Orkla ASA — Earnings Release 2015

Feb 11, 2016

Turnover growth and good profit improvement at Orkla

Turnover growth and good profit improvement at Orkla

Orkla's operating profit (EBIT adj.) rose by 9%, to NOK 1,102 million in the

fourth quarter of 2015. Profit before tax increased by 87%, to NOK 946 million.

Fourth-quarter operating profit for Orkla's branded consumer goods business

totalled NOK 1,195 million, an improvement of 17%. Orkla Foods and Orkla

Confectionery & Snacks made particularly strong contributions to profit growth.

The improvement was ascribable to positive contributions from acquisitions, new

product launches and the effects of internal improvement projects. In the fourth

quarter, the branded consumer goods business achieved operating revenues of NOK

9,314 million and organic turnover growth of 4.1%.

"For the seventh consecutive quarter, we have succeeded in achieving organic

turnover growth in highly competitive markets. All of the business areas

reported growth. I am also pleased with a currency-adjusted profit improvement

for the branded consumer goods business that exceeds our long-term target of

6-9%. In addition, we made several important acquisitions in 2015 that will

strengthen our operations going forward," says Orkla President and CEO Peter A.

Ruzicka.

Orkla's purchase of Cederroth was approved by the competition authorities in

August, on condition that the Asan and Allévo brands were sold. In December,

agreements were entered into on the sale of both brands. Through the acquisition

of Cederroth, Orkla has become one of the Nordic region's leading suppliers of

personal care, health, wound care and household cleaning products.

In December, Orkla concluded an agreement to purchase the Hamé food company,

which has a number of strong brands in the Czech Republic, Slovakia and Romania.

The acquisition of Hamé has doubled Orkla's turnover in Central Europe. The

agreement is contingent upon the approval of relevant competition authorities.

Profit from associates and joint ventures (mainly Sapa and Jotun) amounted to

NOK 89 million in the fourth quarter, compared with NOK -252 million in the same

quarter of 2014. Orkla's share of profit from Sapa totalled NOK 17 million in

the quarter. Jotun achieved turnover growth in all its market segments, but

reported profit was affected by non-recurring accounting-related expenses.

Lower power prices had a negative impact on Hydro Power's results, and fourth-

quarter operating profit amounted to NOK 49 million, compared with NOK 73

million in the corresponding period of 2014.

Diluted earnings per share rose in the fourth quarter, from NOK -0.06 to NOK

0.73.

For the full year 2015, Orkla's operating revenues increased by 12%, to NOK

33,198 million. Operating profit (EBIT adj.) rose by 12% in 2015, to NOK 3,609

million. At year end, the Group had 14,670 employees. The Board of Directors of

Orkla ASA proposes to pay a dividend of NOK 2.50 per share for the 2015

financial year.

Orkla ASA

Oslo, 11 February 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#1985271]