SEB IG Seminar

2 September 2015

Geir Solli

SVP Group Treasury

1

Agenda

1. Introduction to Orkla

2. Funding and debt management

3. Orkla in the bond market

Orkla in figures

3

13.000employees1

90factories

OPERATING REVENUES

NOK 30 BILLION 1EBITA

NOK 3.2 BILLION 2MARKET VALUE

NOK 60 BILLION

The Leading Nordic supplierof branded consumer goods

1 Continued operations 2 2014

Business areas

4

Corporate Centre and Group Functions

Orkla

Foods

Operating

revenues:

12.232

EBITA:

1.495

Orkla Confectionery &

Snacks

Operating

revenues:

4.987

EBITA:

693

Orkla

Food

Ingredients

Operating

revenues:

6.534

EBITA:

359

Orkla

Home &

Personal

Operating

revenues:

4.960

EBITA:

854

Gränges (16%)

Orkla

Investments

Hydro Power

Financial Investments

Real Estate

Sapa JV (50%)

Jotun (42.5%)

FY 2014; NOK million

3 phases of Orkla’s history

5

Revenues BCG Total Revenues ; NOK billions

0

5

10

15

20

25

30

35

40

45

50

55

60

65

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

1986 – 2003

Consolidating Norwegian and Nordic BCG Industry

1986/91 – Consolidating the Norwegian BCG sector

1994/97 – Consolidating the Nordic BCG sector

2000 – Establishing Carlsberg Breweries (40% ownership)

2001 – Acquisition of Berlingske

2004 – 2008

Broader focus

2009 – 2015

Focus on BCG

1 2 3

2004: Divestment

Carlsberg Breweries stake

2005:

Acquisition of Elkem

Acquisition of Sapa

2006: Sale of Orkla Media

Acquisitions:

Jordan (2012)

Rieber (2012)

NP Foods (2014)

Cederroth (2015)

Divestments:

Elkem (2011)

REC (2013)

Sapa JV established (2013)

Orkla Brands Russia (2014)

IPOs:

Borregaard (2012)

Gränges (2014)

Orkla’s transformation

2011

New strategic

direction to become a

focused BCG company

2012 – 2013

Major structural actions

on Group level executed

to implement strategy

2014-2016

Operational focus

and finalize

organizational

changes

2014 – 2016

Operational focus.

Leveraging on

organisational changes

in BCG

6

Branded Consumer Goods:

80% of net sales from the Nordic region

7

36%

22%

7%

11%

Baltics:

4%

Other countries:

- India: 2%

- Czech Rep. 2%

- Other Eur. 14% (mainly ingred.)

- Other: 1%

Note: Net sales 2014

…and GDP in main markets is expected to

grow at a stronger / faster rate than Europe

Orkla’s categories in the largest markets are

growing…

Attractive markets with growing categories

Source: IMF World Economic Outlook April 2015; Nielsen week 24 2015

Real GDP; annual change in %

2.9%

Norway 2.8%

Denmark

Sweden

0.3%

Growth in Orkla’s categories last twelve months

-1

0

1

2

3

2014 2015 2016 2017 2018 2019

Finland

EURO area

Sweden

Norway

Denmark

8

IMF estimate

Competitive advantage: broad portfolio of brands with

strong market positions in stable Nordic markets

Source: AC Nielsen, retail market share RTM Q4 20149

Personal Care 42%

Home Care 73%

Biscuits 51% 35% 10%

Confectionery 29% 6%

Food supplements 78% 52% 33% 29%

Textiles (grocery) 77% 33%

Snacks 28% 32% 40% 43%

Frozen pizza 72% 37% 34%

Ketchup 76% 56% 32% 47%

Preserved vegetables 71% 64% 34% 54%

Jam/marmalade 48% 47% 41%

Caviar (cod roe spread) 77% #1

Examples

Acquisition of Cederroth: Significantly strengthens

Orkla Home & Personal’s position in the Nordics

• The acquisition will strengthen Orkla’s position as

one of the leading Nordic suppliers of personal

care, health, wound care and household cleaning

products

• 2014: Sales: SEK 1,894m, EBITDA: SEK 174m

• 850 employees

• Transaction signed 15 Jan 2015

• Completion 31 August.

Product portfolio examples

Poland

11%Finland

Norway

Denmark

8%

Spain

8%

RoW

6%

4%

47%

16%

SwedenOther

21%

House-

hold7%

Health

16%

Wound Care

17%

Personal

Care

39%

Sales by geography Sales by category

10

Strategy - focus on improving operations

11

Strategy

Operational

focus

• Future growth and value creation from a focused Nordic based BCG company

• Focus on organic growth as the key long-term value driver

• Going from a very decentralized model to a more optimized model

• Leveraging on our substantial local presence, skills and insights

• Deliver on initiated and ongoing structural processes

• Focus on activities that drive organic growth and improve margins

– Strong innovation programs

– Increase sales force effectiveness

– More cross-market initiatives

– Strengthen relations with our customers

• Optimizing supply chain

Branded Consumer Goods YTD 2015:

Volume-driven organic growth in first half of 2015

12

Organic growth performance1,2

1Reported growth adjusted for FX and M&A2For organic growth, data before Q4-14 includes Orkla Brands Russia

2011 2014 YTD-152012 2013

2.3%

-2.8%

1.1%

2.5%

0.7%

2.3%

Orkla Food Ingredients

-0.6%

3.0%

Orkla Home & Personal

Orkla Confectionery

& Snacks

Orkla Foods

3.3%

(1) RTM EBIT (adj.) margin diluted due to the acquisition of Rieber

Branded Consumer Goods YTD 2015:

Improving operations in Branded Consumer Goods

13

RTM EBIT (adj.) margin performance

2011

12.2%

2012

12.6%

RTM

Q2-15

12.0%11.8%

2014

11.6%

2013 (1)

-0.1%-p.

Orkla Confectionery

& Snacks1.4%-p.

Orkla Foods 0.3%-p.

Orkla Home & Personal

0.7%-p.Orkla Food Ingredients

EBIT (adj.) margin change

YTD 2015 per business area

Net Interest Bearing Debt/Gearing

14

Net gearingNet interest bearing debt (NOK million)

2014

8,4967,353

2012 Q2-15

5,661

2013

4,786

2011

10,645 0,31

0,16

0,28

0,18

0,24

20132011 2012 2014 Q2-15

Funding strategy – key priorities

• Maintain financial flexibility

– Undrawn, committed bank facilities + cash shall cover 12 m. maturities + known capital needs + strategic reserve

• Diversified sources

– Bilateral long term bank facilities (Revolving Credits)

– Norwegian bonds

– Niche lenders (e.g. Nordic Investment Bank)

– Private Placement markets (USA, Germany)

• Long-term bank relations

– Defined relationship bank group

• Standardised terms & conditions

– Senior, unsecured (neg. Pledge)

– No financial covenants

Debt maturity profile per Q2 2015

16

Amounts in NOK million

5,500

4,000

3,000

3,500

6,000

5,000

4,500

0

2,000

1,500

500

1,000

2,500

202120172015 2018 20202016 Later2019

Drawn amountsUnutilised credit facilities

Average maturity 3.7 years

Funding sources per Q2 2015

- NIBD NOK 7,4 bn

Amounts in NOK billion

5.8

5.2

1.5

3.6

Bonds and PP

Cash, cash equivalents

and interest bearing assets

Unutilised credit facilities

Banks

Bonds in the Norwegian market – NOK 3 bn outstanding

Notional Outstanding

• ORK 09 2007/17 1300 723

• ORK 10 2007/17 1200 914

• ORK 80 2013/24 1000 705

• ORK 82 2015/22 1500 659

Buy-backs/exchanges in ORK 09/10: 863 mill

ORK 80/82 held in Treasury: 1136 mill.

o All bonds listed on Oslo Børs

o Nordic Trustee documentation since 2013 (ORK 80/82)

o EMTN documentation on ORK 09/10

o Fixed or FRN depending on investor preference

o Arranger mandates to relationship banks

Orkla is a long-standing issuer in the Norwegian bond

market

19

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1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Outstanding volumes

Orkla will host an investor day in London on Friday 11 September 2015 (11.15- 16.00 UK time) at the London Stock

Exchange. The programme will cover a strategic update of the Group, and include in-depth presentations on the

development of the business segments.

Venue:

London Stock Exchange

10 Paternoster Square, London EC4M 7 LS

The presentations may also be viewed live on a webcast at: www.orkla.com

20

Capital Markets Day 11 September 2015

Thank you!

Contacts:

Geir Solli, SVP Group Treasury, geir.solli@orkla.no, +47 9954 2789

Arvid Østbø, VP Group Funding, arvid.ostbo@orkla.no, +47 9177 6830