The leading Nordic supplier

of branded consumer goods

Vision: “Your friend in everyday life”

Winning in local markets

*Per 31 December 2019, corresponding to CAGR of ~17%2

The leading Nordic-

based BCG company

Unique local customer

and consumer insight

Resilient market

positions

Proven track record of

value creation

• From industrial

conglomerate to

leading BCG company

• Growth and efficiency

potential from

operating more as

“One Orkla”

• #1 or strong #2

brands

• A preferred partner for

the retailers

• Market positions in the

range of 30%-80%

• Strong positions in

smaller markets

• Broad category scope

to get scale

• NOK ~22 billion

returned to

shareholders since

2014

• ~153% total

shareholder return

since 2014*

Branded Consumer Goods:

Strong Nordic presence accounting for ~70% of sales

3

Geographical spread of sales revenues

25%

21%

11%

11%

5%

24%

4%

Norway

Rest of Europe

Baltics

Denmark

SwedenFinland

and Iceland

Rest of world

Note: 2019

Orkla brands compete well with global brands in its core markets

Examples of market shares in selected categories. Source: Nielsen. R12M data as of Week 40 (washing-up liquid & laundry detergents), Week 42

(pizza), Week 36 (ketchup), Week 48 (biscuits & chips), Nov -19 (chocolate) and Sep -19 (confectionery)4

Confectionery (LV)

Washing-up liquid (NO)

Laundry detergents (NO)

Pizza (NO)

Ketchup (NO)

Chips (DK)

Biscuits (SE)

Chocolate confectionery (EE)

93%

3%

26%

73%

8%

63%

25%

75%

22%

35%

32%

13%

7%

45%

12%

11%

Orkla

P&G

Orkla

Unilever

Orkla

Dr. Oetker

Orkla

Heinz

Orkla

Mondelez

Orkla

Taffel (Intersnack)

Orkla

Ferrero

Orkla

Ferrero

We have continued to strengthen Orkla as a BCG company by

reallocating capital from sale of non-core assets to BCG

5

1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

20,000

15,000

5,000

10,000

25,000

35,000

30,000

40,000

BORREGAARD ACQUISITION

NORA ACQUISITION VOLVO

AGREEMENT

ORKLA INTOBEVERAGES

Key divestments

Hydro

PowerOrkla

Media

Note: 40% of Carlsberg Breweries included in 2001, 2002 and 2003.

Operating

income in

NOK million

(NOK billion)

Sales: 6.6

EBIT (adj.): 1.1

EBIT (adj.) margin:

16.5%

A unique portfolio of strong local brands

6

Orkla Confectionery &

Snacks

Orkla

Food

Ingredients

(NOK billion)

Sales: 10.3

EBIT (adj.): 0.6

EBIT (adj.) margin:

6.1%

Orkla

Care

(NOK billion)

Sales: 5.9

EBIT (adj.): 0.9

EBIT (adj.) margin:

14.5%

Industrial &

Financial

Investments

Hydro Power

Financial Investments

Jotun (42.6%)

Note: Full-year figures 2019

Orkla

Foods

(NOK billion)

Sales: 16.8

EBIT (adj.): 2.3

EBIT (adj.) margin:

13.6%

28%

40%

22%

3%

7%

Europe otherNorway World otherNordics ex. Norway Baltics

28%

48%

18%

5%

1% 34%

40%

19%

1%

5%

42%

43%

11%

4%

1%

Orkla

Consumer

Investments

(NOK billion)

Sales: 3.4

EBIT (adj.): 0.3

EBIT (adj.) margin:

8.8%

34%

46%

0%

1%

18%

Creating long term shareholder value through balancing organic growth

and efficiency

7

Organic growth

>= market

U.EBIT %**

>1.5pp by 2021

M&A + Portfolio

Management

NWC / NSV -3pp

by 2021

Grow underlying EBIT

Generate strong cash flow

Improve asset efficiency

Increase dividend

> NOK 2.6 /share*

Deliver

shareholder

value

*Normally within 50-70% EPS payout ratio; **Target applicable to new reporting unit ‘BCG including HQ’

Building on our most important assets

8

…while driving flexibility and efficiency Winning with strong local brands and

consumer insight…

ONE

Our markets are changing - and we see opportunities

9

Lower growth in grocery channel

Smaller players and PL take share of growth

Digital transformation

Use of digital technology to remake a process to

become more efficient or effective

Accelerate growth in other

channels/markets

Continue to strengthen our

position with local brands

Use digitalization as a way

to increase our competitiveness

Use local consumer insight to

respond to consumer trends

Change in consumer preferencesHealth & well-being

Convenience

Taste and indulgence

Sustainability

Recent strategic acquisitions

Our growth priorities Recent acquisitions in line with strategy

10

Deliver sustainable productsMake healthier

alternatives

Innovate to save the

environment

Innovating for a healthier and more sustainable future

11

DOUBLEproducts & services

contributing to

health and wellness

15%less

salt & sugar in

our products

INSPIREto a healthier

lifestyle

ENGAGEfor healthy oceans

and sustainable

fishing resources

Aim for

100%sustainable raw

materials

Aim for

100%recyclable

packaging

Food waste

-50%

Aim for

FOSSIL-FREEenergy

INNOVATE products and

processes

Orkla with EBIT (adj.) CAGR of above 6% in the 2016-2019 period

*Note: Figures include Orkla’s Branded Consumer Goods businesses including HQ.

Loss of Wrigley contract considered as M&A (won / lost distribution agreements will be considered as M&A from 2020)12

BCG* EBIT 2016 – 2019 (MNOK)BCG revenue, 2016 – 2019 (BNOK)

Organic

growth

2016

42.7

FXM&A 2019

36.5

CAGR

1.2%

2016 Underlying

growth

FXM&A 2019

3,975

4,786CAGR

~4%

Improvement in net working capital of ~ 1%-p in 2019

Figures include Orkla’s Branded Consumer Goods businesses including HQ13

11

12

13

14

Ju

n’1

9

Ju

n’1

8

%

De

c’1

7

De

c’1

9

De

c’1

8

R12M Net working capital / R12M Net sales

Strong cash flow from operations, continued expansion investments and

structural growth leaves Orkla with a sound balance sheet

Amounts in NOK million14

3

IFRS 16

effect

(1/1 2019)

Taxes &

financial

items

Net debt 31

December

2018

Expansion

capex and

net M&A

1,447

1,296

4,933

3,037

Cash flow

from

operations

Net paid to

shareholders

FX effects Net debt 31

December

2019

2,589

3,112

6,551= 1.0x

EBITDA

Funding considerations & allocation priorities

Funding considerations Allocation priorities

15

• Maintain a financial and business risk profile consistent

with an investment grade credit rating

• Secure funding when you don’t need it - avoid

expensive bridge financing and restrictive covenants

which can be challenging to reverse

o Diversified funding sources

o Diversified maturity structure

• Retain capacity to seize attractive opportunities when

they arise, with available funding on competitive and

non-restrictive terms

• #1 priority to maintaining an attractive and predictable

dividend policy – have never lowered ordinary

dividends

• #2 priority is value accretive M&A and organic

investments in strengthening the future Orkla

• #3 priority is to return excess capital to shareholders