Orkla ASA — Earnings Release 2015

Jul 17, 2015

Continued improvement for Orkla

Continued improvement for Orkla

Orkla's operating profit (EBIT adj.) increased by 18% to NOK 789 million in the

second quarter of 2015. The Branded Consumer Goods business posted operating

profit of NOK 820 million, an improvement of 11% from the second quarter of

The progress made by Branded Consumer Goods is ascribable to increased sales due

to several major innovation projects and the positive effects of cost

improvements throughout the value chain.

Orkla's second-quarter operating revenues increased to NOK 7,705 million, up

from NOK 7,196 million in the same period in 2014. Branded Consumer Goods

achieved organic turnover growth of 0.2%, but adjusted for Easter effects,

growth was around 2.7%. The Orkla Foods, Orkla Confectionery & Snacks and Orkla

Food Ingredients (OFI) business areas all showed improvement. Sales were

particularly good in the Norwegian companies towards the end of the quarter.

"All in all, I am pleased with the second quarter. Despite demanding markets, we

have delivered organic growth for the fifth quarter in a row. We continue to

focus on operations. Extensive efforts have been concentrated on improvement

projects and a variety of cost-reducing measures," says Orkla President and CEO

Peter A. Ruzicka.

In the second quarter, Orkla Foods entered into an agreement to purchase the

Swedish company Anamma Food, which manufactures frozen vegan dishes. Orkla Foods

also announced the purchase of the Austrian company Bioquelle. The company holds

strong positions in Austria in categories such as muesli, nuts, dried fruit,

health food and organic food, in addition to distributing soy-based products.

OFI has completed its acquisition of the German sales and distribution company

Eisunion, a leading supplier of ice cream ingredients.

Profit from associates and joint ventures (mainly Sapa, Jotun and Gränges)

amounted to NOK 545 million in the second quarter, compared with NOK 192 million

in the same quarter of 2014. This improvement is primarily due to the sell-off

of shares in the aluminium company Gränges, whereby Orkla sold 15% of its shares

at a gain of NOK 425 million. Orkla still has a 16% equity interest in Gränges.

Jotun continued to make progress, delivering good growth in turnover and profit.

Sapa also achieved marked improvement in underlying operating profit.

Hydro Power had operating profit of NOK 27 million in the second quarter of

2015, compared with NOK 39 million in the same period of 2014. Orkla Eiendom

posted operating profit of NOK 57 million in the quarter, compared with a break-

even result in the same quarter of 2014. The improvement is chiefly ascribable

to the sale of sites from Borregaard's former industrial operations in

Switzerland.

Orkla's profit before tax increased by 45% to NOK 1,280 million in the second

quarter. Diluted earnings per share rose 54% to NOK 1.09 in the quarter.

Orkla ASA

Oslo, 17 July 2015

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli

Mob.: +47 928 45 828

SVP Investor Relations

Mattias Orrenius

Mob.: +47 983 66 334

An Excel spreadsheet with key figures is available at www.orkla.com

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1939453]