nordion corporate presentation

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www.nordion.com NORDION Corporate Presentation September 5, 2013

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Nordion is a global health science company that provides market-leading products used for the prevention, diagnosis and treatment of disease. We are a leading provider of medical isotopes, targeted therapies and sterilization technologies that benefit the lives of millions of people in more than 60 countries around the world.

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Page 1: Nordion Corporate Presentation

www.nordion.com

NORDIONCorporate Presentation

September 5, 2013

Page 2: Nordion Corporate Presentation

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Caution on Forward Looking Statements

This presentation contains forward-looking statements, within the meaning of applicable securities laws, including under applicable Canadian

securities laws and the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These statements can

be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. The words “may”,

“will”, “could”, “should”, “would”, “outlook”, “believe”, “plan”, “anticipate”, “estimate”, “expect” and similar words and expressions are

also intended to identify forward-looking statements. Forward-looking statements are necessarily based on estimates and assumptions made

by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other

factors that we believe are appropriate in the circumstances, but which are inherently subject to significant business, political, economic and

competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected

in the forward-looking statements. Accordingly, this presentation is subject to the disclaimer and qualified by the assumptions, qualifications

and risk factors referred to in our 2012 Annual Information Form (AIF).

We caution readers not to place undue reliance on the Company’s forward-looking statements, as a number of factors could cause our actual

results, performance or achievements to differ materially from any forward-looking statements. We do not assume any obligation to update or

revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required

by applicable law.

Page 3: Nordion Corporate Presentation

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About Nordion

Delivering quality products to our global customers for more than 60 years, our product portfolio includes:

• Sterilization Technologies

• Medical Isotopes

Nordion is a health science company that provides market-leading products used for the prevention, diagnosis and treatment of disease.

Page 4: Nordion Corporate Presentation

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A Global Company

APPROXIMATELY

450 EMPLOYEESSUPPLY OVER

500 CUSTOMERSAROUND

30 PRODUCTSACROSS MORE THAN

40 COUNTRIES

68%UNITED STATES

18%ROW

10%EUROPE

4%CANADA

F2012 REVENUES BY REGION - $244.8M*

*Revenues and regional breakdown include Targeted Therapies business, which was divested in July 2013 to BTG plc.

Page 5: Nordion Corporate Presentation

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2010 2011 20120

50

100

150

200

250

300

103.6 108.7 95.4

89.4122.8

101.0

29.0

42.6

48.5

2012 Financial Highlights

Revenue Trend (US$ Millions)

* In July 2013, Nordion divested its Targeted Therapies business to BTG plc ** Key supplier down for repairs for 10 months in F2010

Medical Isotopes** Targeted Therapies*Sterilization Technologies

Page 6: Nordion Corporate Presentation

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2010 2011 20120

20

40

60

80

100

120

47.5 46.1 39

13.4

38.3

29.4

9.1

12.7

14.1

2012 Financial Highlights

Segment Earnings Trend (US$ Millions)

Medical Isotopes** Targeted Therapies*Sterilization Technologies

Excludes corporate segmented loss* In July 2013, Nordion divested its Targeted Therapies business to BTG plc ** Key supplier down for repairs for 10 months in F2010

Page 7: Nordion Corporate Presentation

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Q3 2013 Results

2012 20130.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

32.136.5

22.0

24.0

13.0

11.1

Q3 Q3

Segmented Revenue (US$ millions)

Segmented Earnings* (US$ millions)

2012 20130

5

10

15

20

25

30

14.417.8

4.6

5.94.3

0.5

* Excludes corporate segmented loss** In July 2013, Nordion divested its Targeted Therapies business to BTG plc

Medical Isotopes Targeted Therapies**Sterilization Technologies

Page 8: Nordion Corporate Presentation

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F2013 Timeline

DEC 4Provided update on arbitration-

related costs by AECL

JAN 26Filed amended

statement of claim against

AECL

JAN 28Appointed

Grant Gardiner as SVP, General Counsel

MAY 23Entered into agreement to

divest Targeted Therapies business

to BTG

JUL 15Announced divestiture

completion of Targeted Therapies business to BTG

MAR 21Settled claims

withDr. Reddy's

Labs

MAY 15Signed contract manufacturing agreement with

Navidea

AUG 20Reach settlement

with AECL to resolve MAPLE

lawsuits and arbitration costs

Update – remove Sept 5

Page 9: Nordion Corporate Presentation

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Leading Products in Global Markets

POTENTIAL >

< PRIORITY >

STERILIZATION TECHNOLOGIES

TARGETED THERAPIES

ADVANTAGE >

Optimize Medical Isotopes business• Pursue long-term supply• Maintain customer relationships

• Transition business to BTG plc

• Maintain quality customer service and supplier relationships

Maintain Sterilization business; selectively invest in growth:• Geographic expansion• New applications

• Global leader in cobalt-60

• Significant barriers to entry

• Solid cash flow and gross margins

• Recurring revenue base

• A global provider in processing, packaging, & delivery

• Extensive regulatory expertise and logistics & distribution network

Approximately 40% of single-use medical products worldwide are sterilized using gamma sterilization technologies

Over 10,000 hospitals worldwide use radioisotopes in medical procedures with about 90% being for diagnosis.

MEDICAL ISOTOPES

DIVESTED BUSINESS GO-FORWARD BUSINESSES

Page 10: Nordion Corporate Presentation

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Specialty Isotopes: Sterilization Technologies

Gamma sterilization is focused on the prevention of disease

Co-60 is used to sterilize medical devices, instruments and supplies and food

Customers of Co-60 include contract sterilization service providers and medical device and product manufacturers

The Nordion Gamma Centre of Excellence is a world class applied research and specialty gamma processing facility to promote and expand the use of gamma globally

Nordion manufactures Co-60 irradiation sources, and designs, constructs and maintains commercial gamma sterilization systems

Page 11: Nordion Corporate Presentation

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MARKET MIX PRODUCTS DRIVERS

80%

10%

• Stents• Patches• Tissue• Regen medicine

+ Aging population+ Enhance devices+ Leverage drugs+ Stem cell research

10%

Sterilization Market Segmentation

MEDICAL & SURGICAL

BIO-ACTIVE DEVICES

FOOD SAFETY

• Syringes• Catheters• Drapes, gowns• Sutures, gloves

+ Aging population

+ Min invasive surgery

+ Smaller devices

+ Material

• Fruits & vegetables• Spices• Meat and poultry• Ready To Eat (RTE)

+ FDA labeling

+ USDA FEA

+ Food safety concerns

10%

80%

Page 12: Nordion Corporate Presentation

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Specialty Isotopes: Medical Isotopes

• Medical isotopes are used to prevent, diagnose and treat disease

• Main isotope supply sources are nuclear reactors and cyclotrons

• Primary product is Mo-99, which decays for use in Technetium-99 (Tc-99m) generators, used in imaging to diagnose heart disease and cancers

• Other Key Reactor Isotopes:– Xenon-133 (Xe-133), used in lung scans;

– Iodine-131 (I-131), used to treat hyperthyroidism, thyroid cancer and non-Hodgkin’s lymphoma;

– Iodine-125 (I-125), used to treat prostate cancer;

• Key Cyclotron Isotopes:– Iodine-123 (I-123), used to diagnose thyroid disease;

– Strontium-82 (Sr-82), used to manufacture rubidium-82 generators, which are used in imaging to diagnose heart disease

– Thallium-201 (Tl-201), used to diagnose and assess risk of coronary artery heart disease;

– Palladium-103 (Pd-103), used to treat prostate cancer;

– Indium-111 (In-111) and Gallium-67 (Ga-67) (both used to diagnose infection and cancer) at our Vancouver facilities

Page 13: Nordion Corporate Presentation

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Medical Isotopes (Mo-99) Supply Chain

• Established, reliable facilities providing high-quality isotopes to global customers• Specialty skills in operations, regulatory affairs and global logistics

Irradiation of HEU targets to produce crude

isotopes

NUCLEAR REACTORS

Purification of Mo-99 and

distribution to global radiopharmaceutical

manufacturers

MEDICAL ISOTOPE PROCESSORS

Tc-99m Generator

manufacturing and distribution to radiopharmacies

RADIOPHARMACEUTICAL MANUFACTURERS

Unit dose compounding and

distribution to hospital/departments

RADIOPHARMACIESAND HOSPITALS

Critical physiological diagnosis enabling

informed therapeutic decisions

PHYSICIANSAND PATIENTS

Page 14: Nordion Corporate Presentation

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Nordion Environmental, Health,and Safety (EH&S) Program

• Creating a workplace that enriches the health and well-being of Nordion employees

• Demonstrating Environmental, Health, and Safety (EH&S) regulatory excellence

• Improving EH&S performance – continually

• Managing EH&S with excellence

Page 15: Nordion Corporate Presentation

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Nordion Environmental, Health,and Safety (EH&S) Program

• Implementing measures in the design and operation of all of our facilities to keep radiation dose received by workers and the public ALARA (as low as reasonably achievable)

• Implementing an ISO 14001-based environmental management (EMS) system at our Ottawa site        

• Establishing EH&S objectives and targets annually to continually improve our performance        

• Maintaining - and building on - a comprehensive training program for employees and contractors        

• Engraining EH&S excellence into the Nordion culture        

• Investing in a world class approach to EH&S

ISO 14001: 2004 certified

Recipient of the Government of Canada 2007 ENERGY STAR ® Market Transformation Award

Practitioner of LeanSigma, a methodology used to continually improve processes

Recipient of an unprecedented ten-year license renewal from the Canadian Nuclear Safety Commission (CNSC)

Page 16: Nordion Corporate Presentation

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In the Community

Other Programs:

• Employee Giving Program - Nordion makes donations to not-for-profit organizations nominated by employees

• Proud sponsor of the Gala for Research,

an annual black-tie event to support the Ottawa Hospital Research Institute, the research arm of The Ottawa Hospital

• Sponsor and key supporter of the University of Ottawa Heart Institute Telethon

Ride the RideauTitle sponsor of Ride the Rideau since its inauguration in 2010, Nordion has helped to raise over $4.4 million for cancer research at The Ottawa Hospital Research Institute.

Page 17: Nordion Corporate Presentation

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The talented, dedicated and resilient people that make up Nordion share a single purpose:

Maintain a global leadership position in our key markets

Build value for shareholders through the execution of our strategic priorities

Be a trusted, world-class provider of healthcare products to our customers

Business Outlook

Page 18: Nordion Corporate Presentation

www.nordion.com

Find out more at www.nordion.com

Follow us at http://twitter.com/NordionInc