Orkla ASA — Earnings Release 2016

Jul 15, 2016

Progress for Orkla

Progress for Orkla

Orkla's operating profit (EBIT adj.) increased 26% to NOK 996 million in the

second quarter of 2016. The branded consumer goods business had an operating

profit of NOK 982 million, representing a 20% improvement. Orkla has been

strengthened by a number of acquisitions and internal improvement projects.

Orkla's operating revenues increased by 22% in the second quarter, to NOK 9,433

million.

Organic turnover growth in the branded consumer goods business was 3.8%. All

four business areas reported improvement in the quarter, both in operating

revenues and in operating profit.

"For the ninth consecutive quarter we saw organic sales growth in the branded

consumer goods business. Orkla had significant improvement in operating profit

due to higher sales and internal improvement projects. In addition, demanding

integration efforts are under way in the wake of several acquisitions. I am also

very satisfied with developments in the aluminium company Sapa," says Orkla

President and CEO Peter A. Ruzicka.

Second-quarter profit from associates and joint ventures was NOK 442 million.

Orkla's share of Sapa's profit after taxes amounted to NOK 319 million in the

quarter, compared with NOK 7 million in the same period of 2015. The rise is

attributable to improvement programmes and a shift in sales towards higher-value

products. Jotun also contributed positively, with improvements in both sales and

operating profit.

Hydro Power achieved an operating profit of NOK 53 million in the second quarter

of 2016, as against NOK 27 million in the same period in 2015. Higher

electricity prices were the main reason for the improvement.

Orkla's profit before taxes came to NOK 1,259 million in the second quarter,

compared with NOK 1,280 million in the corresponding period of 2015. Last year's

figure included a gain of NOK 425 million after a sale of shares in aluminium

company Gränges.

During the first half of 2016, Orkla freed up about NOK 1.3 billion through the

sale of shares and property. The funds will be used to invest further in the

branded consumer goods business.

Orkla has strengthened its presence in several markets lately. With the

acquisition of Hamé, Orkla Foods is now one of the largest food products

suppliers in the Czech Republic, Slovakia and Romania. The acquisition of

Cederroth has made Orkla Care one of the Nordic region's leading branded

consumer goods suppliers in the cleaning and personal care categories.

The acquisition of Harris makes Orkla House Care the leading provider of Do-It-

Yourself painting tools in the UK. This agreement is contingent on approval by

UK competition authorities. The acquisition of four strong textile brands in

Finland has given Pierre Robert Group a good platform in the Finnish grocery

sector. Orkla Food Ingredients has become an increasingly important supplier of

ice cream ingredients in the UK, Germany, Netherlands and the Nordic countries

as a result of a number of acquisitions.

Orkla ASA

Oslo, 15 July 2016

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#2028746]