Orkla Asa · OSL:ORK
Orkla Asa — Investor Day (May 2025)
89 slides from Orkla Asa's investor day presentation, May 28, 2025
Slide 1: Capital Markets Update
Capital Markets Update 28 May 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Orkla ASA (the “Company”) solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. Certain statements included in this presentation contain various forward-looking
Slide 3: Agenda
AGENDA Update on Orkla ASA 09:00 Nils K. Selte, President and CEO Local time in Oslo (CEST) Update on financial targets Arve Regland, EVP and CFO Orkla Foods Aku Vikström, CEO Orkla Foods Coffee break (~20 minutes) Orkla Snacks 10:15 Ingvill Tarberg Berg, CEO Orkla Snacks Orkla Food Ingredients Joha
Slide 4: Update on Orkla ASA
Update on Orkla ASA Nils K. Selte President and CEO
Slide 5: Target: 12-14% TSR per annum 2024-2026
Target 12-14% Total Shareholder Return (TSR) per annum 2024-2026
Slide 6: 3 Priorities
3 PRIORITIES Drive organic value Reduce the Perform value- in existing complexity of adding structural portfolio existing portfolio transactions
Slide 7: Portfolio company targets 2023-2026 (consolidated)
Portfolio company targets 2023-2026 (consolidated)1 Underlying EBIT EBIT (adj.) Return on Capital Employed (adj.) growth margin (ROCE) 17.3% 10.5%-11% 13% 15.0% 10.1% 10.3% 11.5% 11.7% 9.9% 8%-10% 9.0% (CAGR) 6.9% 2023 2024 R12M 2023-262 2023 2024 R12M 20262 2023 2024 R12M 20262 Note: 1. Including O
Slide 8: CMD Year End Today
CMD Year End Today 2023 2026 12 7-9 10 Portfolio Portfolio Portfolio Companies Companies Companies From Portfolio Companies varying in size to companies more similar and larger in size
Slide 9: Orkla portfolio
Orkla portfolio Revenues 2024 in NOK billions Financial Anchor Grow and build Transform or exit investments 34.2 20.6 19.4 9.7 Divested 7.3 3.1 3.0 2.7 1.6 1.3 1.4 0.6 0.5 0.2 Jotun1 Orkla Orkla Orkla Food Orkla Orkla The Orkla Orkla Health and Pierre Lilleborg3 Hydro Orkla Real Foods Snacks Ingredi
Slide 10: Portfolio categorisation
Portfolio categorisation Grow Transform and build Anchor or exit Orkla Food Ingredients Jotun Orkla Home and Personal Care Orkla Health Orkla Foods Orkla House Care Orkla India Orkla Snacks Health and Sports Nutrition Group The European Pizza Company Pierre Robert Group Lilleborg Divested
Slide 11: Portfolio categorisation
Portfolio categorisation Grow Transform and build Anchor or exit Orkla Food Ingredients Jotun Orkla Health Orkla Foods Orkla House Care Orkla India Orkla Snacks Health and Sports Nutrition Group The European Pizza Company Orkla Home and Personal Care Pierre Robert Group Lilleborg Divested
Slide 12: Status on CMD targets
Anchor Status on CMD targets Underlying EBIT growth Cash conversion Orkla Home 40.9% 128% and 35.5% 117% 110% 100% Personal 28.5% Care >10% 2023 2024 R12M Target 2023 2024 R12M Target Note: R12M represents rolling twelve-months as end of Q1 2025. The target period stretches from 2024 to 2026. All EB
Slide 13: Update on financial targets
Update on financial targets Arve Regland EVP and CFO
Slide 14: Operating revenue and EBIT (adj.)
Operating revenue and EBIT (adj.) Operating revenue EBIT (adj.) Consolidated Portfolio Companies (incl. Orkla ASA) Consolidated Portfolio Companies (incl. Orkla ASA) NOK billions NOK billions +CAGR 10% +CAGR 8% 7.0 68.8 65.9 6.0 55.4 5.4 5.4 49.2 5.0 46.6 4.7 4.4 39.6 41.6 11.1% 11.3% 11.7% 11.0% 10
Slide 15: Earnings per share
Earnings per share EPS (adj.) per share | Orkla Group NOK +CAGR 10% 6.44 5.78 5.46 5.04 5.17 4.24 3.62 2018 2019 2020 2021 2022 2023 2024 Note: Earnings per share (adj.) diluted
Slide 16: Cash flow
Cash flow Cash flow from operations and cash conversion | Consolidated Portfolio Companies (incl. Orkla ASA) Cash flow from operations (NOKbn) Cash conversion 7.9 6.1 5.4 4.8 3.5 3.8 1.5 2018 2019 2020 2021 2022 2023 2024 79% 101% 98% 69% 30% 102% 114%
Slide 17: Main priorities for capital allocation
MAIN PRIORITIES FOR CAPITAL ALLOCATION Value Maintain a accretive Return excess stable and acquisitions & capital to increasing divestments shareholders dividend plus organic investments LONG-TERM TARGET CURRENT STATUS FINANCIAL POLICY Investment grade credit quality A- credit rating LEVERAGE Net de
Slide 18: Update on CMD targets for Portfolio Companies not presenting
Update on CMD targets for Portfolio Companies not presenting
Slide 19: Jotun's targets
Jotun’s targets 42.7% ownership interest Dimension Target 2024 Revenue growth >8% 7.4% Operating margin >12% 19.8% Equity ratio >50% 62% ROCE >25% 34% Liquidity1 >5% 13% Note: 1. Cash and unutilized long-term credit lines available in Jotun A/S, as percentage of Jotun 100% sales
Slide 20: Status on CMD targets
Grow and Build Status on CMD targets Revenue growth EBIT margin 8.4% 7-9% 13.4% 14.0% Orkla 12.8% 12.7% 6.3% 6.5% Health 2023 2024 R12M Target 2023 2024 R12M Target Note: R12M represents rolling twelve-months as end of Q1 2025. The target period stretches from 2024 to 2026. Revenue growth are define
Slide 21: Status on CMD targets
Grow and Build Status on CMD targets Consumer sales EBIT by 2026 The >5.0% €35-40m European €29m €29m Pizza 2.6% €23m Company -0.2% -0.4% 2023 2024 R12M Target 2023 2024 R12M Target Note: R12M represents rolling twelve-months as end of Q1 2025. The target period stretches from 2024 to 2026. Revenue
Slide 22: Status on CMD targets
Transform or exit Status on CMD targets EBIT margin 14-15% 11.3% 12.0% Orkla 9.6% House Care 2023 2024 R12M Target Revenue growth EBIT margin Cash conversion Health and 10.4% 291% Sports 210% 4.8% >5.0% 5.0% Nutrition 3.8% 2.9% 3.0% 100% 2.7% Group Neg. 2023 2024 R12M Target 2023 2024 R12M Target 20
Slide 23: ESG targets
Governance Protecting the Empowering and ethics in environment people business ESG targets 1 2 3 Scope 1 & 2 GHG reduction of All food companies to create Balance in gender 70% by 2030 positive health impacts representation in management towards 2030 teams by 2026 Target for Scope 3 GHG reduction by
Slide 24: TSR target communicated at the CMD
TSR target communicated at the CMD
Slide 25: Orkla
‘Orkla
Slide 26: Capital Markets Update May 2025
28 May 2025 Capital Markets Update
Slide 27: Biography
Biography 2018-2024 CEO at NoHo Partners; leading Nordic restaurant operator listed at Nasdaq Helsinki 2014-2018 CEO at Royal Restaurants; Private Equity owned and Finland’s largest private hotel and restaurant group 1997-2014 Introduction General manager and commercial roles across Europe within va
Slide 28: Orkla Foods at a glance
Orkla Foods at a glance Market with presence Export market with >50 MNOK 2024 NOK 20+ NOK 2.5+ 120%+ ~5,500 billion in revenues billion in EBIT (adj.) cash conversion employees Cash conversion: Cash flow from operations / EBIT adj.
Slide 29: A portfolio of market-leading iconic brands
A portfolio of market-leading iconic brands 2x market share of branded competitors 80% of revenue from #1 and #2 brands and 3x market share of all private label
Slide 30: Unique model combining best of both worlds
Unique model combining best of both worlds Local player with regional scale benefits Built on local accountability. Driven by results. Economies of scale in sourcing and supply compared to local competition Commercial scale to leverage on category insight, commercial excellence and trade partnership
Slide 31: Consistent track record of profit and cash delivery
Consistent track record of profit and cash delivery EBIT and cash flow generation Cash flow from operations EBIT (adj.) NOK billion 2.5 2.2 2.3 2.1 2.0 1.6 1.3 1.1 2011 2013 2015 2017 2019 2021 2023 2024 Cash 78% 86% 87% 114% 117% 73% 127% 124% conversion Cash conversion: Cash flow from operations /
Slide 32: Programs from Capital Markets Day on track
Programs from Capital Markets Day on track Status of programs communicated at Capital Markets Day Organizational development Procurement & supply chain Cash management Completed On-track On-track More than 50% of CMD savings extracted
Slide 33: From price-driven to more balanced long-term growth
From price-driven to more balanced long-term growth From price and margin-driven value creation Inflation as the Pricing was the Consumer changed Volumes declined catalyst response behavior To more balanced organic growth driven by positive price, volume and mix development
Slide 34: Accelerating growth by getting clearer, leaner and aligned
Accelerating growth by getting clearer, leaner and aligned Simplification Ways of Focus working
Slide 35: Sharpening our portfolio
Focus Sharpening our portfolio Growth platforms Defend scale Harvest/exit 20% % of portfolio 60% sales 20% • #1 & #2 positions • Sizeable market leading • Positions with limited Characteristics • Underlying growth positions growth potential • Low PL shares • Medium or low growth • Often smaller posi
Slide 36: Turning focus into growth – our growth platforms
Focus Turning focus into growth – our growth platforms 3 G R O W T H P L AT F O R M S 10 LOCAL DIAMONDS 1 2 3 4 FROZEN SAUCES D I L U TA B L E S MEALS Selected local positions crucial to Orkla Foods’ success and future 40% of portfolio sales 20% of portfolio sales
Slide 37: Simplify to fuel growth
Simplification Simplify to fuel growth Tail-cutting of 20% SKUs across Simplify our product range to ensure Orkla Foods product portfolio enough shelf-space for our best- sellers Supply-driven Demand-driven
Slide 38: Simplify to fuel growth – Real life example
Simplification Simplify to fuel growth – Real life example
Slide 39: New ways of working to drive alignment and growth
Ways of working New ways of working to drive alignment and growth What How Core playbook Standardized tool - Growth wheel • Setting a clear growth strategy and incentives to E drive real internal growth TUR RE P UE AL CA LE V VA • Aligning teams around critical demand drivers in NCE GROWTH unified f
Slide 40: From concept to reality – the growth wheel at work
Ways of working From concept to reality – the growth wheel at work Case: renovating Grandiosa brand in Norway Starting point Improvement areas and actions Preliminary results Grandiosa Pepperoni volume sales up 29% YTD E TUR RE 129 P UE AL LE CA 29 VA V NCE GROWTH P HY L A B AVA WHEEL Revitalized ta
Slide 41: Our growth engine: focus, simplicity and alignment
Our growth engine: focus, simplicity and alignment Focus Simplification Ways of working
Slide 42: On track for 2026 – building momentum for long-term growth
On track for 2026– building momentum for long-term growth Status at Capital Markets Today Target 2026 Day 2023 (YTD Q3 23’) (R12M, Q1 25’) 2-3% Yearly organic 7.2% 0.4% Positive volume/mix growth growth at end of period EBIT margin 11.0% 12.5% 13-14% (adj.) Cash 115% 119% >100% conversion ROCE 12.2%
Slide 43: Future-fit portfolio - powered by focus and execution
Future-fit portfolio - powered by focus and execution Revenue by classification Target 2030 Organic growth rate Other 40% Core 2025 portfolio 60% Strategy execution
Slide 44: Orkla Foods
A ‘Orkla Foods
Slide 45: Capital Markets Update May 2025
28 May 2025 Capital Markets Update
Slide 46: The #1 snacking choice for the Nordic/Baltic
Our aspiration The #1 snacking choice for the Nordic/Baltic consumers Winning together with local, sustainable brands and passionate people
Slide 47: Company overview
Company overview 4.4 (45%) 3.9 (40%) Nordics: 1.2 (12%) 85% Biscuits Confectionery Snacks Baltics: 15% Operating Number of Number of revenue factories employees 9.7 13 ~3000 Operating revenue in NOK billion; Other ~3% include cakes, convenience food & frozen food
Slide 48: Uniquely positioned in attractive snacking categories in Nordics/Baltics
Uniquely positioned in the attractive snacking categories in the Nordic/Baltics with strong, local legacy brands We are in attractive categories for suppliers and trade… …with market leading positions Nordic & Baltic Indicative Private label market trade margins1 share2 Snacks Confectionery Biscuits
Slide 49: 2024 was a strong start towards our targets for 2026
2024 was a strong start towards our targets for 2026 EBIT (adj.) growth 2024 Status vs targets EBIT (adj.) margin Volume-/mix growth +25.7% >15.0% 1.3 (13.1%) 11.4% 13.1% 2.1% >2.0% 1.0 (11.4%) -2.2% 2023 2024 Return on capital Cash conversion employed • Price increases to mitigate development in in
Slide 50: High cocoa prices are putting pressure on the chocolate category
High cocoa prices are putting pressure on the chocolate category – We remain committed to our targets Cocoa bean price development COCL - Cocoa bean London ICE (DH-0) GBP/MT • Cocoa prices tripled vs 2023 11 000 • Strong mitigation program in place 10 000 - Price adjustments 9 000 - Price/pack optim
Slide 51: Our strategic priorities provide a solid foundation for value creation
Our 3 strategic priorities provide a solid foundation for value creation From Orkla CMD Nov 2023
Slide 52: Clear priorities to drive growth with our hero brands
1 Win with heroes We have clear priorities to drive growth in our categories with our hero brands Snacks Confectionery Biscuits Accelerate pan-regional Win in our core segments Expand in indulgence and hero brands BUBS and potato chips and cheese snacking segments Smash! Optimize formats to align Dr
Slide 53: Driving growth in core with Smash!
1 Win with heroes We see great results from driving growth in core with Smash! in home and new markets Smash operating revenue growth Significant uplift in Norwegian sales through new communication platform and format innovation Strong launch of tablet in Sweden and Finland while accelerating sales
Slide 54: Strong performance for BUBS
1 Win with heroes Strong performance for BUBS – with high growth potential going forward BUBS volume growth ambitions ~2-3x Strong organic growth – global awareness with limited investments Growth only hampered by capacity – investments in new production line to double capacity in 2026/2027 +89% Rea
Slide 55: KiMs is growing volume and market share in Denmark
1 Win with heroes KiMs is growing volume and market share in the Danish market Ranked strongest Ranked best field Strong vol-/mix brand in Denmark sales in Denmark growth #1 #1 9.2% 11 1) AIM Creates annual brand analysis; 2) MLDK annual awards; 3) 2023/2024
Slide 56: Cost initiatives to drive margin and fuel investments
Fuel heroes through 2 cost efficiency We have initiated cost initiatives to drive margin, and fuel brand and capability investments Key levers to drive cost out Input cost Production Fixed cost Capital reduction efficiencies optimization efficiency Harmonize raw materials & Grow volumes with less co
Slide 57: Step-changing our capabilities to win in the market
Step-change critical 3 capabilities And we are step-changing our capabilities to win in the market A joint commercial model A common cross-market Operational excellence and for growth Sales & Operation Planning digitalization process
Slide 58: New operating model implemented from 1 January
To accelerate our strategic priorities, we implemented a new operating model from 1 January From l o o s e l y … to coming together connected… and accelerating everything we do Win Together Execute Superior with market excellence insights PortCo Scale solutions Local where it matters - System value
Slide 59: New centralized category teams to support local business units
We have built new centralized category teams to support our local business units to win in local markets! Local Business Units Orkla Snacks Central R&D and Central Supply Chain value creation Sustainability diamond Central Commercial Local where it matters - System value where it makes a difference
Slide 60: Our new operating model will accelerate strategy implementation
Our new operating model will accelerate our strategy implementation Key advantages of new operating model Accelerate top-line Drive cost efficiency Strengthen capabilities • Cross-market category strategies and • Harmonization of input factors • Common frameworks and best- growth platforms practice
Slide 61: Orkla Snacks – A company set up for future success!
Orkla Snacks – A company set up for future success!
Slide 62: Orkla Snacks
A ‘Orkla Snacks
Slide 63: Building a leading European and US food ingredients company
Building a leading European and US food ingredients company
Slide 64: Large and resilient addressable market of NOK 125 bn
Large and resilient addressable market of NOK 125 bn, with strong growth potential Current Resilience and high purchase BAKERY INGREDIENTS frequency market addressed1 Consumer trends driving increased SWEET INGREDIENTS NOK 125 bn category value growing ~4% Local consumer preferences and PLANT-BASED
Slide 65: Orkla Food Ingredients delivers tasty solutions
Orkla Food Ingredients delivers tasty solutions with bakery, sweet and plant-based ingredients BAKERY INGREDIENTS SWEET INGREDIENTS PLANT-BASED Leading European supplier Key provider for ice cream, Nordic pioneer of of bakery and pastry confectionery, and bakery sustainable and nutritional ingredien
Slide 66: Tailored to deliver on diverse customer needs
Tailored to deliver on diverse customer needs across markets and customer segments Commodity Ingredients formulation Sales Customers Consumers suppliers and production & distribution Deep product Full assortment Industrial bakers Artisan bakers In-store bakeries knowledge and scale delivering on in
Slide 67: Decades of growth have transformed Orkla Food Ingredients
Decades of growth have transformed Orkla Food Ingredients to a leading ingredients player Total CAGR +11% Organic CAGR +4% 2012-2025 R12M Q1 Sales, NOK billion 19.4 19.8 18.7 3.6x Topline increase 14.7 12.0 6.1x EBIT (adj.) increase 10.3 10.7 9.6 8.7 8.2 6.5 7.6 +2.8%-p 6.0 EBIT margin increase 5.4
Slide 68: Competitive edge derived from multi-local-model
Orkla Food Ingredients’ competitive edge is derived from our multi-local-model FURTHER Organic and structural growth 3 EXPANSION are key parts of our value creation LEVERAGE Synergies through collaboration, 2 SCALE common capabilities and systems WINNING Strong local positions close 1 LOCALLY to cus
Slide 69: Value creation through strong local positions close to customers
Value creation through strong local positions Winning locally close to customers • Local companies, with products and solutions tailored to local preferences • Unmatched insights into local markets, customers and products, driving organic growth • 90% of revenues outside of Norway, and 2/3 outside S
Slide 70: Solid bakery ingredients platform in Eastern Europe
Solid bakery ingredients platform built in Winning locally Eastern Europe with significant growth potential • Eastern European markets represent a population ~5x the Nordics, with high growth in consumer spending • Proven track record of creating strong positions, fuelling organic growth and leverag
Slide 71: Accelerating synergies through collaboration and common systems
Leverage scale Accelerating synergies through collaboration, common capabilities and systems Grow Delivering on cost reduction projects on conversion, distribution and SG&A operating profits ahead of Reducing complexity by optimising footprint and in-sourcing products revenues Realising procurement
Slide 72: Cost reduction projects delivering on conversion, distribution and SG&A
Leverage scale Cost reduction projects delivering on conversion, distribution and SG&A costs Cost Increasing pace of Leveraging scale in Dedicated initiatives reduction continuous SG&A costs across to reduce cost base projects improvements in business units in underperforming conversion and units di
Slide 73: Reducing complexity by optimising footprint
Leverage scale Reducing complexity by optimising footprint and increasing share of own products sold Optimising • Optimise the footprint footprint – Consolidating sites to reduce of sites being -5% complexity and costs consolidated since 2023 – Investing to modernise and drive growth additional targ
Slide 74: Realising procurement savings across business units
Leverage scale Realising procurement savings across business units by leveraging purchasing power Procurement • Realised +0.9%-p increase in savings +0.9%-p 3.0% savings on external spend base last year compared to average previous 4 years 2.5% • Targeting 3.0% annual gross savings 1.6% • Procuremen
Slide 75: Re-investing cash flow to grow within core categories
Expansion Re-investing cash flow to grow the business within core categories and geographies EXPANSION M&A CAPEX Investing to drive organic growth, Continuing structural growth journey, with focus on increasing capacity with focus to strengthen competitive and enhancing capabilities edge in existing
Slide 76: Structural growth is a key part of expansion strategy
Expansion Structural growth is a key part of the expansion strategy, with 50+ businesses acquired since 1999 Future Future target target ’99-‘11 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Future target Sweden • 25 years of M&A experience, with reinforced integrat
Slide 77: The partnership is a catalyst for unlocking full potential
The partnership is a catalyst for unlocking the full potential of Orkla Food Ingredients • The partnership between Orkla and Rhône is a catalyst for unlocking Orkla Food Ingredients’ full potential, with a focused strategy to drive long-term, sustainable value • Rhône brings to the partnership a str
Slide 78: On track to deliver on 2026 targets
On track to deliver on 2026 targets, with significant EBIT growth and increased returns Communicated CMD 2023 Q1 update • Volume in line with target Revenues 3-4% 1.6% • Price development in 2024 impacted by market prices Annual growth CAGR • Underlying growth of 9.3% vs. targeted 9-10% EBIT adj. 9-
Slide 79: Building a leading European and US food ingredients company
Building a leading European and US food ingredients company
Slide 80: Q&A
Q&A Nils K. Selte Arve Regland President and CEO EVP and CFO Aku Vikström Ingvill T. Berg Johan Clarin CEO Orkla Foods CEO Orkla Snacks CEO Orkla Food Ingredients
Slide 81: Closing remarks
Closing remarks Nils K. Selte President and CEO
Slide 82: 3 Priorities
3 PRIORITIES Drive organic value Reduce the Perform value- in existing complexity of adding structural portfolio existing portfolio transactions
Slide 83: Appendix
A ‘Orkla Appendix rkla
Slide 84: Consolidated Portfolio Companies – targets for 2026
Consolidated Portfolio Companies – targets for 2026 Grow and build Anchor Transform or exit Orkla Food Ingredients Orkla Foods Orkla Home & Personal Care ▪ Revenue CAGR: 5% ▪ Revenue CAGR: 2-3% ▪ EBIT CAGR: >10% ▪ EBIT CAGR: 12% ▪ EBIT margin: 13-14% in 2026 ▪ Cash conversion: >100% p.a. ▪ ROCE: +2
Slide 85: Alternative Performance Measures (APM)
Alternative Performance Measures (APM) Contribution ratio Contribution margin ratio is calculated by dividing the contribution margin by operating revenues. Operating revenues minus variable operating expenses constitute the contribution margin. Variable operating expenses are reported on the financ
Slide 86: Alternative Performance Measures (APM)
Alternative Performance Measures (APM) Change in underlying EBIT (adj.) Change in underlying EBIT (adj.) shows like-for-like EBIT (adj.) growth for the group’s business portfolio, and is defined as the group’s reported change in EBIT (adj.), adjusted for effects of the purchase and sale of companies
Slide 87: Alternative Performance Measures (APM)
Alternative Performance Measures (APM) Return on Capital Employed (ROCE) cont. Average capital employed is always an average of the closing balances in the five last reported quarters. ROCE shows the return that the Orkla group receives on the capital invested in the various consolidated portfolio c
Slide 88: Alternative Performance Measures (APM)
Alternative Performance Measures (APM) Net interest-bearing liabilities Net interest-bearing liabilities are the sum of the group’s interest-bearing liabilities and interest-bearing receivables. Interest-bearing liabilities include bonded loans, bank loans, other loans, lease liabilities and interes
Slide 89: Orkla
‘Orkla