Orkla ASA — Earnings Release 2020

May 5, 2020

Orkla ASA: Higher in-home consumption of food and cleaning products spurred growth for Orkla

Orkla ASA: Higher in-home consumption of food and cleaning products spurred growth for Orkla

Orkla's operating profit (EBIT adj.) rose by 12% to NOK 1,143 million in the

first quarter of 2020. Operating revenues increased by 13% to NOK 11,507

million.

Branded Consumer Goods including Headquarters improved operating profit by 18%.

Reported turnover growth for Branded Consumer Goods was 14.7%, of which 5.4% was

organic growth.

"Towards the end of this year's first quarter, Orkla and the society entered

highly unusual times which seem set to continue. The authorities have imposed

stringent restrictions in all our markets with a view to curbing the spread of

the coronavirus. As a supplier of food, cleaning and hygiene products, Orkla has

a responsibility to society for ensuring that our products are available during

this period. It is therefore gratifying to see that we have succeeded in

maintaining close to normal supply chain operations, while safeguarding the

health and safety of our employees as our main priority," says Orkla President

and CEO Jaan Ivar Semlitsch.

The coronavirus crisis has consequences for Orkla's entire supply chain and all

its business areas. In the last three weeks of March, Orkla Foods and Orkla Care

saw a substantial increase in demand for food, cleaning and personal care

products. Much of the increase is due to consumer stockpiling and changes in

consumption patterns. The Orkla Food Ingredients and Orkla Consumer Investments

business areas experienced reduced demand.

"The turnover of companies that have been negatively impacted by the coronavirus

pandemic accounts for around one quarter of Branded Consumer Goods' turnover.

The coronavirus crisis now unfolding is creating extraordinary uncertainty in

extraordinary times," says Jaan Ivar Semlitsch.

Hydro Power had operating profit of NOK 39 million in the first quarter,

compared with NOK 73 million year over year. The reduction was due to a

substantial power surplus in the Norwegian market and significantly lower power

prices.

Profit from associates increased by 29% to NOK 213 million in the first quarter.

Jotun's operating profit rose by 36%. There was good growth in sales of Marine

Coatings, driven by high activity in the ship maintenance market. Growth in

sales of Decorative Paints, Protective Coatings and Powder Coatings was

moderate.

The Group's other income and expenses totalled NOK -165 million in the first

quarter. The largest items were costs related to the reorganisation of HQ,

restructuring costs at Orkla Foods and Orkla Consumer Investments, and the

write-down of IT systems.

Orkla carried out a number of acquisitions and disposals in the first quarter.

Through its wholly-owned subsidiary Idun Industri AS, Orkla Food Ingredients

signed and completed an agreement to purchase 70% of the shares in Win

Equipment, a leading supplier of soft serve ice cream machines in the

Netherlands. Orkla Foods Norge sold the SaritaS brand to the newly established

company Indian Gourmet AS.

In April, Orkla Wound Care signed and completed an agreement to purchase 100% of

the shares in Norgesplaster. The company holds good positions in the wound care

and first aid equipment markets, and with the acquisition of Norgesplaster,

Orkla Wound Care has strengthened its presence in the pharmacy channel and the

market for first aid products.

Orkla's profit before tax increased by 16% to NOK 1,152 million in the first

quarter. Adjusted earnings per share rose by 24%, coming in at NOK 1.05 in the

quarter.

Orkla ASA

Oslo, 5 May 2020

Ref.:

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli

Mob.: +47 928 45 828

SVP Investor Relations

Thomas Ljungqvist

Mob.: +47 482 59 618

An Excel spreadsheet with key figures may be found at www.orkla.com

(http://www.orkla.com).

A pre-recorded presentation of the first quarter results is available from the

following link (https://events.webcast.no/orkla-

asa/presentations/hNtloygYxEKeC8Qd7t2C): https://events.webcast.no/orkla-

asa/presentations/hNtloygYxEKeC8Qd7t2C.

A live Q&A session with President & CEO Jaan Ivar Semlitsch and CFO Harald

Ullevoldsæter will be held today at 8.00 a.m. CET. This session may be viewed in

a live webcast at: https://events.webcast.no/orkla-

asa/presentations/zgtnwohiNaT9HnQpjPHh) or followed by telephone. Dial-in

details: +44 (0) 20 3003 2666 (password: Orkla Q1). Questions can be asked in

writing in the webcast or by phone.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act