Orkla ASA — Earnings Release 2025

Jul 14, 2025

Second quarter results

14 July 2025

Disclaimer

This presentation has been prepared by Orkla ASA (the "Company") solely for information purposes. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities.

Certain statements included in this presentation contain various forward-looking statements that reflect management's current views with respect to future events and financial and operational performance. The words "believe," "expect," "anticipate," "intend," "may," "plan," "estimate," "should," "could," "aim," "target," "might," or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forwardlooking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include but are not limited to the Company's ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.

The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, neither the Company nor its subsidiary undertakings or any of such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

Q2-25 | Organic growth across the portfolio

• Organic growth of 3.8%¹
• Underlying EBIT (adj.) growth of 2.5%²
• EPS (adj.) of NOK 1.56 (+0.6%)³

Note: 1. Organic growth in the Consolidated Portfolio Companies; 2. Consolidated Portfolio Companies including Orkla ASA and Business Services; 3. Earnings per share (adj.) diluted All Alternative Performance Measures (APMs) are presented in the appendices. All figures in NOK million unless otherwise stated 3

Breakdown of portfolio companies' performance in Q2-25

$$\mid \ast_{\text{Ork}}$$

H1-25 | Key highlights

• Progress in line with CMD targets
• Progress on structural initiatives
  • Sale of Hydro Power portfolio
  • Sale of Pierre Robert Group
  • Orkla India filed Draft Red Herring Prospectus with SEBI

Portfolio company targets 2023-2026 (consolidated)¹

Note: 1. Including Orkla ASA and Business Services; 2. Total of the targets for the Consolidated Portfolio Companies communicated at the Capital Markets Day in November 2023 Abbreviation: R12M = Rolling twelve-month (also applicable to other pages in this presentation)

Financial performance

Arve Regland, EVP and CFO

Income statement

Key quarterly figures	Q2-25	Q2-24	∆ Q2
Operating revenues	17,650	16,853	5%
EBIT (adj.) Consolidated Portfolio Companies	1,923	1,864	3%
EBIT (adj.) Orkla Real Estate	25	5
EBIT (adj.) Orkla ASA and Business Services	(75)	(94)
EBIT (adj.)	1,873	1,775	6%
Other income and expenses	(1)	366
EBIT	1,872	2,141
Profit from Jotun & associates	422	529
Net interest and other financial items	(213)	(290)
Profit before tax	2,081	2,380
Taxes	(382)	(350)
Profit after tax	1,699	2,030
Discontinued operations	4,668	118
Profit for the period	6,367	2,148
Profit attributable to non-controlling interests	146	106
Profit attributable to owners of the parent	6,221	2,042
Earnings per share (adj.)1	1.56	1.55	1%
Earnings per share1,2	6.22	2.04

EBIT (adj.) margin

Consolidated Portfolio Companies | R12M EBIT (adj.) margin1

Note: 1. Including Orkla ASA and Business Services 9

Organic growth

Organic growth¹ | Consolidated Portfolio Companies

Note: 1. Growth year-over-year. Figures not adjusted for timing effects such as the timing of Easter, etc. 10

Cash flow

Cash flow statement (NOKbn)	YTD-25	YTD-24
EBIT (adj.)	3.6	3.4
Depreciation and write-downs	1.3	1.3
Change in net working capital	(1.3)	(0.8)
Net replacement investments	(1.2)	(0.8)
Cash flow from other income & exp. and pensions	(0.0)	(0.2)
Cash flow from operations	2.4	2.8
Tax paid	(0.7)	(0.5)
Dividend received (from Jotun)	0.5	0.5
Cash flow from financial items and other transactions	(0.5)	(0.5)
Cash flow before capital allocation	1.8	2.3

Capital allocation

Figures in NOK billion

Portfolio companies

All Alternative Performance Measures (APMs) are presented in the appendices. All figures in NOK million unless otherwise stated.

(42.7% - associated company)

Jotun

KEY HIGHLIGHTS

• Continued underlying sales growth in all segments
• Quarterly figures impacted by negative currency translation effects
• Positive outlook despite increased global economic uncertainty

Anchor Grow and build Transform or exit

KEY FIGURES | Q2 2025

8,637

Revenue (NOKm)

Revenue growth YoY (Fixed rate)

3.5%

ROCE (R12M) 32.2%

Note: All figures refer to the Jotun Group

0

0.02

Orkla Foods

KEY HIGHLIGHTS

• Overall flat volume/mix development with growth in all markets except Norway
• Slight decline in underlying EBIT (adj.) from lower activity levels in key categories and increased advertising spend

5,107

Revenue (NOKm)

ROCE (R12M)

Cash conversion (R12M) 97%

0

1,000

0.010

Orkla Snacks

KEY HIGHLIGHTS

• Volume/mix growth in biscuits and snacks categories offset by weaker chocolate market
• Flat EBIT (adj.) growth. Successful mitigation of cocoa costs throughout the value chain
• Orkla Snacks named to TIME100 Most Influential Companies list
• BUBS US launch planned for Q3

KEY FIGURES | Q2 2025

2,475

Revenue (NOKm)

ROCE (R12M) Cash conversion (R12M) 112%

Orkla Home & Personal Care 0.1%

KEY HIGHLIGHTS

• Volume increase from continued strong market performance supported by increased advertising spend
• Increased EBIT (adj.) margin due to revenue management driving positive mix effects
• Continued strong cash flow and improved ROCE

ROCE (R12M)

KEY FIGURES | Q2 2025

709

Revenue (NOKm)

Cash conversion (R12M) 113%

0

0.01

(Orkla ownership 59.4%)

Orkla Food Ingredients

KEY HIGHLIGHTS

• Organic growth from broad-based volume/mix growth, combined with price increase to compensate for higher raw material prices
• EBIT (adj.) growth driven by Sweet Ingredients
• Continued ROCE improvement

KEY FIGURES | Q2 2025

5,470

12.2%

Revenue (NOKm)

ROCE

(R12M)

0

500

Anchor Grow and build Transform or exit

0.005 0.006 0.007 0.008 0.009 0.010

Orkla Health

KEY HIGHLIGHTS

• Organic growth of 2.2%. Volume/mix decline in most geographies and categories
• Underlying EBIT (adj.) decline as topline growth has not materialized sufficiently to offset increases in advertising and organisational build-up

ROCE (R12M)

Q4'24

KEY FIGURES | Q2 2025

1,837

Revenue (NOKm)

9.0%

Cash conversion (R12M) 103%

0

Q2'24

Q3'24

EBIT (adj.) EBIT (adj.) margin (R12M)

500

Q1'25 Q2'25

(Orkla ownership 90%)

Orkla India

KEY HIGHLIGHTS

• Positive volume/mix growth impacted by lower prices on key raw materials
• Revenues and EBIT (adj.) include financial incentives provided by the Government of India of NOK 6m (vs. NOK 20m in Q2'24)
• Underlying EBIT (adj.) growth driven by improved contribution ratio mainly attributable to price management and cost discipline

KEY FIGURES | Q2 2025

Revenue (NOKm)

Cash conversion (R12M) 98%

0

200

Note: 1. Government grant booked as mix effect on organic revenue growth. Excluding government grant, underlying vol/mix growth in Q2-25 was 3.9%; 2. Including government grants

(R12M)

The information set out herein does not represent the audited financial information of Orkla India, as per the Indian Accounting Standards

Anchor Grow and build Transform or exit

0.00

0.01

0.02

The European Pizza Company

KEY HIGHLIGHTS

• Consumer sales gaining momentum on the back of targeted growth initiatives
• Strong results improvement for New York Pizza, supported by 3rd party dough sales
• Improved EBIT (adj.) margin on the back of consumer sales momentum and solid cost control

ROCE (R12M)

KEY FIGURES | Q2 2025

Revenue (NOKm)

Cash conversion (R12M) 137%

0

Orkla House Care

• Organic revenue decline of -4.8% driven by volume and seasonal phasing
• New customers and range expansion secured in some markets despite challenging conditions
• Underlying EBIT (adj.) decreased by 28% vs. Q2'24 due to volume, market mix and impacts of non-recurring items in both years

Health and Sports Nutrition Group

• Organic revenue hampered by lower B2B sales
• Contribution ratio improved by +2.1%-p vs. Q2-24, driven by a higher D2C share and lower postage cost
• Underlying EBIT (adj.) improvement (NOK 8m vs. NOK 3m in Q2'24) driven by improved contribution margin, warehouse efficiency and fixed cost control

Closing remarks

Nils K. Selte, President and CEO

3 COMMITMENTS

Drive organic value in existing portfolio

Reduce the complexity of existing portfolio

Perform value-adding structural transactions

Upcoming events

Third quarter results 29 October 2025

Appendices

Net interest-bearing liabilities

Note: 1. Including Orkla Food Ingredients

Funding sources and maturity profile per Q2-25

Anchor

Overview of financial targets (1/3)

EBIT margin Cash conversion ROCE

15.0%

Note: 1. Organic CAGR from 2024 to 2026; 2. Communicated target of positive volume/mix growth

R12M represents rolling twelve months as at end of quarter The target period stretches from 2024 to 2026. Please note that financial targets for each portfolio company were communicated at the Capital Markets Day on 29 November 2023

All revenue measures are organic

All EBIT measures are defined as EBIT (adj.)

All cash conversion measures are defined as cash flow from operations / EBIT (adj.)

Grow and build

Overview of financial targets (2/3)

31

growth from minor add-ons; 3. Excluding government grants; 4. Current capital defined as Inventories + Receivables Payables as a % of revenue

R12M represents rolling twelve months as at end of quarter

The target period stretches from 2024 to 2026. Please note that financial targets for each portfolio company were communicated at the Capital Markets Day on 29 November 2023

All EBIT measures are defined as EBIT (adj.). EBIT CAGR is related to underlying EBIT (adj.)

All cash conversion measures are defined as cash flow from operations / EBIT (adj.)

Current capital defined as Inventories + Receivables - Payables as a % of revenue

Transform or exit

Overview of financial targets (3/3)

Contribution ratio

Contribution margin ratio is calculated by dividing the contribution margin by operating revenues. Operating revenues minus variable operating expenses constitute the contribution margin. Variable operating expenses are reported on the financial statement line "operating expenses" and consist of expenses directly related to sales volume. Variable expenses include costs related to input factors such as raw materials and packaging, and variable production costs such as electricity related to production and variable pay. They also include ingoing and outgoing freight costs directly related to sales volume. Costs related to finished goods purchased for resale are included as part of variable operating expenses. Production costs that are relatively constant over time and do not vary according to production volume are not included in the computation of contribution margin; such costs include warehouse costs, payroll expenses linked to factory administration and management staff, and depreciation of production equipment. Contribution margin is a key internal financial figure that illustrates how profitable each portfolio company's product mix is, and hence also the company's ability to cover fixed expenses.

Contribution margin is an important financial figure with regard to product innovation and product portfolio optimisation. A reconciliation of the Orkla group's contribution margin is presented in the table above.

Organic growth

Organic growth shows like-for-like turnover growth for the group's business portfolio and is defined as the group's reported change in operating revenues adjusted for effects of the purchase and sale of companies, the re-conclusion and loss of distribution agreements of a material nature, and currency effects. Intra-group transfers of companies and changes in distribution agreements between portfolio companies are also taken into account. In calculating organic growth, acquired companies are excluded 12 months after the transaction date. Sold companies are excluded pro forma 12 months prior to the transaction date. Currency effects are neutralised by translating this year's turnover at last year's exchange rates.

Organic growth is included in segment information, and is used to identify and analyse the turnover growth of the consolidated portfolio companies. Organic growth provides an important picture of the portfolio companies' ability to carry out innovation, product development, correct pricing and brand-building.

Segment information for each consolidated portfolio company shows how large a part of organic growth is related to price effects and how large a part is linked to volume/mix effects. Price effects are defined as net changes in prices to customers, i.e. changes in customer prices adjusted for factors such as discounts, campaigns and price reductions. The price effects are calculated based on the assumption of unchanged volume. Volume/mix effects are calculated as a residual, and comprise organic growth minus price effects. Volume/mix effects consist of changes in sales volume and/or changes in the product mix sold.

EBIT (adj.)

EBIT (adj.) shows the group's current operating profit before items that require special explanation, and is defined as reported operating profit or loss before "Other income and expenses" (OIE). These include M&A costs, restructuring or integration expenses, any major gains on and write-downs of both tangible and intangible assets, and other items that only to a limited degree are reliable measures of the group's current profitability. EBIT (adj.) margin and growth are derived figures calculated in relation to operating revenues.

EBIT (adj.) is one of the group's most important financial figures, internally and externally. The figure is used to identify and analyse the group's profitability linked to normal operations and operating activities. Adjustment for items in OIE which to a limited degree are reliable measures of the group's current operating profit or loss increases the comparability of profitability over time.

Change in underlying EBIT (adj.)

Change in underlying EBIT (adj.) shows like-for-like EBIT (adj.) growth for the group's business portfolio, and is defined as the group's reported change in EBIT (adj.), adjusted for effects of the purchase and sale of companies, the re-conclusion and loss of distribution agreements of a material nature, and currency effects. Account is also taken of intra-group transfers of companies and changes in distribution agreements between portfolio companies. In calculating the change in underlying EBIT (adj.), acquired companies are included pro forma 12 months prior to the transaction date. Sold companies are excluded pro forma 12 months prior to the transaction date. Currency effects are neutralised by translating this year's EBIT (adj.) at last year's currency exchange rates. Where underlying profit performance is mentioned in the report, reference is made to underlying EBIT (adj.) performance. Underlying EBIT (adj.) margin and change therein are derived figures calculated in relation to operating revenues.

Underlying EBIT (adj.) growth is used for internal management purposes, including for identifying and analysing underlying profitability growth in the existing business portfolio, and provides a picture of the portfolio companies' ability to improve profitability in their existing operations. The measure is important because it provides a comparable structure for monitoring the change in profitability over time.

Return on Capital Employed (ROCE)

ROCE is calculated by dividing a 12-month rolling EBITA (adj.) by the average capital employed in the consolidated portfolio companies.

EBITA (adj.) consists of EBIT (adj.) plus depreciation and write-downs of intangible assets. 12-month rolling EBITA (adj.) is used in the calculation. Since depreciation and write-downs of intangible assets are not included in EBITA (adj.), they are also excluded from the capital base. Thus the historical cost of intangible assets is used in capital employed (see next paragraph).

Capital employed represents the working capital of the consolidated portfolio companies and consists of:

• Net working capital consists of the statement of financial position items "Trade receivables", "Trade payables" and "Inventories". It also includes payable public charges and some minor receivables and payables related to operations included in "Other receivables and financial assets" and "Other current liabilities".
• Fixed assets
• Intangible assets at historical cost consist of the statement of financial position line "Intangible assets" plus accumulated depreciation and write-downs
• Net pension liabilities -Pension assets are included in the statement of financial position line "Associates, joint ventures and other financial assets", while pension liabilities are included in "Provisions and other non-current liabilities"
• Deferred tax on excess value This item is included in deferred tax which is part of the statement of financial position line "Provisions and other non-current liabilities"

Return on Capital Employed (ROCE) cont.

Average capital employed is always an average of the closing balances in the five last reported quarters.

ROCE shows the return that the Orkla group receives on the capital invested in the various consolidated portfolio companies. This is an important measurement parameter for assessing whether the portfolio companies' return exceeds the group's weighted average cost of capital (WACC), and for comparing the return on the current portfolio with other alternative returns.

Earnings per share (adj.)

Earnings per share (adj.) show earnings per share adjusted for discontinued operations and "Other income and expenses" after tax and non-controlling interests. Adjustments are also made for any reported gains or losses on sales/purchases of associates and joint ventures, as well as for any reported major profit or loss effects linked to abnormal tax conditions.

Net replacement and expansion investments

When making investment decisions, the group distinguishes between replacement and expansion investments. Expansion investments are the proportion of overall reported investments deemed to be investments in either new geographical markets or new categories, or investments which represent significant increases in capacity. Net replacement investments include new leases and are reduced by the value of sold fixed assets valued at sale value.

The purpose of this distinction is to show how large a part of the investments (replacement) mainly concerns maintenance of existing operations and how large a part of the investments (expansion) are expected to generate increased contributions to profit in future, over and above profit expectations linked to normal operations.

Cash conversion

Cash conversion is calculated as cash flow from operations as a percentage of EBIT (adj.). Cash flow from operations is defined and presented in the Orkla-format cash flow statement.

Cash conversion is an important key figure for Orkla, as it shows how much of EBIT (adj.) has been converted into net interest-bearing liabilities, and thus the financial means available to the group. Net interest-bearing liabilities are the group's most important management parameter for financing and capital allocation.

Net interest-bearing liabilities

Net interest-bearing liabilities are the sum of the group's interest-bearing liabilities and interest-bearing receivables. Interest-bearing liabilities include bonded loans, bank loans, other loans, lease liabilities and interest-bearing derivatives. Interest-bearing receivables include cash and cash equivalents, interest-bearing derivatives and other interest-bearing receivables.

Net interest-bearing liabilities are the group's primary management parameter for financing and capital allocation, and are actively employed as part of the group's financial risk management strategy. The Orkla format cash flow statement therefore shows the change in net interest-bearing liabilities at group level.

Structure (acquisitions and disposals)

Structural growth includes adjustments for the acquisition of the businesses Freunde der Erfrischung, SnackFood, Kartonage, Eurohansa Toruń and Le Vesuve. Adjustments have also been made for the divestment of Lilleborg, Pierre Robert Group, Fruta Podivín and the brand Blomberg's Gløgg.

In 2024, adjustments were made for the acquisition of the businesses Bubs Godis, Khell-Food and Norstamp. Adjustments were also made for the loss of distribution agreements relating to Tropicana and Alpro in Orkla Foods. As part of the transition to a new operating model, the split-up of the former Orkla Care business area entailed the transfer of the oral care business and adjustments for changes in distribution and production agreements between portfolio companies.