Slide 1: Fourth quarter results
Fourth quarter results 13 February 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: 2024 Highlights
2024 HIGHLIGHTS Strong performance by the Consolidated Portfolio Companies: • Organic growth of 3.5%, including volume/mix growth of 1.9% • Underlying EBIT (adj.) growth of 17%1 • Cash conversion of 114% Structural initiatives: • Sale of Lilleborg • Closing of Orkla Food Ingredients transaction The
Slide 4: Reducing complexity
Reducing complexity Sale of hydro power portfolio (Jan. 25) • Agreement reached to sell the entire hydro power portfolio for a total of NOK 6.1 billion on a cash and debt-free basis • Expected closing by the end of Q3 2025, subject to regulatory approval Sale of Pierre Robert Group (Feb. 25) • Agree
Slide 5: Q4-24 | Continued strong underlying EBIT growth
Q4-24 | Continued strong underlying EBIT growth • Organic growth of 3.3%1 and positive volume/mix • Underlying EBIT (adj.) growth of 13.4%2 • Positive contribution from Orkla Real Estate • EPS (adj.) of NOK 1.52 (+16%) Note: 1. Organic growth in the Consolidated Portfolio Companies; 2. Consolidated
Slide 6: Breakdown of portfolio companies' performance in Q4-24
Breakdown of portfolio companies’ performance in Q4-24 Anchor Grow and build Transform or exit R12M EBIT (adj.) margin 12.3% 13.1% 6.8% 12.8% 14.9% 11.1% 11.7% 11.3% 2.7% -4.8% 10.7% 10.1% Underlying EBIT (adj.) growth (Q4-24 vs. Q4-23) 10% 21% 18% -24% 7% -5% 86% 144% 36% -225% 10.4% 13.4% EBIT (ad
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% 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 8: Financial performance
Financial performance Arve Regland, EVP and CFO All Alternative Performance Measures (APMs) are presented in the appendices All figures in NOK million unless otherwise stated
Slide 9: EBIT (adj.) growth of 8% for the Consolidated Portfolio Companies
EBIT (adj.) growth of 8% for the Consolidated Portfolio Companies Key quarterly figures Q4-24 Q4-23 ∆ Q4 Operating revenues 18,793 17,739 6% EBIT (adj.) Consolidated Portfolio Companies 1,731 1,596 8% EBIT (adj.) Financial Investments 395 158 152% EBIT (adj.) Orkla ASA and Business Services -103 -13
Slide 10: Continued improvement in EBIT (adj.) margin
Continued improvement in EBIT (adj.) margin Consolidated Portfolio Companies | R12M EBIT (adj.) margin1 EBIT (adj.) margin Underlying EBIT (adj.) 12.0% EBIT (adj.) 11.7% Category Portfolio company margin margin (R12M) 11.5% 11.3% change2 11.0% Orkla Foods 12.3% +1.4 %-p 11.0% Anchor Orkla Snacks 13.
Slide 11: Broad-based positive volume/mix performance
Broad-based positive volume/mix performance Breakdown of organic growth by price Organic growth1 split for the Consolidated Portfolio Companies and volume/mix (Q4-24) Organic growth 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% (Y/Y) Category Portfolio company Price Vol/Mix
Slide 12: Strong cash flow improvement
Strong cash flow improvement Figures in NOK billion 2024 2023 Cash conversion (2024) EBIT (adj.)1 7.0 6.0 Cash Category Portfolio company Depreciation and write-downs 2.6 2.5 conversion Change in net working capital 0.7 0.8 Orkla Foods 124% Anchor Net replacement investments (2.0) (2.7) Orkla Snacks
Slide 13: NIBD/EBITDA at 1.5x
NIBD/EBITDA at 1.5x Figures in NOK billion 18.8 = 1.5x EBITDA1 2.1 16.0 0.7 = 1.0x 8.9 6.0 EBITDA2 1.1 1.0 1.2 Net interest- Cash flow from Taxes Financial items Dividend Net paid to Expansion capex FX effects Net interest- bearing debt operations and & Other items received shareholders and net M&A
Slide 14: The Board intends to propose a total dividend of NOK 10 per share
The Board intends to propose a total dividend of NOK 10 per share for the financial year 2024 Historical dividend payments1 NOK per share 10.00 7.50 7.60 6.00 5.80 6.00 5.00 5.00 3.00 5.00 3.00 3.00 2.50 2.50 2.50 2.50 2.50 2.60 2.60 2.60 2.75 2.25 2.25 2.25 1.90 2.00 1.50 4.00 1.00 2.60 3.00 2.50 0
Slide 15: Portfolio companies
Portfolio companies Arve Regland, EVP Finance and CFO All Alternative Performance Measures (APMs) are presented in the appendices. All figures in NOK million unless otherwise stated.
Slide 16: Jotun: Q4 was a solid finish to another record year
Anchor Grow and build Transform or exit Jotun (42.7% - associated company) Q4 was a solid finish to another record year Jotun 100% basis Q4-24 2024 Key comments Revenues 8,663 34,206 • Continued sales momentum with double-digit growth across all Revenue growth – fixed rate 12.4% 9.0% segments • EBIT
Slide 17: Orkla Foods: Underlying EBIT (adj.) growth and solid cash conversion
Anchor Grow and build Transform or exit Orkla Foods Underlying EBIT (adj.) growth and solid full- year cash conversion Q4-24 2024 Key comments Revenues 5,505 20,594 • Underlying EBIT (adj.) growth from continued focus on Contribution ratio 40.3% 39.6% category and product profitability. Increase in
Slide 18: Orkla Snacks: Continued strong EBIT (adj.) growth
Anchor Grow and build Transform or exit Orkla Snacks Continued strong EBIT (adj.) growth Q4-24 2024 Key comments Revenues 2,800 9,735 • Continued recovery at the biscuit factory and solid sales growth Contribution ratio 44.2% 43.6% for biscuits contributed to EBIT (adj.) growth • Softening demand in
Slide 19: Orkla Food Ingredients: EBIT (adj.) increase from volume/mix growth
Anchor Grow and build Transform or exit Orkla Food Ingredients (59.4%)1 EBIT (adj.) increase largely from volume/mix growth Q4-24 2024 Key comments Revenues 5,039 19,374 • Broad-based organic growth of 4.0% driven by volume/mix Contribution ratio 30.6% 30.0% increase in all clusters • Solid EBIT (ad
Slide 20: Orkla Health: Continued organic growth, weak EBIT (adj.)
Anchor Grow and build Transform or exit Orkla Health Continued organic growth, but weak EBIT (adj.) in the quarter Q4-24 2024 Key comments Revenues 1,738 7,343 • Organic growth from volume and price across markets, but Contribution ratio continued margin pressure from increased raw material prices,
Slide 21: Orkla India: Underlying EBIT (adj.) improvement
Anchor Grow and build Transform or exit Orkla India (90%)1 Underlying EBIT (adj.) improvement, despite challenging market sentiment Q4-24 2024 Key comments Revenues 770 3,106 • Revenues negatively impacted by weak domestic market Contribution ratio 37.3% 37.7% sentiment, partially offset by continue
Slide 22: The European Pizza Company: Underlying profit growth
Anchor Grow and build Transform or exit The European Pizza Company Underlying profit growth on the back of pricing and effective cost control Q4-24 2024 Key comments Revenues 770 3,039 • Consumer sales in The Netherlands and Finland pressured by Contribution ratio 43.7% 43.1% weak consumer sentiment
Slide 23: Orkla Home & Personal Care: EBIT (adj.) growth
Anchor Grow and build Transform or exit Orkla Home & Personal Care EBIT (adj.) growth from positive volume development and increased contribution ratio Q4-24 2024 Key comments Revenues 709 2 686 • Organic growth driven by contract manufacturing1, with volume Contribution ratio 39.2% 40.3% growth due
Slide 24: Orkla House Care, Health and Sports Nutrition, Pierre Robert Group
Anchor Grow and build Transform or exit Orkla House Care Health and Sports Nutrition Group Pierre Robert Group EBIT (adj.) improved by sales EBIT (adj.) improvement Agreement reached in Feb-25 and margin growth driven by warehouse efficiency to sell 100% of the shares1 and fixed cost control • Organ
Slide 25: Closing remarks
Closing remarks Nils K. Selte, President and CEO All Alternative Performance Measures (APMs) are presented in the appendices. All figures in NOK million unless otherwise stated.
Slide 26: 3 Commitments
3 COMMITMENTS Drive organic value Execute value- Reduce complexity in existing adding structural of existing portfolio portfolio transactions 26
Slide 27: Upcoming events
Upcoming events First quarter results 9 May 2025 Capital Markets Update 28 May 2025 27
Slide 28: Q&A
Q&A Nils K. Selte, President and CEO Arve Regland, EVP and CFO
Slide 29: Upcoming events
Upcoming events First quarter results 9 May 2025 Capital Markets Update 28 May 2025 29
Slide 30: Appendices
A ‘Orkla Appendices rkla
Slide 31: Financial Investments: Hydro Power and Orkla Real Estate
Financial Investments High inflow and power production in the quarter contributed to strong results despite lower power prices Hydro Power Fully consolidated into Orkla’s financial statements Volume Power prices1 EBIT adj. (GWh): (øre/kWh): (NOK million): NO1 Q4: 147 (110) NO1 Q4: 53.2 (80.5) Q4: 25
Slide 32: Sound financial profile
Sound financial profile Net interest-bearing liabilities (NOKbn)1 NIBD / R12M EBITDA1 18.8 2.0x 17.2 1.8x 16.0 1.5x 1.5x 12.8 1.0x 0.9x 16.5 6.6 6.4 15.2 13.7 10.8 0.5x 3.0 4.9 4.9 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 NIBD (ex. leasing) Leasing debt Note: 1. Includin
Slide 33: Funding sources and maturity profile per Q4-24
Funding sources and maturity profile per Q4-24 Debt maturity average maturity 3.0 years Funding sources (in NOKbn) NOKbn 8 2.5 7 8.2 6 7.0 5 4 3 2 9.2 1 0 Cash, cash equivalents and interest-bearing assets 2025 2026 2027 2028 2029 2030 2031 Bonds and CP Drawn amounts - Orkla Group excl. Orkla Food I
Slide 34: Overview of financial targets (1/3)
Anchor Overview of financial targets (1/3) Revenue EBIT margin Cash conversion ROCE 13-14% 127% 124% 14.4% >15.0% 12.3% 11.1% >100% 12.4% Orkla 6.6% Foods 2-3% 1.9% 2023 2024 Target1,2 2023 2024 Target 2023 2024 Target 2023 2024 Target (2026) Volume-mix EBIT margin Cash conversion ROCE >15.0% 112% 1
Slide 35: Overview of financial targets (2/3)
Grow and build Overview of financial targets (2/3) Revenue Underlying EBIT ROCE 8.7% 8.8% 9-10% 11.4% 12.5-13% 10.8% Orkla Food 6.9% 3-4% Ingredients 0.9% 2023 2024 Target1 2023 2024 Target1 2023 2024 Target Revenue EBIT margin 8.4% 7-9% 13.4% 12.8% 14.0% Orkla Health 6.3% 2023 2024 Target1 2023 202
Slide 36: Overview of financial targets (3/3)
Transform or exit Overview of financial targets (3/3) Underlying EBIT Cash conversion 128% 117% 40.9% 100% Orkla Home & 35.5% Personal Care >10.0% 2023 2024 Target1 2023 2024 Target EBIT margin 14-15% Orkla 9.6% 11.3% House Care 2023 2024 Target Revenue EBIT margin Cash conversion 291% Health and 10
Slide 37: 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 38: 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 39: 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 40: 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 41: ‘Orkla
‘Orkla