Orion Oyj : Orion Group Interim Report January-March 2013

          Orion Oyj : Orion Group Interim Report January-March 2013

ORION CORPORATION    / INTERIM REPORT / JANUARY-MARCH 2013 / 23 April 2013
at 12:00 noon EEST

Orion's net sales in January-March 2013 totalled EUR 249 million (EUR 247
million in January-March 2012).

  *Operating profit was EUR 74 (79) million.

  *Profit before taxes was EUR 74 (79) million.

  *Equity ratio was 41% (39%).

  *ROCE before taxes was 50% (60%).

  *ROE after taxes was 50% (58%).

  *Basic earnings per share were EUR 0.39 (0.42).

  *Cash flow per share before financial items was EUR 0.07 (0.27). 

  *Orion has changed its accounting principles concerning defined benefit
    plans to comply with the requirements of the amended IAS 19 Employee
    Benefits standard. The standard has been applied retrospectively as of 1
    January 2013, so the 2012 comparative period data have been restated
    accordingly. The amendment decreased the operating profit for the 2012
    financial year by EUR 2.6 million. More information on the effects of the
    standard on the Group's reporting is in the appendices to this Interim
    Report.

  *The outlook estimate for 2013 remains unchanged. Orion estimates that in
    2013 net sales will be at similar level to 2012 and that operating profit
    will be slightly lower than in 2012.

  *More information has been provided on the basis for the outlook and the
    near-term risks and uncertainties relating to the outlook.

ORION'S KEY FIGURES FOR THE REVIEW PERIOD

                                                Q1/13  Q1/12 Change %  2012
Net sales, EUR million                          249.4  247.4    +0.8% 980.4
International operations, EUR million           181.6  183.4    -1.0% 723.1
 % of net sales                                72.8%  74.1%          73.8%
Operating profit, EUR million                    74.1   78.6    -5.7% 278.3
 % of net sales                                29.7%  31.8%          28.4%
Profit before taxes, EUR million                 73.8   78.7    -6.2% 276.6
 % of net sales                                29.6%  31.8%          28.2%
Income tax expense, EUR million                  18.2   19.5    -6.7%  69.7
R&D expenses, EUR million                        24.6   23.1    +6.7% 105.8
 % of net sales                                 9.9%   9.3%          10.8%
Capital expenditure, EUR million                 19.3    8.3  +133.1%  46.8
 % of net sales                                 7.8%   3.4%           4.8%
Assets total, EUR million                       928.7  880.1    +5.5% 835.7
Equity ratio, %                                 41.2%  38.8%          61.0%
Gearing, %                                      -4.6% -21.2%          -1.7%
Interest-bearing liabilities, EUR million       175.2  163.6    +7.1% 136.7
Non-interest-bearing liabilities, EUR million   371.2  375.4    -1.1% 189.5
Cash and cash equivalents, EUR million          192.7  235.9   -18.3% 145.2
ROCE (before taxes), %                          50.4%  59.7%          46.8%
ROE (after taxes), %                            49.8%  58.0%          42.0%
Basic earnings per share, EUR                    0.39   0.42    -6.1%  1.47
Diluted earnings per share, EUR                  0.39   0.42    -6.1%  1.47
Cash flow per share before financial items, EUR  0.07   0.27   -73.5%  1.23
Equity per share, EUR                            2.71   2.42   +12.0%  3.62
Personnel at the end of the period              3,514  3,453    +1.8% 3,486
Average personnel during the period             3,494  3,439    +1.6% 3,495
Personnel expenses, EUR million                  54.0   53.3    +1.5% 214.8

President and CEO Timo Lappalainen's review

"First quarter as anticipated"

"Our net sales were similar to the previous year and as expected our operating
profit was slightly lower than in 2012.

"As anticipated, deliveries of our Parkinson's drugs to Novartis continued to
decline. Total sales generated by Stalevo^® and Comtess^® in Orion's own sales
organisation were also slightly down on the comparative period.

"However, sales from the rest of our product portfolio increased slightly and
compensated for the decrease in sales of Parkinson's drugs, keeping our total
net sales similar to the previous year. We also achieved further strengthening
of our market position because in most markets our growth was faster than
growth of the pharmaceuticals market as a whole.

"Sales of dexdor^® intensive care sedative (dexmedetomidine) launched at the
end of 2011 continued to develop well during the first quarter of this year.
In March our partner Hospira was granted paediatric exclusivity for Precedex^®
in the United States until January 2014, so sales of the product are expected
to remain good throughout the year.

"In March we took a significant step in expanding the Easyhaler^® product
family into combined formulations when we submitted the application for
marketing authorisation for a budesonide-formoterol formulation in Europe. In
early 2013 we also presented positive Phase I and II results received in 2012
with an alpha-2c adrenoceptor antagonist being developed for the treatment of
Alzheimer's disease, an androgen receptor antagonist being developed for the
treatment of advanced prostate cancer and a new more effective levodopa
product. Negotiations to find partners for the next development phase for
these products are ongoing.

"After the review period, Orion Diagnostica gave a negotiation proposal, as
laid down in the Finnish Act on Co-operation within Undertakings, on
streamlining operations, reorganising production and possible personnel
reductions. The total personnel reduction that would be needed is estimated at
no more than 80 employees. The measures under consideration are intended to
streamline operations and improve the Company's profitability by among other
things simplifying the product portfolio, and at the same time ensure the
continuity of operations and competitiveness in the future too.

"Following the increase in sales in recent years, Orion's production capacity
has reached a high utilisation rate. Consequently, we have started several
significant investment and production reorganisation projects to develop and
ensure future growth, delivery reliability and quality standards. However,
they are temporarily increasing production costs and decreasing production
capacity more than anticipated, which reduced our margin in the first quarter
of this year.

"Our outlook estimate, which can be found with the basis for it on pages 6-7
of this report, remains unchanged. 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."

Events during the period

On 5 February the Board of Directors of Orion Corporation decided on an
incentive plan for key persons.

On 1 March Orion transferred altogether 137,000 Orion Corporation B shares
held by the Company as a share bonus for the earning periods 2010-2012 and
2012 to the persons employed by the Group and belonging to the Share-based
Incentive Plan for key persons of the Group.

On 19 March Orion Corporation's Annual General Meeting was held at the
Helsinki Fair Centre.

On 21 March Orion announced that it had submitted a marketing authorisation
application for a combined budesonide-formoterol formulation in the
Easyhaler^® product family in Europe.

Events after the period

On 10 April Orion Diagnostica gave a negotiation proposal on streamlining
operations and reducing the number of personnel in Finland by no more than 80.

News conference and teleconference

A news conference and teleconference on the published results will be held
today, Tuesday 23 April 2013, at 13:30 EEST 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 www.orion.fi/en/investors. After the presentation, questions can be asked
by telephone in Finnish and English.

The teleconference code is 930973 and to participate in the teleconference,
please call:

from United States: +1 334323 6203
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/investors promptly after publication. The website also has a
form for subscribing to Orion's releases.

Dates in Orion Calendar 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

For additional information about the financial review:

Jari Karlson, CFO, tel. +358 10 426 2883

Tuukka Hirvonen, Communications Manager, tel. +358 10 426 2721 / GSM +358 50
966 2721

www.orion.fi/en
www.orion.fi/en/investors

Financial review Q1/2013

Net sales

The Orion Group's net sales in January-March 2013 were EUR 249 million (EUR
247 million in January-March 2012). The net effect of currency exchange rates
was EUR -1 million.

The Pharmaceuticals business's net sales were EUR 234 (233) million. Net sales
of Orion's Stalevo^® (carbidopa, levodopa and entacapone) and
Comtess^®/Comtan^® (entacapone) Parkinson's drugs were down by 5% at EUR 60
(63) million, which was 26% (27%) of the Pharmaceuticals business's net sales.
The net sales of other products in the portfolio were up by 3% at EUR 174
(169) million.

The Diagnostics business's net sales were EUR 16 (16) million.

Operating profit

The Orion Group's operating profit was down by 6% at EUR 74 (79) million.

The Pharmaceuticals business's operating profit was down by 6% at EUR 74 (79)
million. The gross profit percentage was lower than in the comparative period
partly due to lower prices, but mainly due to higher production costs. Costs
were increased by the ongoing extensive investment and production facility
modification projects, which have temporarily decreased production capacity
and at the same time increased costs. As anticipated, research and development
costs were slightly higher than in the comparative period.

The Diagnostics business's operating profit was down by 8% at EUR 2.3 (2.5)
million mainly due to higher research and development costs.

Operating expenses

The Group's sales and marketing expenses were EUR 49 (49) million.

R&D expenses were up by 7% at EUR 25 (23) million and accounted for 10% (9%)
of the Group's net sales. Pharmaceutical R&D expenses amounted to EUR 22 (21)
million. Research projects are reported in more detail under Pharmaceuticals
in the Business Reviews.

Administrative expenses were EUR 11 (11) million.

Other operating income and expenses increased profit by EUR 0.3 (2) million.

Group's profit

The Group's profit before taxes totalled EUR 74 (79) million. Basic earnings
per share were EUR 0.39 (0.42) and diluted earnings per share were EUR 0.39
(0.42). Equity per share was EUR 2.71 (2.42). The return on capital employed
before taxes (ROCE) was 50% (60%) and the return on equity after taxes (ROE)
50% (58%).

Financial position

The Group's gearing was -5% (-21%) and the equity ratio 41% (39%).

The Group's total liabilities at 31 March 2013 were EUR 546 (539) million. At
the end of the period, interest-bearing liabilities amounted to EUR 175 (164)
million, including EUR 103 (134) million of long-term loans. The
non-interest-bearing liabilities in 2012 and 2013 include the dividends paid
in the beginning of April but transferred from equity already in March, and in
2012 also the repayments of capital.

The Group had EUR 193 (236) 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 lower than in the comparative period
at EUR 29 (50) million. The cash flow was lower because the operating profit
decreased and the amount tied up into working capital increased by more than
in the comparative period. Inventories further increased. In addition,
receivables other than trade receivables in the statement of financial
position were higher partly due to items subject to variable timing such as
value added tax refunds and partly due to higher royalty receivables from
Hospira owing to higher Precedex sales. In addition, income taxes paid were
slightly higher than in the comparative period.

Cash flow from investing activities was EUR -18 (-12) million.

Cash flow from financing activities was EUR 38 (75) million.

Capital expenditure

The Group's capital expenditure totalled EUR 19 (8) million. This comprised
EUR 18 (7) million on property, plant and equipment and EUR 2 (1) 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 278 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 has
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 volumes of these products
in the current year, but declining prices and depreciation of the Japanese yen
in relation to the euro will decrease sales.

Net sales and operating profit in 2012 also included EUR 10 million of
non-recurring long-term compensatory payments related to the pricing of
partner deliveries.

A slight decrease in the gross profit as percentage of net sales is
anticipated. Sales of generic products will account for a greater proportion
of Orion's total sales and price competition will remain intense in many
markets. In addition, significant ongoing investments to develop and ensure
future growth, delivery reliability and quality standards, and related
reorganisation of production will temporarily decrease production capacity and
increase production costs.

Marketing expenditure will be similar to the previous year. Because the
registrations and launches of new products are projects that take more than a
year, the increases in resources and other inputs required in 2013 were
planned mainly during the previous year.

Research and development costs will be slightly 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 estimated costs of the ongoing patent litigations in the United States are
based on the planned timetables and work estimates. The costs due to the
litigations will depend on a number of factors, which are difficult to
estimate accurately.

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 among others
adjustments of stock levels. In addition, changes in market prices and
exchange rates affect the value of deliveries to Novartis.

Most of the exchange rate risk is related 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. Changes in the Japanese yen exchange rate have become more
important as sales of Parkinson's drugs in Japan have increased.

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. Any remedial
actions that may be required 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.

Shares and shareholders

On 31 March 2013 Orion had a total of 141,257,828 (141,257,828) shares, of
which 43,235,318 (44,993,218) were A shares and 98,022,510 (96,264,610) B
shares. The Group's share capital was EUR 92,238,541.46 (92,238,541.46). At
the end of March 2013 Orion held 188,991 (325,991) B shares as treasury
shares. On 31 March 2013 the aggregate number of votes conferred by the A and
B shares was 962,539,879 (995,802,979) excluding treasury shares.

At the end of March 2013, Orion had 54,961 (61,442) 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 January-March 2013 a total of 31,900 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 March 2013 the market capitalisation of the Company's shares excluding
treasury shares was EUR 2,883 million.

Orion shares are also traded on various alternative trading platforms in
addition to NASDAQ OMX Helsinki.

Authorisations of the Board of Directors

Orion's Board of Directors was authorised by the Annual General Meeting on 19
March 2013 to decide on acquisition of shares in the Company and on a share
issue in which shares held by the Company can be conveyed. The authorisation
to acquire shares is valid for 18 months and 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 acquisition of no more than
500,000 Orion Corporation B shares. Such shares shall be acquired at the
market price at the time of acquisition quoted in the regulated market of
NASDAQ OMX Helsinki Oy ("Stock Exchange") using funds in the Company's
distributable equity. Such shares may be acquired in the regulated market of
the Stock Exchange in a proportion not corresponding to the shareholders'
holdings. The shares shall be acquired and paid for in accordance with the
rules of the Stock Exchange and Euroclear Finland Ltd. The shares acquired can
be kept, cancelled or further conveyed by the Company. The shares can be
acquired for the purpose of developing the capital structure of the Company,
for use in financing possible corporate acquisitions or other business
arrangements of the Company, for financing capital expenditure, as part of the
Company's incentive plan, or for otherwise conveying or cancelling them. The
Board of Directors shall decide on other matters related to the acquisition of
shares in the Company.

The Board of Directors is authorised to decide on conveyance of no more than
600,000 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 the regulated market of
the Stock Exchange; 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 decision to authorise the share issue revoked the
unexercised portion of the outstanding share issue authorisation approved at
Orion Corporation's Annual General Meeting on 24 March 2010.

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 Plans

Orion Group's 2010 long-term incentive plan

On 1 March 2013 Orion transferred altogether 137,000 Orion Corporation B
shares held by the Company as a share bonus for earning periods 2010-2012 and
2012 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 22.7936, which was the volume weighted average
quotation of Orion Corporation B shares on 1 March 2013. The total transaction
price of the transferred shares was therefore EUR 3,122,723.20.

Orion Group's 2013 long-term incentive plan

In February 2013 the Board of Directors of Orion Corporation decided on a new
share-based incentive plan for key persons of the Group. The Plan includes
earning periods and the Board of Directors will annually decide on the
beginning and duration of the earning periods in 2013, 2014 and 2015. The
Board of Directors will decide on the earnings criteria and on targets to be
established for them at the beginning of each earning period. The target group
of the Plan consists of approximately 35 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. The
incentive plan is reported in more detail in a stock exchange release on 5
February 2013.

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 March 2013 Orion had a total of 54,961 (61,442) registered
shareholders, of whom 95% (95%) were private individuals holding 48% (52%) of
the entire share stock and 64% (65%) of the total votes. There were altogether
47 (41) million nominee-registered shares, which was 33% (29%) of all shares,
and they conferred entitlement to 7% (6%) of the total votes.

At the end of March 2013 Orion held 188,991 (325,991) B shares as treasury
shares, which is 0.1% (0.2%) of the Company's total share stock and 0.02%
(0.03%) of the total votes.

Decisions by the Annual General Meeting

The Annual General Meeting of the Shareholders of Orion Corporation was held
on 19 March 2013 at the Helsinki Fair Centre. The following matters among
others were handled at the meeting.

Adoption of the financial statements for financial year 1 January to 31
December 2012

The Annual General Meeting adopted the financial statements of the Company and
Group as per 31 December 2012.

Dividend EUR 1.30 per share

A dividend of EUR 1.30 per share was approved in accordance with the Board's
proposal. The record date for dividend distribution was 22 March 2013 and the
payment date was 4 April 2013.

Discharge from liability

The members of the Board of Directors and the President and CEO were
discharged from liability for the financial year 1 January to 31 December
2012.

Remuneration of the members of the Board of Directors

As the annual fees for the term of office of the Board of Directors, the
Chairman shall receive EUR 76,000, the Vice Chairman shall receive EUR 51,000
and the other Board members shall receive EUR 38,000 each. Furthermore, as a
fee for each meeting attended, the Chairman shall receive EUR 1,200, the Vice
Chairman shall receive EUR 900 and the other Board members shall receive EUR
600 each. The travel expenses of Board members shall be paid in accordance
with previous practice. The aforementioned meeting fees shall also be paid to
the Chairmen and to the members of the committees established by the Board.

Of the aforementioned annual fees, 60% was to be paid in cash and 40% in the
Company's shares, so Orion Corporation B shares were acquired in the period
25-28 March 2013 from the stock exchange in amounts corresponding to EUR
30,400 for the Chairman, EUR 20,400 for the Vice Chairman and EUR 15,200 for
each of the other Board members. The part of the annual fee paid in cash,
which corresponds to the approximate sum necessary for the payment of the
income taxes on the fees, was to be paid no later than 30 April 2013. The
annual fees encompass the full term of office of the Board of Directors.

Members and Chairman of the Board of Directors

The number of members in the Board of Directors was confirmed to be six. Sirpa
Jalkanen, Eero Karvonen, Timo Maasilta, Hannu Syrjänen, Heikki Westerlund and
Jukka Ylppö were re-elected as members of the Board of Directors for the
following term of office. Hannu Syrjänen was re-elected as the Chairman of the
Board of Directors.

Auditor and auditor's fee

Authorised Public Accountants PricewaterhouseCoopers Oy were elected as the
auditor for the following term of office. The auditor's fee shall be paid
against an invoice approved by the Company.

Authorisation of the Board of Directors to decide on acquisition of the
Company's own shares

The Board of Directors was authorised by the AGM to decide on acquisition of
the Company's own shares in accordance with the Board's proposal.

Authorisation of the Board of Directors to decide on a share issue

The Board of Directors was authorised by the AGM to decide on a share issue in
which the Company's own shares held by the Company can be conveyed on the
terms and conditions proposed by the Board.

Constitution of the Board of Directors

At its constitutive meeting following the Annual General Meeting, the Board of
Directors elected Jukka Ylppö as its Vice Chairman.

Personnel

The average number of employees in the Orion Group in January-March 2013 was
3,494 (3,439). At the end of March 2013 the Group had a total of 3,514 (3,453)
employees, of whom 2,820 (2,740) worked in Finland and 694 (713) outside
Finland.

Salaries and other personnel expenses in January-March 2013 totalled EUR 54
(53) 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 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 January-March 2013 totalled EUR 497
(493) million.

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 January-March 2013 amounted to EUR 57 (54) million, up by 7%
compared with the previous year. Orion's market share of Finnish
pharmaceuticals markets was 12% (11%).

According to IMS Health pharmaceutical sales statistics, in the 12-month
period ending in December 2012 the total sales of Parkinson's drugs in the
United States were up by 8% at USD 771 million (USD 716 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 totalled EUR 963
(954) million, and the average market growth was 1%. In Japan sales of
Parkinson's drugs grew by 13% to EUR 593 (523) million.

According to IMS Health pharmaceutical sales statistics, in the 12-month
period ending in December 2012 the total sales of Parkinson's drugs containing
entacapone were USD 197 (191) million in the United States and EUR 157 (156)
million in the five largest European markets.

The most important individual therapy area for Orion is still the treatment of
Parkinson's disease. Orion's branded Parkinson's drugs containing entacapone
(Stalevo^®, Comtess^® and Comtan^®) account for about a quarter of the Group's
net sales. In the United States sales of these products decreased. In Europe
sales increased slightly, 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 December
2012, sales of Orion's branded Parkinson's drugs in the United States were
down by 30% at USD 134 (191) million. Sales were EUR 157 (156) million in the
five largest markets in Europe, and grew by 21% to EUR 67 (56) million in
Japan. The market share of Orion's branded Parkinson's drugs was 17% 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 31% at USD 270
million in the 12-month period ending in December 2012 (USD 206 million in the
previous 12-month period). About four-fifths of the sales amounting to USD 213
(161) million were in the United States, where Precedex sales grew by 32%.

According to IMS Health pharmaceutical sales statistics, total sales of the
most common intravenous anaesthetics and intensive care sedatives (propofol,
midazolam, remifentanil and dexmedetomidine) were down by 3% in Europe in the
12-month period ending in December 2012 at EUR 474 (489) million. According to
IMS Health pharmaceutical sales statistics, in the 12-month period ending in
December 2012 sales of Orion's dexdor^® intensive care sedative
(dexmedetomidine) were EUR 12 million in Europe.

Net sales and operating profit of the Pharmaceuticals business

Net sales of the Pharmaceuticals business in January-March 2013 were EUR 234
(233) million. The operating profit of the Pharmaceuticals business was down
by 6% at EUR 74 (79) million. The operating profit of the Pharmaceuticals
business was 32% (34%) of the segment's net sales.

Net sales of Orion's top ten pharmaceuticals in January-March 2013 were EUR
118 (117) million. They accounted for 50% (50%) of the total 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 January-March 2013 were EUR 100 (99)
million.

Orion's branded drugs for treatment of Parkinson's disease are Stalevo^®
(active ingredients carbidopa, levodopa and entacapone) and Comtess^®/Comtan^®
(entacapone), and their net sales in January-March 2013 totalled EUR 60 (63)
million. Sales of Parkinson's drugs were down by 5% and accounted for 26%
(27%) of the total net sales of the Pharmaceuticals business. Net sales from
deliveries of Stalevo and Comtan to Novartis were down by 3% at EUR 38 (40)
million. Deliveries of Stalevo to Novartis were up by 9% at EUR 25 (23)
million and deliveries of Comtan were down by 20% at EUR 13 (16) million.
Total net sales generated by Stalevo and Comtess in Orion's own sales
organisation were down by 8% at EUR 22 (24) million. Sales through Orion's own
sales network were down by 4% at EUR 20 (21) million for Stalevo and down by
34% at EUR 2 (3) 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 January-March 2013 were up by 4% at EUR 11 (10) million.

Total net sales of the Easyhaler^® product family for treatment of asthma and
chronic obstructive pulmonary disease were down by 11% in January-March 2013
at EUR 6 (7) million. Sales of Easyhaler products through Orion's own sales
network in Europe continued to grow strongly. Sales during the review period
reflected the repatriation of rights to Easyhaler products in Europe in 2012
and the related transitional phase, consequently total sales of the Easyhaler
product family were lower than in the comparative period.

Net sales of the Precedex^® intensive care sedative (dexmedetomidine) were up
by 16% in January-March 2013 at EUR 12 (10) million. In the United States and
markets outside Europe the sedative is sold by Orion's partner Hospira. US
markets account for about four-fifths of net sales of Precedex. In March
Hospira announced it had been granted six months paediatric exclusivity for
Precedex^® in the United States, so generic competition in the United States
is expected to commence at the earliest in January 2014.

Net sales of Orion's dexdor^® intensive care sedative (dexmedetomidine) in
January-March 2013 were up by 156% at EUR 6 (2) million. Early this year the
product was launched in Italy, Spain and France, and it is now available in
almost all European countries.

Specialty Products

Net sales of the Specialty Products business division's off-patent, i.e.
generic prescription drugs and self-care products in January-March 2013 were
up by 6% at EUR 96 (90) million.

Net sales of Orion's human pharmaceuticals in Finland in January-March 2013
were up by 7% at EUR 63 (59) million. 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
January-March 2013 were up by 8% at altogether EUR 15 (14) 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 January-March 2013 were
down by 19% at EUR 15 (18) million. Sales of the animal sedatives at EUR 5 (6)
million accounted for 33% (35%) 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 January-March 2013 excluding
pharmaceutical ingredients supplied for Orion's own use were down by 16% at
EUR 13 (16) 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 January-March 2013 were up by 7% at EUR 25 (23)
million, of which the Pharmaceuticals business accounted for EUR 22 (21)
million. The Group's R&D expenses accounted for 10% (9%) 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 submitted an application for marketing
authorisation for a combined budesonide-formoterol formulation in Europe in
March, and the application is being processed. In this formulation, budesonide
acts as an anti-inflammatory agent and formoterol acts as a long-acting
bronchodilator. In addition, Orion has another Easyhaler research programme in
progress to develop a combined 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. Results were presented at the ESMO
international oncology congress at the end of September 2012 and ASCO GU 2012
symposium in mid-February 2013. 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 behavioural symptoms relating to
Alzheimer's disease. Positive results from Phase IIa clinical trials were
presented at the annual meeting of the American Academy of Neurology in
mid-March 2013. 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. Results obtained from
Phase II clinical trials in 2012 were positive, and they were presented at the
annual meeting of the American Academy of Neurology in mid-March 2013. The
search for a suitable collaboration approach for the next development phase is
ongoing.

Orion has ongoing 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 January-March 2013 were up by 2% at EUR 16 (16)
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.

The operating profit of the Diagnostics business was down by 8% at EUR 2.3
(2.5) million mainly due to higher research and development expenses.

After the review period, on 10 April 2013 Orion Diagnostica gave a negotiation
proposal, as laid down in the Finnish Act on Co-operation within Undertakings,
on streamlining operations, reorganising production and possible personnel
reductions. The measures under consideration are intended to streamline
operations and improve the Company's profitability by among other things
simplifying the product portfolio. Through the measures under consideration,
Orion Diagnostica aims to ensure the continuity of operations and
competitiveness in the future too.

Espoo, 23 April 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                                     Q1/13   Q1/12 Change %    2012
Net sales                                       249.4   247.4    +0.8%   980.4
Cost of goods sold                              -91.8   -86.8    +5.8%  -350.8
Gross profit                                    157.6   160.6    -1.9%   629.6
Other operating income and expenses               0.3     1.5   -78.3%     6.3
Sales and marketing expenses                    -48.5   -49.3    -1.5%  -206.1
R&D expenses                                    -24.6   -23.1    +6.7%  -105.8
Administrative expenses                         -10.6   -11.2    -5.0%   -45.7
Operating profit                                 74.1    78.6    -5.7%   278.3
Finance income                                    1.6     1.1   +45.1%     4.9
Finance expenses                                 -2.3    -1.1  +100.1%    -6.6
Share of associated companies' results            0.3     0.1  +314.1%     0.1
Profit before taxes                              73.8    78.7    -6.2%   276.6
Income tax expense                              -18.2   -19.5    -6.7%   -69.7
Profit for the period                            55.6    59.1    -6.0%   206.9
OTHER COMPREHENSIVE INCOME INCLUDING TAX
EFFECTS
Change in value of cash flow hedges               0.0    -0.1             -0.2
Change in value of available-for-sale
financial assets                                                           0.3
Translation differences                          -0.7     0.3              1.1
Items that may be reclassified subsequently
to profit and loss                               -0.7     0.2              1.1
Items due to remeasurement of defined benefit
plans                                             0.0     6.4             25.6
Items that will not be reclassified to profit
and loss                                          0.0     6.4             25.6
Other comprehensive income net of tax            -0.7     6.6             26.7
Comprehensive income for the period including
tax effects                                      54.9    65.8   -16.6%   233.7
PROFIT ATTRIBUTABLE TO:
Owners of the parent company                     55.6    59.1    -6.0%   206.9
Non-controlling interests                         0.0     0.0              0.0
COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the parent company                     54.9    65.8   -16.6%   233.7
Non-controlling interests                         0.0     0.0              0.0
Basic earnings per share, EUR ^1)                0.39    0.42    -6.1%    1.47
Diluted earnings per share, EUR ^1)              0.39    0.42    -6.1%    1.47
Depreciation, amortisation and impairment         9.2     8.9    +3.2%    40.0
Personnel expenses                               54.0    53.3    +1.5%   214.8
^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                                          3/13  3/12 Change % 12/12
Property, plant and equipment                       216.3 191.5   +13.0% 205.3
Goodwill                                             13.5  13.5           13.5
Intangible rights                                    57.4  65.0   -11.7%  58.0
Other intangible assets                               3.8   4.6   -18.4%   4.3
Investments in associates                             1.7   1.4   +19.1%   1.4
Available-for-sale financial assets                   0.5   1.1   -55.6%   0.5
Pension asset                                        38.5  13.0  +195.7%  38.4
Deferred tax assets                                   1.1   1.2    -7.0%   2.0
Other non-current assets                              1.5   1.6    -5.8%   1.6
Non-current assets total                            334.2 292.9   +14.1% 325.0
Inventories                                         189.2 156.9   +20.6% 179.2
Trade receivables                                   164.4 165.1    -0.4% 151.5
Other receivables                                    48.2  29.3   +64.6%  34.8
Cash and cash equivalents                           192.7 235.9   -18.3% 145.2
Current assets total                                594.5 587.2    +1.3% 510.7
Assets total                                        928.7 880.1    +5.5% 835.7
EQUITY AND LIABILITIES
EUR million                                          3/13  3/12 Change % 12/12
Share capital                                        92.2  92.2           92.2
Expendable fund                                       0.5   0.5            0.5
Other reserves                                        0.9   0.7   +31.9%   0.8
Retained earnings                                   288.7 247.7   +16.6% 416.0
Equity attributable to owners of the parent company 382.3 341.1   +12.1% 509.5
Non-controlling interests                             0.0   0.0    -3.6%   0.0
Equity total                                        382.4 341.1   +12.1% 509.6
Deferred tax liabilities                             41.5  35.3   +17.5%  42.5
Pension liability                                     1.4   1.2   +14.4%   1.4
Provisions                                            0.1   0.2   -68.4%   0.1
Interest-bearing non-current liabilities            103.4 134.0   -22.8% 107.4
Other non-current liabilities                         0.6   0.5   +38.0%   0.8
Non-current liabilities total                       147.0 171.1   -14.1% 152.2
Trade payables                                       60.2  52.1   +15.5%  59.3
Current tax liabilities                               9.0  11.2   -19.6%   8.0
Other current liabilities                           258.5 274.9    -6.0%  77.4
Provisions                                            0.0
Interest-bearing current liabilities                 71.7  29.6  +141.9%  29.3
Current liabilities total                           399.4 367.8    +8.6% 173.9
Liabilities total                                   546.4 539.0    +1.4% 326.1
Equity and liabilities total                        928.7 880.1    +5.5% 835.7

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

a. Share capital
b. Expendable fund
c. Other reserves
d. Items due to remeasurement of defined
benefit plans
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 31 December
2011 before change in
accounting policies       92.2   0.5    17.6           -3.8   393.4 0.0  500.0
Effect of change in accounting
policies                                       -25.4                     -25.4
Equity at 31 December
2011                      92.2   0.5    17.6   -25.4   -3.8   393.4 0.0  474.6
Profit for the period                                          59.1       59.1
Other comprehensive
income:
Change in value of cash
flow hedges                             -0.1                              -0.1
Translation differences                                 0.3                0.3
Items due to
remeasurement of
defined benefit plans                            6.4                       6.4
Transactions with owners
Dividend and capital
repayment                              -16.9                 -183.2     -200.1
Share-based incentive
plan                                                            1.1        1.1
Other adjustments                                              -0.3       -0.3
Equity at 31 March 2012   92.2   0.5     0.7   -19.0   -3.4   270.1 0.0  341.1
Equity at 31 December
2012 before change in
accounting policies       92.2   0.5     0.8           -2.7   420.5 0.0  511.3
Effect of change in accounting
policies                                         0.2           -2.0       -1.8
Equity at 31 December
2012                      92.2   0.5     0.8     0.2   -2.7   418.5 0.0  509.6
Profit for the period                                          55.6       55.6
Other comprehensive
income:
Change in value of cash
flow hedges                              0.0                               0.0
Translation differences                          0.0   -0.7               -0.7
Items due to
remeasurement of
defined benefit plans                                                      0.0
Transactions with owners
Dividend and capital
repayment                                                    -183.4     -183.4
Share-based incentive
plan                                                            1.6        1.6
Other adjustments                                              -0.3       -0.3
Equity at 31 March 2013   92.2   0.5     0.9     0.2   -3.4   292.0 0.0  382.4

CONSOLIDATED STATEMENT OF CASH FLOWS

EUR million                                             Q1/2013 Q1/2012   2012
Operating profit                                           74.1    78.6  278.3
Adjustments                                                10.9     9.9   41.5
Change in working capital                                 -38.3   -22.7  -28.9
Interest paid                                              -1.7    -1.0   -6.1
Interest received                                           1.5     1.1    4.9
Income taxes paid                                         -17.8   -15.7  -68.6
Total net cash flow from operating activities              28.7    50.2  221.0
Investments in property, plant and equipment              -16.7   -11.3  -42.4
Investments in intangible assets                           -1.9    -1.3   -6.7
Sales   of   property,   plant   and   equipment    and 
available-for-sale investments                              0.2     0.2    2.0
Sales of intangible assets                                 -0.0
Total net cash flow from investing activities             -18.4   -12.3  -47.1
Current loans raised                                       40.1     0.1    1.0
Repayments of current loans                                -0.3    -0.3   -2.2
Non-current loans raised                                           75.0   75.0
Repayments of non-current loans                            -1.8          -26.4
Dividends paid and other distribution of profits            0.0     0.0 -199.9
Total net cash flow from financing activities              38.0    74.9 -152.4
Net change in cash and cash equivalents                    48.3   112.7   21.5
Cash and  cash  equivalents  at the  beginning  of  the 
period                                                    145.2   123.0  123.0
Foreign exchange differences                               -0.8     0.2    0.8
Net change in cash and cash equivalents                    48.3   112.7   21.5
Cash and cash equivalents at the end of the period        192.7   235.9  145.2

Following adoption of the amended IAS 19 Employee Benefits standard
retrospectively, the operating profit for the Q1/2012 comparative period has
been adjusted accordingly by EUR -0.7 million and the adjustments item by EUR
0.7 million. The operating profit for the 2012 comparative period has been
adjusted by EUR -2.6 million and the adjustments item by EUR 2.6 million.


CHANGES IN PROPERTY, PLANT AND EQUIPMENT

EUR million                                      3/13  3/12 12/12
Carrying amount at the beginning of the period  205.3 190.7 190.7
Additions                                        17.5   7.0  40.1
Disposals                                        -0.3  -0.2  -1.1
Depreciation and impairments                     -6.2  -6.0 -24.5
Carrying amount at the end of the period        216.3 191.5 205.3

CHANGES IN INTANGIBLE ASSETS (EXCLUDING GOODWILL)

EUR million                                     3/13 3/12 12/12
Carrying amount at the beginning of the period  62.3 71.3  71.3
Additions                                        1.8  1.3   6.6
Disposals                                       -0.0       -0.0
Amortisation and impairments                    -3.0 -2.9 -15.5
Carrying amount at the end of the period        61.2 69.6  62.3

COMMITMENTS AND CONTINGENCIES

EUR million                                              3/13 3/12 12/12
CONTINGENCIES FOR OWN LIABILITIES
Mortgages on land and buildings                          41.0 41.0  41.0
of which those to Orion Pension Fund                      9.0  9.0   9.0
Guarantees                                                1.8  1.5   1.5
OTHER LIABILITIES
Leasing liabilities (excluding finance lease contracts)   6.2  5.7   6.5
Other liabilities                                         0.3  0.3   0.3

DERIVATIVES

EUR million                                   3/13 3/12 12/12
CURRENCY FORWARD CONTRACTS AND CURRENCY SWAPS
Fair value, EUR million                       -0.8  0.3   0.3
Nominal value, EUR million                    53.1 44.7  52.0
CURRENCY OPTIONS
Fair value, EUR million                       -0.4  0.2   0.2
Nominal value, EUR million                    54.6 49.9  51.3
INTEREST RATE SWAPS
Fair value, EUR million                       -0.2       -0.3
Nominal value, EUR million                    21.4       22.3
CROSS CURRENCY SWAPS
Fair value, EUR million                       -0.1 -0.1   0.2
Nominal value, EUR million                     9.6 19.1   9.6
ELECTRICITY DERIVATIVES
Fair value, EUR million                       -0.5 -0.5  -0.6
Nominal amount, GWh                             97  151   110

DERIVATIVE CATEGORIES USING FAIR VALUE HIERARCHY

EUR million                          Level 1     Level 2     Level 3     Total
Currency forward contracts and
currency swaps                                      -0.8                  -0.8
Currency options                                    -0.4                  -0.4
Interest rate swaps                                 -0.2                  -0.2
Cross currency swaps                                -0.1                  -0.1
Electricity derivatives                 -0.5                              -0.5
All derivatives are OTC derivatives, and market quotations available at the
end of the reporting period have been used as their fair value.
In the Group the principle is applied that transfers between levels of fair
value hierarchy are recognised on the date on which the event triggering the
transfer has occurred.
No transfers between levels occurred during the reporting period.

RELATED PARTY TRANSACTIONS

EUR million                       Q1/13 Q1/12 2012
Management's employment benefits    4.1   2.7  4.4

Operating segment performance

NET SALES BY BUSINESS DIVISION

EUR million                      Q1/13 Q1/12 Change %  2012
Pharmaceuticals                  234.2 232.5    +0.7% 928.9
     Proprietary Products   100.3  99.0    +1.4% 403.7
     Specialty Products      95.7  90.2    +6.1% 367.2
     Animal Health           14.8  18.2   -19.0%  69.2
     Fermion                 13.4  16.0   -16.4%  48.4
     Contract manufacturing
     and other               10.1   9.2    +9.9%  40.5
Diagnostics                       15.9  15.5    +2.3%  54.1
Group items                       -0.8  -0.6   +16.3%  -2.7
Group total                      249.4 247.4    +0.8% 980.4

OPERATING PROFIT BY BUSINESS AREA

EUR million     Q1/13 Q1/12 Change %  2012
Pharmaceuticals  73.9  78.8    -6.3% 286.5
Diagnostics       2.3   2.5    -8.1%   2.3
Group items      -2.0  -2.7   +26.0% -10.6
Group total      74.1  78.6    -5.7% 278.3

NET SALES BY ANNUAL QUARTERS

                 2013          2012           2011
EUR million        Q1    Q4    Q3    Q2    Q1    Q4    Q3    Q2
Pharmaceuticals 234.2 242.1 234.2 220.1 232.5 223.8 199.8 215.9
Diagnostics      15.9  13.1  12.1  13.4  15.5  12.9  11.3  11.7
Group items      -0.8  -0.8  -0.5  -0.7  -0.6  -0.6  -0.5  -0.6
Group total     249.4 254.4 245.8 232.8 247.4 236.1 210.7 227.0

OPERATING PROFIT BY ANNUAL QUARTERS

                2013        2012         2011
EUR million       Q1   Q4   Q3   Q2   Q1   Q4   Q3   Q2
Pharmaceuticals 73.9 62.2 78.0 67.5 78.8 61.4 66.8 67.1
Diagnostics      2.3 -0.6  0.0  0.5  2.5  0.7  0.8  0.7
Group items     -2.0 -2.9 -2.3 -2.7 -2.7 -2.5 -2.1 -2.7
Group total     74.1 58.8 75.6 65.3 78.6 59.6 65.4 65.1

GEOGRAPHICAL BREAKDOWN OF NET SALES BY ANNUAL QUARTERS

               2013          2012           2011
EUR million      Q1    Q4    Q3    Q2    Q1    Q4    Q3    Q2
Finland        67.8  67.3  63.3  62.7  64.0  61.7  60.1  59.8
Scandinavia    32.5  33.3  30.3  30.3  32.4  28.5  28.1  30.3
Other Europe   75.7  68.1  76.5  79.2  78.7  79.6  71.5  77.2
North America  34.5  54.7  27.1  30.4  38.4  36.0  24.0  29.2
Other markets  38.8  31.0  48.6  30.2  33.9  30.3  26.9  30.6
Group total   249.4 254.4 245.8 232.8 247.4 236.1 210.7 227.0

Business reviews

KEY FIGURES FOR PHARMACEUTICALS BUSINESS

EUR million                             Q1/13 Q1/12 Change %  2012
Net sales                               234.2 232.5    +0.7% 928.9
Operating profit                         73.9  78.8    -6.3% 286.5
 % of net sales                        31.5% 33.9%          30.8%
R&D expenses                             22.4  21.3    +5.1%  97.6
 % of net sales                         9.5%  9.1%          10.5%
Capital expenditure                      18.5   7.2  +155.7%  42.0
 % of net sales                         7.9%  3.1%           4.5%
Sales revenue from proprietary products 108.0 106.7    +1.2% 429.0
Assets                                  667.6 583.4          627.3
Liabilities                             124.4 118.2          128.4
Personnel at the end of the period      3,141 3,095          3,123

TOP TEN BEST-SELLING PHARMACEUTICAL PRODUCTS

EUR million                                         Q1/13 Q1/12 Change %  2012
Stalevo^®, Comtess^® and Comtan^®
(Parkinson's disease)                                60.3  63.2    -4.7% 250.1
Precedex^® (intensive care sedative)                 12.0  10.3   +16.3%  45.3
Simdax^® (acute decompensated heart failure)         10.8  10.4    +4.4%  43.6
Easyhaler^® product family
(asthma, COPD)                                        6.2   7.0   -11.2%  26.8
Burana^® (inflammatory pain)                          5.8   5.8    +0.4%  23.3
dexdor^® (intensive care sedative)                    5.7   2.2  +156.2%  13.0
Dexdomitor^®, Domitor^®, Domosedan^® and
Antisedan^® (animal sedatives)                        4.9   6.4   -23.1%  22.8
Fareston^® (breast cancer)                            4.7   3.5   +35.5%  11.9
Marevan^® (anticoagulant)                             4.0   4.4    -7.4%  15.8
Divina^® range (menopausal symptoms)                  3.5   3.8    -9.6%  15.5
Total                                               117.8 116.9    +0.8% 468.2
Share of pharmaceutical net sales                     50%   50%            50%

KEY FIGURES FOR DIAGNOSTICS BUSINESS

EUR million                        Q1/13 Q1/12 Change %  2012
Net sales                           15.9  15.5    +2.3%  54.1
Operating profit                     2.3   2.5    -8.1%   2.3
 % of net sales                   14.2% 15.8%           4.3%
R&D expenses                         2.3   1.8   +27.6%   8.3
 % of net sales                   14.6% 11.7%          15.4%
Capital expenditure                  0.8   1.1   -26.4%   4.2
 % of net sales                    4.9%  6.9%           7.7%
Assets                              51.0  44.6           47.2
Liabilities                         17.2  16.3           16.2
Personnel at the end of the period   349   335            340

Information on Orion's shares

BASIC SHARE INFORMATION 31 MARCH 2013

                                          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                  43,235,318    98,022,510   141,257,828
% of total share stock                         31%           69%          100%
Number of treasury shares                                188,991       188,991
Total  number  of  shares   excluding 
treasury shares                         43,235,318    97,833,519   141,068,837
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                                 864,706,360    97,833,519   962,539,879
% of total votes                               90%           10%          100%
Total number of shareholders                18,462        42,726        54,961
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 MARCH 2013

                                                A shares   B shares      Total
Shares traded                                  1,264,860 26,596,960 27,861,820
% of the total number of shares                     2.9%      27.1%      19.7%
Trading volume, EUR million                         28.0      586.9      614.9
Closing quotation on 31 December 2012, EUR         22.05      22.18
Lowest quotation, EUR (A and B 21 January
2013)                                              19.96      20.01
Average quotation, EUR                             22.11      22.07
Highest quotation, EUR (A and B 8 March 2013)      24.42      24.58
Closing quotation on 31 March 2013, EUR            20.31      20.49
Market capitalisation on 31 March 2013
excluding treasury shares, EUR million             878.1    2,004.6    2,882.7

PERFORMANCE PER SHARE

                                                Q1/13   Q1/12 Change %    2012
Basic earnings per share, EUR                    0.39    0.42    -6.1%    1.47
Diluted earnings per share, EUR                  0.39    0.42    -6.1%    1.47
Cash flow per  share before financial  items, 
EUR                                              0.07    0.26   -72.5%    1.22
Equity per share, EUR                            2.71    2.42   +12.0%    3.62
Average number of shares excluding treasury
shares, 1,000 shares                          140,978 140,862          140,915

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

This Interim Report has been prepared in accordance with the IAS 34 Interim
Financial Reporting standard. The same accounting policies as for the
Financial Statements for 2012 have been applied in preparing the Interim
Report, except for amendments to existing IFRS and IAS standards endorsed by
the EU that have been adopted as of 1 January 2013. The amendments to IFRS
standards had no effect on the Consolidated Financial Statements. The effects
of the amendment to the IAS 19 standard on the Consolidated Financial
Statements are described in more detail below.

Effect of amendment to IAS 19 Employee Benefits standard on the Orion Group's
Consolidated Financial Statements

The Orion Group has changed its accounting procedure concerning defined
benefit plans to comply with the requirements of the amended IAS 19 Employee
Benefits standard. The Group has stopped using the corridor approach and, in
accordance with the amended standard, recognises all amounts arising from
remeasurement of defined benefit plan assets directly into the components of
other comprehensive income. The Group continues the accounting procedure of
function-based recognition of net interest arising from the plan assets
through service costs above the operating profit. The accounting policy in
accordance with the amended standard has been applied retroactively as of 1
January 2013.

The restated figures in the Orion Group's Consolidated Statement of
Comprehensive Income and Statement of Financial Position and key figures for
the financial year 2012 are presented by annual quarters in the table appended
to this Interim Report. The amendment to the IAS 19 standard decreased the
operating profit for the 2012 financial year by EUR 2.6 million. The net
effect of the amendment on equity at 31 December 2012 was EUR -1.8 million.
The amendment decreased the equity at 1 January 2012 by EUR 25.4 million, but
increased the equity during the 2012 financial year by EUR 23.6 million.

The policies and calculation methods applied during the period can be found on
the Orion website at www.orion.fi/en/investors/.

Restated figures in Consolidated Statement of Comprehensive Income and
Statement of Financial Position and other key figures for 2012

                                                 Q1/12           Q1-Q2/12
                                           Reported          Reported
                                            earlier Restated  earlier Restated
Operating profit, EUR million                  79.3     78.6    145.2    143.9
 % of net sales                              32.0%    31.8%    30.2%    30.0%
Profit before taxes, EUR million               79.3     78.7    144.5    143.2
 % of net sales                              32.1%    31.8%    30.1%    29.8%
Income tax expense, EUR million                19.7     19.5     35.6     35.3
R&D expenses, EUR million                      22.8     23.1     47.1     47.5
 % of net sales                               9.2%     9.3%     9.8%     9.9%
Cost of goods sold, EUR million                86.6     86.8    168.5    169.0
 % of net sales                              35.0%    35.1%    35.1%    35.2%
Sales and marketing expenses,
EUR million                                    49.2     49.3     98.1     98.3
 % of net sales                              19.9%    19.9%    20.4%    20.5%
Administrative expenses,
EUR million                                    11.1     11.2     22.6     22.8
 % of net sales                               4.5%     4.5%     4.7%     4.7%
Profit for the period, EUR million             59.6     59.1    108.8    107.8
Other comprehensive income net of tax, EUR
million                                         0.2      6.6      1.3     14.1
Pension assets, EUR million                    38.0     13.0     38.7     21.5
Pension liabilities, EUR million                0.5      1.2      0.5      1.3
Deferred tax liabilities, EUR million          41.6     35.3     42.4     38.0
Equity total, EUR million                     360.5    341.1    410.9    397.4
Assets total, EUR million                     905.2    880.1    746.1    729.0
Equity ratio, %                               39.8%    38.8%    55.1%    54.5%
Gearing, %                                   -20.0%   -21.2%    23.2%    24.0%
Non-interest-bearing liabilities,
EUR million                                   380.9    375.4    177.5    174.1
ROCE (before taxes), %                        57.8%    59.7%    51.4%    52.7%
ROE (after taxes), %                          55.4%    58.0%    47.8%    49.5%
Basic earnings per share, EUR                  0.42     0.42     0.77     0.77
Diluted earnings per share, EUR                0.42     0.42     0.77     0.77
Equity per share, EUR                          2.56     2.42     2.92     2.82
Personnel expenses, EUR million                52.6     53.3    105.7    107.0



                                                 Q1-Q3/12          Q1-Q4/12
                                          Reported          Reported
                                           earlier Restated  earlier Restated
Operating profit, EUR million                221.5    219.5    280.9    278.3
 % of net sales                             30.5%    30.2%    28.7%    28.4%
Profit before taxes, EUR million             220.5    218.5    279.3    276.6
 % of net sales                             30.4%    30.1%    28.5%    28.2%
Income tax expense, EUR million               54.5     54.0     70.4     69.7
R&D expenses, EUR million                     73.2     73.9    104.8    105.8
 % of net sales                             10.1%    10.2%    10.7%    10.8%
Cost of goods sold, EUR million              253.7    254.4    350.0    350.8
 % of net sales                             34.9%    35.0%    35.7%    35.8%
Sales and marketing expenses,
EUR million                                  147.5    147.8    205.7    206.1
 % of net sales                             20.3%    20.4%    21.0%    21.0%
Administrative expenses,
EUR million                                   32.2     32.5     45.3     45.7
 % of net sales                              4.4%     4.5%     4.6%     4.7%
Profit for the period, EUR million           166.0    164.5    208.9    206.9
Other comprehensive income net of tax,
EUR million                                    1.9     21.1      1.1     26.7
Pension assets, EUR million                   39.3     30.1     39.6     38.4
Pension liabilities, EUR million               0.5      1.4      0.3      1.4
Deferred tax liabilities, EUR million         42.1     39.6     43.1     42.5
Equity total, EUR million                    468.7    461.1    511.3    509.6
Assets total, EUR million                    791.9    782.7    836.9    835.7
Equity ratio, %                              59.2%    58.9%    61.1%    61.0%
Gearing, %                                    7.6%     7.7%    -1.7%    -1.7%
Non-interest-bearing liabilities,
EUR million                                  173.0    171.7    189.0    189.5
ROCE (before taxes), %                       50.0%    50.9%    46.2%    46.8%
ROE (after taxes), %                         45.7%    46.9%    41.3%    42.0%
Basic earnings per share, EUR                 1.18     1.17     1.48     1.47
Diluted earnings per share, EUR               1.18     1.17     1.48     1.47
Equity per share, EUR                         3.33     3.27     3.63     3.62
Personnel expenses, EUR million              152.8    154.8    212.1    214.8

Other matters

The data in this financial review are not audited.

The figures in parentheses are for the corresponding 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)
                                        Profit for the period
Return on equity (ROE), %  =                                             x 100
                              Total equity (average during the period)
                                               Equity
Equity ratio, %            =                                             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
Cash flow per share before =       flow from investing activities
financial items, EUR         Average number of shares during the period,
                                      excluding treasury shares
                             Equity of the owners of the parent company
Equity per share, EUR      =
                             Number of shares at the end of the period,
                                      excluding treasury shares
                                  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                      × Closing quotation of the period

Publisher:
Orion Corporation
http://www.orion.fi/
http://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 Interim Report Q1/2013

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the
information contained therein.

Source: Orion Oyj via Thomson Reuters ONE
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