Orkla ASA — Earnings Release 2021

Nov 23, 2021

Targeting annual organic growth of at least 2.5 per cent

Targeting annual organic growth of at least 2.5 per cent

At its digital Capital Markets Day event today, Orkla will announce new main

targets for organic growth, operating profit and sustainability. Active

portfolio management - including acquisitions, disposals and partnerships - will

play an important role for Orkla's value creation in the next few years.

Orkla targets annual organic turnover growth of a minimum of 2.5 per cent in the

2022-2024 period and annual underlying growth in EBIT (adj.) of 4-6 per cent

(mid-single-digit growth).

Orkla's ambition is to be the leading sustainability player in its home markets.

The Group has set clear quantifiable targets. In 2025, greenhouse gas emissions

from Orkla's own operations are to be reduced by 65 per cent (Scope 1 & 2) and

by 30 per cent in the value chain outside its own operations (Scope 3). Orkla's

targets have been validated by the Science-Based Targets Initiative and are

aligned with the Paris and Glasgow climate accords. All packaging used by Orkla

is to be 100 per cent recyclable in 2025.

Orkla has over 300 local brands with a presence in more than 20 countries.

Eighty percent of turnover from the Branded Consumer Goods business derives from

brands that hold number one or number two positions in their home markets. Over

the next few years, Orkla will increase its investments in brand-building and

advertising, based on local consumer insights. Furthermore, Orkla intends to

develop international positions for selected brands such as Möller's and Jordan.

Orkla's activities will primarily be concentrated in three geographical areas:

the Nordics/Baltics, Central and Eastern Europe and South Asia.

"We will adopt a more dynamic approach to our portfolio, without reducing our

focus on our more mature markets and categories. We will expand in markets and

categories that we know well, where we have a strong presence or closely related

positions. We will also be open to selling down our interest in or listing some

businesses if we find it expedient to do so," says Orkla President and CEO Jaan

Ivar Semlitsch.

Orkla has three priority growth areas: Plant-based, Out of Home and Consumer

Health. Sales of plant-based products are targeted to increase from NOK 846

million in 2020 to NOK 3 billion in 2025. Orkla aims to be one of Europe's

leading companies for franchised pizza outlets. In the Consumer Health area, the

goal is 50 per cent growth in sales in 2025, equivalent to a turnover of NOK 7

billion. In all three areas, growth will take place through a combination of

organic growth and acquisitions.

A majority of Orkla's branded consumer products are sold through the grocery

sector. In the next three years, higher growth is expected in other channels,

and the Group aims to double its revenues from digital sales to 15 per cent.

Orkla is maintaining its dividend policy ambition of increasing dividends from

the level of NOK 2.75 per share, normally within 50-70 per cent of earnings per

share. Furthermore, Orkla aims to maintain a financial and business risk profile

consistent with an investment grade credit rating.

Orkla is listed on the Oslo Stock Exchange and its headquarters are in Oslo. In

2020, the Group had a turnover of NOK 47.1 billion, and it has around 21,500

employees.

Background material for today's event is attached herewith, and a webcast can be

viewed at https://investors.orkla.com/English/events-and-presentations/capital

-market-day/Orkla-Capital-Markets-Day-2021/default.aspxfrom 14.00 CET today.

Orkla ASA

Oslo, 23 November 2021

Ref.:

SVP Investor Relations

Kari Lindtvedt, tel.: +47 950 75114

Group Director Corporate Communications and Corporate Affairs

Håkon Mageli, tel.: +47928 45828

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Kjetil Sørum, Investor

Relations Manager at Orkla ASA, on 23 November 2021 at 13:00 CET.