Orkla ASA — Earnings Release 2016

Feb 9, 2017

Continued improvement for Orkla

Continued improvement for Orkla

Orkla's profit before tax for the fourth quarter of 2016 increased by 42%, to

NOK 1,344 million, due to improvement for the Branded Consumer Goods business

and Sapa, and the sale of a property in Switzerland.

Branded Consumer Goods achieved operating profit of NOK 1,249 million,

equivalent to growth of 5%. The growth is primarily due to positive

contributions from acquired companies and cost improvements throughout the value

chain.

Operating revenues for Orkla's Branded Consumer Goods business increased by 5%,

to NOK 9,734 million, while organic growth was 0.1%.

"Despite the strong fourth quarter of 2015, Orkla's Branded Consumer Goods

business succeeded in achieving organic growth. Orkla Confectionery & Snacks

delivered an impressive performance with yet another good quarter. We are also

pleased that Orkla Care was able to accelerate its growth rate towards the end

of 2016 after a somewhat demanding start to the year. Acquired companies are

developing as planned and contributing to value creation in Orkla. Sapa, which

had substantially improved operations, is definitely also contributing," says

Orkla President and CEO Peter A. Ruzicka.

Profit from associates and joint ventures rose by 81%, to NOK 161 million.

Orkla's share of profit from Sapa was NOK 190 million, compared with NOK 17

million in the fourth quarter of 2015. Sapa's improved performance is chiefly

attributable to a higher proportion of sales of more value-added products as

well as internal improvement projects. Jotun reported a weak result in the

fourth quarter, due to lower activity in the shipping and offshore sectors,

accounting write-downs and increased provisions.

Financial Investments posted operating profit of NOK 115 million, compared with

NOK -17 million in the fourth quarter of 2015. The improvement is primarily due

to the sale of an industrial property in Switzerland. Hydro Power reported

operating profit of NOK 31 million, compared with NOK 49 million in the fourth

quarter of 2015. The profit decline is mainly due to significantly lower product

volume as a result of less precipitation.

The Group's overall operating profit (EBIT adj.) increased by 19%, to NOK 1,307

million in the fourth quarter of 2016. Earnings per share (diluted) rose by 49%

in the fourth quarter, to NOK 1.09.

For the full year, Orkla's operating revenues rose by 14%, to NOK 37,758

million. Operating profit (EBIT adj.) increased by 19% in 2016, to NOK 4,298

million. At year end, the Group had 18,154 employees. Orkla's Board of Directors

proposes to pay a dividend of NOK 2.60 per share for the 2016 financial year.

Orkla ASA

Oslo, 9 February 2017

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 may be found at www.orkla.com.

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.