshold

On 5 September 2012 Orion announced that on 3 September 2012 the total number
of Orion Corporation B shares under the management of The Capital Group
Companies, Inc. had increased to more than one-twentieth (1/20) of all Orion
Corporation shares. According to the notification, The Capital Group
Companies, Inc. owned 8,313,900 Orion B shares, which was 5.89% of the shares
and 0.84% of Orion's total number of votes.

Management's shareholdings

At the end of 2012, the members of the Board of Directors owned a total of
2,161,100 of the Company's shares, of which 1,825,264 were A shares and
335,836 B shares. At the end of 2012, the President and CEO owned 44,750 of
the Company's shares, which were all B shares. The members of the Group's
Executive Management Board (excluding the President and CEO) owned a total of
126,565 of the Company's shares, which were all B shares. Thus, the Company's
executive management held 1.65% of all of the Company's shares and 3.84% of
the total votes.

The Company does not have stock option programmes.

Management

Changes in Executive Management Board

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
the Orion Business Planning and Control function.

Corporate Governance Statement

Orion will publish its Annual Report for 2012, including the Report by the
Board of Directors and Financial Statements for 2012, and a separate Corporate
Governance Statement, on the Company's website at the latest in week nine.

Personnel

The average number of employees in the Orion Group in 2012 was 3,495 (3,328).
At the end of December 2012 the Group had a total of 3,486 (3,425) employees,
of whom 2,783 (2,705) worked in Finland and 703 (720) outside Finland.

Salaries and other personnel expenses in 2012 totalled EUR 212 (186) million.

Significant legal proceedings

Legal proceedings against the Sandoz companies

On 1 May 2012 Orion announced that it had been informed that the United States
District Court for the District of New Jersey had given its decision on the
patent infringement lawsuit that Orion Corporation and Hospira, Inc. filed on
4 September 2009 to enforce US Patents Nos. 4,910,214 and 6,716,867. The
respondents in the case are Sandoz Inc., Sandoz International GmbH and Sandoz
Canada Inc. (hereinafter collectively "Sandoz").

The court found that US Patent No. 4,910,214 is valid and enforceable. Sandoz
is permanently enjoined from the commercial manufacture, use, sale or offer
for sale in the United States or importation into the United States of its
generic dexmedetomidine product until such time as US Patent No. 4,910,214
expires, including any applicable extensions. The Court also ordered that the
effective date of Sandoz's Abbreviated New Drug Application No. 91-465 shall
not occur until the expiration of Patent No. 4,910,214, including any
applicable extensions. Separately, the court found that US Patent No.
6,716,867 is invalid as obvious.

Orion's licensee Hospira, Inc. sells Precedex^® in the United States and in
markets outside Europe.

Orion and Hospira have filed an appeal against the decision to the court of
appeals, and so has Sandoz.

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. Consideration of the case has
been suspended pending the conclusion of the above-mentioned appeal
proceedings against the Sandoz companies concerning Patent No. 6,716,867.

Legal proceedings against Mylan Pharmaceuticals Inc.

On 20 December 2012 Orion announced that Orion Corporation and Mylan
Pharmaceuticals Inc. had agreed a settlement to the patent infringement
lawsuit filed by Orion in the United States against Mylan Pharmaceuticals Inc.
concerning Mylan's submission of an abbreviated new drug application (ANDA)
for a generic version of Orion's Comtan^® with strength 200 mg.

The lawsuit was filed by Orion against Mylan in the United States in 2011.
Under the terms of the settlement agreement, Mylan may launch a generic
version of Comtan with strength 200 mg in US markets on 1 April 2013 at the
earliest.

Subject to the Court's approval, the case will be dismissed and the US Patent
No. 5,446,194 will remain in force.

In addition, on 26 April 2012 Orion Corporation filed a patent infringement
lawsuit in the United States against Mylan Pharmaceuticals Inc. to enforce its
US Patents Nos. 5,446,194, 6,500,867 and 6,797,732.

Mylan is seeking authorisation to produce and market generic tablets
(strengths 12.5/50/200 mg; 18.75/75/200 mg; 25/100/200 mg; 31.25/125/200 mg;
37.5/150/200 mg and 50/200/200 mg) in the United States, with carbidopa,
levodopa and entacapone as active ingredients in the same proportion as in
Orion's proprietary drug Stalevo^® for treatment of Parkinson's disease.
Stalevo is an enhanced levodopa treatment which is marketed in the United
States by Orion's exclusive licensee, Novartis.

Business Reviews

Pharmaceuticals

Review of human pharmaceuticals market

According to statistics collected by Finnish Pharmaceutical Data Ltd, Finnish
wholesale of human pharmaceuticals in 2012 totalled EUR 2,031 (1,972) million,
up by 3% 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 and 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 2012 amounted to EUR 219 (202) million, up by 9% compared with the
previous year. Orion's market share of Finnish pharmaceuticals markets was 11%
(10%).

According to IMS Health pharmaceutical sales statistics, in the 12-month
period ending in September 2012 the total sales of Parkinson's drugs in the
United States were up by 3% at USD 751 million (USD 727 million in the
previous 12-month period). 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 2012 totalled EUR 954 (987) 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 about a quarter of
the Group's net sales. Sales of entacapone drugs in the United States remained
stable, and 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 2012, sales of entacapone drugs in the
United States totalled USD 195 million (USD 190 million in the previous
12-month period). Stalevo and Comtan accounted for 83% of these sales and
generic entacapone products supplied by Orion accounted for 17%. Sales
remained stable at a total of EUR 157 (157) million in the five largest
markets in Europe, and were up by 23% at EUR 66 (53) million in Japan. The
market share of entacapone 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 27% at USD 248
million in the 12-month period ending in September 2012 (USD 194 million in
the previous 12-month period). About four-fifths of the sales amounting to USD
193 (153) million were in the United States, where Precedex sales grew by 27%.

Net sales and operating profit of the Pharmaceuticals business

Net sales of the Pharmaceuticals business in 2012 were EUR 929 (871) million,
up by 7% on the previous year. The operating profit of the Pharmaceuticals
business was similar to the previous year at EUR 289 (288) million. The
operating profit of the Pharmaceuticals business was 31% (33%) of the
segment's net sales.

Net sales of Orion's top ten pharmaceuticals in 2012 were up by 5% at EUR 473
(451) million. They accounted for 51% (52%) of the total net sales of the
Pharmaceuticals business.

Net sales of the branded products based on own in-house R&D were up by 2% at
EUR 429 (421) million in 2012. These products accounted for 46% (48%) 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 2012 were similar to the previous year at
EUR 404 (409) 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 2012 totalled EUR 250 (267) million.
Sales of Parkinson's drugs were down by 6% and accounted for 27% (31%) of the
total net sales of the Pharmaceuticals business. The decrease in sales is
mainly due to commencement of generic competition in the United States in
April 2012, which decreased deliveries to Novartis. Net sales from deliveries
of Stalevo and Comtan to Novartis were down by 11% at a total of EUR 152 (171)
million. Deliveries of Stalevo to Novartis were down by 8% at EUR 95 (103)
million, and deliveries of Comtan by 17% at EUR 56 (68) million. Total net
sales generated by Stalevo and Comtess in Orion's own sales organisation were
up slightly at EUR 98 (96) million. Sales through Orion's own sales network
were up by 6% at EUR 86 (81) million for Stalevo and down by 16% at EUR 13
(15) 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 undertaken epidemiological studies and
results from them were submitted to authorities for review in the third
quarter of 2012.

Net sales of Simdax^®, a drug for treatment of acute decompensated heart
failure, in 2012 were similar to the previous year at EUR 44 (44) million.

Total net sales of the Easyhaler^® product family for treatment of asthma and
chronic obstructive pulmonary disease were down by 12% in 2012 at EUR 27 (31)
million. Sales of Easyhaler products through Orion's own sales network in
Europe continued to grow strongly, but sales through partners were lower than
in the previous year. Orion continued repatriating the rights to Easyhaler
products, and this transitional phase reduced sales through partners in the
financial period.

Net sales of the Precedex^® intensive care sedative (dexmedetomidine) were up
by 38% in 2012 at EUR 45 (33) 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.

Net sales of Orion's dexdor^® intensive care sedative (dexmedetomidine) in
2012 were EUR 13 (1) million. Launching of the product progressed as planned
in 2012, and it is already available in over fifteen European countries. It is
anticipated that the product will be launched in Southern Europe and France
during the current year.

Specialty Products

Net sales of the Specialty Products business division's off-patent, i.e.
generic prescription drugs and self-care products in 2012 were up by 14% at
EUR 367 (321) million. The growth was enhanced among others by sales of
Orion's generic entacapone products, which commenced at the beginning of the
year and totalled EUR 17 million, and are reported as part of the net sales of
the Specialty Products business division.

The launches of generic prescription drugs and self-care products were
weighted more towards prescription drugs than before, and for that reason the
total number of launches was less than in 2011. There were 116 (135) product
launches (product/market) in 2012.

Net sales of Orion's human pharmaceuticals in Finland were up by 8% at EUR 238
(220) million in 2012. Specialty Products accounted for the majority of sales.
Orion managed to increase its sales, especially in prescription drugs.

Net sales of Orion's human pharmaceuticals in Eastern Europe and Russia in
2012 were up by 16% at altogether EUR 63 (54) million. Specialty Products
account for the majority of sales in the region.

Animal Health

In the Nordic countries and some Eastern European markets Orion itself sells
veterinary drugs, and in other markets the Company operates through partners.
In addition, in the Nordic countries Orion markets and sells veterinary drugs
manufactured by several international companies. Orion's Animal Health
business division has a strong market position in the Nordic countries, its
home markets.

Net sales of the Animal Health business division in 2012 were EUR 69 (68)
million. Sales of the animal sedatives at EUR 23 (23) million accounted for
33% (34%) of the division's net sales. Orion's animal sedatives are
Dexdomitor^® (dexmedetomidine), Domitor^® (medetomidine), Domosedan^®
(detomidine) and Antisedan^® (atipamezole).

Fermion

Fermion manufactures active pharmaceutical ingredients for Orion and other
pharmaceutical companies. Its product range comprises nearly 30 pharmaceutical
ingredients. Fermion's net sales in 2012 excluding pharmaceutical ingredients
supplied for Orion's own use were up by 12% at EUR 48 (43) 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. Capacity utilisation at Fermion's plants was very high during the
period under review. Capacity utilisation was increased by manufacturing
active ingredients required for development work on Orion's own proprietary
drugs, in addition to the normal product range.

Research and development projects

The Group's R&D expenses in 2012 were up by 20% at EUR 105 (88) million, of
which the Pharmaceuticals business accounted for EUR 97 (81) million. The
Group's R&D expenses accounted for 11% (10%) of the Group's net sales. R&D
expenses also include expenses relating to development of the current
portfolio.

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. Following the positive results obtained in the
pharmacokinetic studies of the Easyhaler development programme in late 2012,
Orion plans to apply for marketing authorisation for the budesonide-formoterol
formulation. Orion anticipates that the application for marketing
authorisation in Europe could be submitted in the first quarter of 2013.

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^® drug for the
Japanese markets. Novartis initiated the necessary clinical bioavailability
study in November 2012.

Orion is continuing to develop an androgen receptor antagonist (ODM-201) for
the treatment of advanced prostate cancer jointly with Endo Pharmaceuticals
Inc. with the objective of approval of the drug globally. Phase I/II clinical
trials on safety, efficacy and pharmacokinetics showed that initial results
concerning efficacy were promising, and the product was well tolerated with no
significant adverse events detected. The results were presented at the ESMO
international oncology congress at the end of September 2012. Development of
the product is now in Phase II clinical trials. Negotiations to find a
suitable partner for markets outside Europe and North America are ongoing.

Orion has completed Phase II clinical trials with an alpha-2c adrenoceptor
antagonist (ORM-12741). The trials investigated the efficacy and safety of the
drug candidate in treatment of cognitive and behavioral symptoms relating to
Alzheimer's disease. The results from Phase II clinical trials in 2012 were
positive, and negotiations to find a suitable partner for the next development
phase are ongoing.

Orion is developing a new more effective levodopa product (ODM-101) based on
optimised new formulations and doses of known compounds. The results obtained
from Phase II clinical trials in 2012 were positive. Negotiations to find a
suitable partner for the next development phase are ongoing.

In 2012 Orion began Phase I clinical safety trials with a new COMT inhibitor
(ODM-103). It is a new molecule that enhances the therapeutic effects of
levodopa used to treat Parkinson's disease by blocking the COMT enzyme. The
pre-clinical study results indicated that the new molecule is more effective
than the COMT inhibitor entacapone, which is already in the markets.

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.

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 2012 were up by 9% at EUR 54 (50) million.

QuikRead^® infection tests remained the main product, with sales continuing
strong in the review period. Sales of the more user-friendly prefilled
QuikRead 101 system and QuikRead go^®, a new generation testing instrument,
developed well. Launching of the FOB (Faecal Occult Blood) quantitative test
for the QuikRead 101 system began during the review period. The new product
version helps to screen gastrointestinal disorders.

Launching of two QuikRead go tests for the QuikRead go system also commenced
during the review period. With a QuikRead go CRP+Hb test, a patient's
C-reactive protein (CRP) and haemoglobin (Hb) values can be determined in one
blood sample. The QuikRead go Strep A test helps to detect patients with
pharyngitis who would benefit from antibiotic treatment.

Sales growth was strongest in China, Japan and Germany. In Nordic countries
sales grew strongly in Norway, and in the other Nordic countries sales
continued at nearly the same level as in the previous year. In 2012 Orion
Diagnostica focused strongly on taking the early-phase technology it had
acquired in the previous year into full use in its research and product
development programmes.

The operating profit of the Diagnostics business was EUR 2.6 (4.9) million.
The profit development was affected among othersby the above mentioned
increases in expenditure on product development and sales.

Espoo, 5 February 2013

Board of Directors of Orion Corporation

Orion Corporation

Timo Lappalainen  Jari Karlson
President and CEO CFO

Tables

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR million                        Q4/12 Q4/11 Change %   2012   2011 Change %
Net sales                          254.4 236.1    +7.8%  980.4  917.9    +6.8%
Cost of goods sold                 -96.2 -85.2   +12.9% -350.0 -305.1   +14.7%
Gross profit                       158.2 150.8    +4.9%  630.4  612.8    +2.9%
Other operating income and
expenses                             4.3   0.5  +774.3%    6.3    3.0  +108.8%
Sales and marketing expenses       -58.2 -53.7    +8.6% -205.7 -204.8    +0.4%
R&D expenses                       -31.7 -25.4   +24.7% -104.8  -87.5   +19.8%
Administrative expenses            -13.1 -12.7    +3.3%  -45.3  -40.6   +11.5%
Operating profit                    59.4  59.6    -0.2%  280.9  282.9    -0.7%
Finance income                       0.1   1.9   -96.5%    4.9    5.0    -3.2%
Finance expenses                    -0.7  -1.9   -64.2%   -6.6   -6.0    +9.7%
Share of associated companies'
results                              0.0   0.0             0.1    0.0
Profit before taxes                 58.8  59.5    -1.2%  279.3  282.0    -0.9%
Income tax expense                 -15.8 -14.3   +10.8%  -70.4  -72.4    -2.8%
Profit for the period               43.0  45.2    -5.0%  208.9  209.5    -0.3%
OTHER COMPREHENSIVE INCOME INCLUDING TAX EFFECTS
Change in value of cash flow
hedges                               0.0  -0.3            -0.2   -1.4
Change in value of
available-for-sale financial
assets                               0.0  -0.1             0.3   -0.3
Translation differences             -0.8   1.1             1.1    0.6
Other comprehensive income net of
tax                                 -0.7   0.7             1.1   -1.1
Comprehensive income for the
period including tax effects        42.2  45.9    -8.0%  210.1  208.4    +0.8%
PROFIT ATTRIBUTABLE TO:
Owners of the parent company        43.0  45.3    -5.0%  208.9  209.5    -0.3%
Non-controlling interests            0.0   0.0             0.0    0.0
COMPREHENSIVE INCOME ATTRIBUTABLE
TO:
Owners of the parent company        42.2  45.9    -8.0%  210.1  208.4    +0.8%
Non-controlling interests            0.0   0.0             0.0    0.0
Basic earnings per share, EUR ^1)   0.30  0.32    -5.1%   1.48   1.49    -0.4%
Diluted earnings per share, EUR
^1)                                 0.30  0.32    -5.1%   1.48   1.49    -0.4%
Depreciation, amortisation and
impairment                          11.4   9.5   +19.9%   40.0   42.5    -6.0%
Personnel expenses                  59.3  51.7   +14.7%  212.1  186.0   +14.0%
^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                                         12/12 12/11 Change %
Property, plant and equipment                       205.3 190.7    +7.7%
Goodwill                                             13.5  13.5
Intangible rights                                    58.0  66.6   -12.9%
Other intangible assets                               4.3   4.8    -8.6%
Investments in associates                             1.4   1.4    +4.8%
Available-for-sale financial assets                   0.5   1.1   -55.6%
Pension asset                                        39.6  37.4    +5.9%
Deferred tax assets                                   2.0   1.4   +42.2%
Other non-current assets                              1.6   1.8   -12.8%
Non-current assets total                            326.2 318.6    +2.4%
Inventories                                         179.2 151.4   +18.4%
Trade receivables                                   151.5 155.3    -2.5%
Other receivables                                    34.8  30.8   +12.9%
Cash and cash equivalents                           145.2 123.0   +18.1%
Current assets total                                510.7 460.5   +10.9%
Assets total                                        836.9 779.1    +7.4%
EQUITY AND LIABILITIES
EUR million                                         12/12 12/11 Change %
Share capital                                        92.2  92.2
Expendable fund                                       0.5   0.5
Other reserves                                        0.8  17.6   -95.4%
Retained earnings                                   417.7 389.6    +7.2%
Equity attributable to owners of the parent company 511.2 499.9    +2.3%
Non-controlling interests                             0.0   0.0
Equity total                                        511.3 500.0    +2.3%
Deferred tax liabilities                             43.1  42.2    +2.0%
Pension liability                                     0.3   0.5   -32.6%
Provisions                                            0.1   0.3   -54.8%
Interest-bearing non-current liabilities            107.4  66.0   +62.8%
Other non-current liabilities                         0.8   0.3  +184.5%
Non-current liabilities total                       151.8 109.3   +38.9%
Trade payables                                       59.3  66.3   -10.6%
Current tax liabilities                               8.0   6.4   +24.0%
Other current liabilities                            77.4  74.5    +4.0%
Provisions                                                  0.0
Interest-bearing current liabilities                 29.3  22.7   +29.0%
Current liabilities total                           173.9 169.9    +2.4%
Liabilities total                                   325.7 279.1   +16.7%
Equity and liabilities total                        836.9 779.1    +7.4%

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 2011        92.2    17.8    8.9      1.6     -4.4     351.2 0.0  467.4
Profit for the
period                                                        209.5      209.5
Other
comprehensive
income:
Change in value of cash flow
hedges                                          -1.4                      -1.4
Change in value of available-for-sale
financial assets                                -0.3                      -0.3
Translation
differences                                               0.6              0.6
Transactions with owners
Dividend and
capital repayment                  -8.5                      -169.0     -177.5
Share-based
incentive plan                                                  1.7        1.7
Transfer between
different
components of
equity                     -17.8            17.8
Other adjustments                            0.0               -0.1       -0.1
Equity at 31
December 2011       92.2            0.5     17.6     -3.8     393.4 0.0  500.0
Profit for the
period                                                        208.9      208.9
Other
comprehensive
income:
Change in value of cash flow
hedges                                          -0.2                      -0.2
Change in value of available-for-sale
financial assets                                 0.3                       0.3
Translation
differences                                               1.1              1.1
Transactions with owners
Dividend and
capital repayment                          -16.9             -183.2     -200.1
Share-based
incentive plan                                                  1.5        1.5
Other adjustments                            0.0               -0.1       -0.1
Equity at 31
December 2012       92.2            0.5      0.8     -2.7     420.5 0.0  511.3

CONSOLIDATED STATEMENT OF CASH FLOWS

EUR million                                                        2012   2011
Operating profit                                                  280.9  282.9
Adjustments                                                        38.9   39.0
Change in working capital                                         -28.9  -42.6
Interest paid                                                      -6.1   -6.2
Interest received                                                   4.9    5.0
Dividends received                                                         0.1
Income taxes paid                                                 -68.6  -79.3
Total net cash flow from operating activities                     221.0  198.9
Investments in property, plant and equipment                      -42.4  -25.6
Investments in intangible assets                                   -6.7  -19.9
Acquisition of an associate                                               -0.0
Sale of a subsidiary less cash and cash equivalents at sale date           0.3
Sales of property, plant and equipment
and available-for-sale investments                                  2.0    1.2
Sales of intangible assets                                                 0.0
Total net cash flow from investing activities                     -47.1  -43.9
Short-term loans raised                                             1.0    0.8
Repayments of short-term loans                                     -2.2   -2.1
Long-term loans raised                                             75.0   19.1
Repayments of long-term loans                                     -26.4  -40.1
Dividends paid and other distribution of profits                 -199.9 -177.5
Total net cash flow from financing activities                    -152.4 -199.7
Net change in cash and cash equivalents                            21.5  -44.7
Cash and cash equivalents at the beginning of the period          123.0  167.2
Foreign exchange differences                                        0.8    0.5
Net change in cash and cash equivalents                            21.5  -44.7
Cash and cash equivalents at the end of the period                145.2  123.0

CHANGES IN PROPERTY, PLANT AND EQUIPMENT

EUR million                                    12/12 12/11
Carrying amount at the beginning of the period 190.7 187.1
Additions                                       40.1  30.3
Disposals                                       -1.1  -1.4
Depreciation and impairments                   -24.5 -25.3
Carrying amount at the end of the period       205.3 190.7

CHANGES IN INTANGIBLE ASSETS (EXCLUDING GOODWILL)

EUR million                                    12/12 12/11
Carrying amount at the beginning of the period  71.3  69.5
Additions                                        6.6  19.1
Disposals                                       -0.0  -0.0
Depreciation and impairments                   -15.5 -17.2
Carrying amount at the end of the period        62.3  71.3

COMMITMENTS AND CONTINGENCIES

EUR million                                             12/12 12/11
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                                                1.5   1.6
OTHER LIABILITIES
Leasing liabilities (excluding finance lease contracts)   6.5   4.5
Other liabilities                                         0.3   0.3

DERIVATIVES

EUR million                             12/12 12/11
CURRENCY FORWARD CONTRACTS AND CURRENCY SWAPS
Fair value, EUR million                   0.3  -0.4
Nominal value, EUR million               52.0  40.7
CURRENCY OPTIONS
Fair value, EUR million                   0.2  -0.2
Nominal value, EUR million               51.3  63.1
INTEREST RATE SWAPS
Fair value, EUR million                  -0.3
Nominal value, EUR million               22.3
CROSS CURRENCY SWAPS
Fair value, EUR million                   0.2   0.3
Nominal value, EUR million                9.6  19.1
ELECTRICITY DERIVATIVES
Fair value, EUR million                  -0.6  -0.4
Nominal value, EUR million                110   153

RELATED PARTY TRANSACTIONS

EUR million                      2012 2011
Management's employment benefits  4.4  4.8

Operating segment performance

NET SALES BY BUSINESS DIVISION

EUR million                      Q4/12 Q4/11 Change %  2012  2011 Change %
Pharmaceuticals                  242.1 223.8    +8.2% 928.9 870.6    +6.7%
     Proprietary Products   103.9 103.4    +0.5% 403.7 408.9    -1.3%
     Specialty Products      97.6  82.5   +18.3% 367.2 320.8   +14.4%
     Animal Health           17.5  19.3    -9.3%  69.2  67.8    +2.0%
     Fermion                 12.0  11.8    +1.4%  48.4  43.3   +11.7%
     Contract manufacturing
     and other               11.2   6.8   +64.2%  40.5  29.7   +36.1%
Diagnostics                       13.1  12.9    +1.6%  54.1  49.5    +9.3%
Group items                       -0.8  -0.6   +28.7%  -2.7  -2.2   +20.3%
Group total                      254.4 236.1    +7.8% 980.4 917.9    +6.8%

OPERATING PROFIT BY BUSINESS AREA

EUR million     Q4/12 Q4/11 Change %  2012  2011 Change %
Pharmaceuticals  62.8  61.4    +2.2% 288.9 287.6    +0.5%
Diagnostics      -0.5   0.7  -178.5%   2.6   4.9   -46.9%
Group items      -2.9  -2.5   +13.1% -10.6  -9.5   +10.7%
Group total      59.4  59.6    -0.2% 280.9 282.9    -0.7%

NET SALES BY ANNUAL QUARTERS

                         2012                    2011
EUR million        Q4    Q3    Q2    Q1    Q4    Q3    Q2    Q1
Pharmaceuticals 242.1 234.2 220.1 232.5 223.8 199.8 215.9 231.0
Diagnostics      13.1  12.1  13.4  15.5  12.9  11.3  11.7  13.7
Group items      -0.8  -0.5  -0.7  -0.6  -0.6  -0.5  -0.6  -0.6
Group total     254.4 245.8 232.8 247.4 236.1 210.7 227.0 244.1

OPERATING PROFIT BY ANNUAL QUARTERS

                       2012                2011
EUR million       Q4   Q3   Q2   Q1   Q4   Q3   Q2   Q1
Pharmaceuticals 62.8 78.6 68.1 79.4 61.4 66.8 67.1 92.3
Diagnostics     -0.5  0.0  0.5  2.5  0.7  0.8  0.7  2.8
Group items     -2.9 -2.3 -2.7 -2.7 -2.5 -2.1 -2.7 -2.1
Group total     59.4 76.3 66.0 79.3 59.6 65.4 65.1 92.9

GEOGRAPHICAL BREAKDOWN OF NET SALES BY ANNUAL QUARTERS

                       2012                    2011
EUR million      Q4    Q3    Q2    Q1    Q4    Q3    Q2    Q1
Finland        67.3  63.3  62.7  64.0  61.7  60.1  59.8  59.1
Scandinavia    33.3  30.3  30.3  32.4  28.5  28.1  30.3  33.4
Other Europe   68.1  76.5  79.2  78.7  79.6  71.5  77.2  80.2
North America  54.7  27.1  30.4  38.4  36.0  24.0  29.2  38.7
Other markets  31.0  48.6  30.2  33.9  30.3  26.9  30.6  32.8
Group total   254.4 245.8 232.8 247.4 236.1 210.7 227.0 244.1

Business reviews

KEY FIGURES FOR PHARMACEUTICALS BUSINESS

EUR million                          Q4/12 Q4/11 Change %  2012  2011 Change %
Net sales                            242.1 223.8    +8.2% 928.9 870.6    +6.7%
Operating profit                      62.8  61.4    +2.2% 288.9 287.6    +0.5%
 % of net sales                     25.9% 27.5%          31.1% 33.0%
R&D expenses                          29.4  23.6   +24.3%  96.6  81.1   +19.1%
 % of net sales                     12.1% 10.6%          10.4%  9.3%
Capital expenditure                    9.4  12.4   -24.4%  42.0  38.8    +8.4%
 % of net sales                      3.9%  5.6%           4.5%  4.5%
Sales revenue from proprietary
products                             110.4 111.3    -0.9% 429.0 421.1    +1.9%
Assets                                                    628.5 597.5    +5.2%
Liabilities                                               127.3 132.2    -3.7%
Personnel at the end of the period                        3,123 3,079    +1.4%

TOP TEN BEST-SELLING PHARMACEUTICAL PRODUCTS

EUR million                          Q4/12 Q4/11 Change %  2012  2011 Change %
Stalevo^®, Comtess^® and Comtan^®
(Parkinson's disease)                 57.9  64.3   -10.0% 250.1 266.7    -6.2%
Precedex^® (intensive care sedative)  16.9  10.6   +59.1%  45.3  33.0   +37.5%
Simdax^® (acute decompensated heart
failure)                              11.5  12.7    -9.4%  43.6  44.0    -0.9%
Easyhaler^® product family
(asthma, COPD)                         6.5   7.5   -13.4%  26.8  30.5   -12.1%
Burana^® (inflammatory pain)           5.8   6.1    -4.3%  23.3  23.5    -0.6%
Dexdomitor^®, Domitor^®, Domosedan^®
and Antisedan^® (animal sedatives)     6.4   8.9   -28.2%  22.8  23.2    -1.9%
Generic entacapone products
(Parkinson's disease)                  4.2   0.3           17.0   0.3
Marevan^® (anticoagulant)              3.6   4.0    -9.2%  15.8  15.6    +1.1%
Divina^® range (menopausal symptoms)   4.0   3.4   +17.1%  15.5  13.2   +17.2%
Dexdor^® (intensive care sedative)     5.0   0.9  +466.3%  13.0   0.9
Total                                121.8 118.6    +2.7% 473.2 450.9    +5.0%
Share of pharmaceutical net sales      50%   53%            51%   52%

KEY FIGURES FOR DIAGNOSTICS BUSINESS

EUR million                        Q4/12 Q4/11 Change %  2012  2011 Change %
Net sales                           13.1  12.9    +1.6%  54.1  49.5    +9.3%
Operating profit                    -0.5   0.7  -178.5%   2.6   4.9   -46.9%
 % of net sales                    3.9%  5.1%           4.8%  9.9%
R&D expenses                         2.4   1.8   +32.9%   8.3   6.4   +29.2%
 % of net sales                   18.3% 14.0%          15.3% 12.9%
Capital expenditure                  1.2   0.3  +260.2%   4.2  10.4   -60.1%
 % of net sales                    9.4%  2.6%           7.7% 21.1%
Assets                                                   47.3  44.4    +6.5%
Liabilities                                              16.2  17.4    -6.6%
Personnel at the end of the period                        340   322    +5.5%

Information on Orion's shares

BASIC SHARE INFORMATION 31 DECEMBER 2012

                                          A shares      B shares         Total
Trading code on NASDAQ OMX Helsinki          ORNAV         ORNBV
Listing day                            1 July 2006   1 July 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                    28.2          64.0          92.2
Counter book value per share, EUR             0.65          0.65
Total number of shares                  43,267,218    97,990,610   141,257,828
% of total share stock                         31%           69%          100%
Number of treasury shares                                325,991       325,991
Total  number  of  shares   excluding 
treasury shares                         43,267,218    97,664,619   140,931,837
Minimum number of shares                                                     1
Maximum number of A and B shares, and
maximum
number of all shares                   500,000,000 1,000,000,000 1,000,000,000
Votes per share                                 20             1
Number of  votes  excluding  treasury 
shares                                 865,344,360    97,664,619   963,008,979
% of total votes                               90%           10%          100%
Total number of shareholders                18,946        43,937        56,519
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 2012

                                                A shares   B shares      Total
Shares traded                                  4,054,722 84,056,278 88,111,000
% of the total number of shares                     9.1%      86.9%      62.4%
Trading volume, EUR million                         68.2    1,366.5    1,434.7
Closing quotation on 31 December 2011, EUR         15.18      15.05
Lowest quotation, EUR (A and B 5 June 2012)        13.31      13.31
Average quotation, EUR                             16.82      16.26
Highest quotation, EUR (A and B 7 December
2012)                                              22.57      22.74
Closing quotation on 31 December 2012, EUR         22.05      22.18
Market capitalisation on 31 December 2012
excluding treasury shares, EUR million             954.0    2,166.2    3,120.2

PERFORMANCE PER SHARE

                               Q4/12   Q4/11 Change %    2012    2011 Change %
Basic  earnings  per  share, 
EUR                             0.30    0.32    -5.1%    1.48    1.49    -0.4%
Diluted earnings per  share, 
EUR                             0.30    0.32    -5.1%    1.48    1.49    -0.4%
Cash flow  per share  before 
financial items, EUR            0.32    0.33    -4.6%    1.23    1.10   +12.1%
Equity per share, EUR                                    3.63    3.55    +2.2%
Proposed dividend per share,
EUR ^1)                                                  1.30    1.30
Proposed payout ratio, %                                87.8%   87.2%
Total proposed dividend, EUR
million                                                 183.2   183.1    +0.1%
Effective   dividend   yield 
according to proposal, %
A share                                                  5.9%    8.6%
B share                                                  5.9%    8.6%
Price/earnings ratio (P/E)
A share                                                 14.90   10.19   +46.2%
B share                                                 14.99   10.10   +48.4%
Average  number  of   shares 
excluding  treasury  shares, 
1,000 shares                 140 932 140 844          140 915 140 827

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 at
31 December 2012.

The following new standards, interpretations and amendments to existing
standards endorsed by the EU have been adopted as of 1 January 2012. However,
they do not have material effects on the Consolidated Financial Statements:

  *IFRS 7 (Amendment), Financial Instruments: Financial Statement Disclosures
    - Offsetting Financial Assets and Liabilities

  *IAS 12 (Amendment), Income Taxes

The policies and calculation methods applied during the period can be found on
the Orion website at www.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 and other
Return on capital employed   =             finance expenses              x 100
(ROCE), %                         Total assets - Non-interest-bearing
                                liabilities (average during the period)
Return on equity (ROE), %    =           Profit for the period           x 100
                               Total equity (average during the period)
Equity ratio, %              =                  Equity                   x 100
                                   Total assets - Advances received
                                Interest-bearing liabilities - Cash and
Gearing, %                   =             cash equivalents              x 100
                                                Equity
                                Profit available for the owners of the
Earnings per share, EUR      =              parent company
                                  Average number of shares during the
                                   period, excluding treasury shares
                                 Cash flow from operating activities +
Cash flow per share before   =    Cash flow from investing activities
financial items, EUR              Average number of shares during the
                                   period, excluding treasury shares
                                  Equity of the owners of the parent
Equity per share, EUR        =                  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
Market capitalisation, EUR   = Number of shares at the end of the period
million                            x Closing quotation of the period

Publisher:
Orion Corporation
www.orion.fi/
www.twitter.com/OrionCorpIR 

Orion is a globally operating Finnish company developing pharmaceuticals and
diagnostic tests - a builder of well-being. Orion develops, manufactures and
markets human and veterinary pharmaceuticals, active pharmaceutical
ingredients and diagnostic tests. The company is continuously developing new
drugs and treatment methods. Pharmaceutical R&D focuses on central nervous
system drugs, oncology and critical care drugs, and Easyhaler^® pulmonary
drugs.

Orion's net sales in 2012 amounted to EUR 980 million and the Company had
about 3,500 employees. Orion's A and B shares are listed on NASDAQ OMX
Helsinki.

Orion Group Financial Statement Release for 2012

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(i) the releases contained herein are protected by copyright and other
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(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Orion Oyj via Thomson Reuters ONE
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