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Orkla ASA Earnings Release 2017

Apr 28, 2017

3703_iss_2017-04-28_518fdae4-c234-427d-bdf5-db77ee067f46.html

Earnings Release

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Orkla ASA: Sapa (joint venture) - Broad-based profit growth for Sapa in Q1

Orkla ASA: Sapa (joint venture) - Broad-based profit growth for Sapa in Q1

·           Growth in underlying EBIT for all business areas

·           Positive effects from value add strategy

·           Improved cost position and lower overhead costs

Group performance

Sapa further improved its underlying EBIT in the first quarter of 2017, compared

to the same period last year, ending the quarter at NOK 778 million. The

increase was driven by a higher share of value add business and internal

improvements for all business areas, as well as higher volumes in Europe. All

business areas improved their underlying EBIT.

Net interest bearing debt at the end of the first quarter amounted to NOK 0.3

billion.

Market development

In North America, total demand for extruded products increased by 1.7 percent(1)

compared to the same quarter last year. The increase was driven by stronger

automotive demand and higher building and construction activities whereas demand

from commercial transportation was declining.

In Europe, total demand for extruded products increased by 1.8 percent(1)

compared to the same quarter last year. Europe experienced stronger automotive

and transportation demand, as well as an improved building and construction

market.

Key Figures - Sapa (100%)

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

| Sapa | Q1 | Q2 | Q3 | Q4 | Q1 |

| | 2016 | 2016 | 2016 | 2016 | 2017 |

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

| Volume (kmt) | 349 | 366 | 340 | 310 | 355 |

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

| Total operating revenues (mNOK) | 13 905 | 14 071 | 13 140 | 12 210 | 14 323 |

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

| Underlying EBITDA (mNOK) | 901 | 1 132 | 812 | 653 | 1 100 |

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

| Underlying EBIT (mNOK) | 571 | 804 | 487 | 335 | 778 |

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

| Reported EBIT (mNOK) | 655 | 920 | 497 | 350 | 856 |

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

Orkla ASA

Oslo, 28 April 2017

[1] Source: CRU data

Ref.:

Senior Vice President Investor Relations

Mattias Orrenius

Tel.: +47 983 66 334

Email: [email protected]

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.