Orkla ASA — Earnings Release 2016

Oct 25, 2016

Orkla ASA: Sapa (joint venture) - Announcement of results for the third quarter 2016

Orkla ASA: Sapa (joint venture) - Announcement of results for the third quarter 2016

·           Increased value-add margins

·           Improved cost position

·           Continued growth in Underlying EBIT

Underlying EBIT for Sapa increased compared to the same quarter of the previous

year driven by higher value-add margins and positive effects from continuous

improvements. The improvements were partly offset by slightly reduced sales

volumes, mainly in the US.

Compared to the same period last year, market demand increased by 0.7% in North

America and 2.1% in Europe. In North America, building and construction activity

and automotive demand contributed positively, while the transportation segment

experienced slower demand. In Europe there were positive developments in

automotive and transportation and a mixed picture in building and construction.

Underlying EBIT year-to-date increased compared to last year, driven by the same

main factors as for the third quarter.

Going forward, a continued moderate market growth is expected in Europe, while

certain market segments in North America show indications of softening. In both

North America and Europe, aluminium substitution in the automotive industry is

contributing positively.

Key Figures - Sapa (100%)

+----------------------------+--------+--------+--------+--------+--------+

| NOK million  | Q3-16 | Q3-15 | YTD-16 | YTD-15 | FY15 |

+----------------------------+--------+--------+--------+--------+--------+

| Sales volume (1000 tonnes) | 340 | 341 | 1 055 | 1 052 | 1 363 |

+----------------------------+--------+--------+--------+--------+--------+

| Revenues | 13 141 | 13 896 | 41 117 | 42 431 | 55 252 |

+----------------------------+--------+--------+--------+--------+--------+

| Underlying EBITDA | 812 | 734 | 2 845 | 2 238 | 2 729 |

+----------------------------+--------+--------+--------+--------+--------+

| Underlying EBIT | 487 | 404 | 1 862 | 1 279 | 1 407 |

+----------------------------+--------+--------+--------+--------+--------+

| Reported EBIT | 497 | 174 | 2 071 | 440 | 528 |

+----------------------------+--------+--------+--------+--------+--------+

Orkla ASA

Oslo, 25 October 2016

Ref.:

Senior Vice President Investor Relations

Mattias Orrenius

Tel.: +47 983 66 334

Email: mattias.orrenius@orkla.no

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.