Orkla Asa · OSL:ORK
Orkla Asa — UBS Global Consumer and Retail Conference 2025
54 slides from Orkla Asa's conference presentation, Mar 13, 2025
Slide 1: An industrial investment company with a brands and consumer-oriented scope
An industrial investment company with a brands and consumer-oriented scope Arve Regland, EVP and CFO UBS Global Consumer and Retail Conference New York, 13 March 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: Orkla at a glance
Orkla at a glance 70.7 1o Operating revenues* Portfolio companies (NOK billion) 8.1 ~110 Profit before tax* Market Cap. (NOK billion) (NOK billion) 6.44 ~20,000 Adj. earnings per share* Employees (NOK) 3 *Full-year 2024
Slide 4: Attractive exposure to Nordic consumers…
Attractive exposure to Nordic consumers… Norway Rest of the world 22% 8% Sweden Central and Eastern Europe NOK 71bn Orkla Group 19% ~60% 16% Revenues 2024 Nordic share Denmark of revenues 10% Western Europe Finland 17% 9% Note: 1. Jotun not included in figures as Orkla ownership is below 50% 4
Slide 5: …growing steadily over time…
…growing steadily over time… Revenue and EBIT (adj.), NOK billions 80 Revenue (LHS) EBIT (adj.) (RHS) 8 60 6 40 4 20 2 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5
Slide 6: …with a stable and increasing dividend
…with a stable and increasing dividend Historical dividend payments, NOK per share Ordinary dividend Additional dividend 10.00 7.50 7.60 6.00 5.80 6.00 5.00 5.00 3.00 3.00 3.00 5.00 2.50 2.50 2.50 2.50 2.50 2.60 2.60 2.60 2.75 1.90 2.00 2.25 2.25 2.25 1.50 4.00 0.60 0.65 0.68 1.00 2.50 2.60 3.00 0.1
Slide 7: In 2023, Orkla transformed into an industrial investment company
In 2023, Orkla transformed into an industrial investment company Organizational structure Orkla ASA Portfolio companies Business service companies Orkla Orkla Food Orkla Jotun Orkla Snacks Foods Ingredients Health Orkla Procurement Company Health and Orkla The European Orkla Home Orkla Sports Nutrit
Slide 8: Orkla portfolio
Orkla portfolio Revenues 2024 in NOK millions Financial Anchor Grow and build Transform or exit investments 34,206 20,594 19,374 9,735 Divested 7,343 3,106 3,039 2,686 1,646 1,258 1,402 612 535 249 Jotun1 Orkla Orkla Orkla Food Orkla Orkla The Orkla Orkla Health and Pierre Lilleborg4 Hydro Orkla Rea
Slide 9: Orkla’s largest portfolio companies
Orkla’s largest portfolio companies Worldwide manufacturer Well-known local brands across the The #1 snacking choice for Leading supplier of bakery, sweet of paints and coatings Nordics, Baltics and Central Europe the Nordic and Baltic consumers and plant-based products 9
Slide 10: Orkla’s largest portfolio companies
Orkla’s largest portfolio companies Worldwide manufacturer Well-known local brands across the The #1 snacking choice for Leading supplier of bakery, sweet of paints and coatings Nordics, Baltics and Central Europe the Nordic and Baltic consumers and plant-based products 10
Slide 11: One global parent brand with sub-brands
Jotun at a glance One global parent brand with sub-brands Strong and clear communication across segments 11
Slide 12: Global footprint and diversified business portfolio
Jotun at a glance Global footprint and diversified business portfolio 34 billion NOK sales income +100 ECA countries 40 NEA MEIA factories AM 10 600 SEAP people 1 152 million litres of paint sold Note: Jotun Group revenue 12
Slide 13: Group sales per segment
Jotun at a glance Group sales per segment Decorative Protective Marine Powder Paints Coatings Coatings Coatings 36% 29% 28% 7% 13
Slide 14: Continuous growth and profitability – Jotun Group
Jotun at a glance Continuous growth and profitability – Jotun Group Sales EBITA NOK million NOK million 80 000 8 000 NOK 6.8 billion 70 000 7 000 60 000 6 000 50 000 5 000 40 000 4 000 NOK 34.2 billion 30 000 3 000 20 000 2 000 10 000 1 000 0 0 Jotun Group, actual rates 14
Slide 15: High potential for further growth
Jotun at a glance High potential for further growth Global market shares – per segment Decorative Paints Powder Coatings Protective Coatings Marine Coatings Jotun 3% 2% 7% 24% 3% LOCAL GLOBAL Jotun 100% 15
Slide 16: Orkla’s largest portfolio companies
Orkla’s largest portfolio companies Worldwide manufacturer Well-known local brands across the The #1 snacking choice for Leading supplier of bakery, sweet of paints and coatings Nordics, Baltics and Central Europe the Nordic and Baltic consumers and plant-based products 16
Slide 17: Well-known local branded products to consumers in the Nordics, Baltics and Central Europe
Well-known local Other Europe Other branded products 13% 1% Norway to consumers in the The Baltics 27% 4% Nordics, Baltics and Finland Central Europe 8% NOK Denmark 21bn Revenues 2024 10% Czech Rep. Sweden 10% 28% 17
Slide 18: Strong local brands with consumer preference
Strong local brands with consumer preference ~80% of revenues from #1 and #2 positions 18
Slide 19: Market leading supplier across key categories
Market leading supplier across key categories Relative market share in key categories Times larger than closest competition 5.4x 4.9x Times larger than private label 4.8x 3.0x 2.7x 2.3x 2.0x 1.6x Bread topping Ready meals Condiments Pizza 19
Slide 20: A resilient business with steady, long-term growth
A resilient business with steady, long-term growth Revenue and EBIT (adj.), NOK billions Revenue (LHS) EBIT (adj.) (RHS) 3.0 20 2.5 15 2.0 10 1.5 1.0 5 0.5 0 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20
Slide 21: Orkla’s largest portfolio companies
Orkla’s largest portfolio companies Worldwide manufacturer Well-known local brands across the The #1 snacking choice for Leading supplier of bakery, sweet of paints and coatings Nordics, Baltics and Central Europe the Nordic and Baltic consumers and plant-based products 21
Slide 22: The #1 snacking choice for the Nordic/Baltic consumers
Our aspiration The #1 snacking choice for the Nordic/Baltic consumers
Slide 23: Key categories
Other1 Key categories Biscuits 12% 3% Snacks NOK 45% 10bn Revenues 2024 Confectionery 40% Note: 1. Other include cakes, convenience food & frozen food
Slide 24: Orkla Snacks brand portfolio
Orkla Snacks brand portfolio Iconic local brands with high consumer awareness 1806 1883 1910 1920 1956 1965 1970 1993 1870 1888 1912 1952 1957 1967 1992 24
Slide 25: A resilient, growing business recovering from a period of high inflation pressure
A resilient, growing business recovering from a period of high inflation pressure Revenue and EBIT (adj.), NOK billions 10.0 Revenue (LHS) EBIT (adj.) (RHS) 1.5 7.5 1.0 5.0 0.5 2.5 0.0 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 25
Slide 26: Orkla’s largest portfolio companies
Orkla’s largest portfolio companies Worldwide manufacturer Well-known local brands across the The #1 snacking choice for Leading supplier of bakery, sweet of paints and coatings Nordics, Baltics and Central Europe the Nordic and Baltic consumers and plant-based products 26
Slide 27: Orkla Food Ingredients product portfolio
Orkla Food Ingredients product portfolio Share of sales 2024 Bakery ingredients Cake mixes Bread mix Improvers Frozen cakes Yeast Marzipan 64% Sweet ingredients Sprinkles & Cones & Sauces and Gelato 20% inclusions wafers variegates Ingredients Plant-based 16% Margarine Spreads Drinks Vegan ice cream
Slide 28: Structural growth is a key part of the expansion strategy, with 50+ businesses acquired since 1999
Structural growth is a key part of the expansion strategy, with 50+ businesses acquired since 1999 ’99-‘11 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Sweden 28
Slide 29: Strong financial track-record driven by both organic and structural growth
Strong financial track-record driven by both organic and structural growth Revenue and EBIT (adj.), NOK billions 20 1.5 Revenue (LHS) EBIT (adj.) (RHS) 15 1.0 10 0.5 5 0 0.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 29
Slide 30: Partnership with Rhône to build a leading European and US food ingredients company
Partnership with Rhône to build a leading European and US food ingredients company 30
Slide 31: 3 Priorities
3 PRIORITIES Drive organic value Reduce the Perform value- in existing complexity of adding structural portfolio existing portfolio transactions
Slide 32: Drive organic value in existing portfolio
3 PRIORITIES Drive organic value in existing portfolio
Slide 33: Our ultimate KPI
Our ultimate KPI 12-14% Total Shareholder Return (TSR) per annum 2024-2026 33
Slide 34: 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% 10.1% 11.5% 9.0% 9.9% 8%-10% (CAGR) 6.9% 2023 2024 2023-262 2023 2024 20262 2023 2024 20262 Note: 1. Including Orkla ASA and Business Services; 2
Slide 35: Volume/mix growth recovery…
Volume/mix growth recovery… Organic growth1 split for the Consolidated Portfolio Companies 1.3% 1.6% 4.3% 9.6% 8.1% 3.5% 13.4% 8.5% 6.0% 5.3% 3.6% 3.3% 3.9% 3.3% 13.6% 12.9% 10.6% 10.0% 1.4% 7.8% 1.6% 5.9% 1.0% 1.2% 2.6% 1.8% 1.8% 2.2% 2.9% 1.9% 2.3% 2.6% 1.0% 1.5% -1.9% -0.2% -1.8% -0.5% -0.6% -1.0
Slide 36: …and margins returning to pre-pandemic levels…
…and margins returning to pre-pandemic levels… Consolidated Portfolio Companies | R12M EBIT (adj.) margin 12% 11.7% 11.3% 11.0% 11% 10.1% 10% 9.1% 9.0% 9% 8% Q2-20 Q1-21 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q3-20 Q4-20 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-2
Slide 37: …driving underlying EBIT (adj.) growth
…driving underlying EBIT (adj.) growth Underlying EBIT (adj.) growth for Consolidated Portfolio Companies incl. Orkla ASA Annual growth Quarterly growth 2021 2022 2023 2024 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 17% 22% 16% 17% 12% 13% 7% 7% 5% 4% -3% -10% 37
Slide 38: 3 Priorities
3 PRIORITIES Drive organic value Reduce the Perform value- in existing complexity of adding structural portfolio existing portfolio transactions
Slide 39: Reduce the complexity of existing portfolio
3 PRIORITIES Reduce the complexity of existing portfolio
Slide 40: Today: Portfolio Companies varying in size
Today 10 Portfolio Companies Varying in size
Slide 41: ~7-9 Portfolio Companies YE 2026
YE 2026 ~ 7-9 Portfolio Companies More similar and larger in size
Slide 42: Orkla portfolio
Orkla portfolio Revenues 2024 in NOK millions Financial Anchor Grow and build Transform or exit investments 34,206 20,594 19,374 9,735 Divested 7,343 3,106 3,039 2,686 1,646 1,258 1,402 612 535 249 Jotun1 Orkla Orkla Orkla Food Orkla Orkla The Orkla Orkla Health and Pierre Lilleborg4 Hydro Orkla Rea
Slide 43: 3 Priorities
3 PRIORITIES Drive organic value Reduce the Perform value- in existing complexity of adding structural portfolio existing portfolio transactions
Slide 44: Perform value-adding structural transactions
3 PRIORITIES Perform value- adding structural transactions
Slide 45: Record high cash flow and acquisitions at historically low levels
Record high cash flow and acquisitions at historically low levels Cash flow from operating activities and Acquisition spend, NOK billions Cash Flow from operating activities Acquisition spend 10 8 6 4 MAIN PRIORITY: Drive organic value in existing portfolio 2 0 2015 2016 2017 2018 2019 2020 2021 202
Slide 46: Financial policy and current leverage
Financial policy and current leverage LONG-TERM TARGET CURRENT STATUS FINANCIAL POLICY Investment grade credit A- quality credit rating LEVERAGE Net debt to EBITDA 2.5x 1.5x As of Dec-24 46
Slide 47: Main priorities for capital allocation
Main priorities for capital allocation Value accretive acquisitions & Return excess capital Maintain a stable and to shareholders divestments plus increasing dividend through extraordinary organic investments to increase value creation dividends or share in Orkla buybacks 47
Slide 48: Concluding remarks
A ‘Orkla Concluding remarks
Slide 49: Q&A
Q&A
Slide 50: 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 51: 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 52: 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 53: 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 54: Orkla
‘Orkla
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