Orkla ASA — Investor Presentation 2021

Nov 23, 2021

Background Material Capital Markets Day 2021

23 November 2021

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 forward-looking 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.

Index

Presentations	Page
CEO key notes	4
Financial targets	8
Operating model	16
Prioritized growth initiatives	29
Portfolio management and M&A	52
Appendices	59

CEO Keynotes

• Strong foundation with 300 brands and ~80% of revenue from brands with number 1 and 2 market positions
• Cultural change nurturing braveness and challenger mindset
• Step change profitable organic growth*, targeting at least 2.5%
• Targeting mid-single-digit underlying EBIT (adj.) growth
• Continue to be in the forefront on sustainability - Integral part of business strategy with clear targets
• Three prioritized growth areas;
  • Plant-based
  • Out of Home
  • Consumer Health

CEO Keynotes (ii)

• Top three priority approaches to reaching our targets:
  • Winning locally
  • Embracing change
  • Building tomorrow
• International expansion of selected brands
• Geographical expansion and partnerships
• A more dynamic approach to our portfolio
  • Consider acquisitions, divestitures, spinouts, IPOs, JVs

Top three priority approaches to reaching our targets

	နိုင်ငံ ရွိရှိရိုင်ကို

Our people make the difference

Local consumer insight at the heart of everything

Operational & commercial competitiveness

Being consumer centric in a digital world

Being a local champion for sustainability

Being the best partner in all we do

Plant-based

Health

Out of Home

Geographic expansion

Targets for Orkla 2022-2024

Organic growth* of at least 2.5%**

Mid-single-digit U.EBIT (adj.)* growth**

Local champion for sustainability

• Scope 1&2 GHG reduction of 65%*** by 2025

• Scope 3 GHG reduction of 30%*** by 2025
• 100% recyclable packaging by 2025

M&A and portfolio management to support value creation strategy

* All Alternative Performance Measures (APM) are presented in the appendix

** Targets applicable to BCG incl HQ

7

*** Orkla's climate targets have been approved by the Science Based Targets Initiative (SBTI), in line with the UN Paris agreement. Base year 2014

Financial targets

Status for financial targets from Capital Markets Day 2018*

Organic growth** >= market	U.EBIT %** >150 bp by 2021	Net working capital reduction (% of sales) >300 bp by 2021
2018 – 2021 (YTD Q3) 2.1% CAGR	2019 +30 bp 2020 +40 bp 2021 (YTD Q3) - 50 bp	2019 -130 bp 2020 -230 bp 2021 (YTD Q3) -30 bp

Targets for Orkla 2022-2024

Organic growth* of at least 2.5%**

Mid-single-digit U.EBIT (adj.)* growth**

Local champion for sustainability

• Scope 1&2 GHG reduction of 65%*** by 2025

• Scope 3 GHG reduction of 30%*** by 2025
• 100% recyclable packaging by 2025

M&A and portfolio management to support value creation strategy

* All Alternative Performance Measures (APM) are presented in the appendix

** Targets applicable to BCG incl HQ

10

*** Orkla's climate targets have been approved by the Science Based Targets Initiative (SBTI), in line with the UN Paris agreement. Base year 2014

Targeting organic growth of at least 2.5%

* All Alternative Performance Measures (APM) are presented in the appendix

** Target applicable to BCG incl HQ

11

*** 2018 Adjusted for the loss of the distribution agreement with Wrigley

Targeting mid-single-digit underlying EBIT (adj.) growth

Underlying EBIT (adj.)* growth for BCG incl. HQ

• * All Alternative Performance Measures (APM) are presented in the appendix
• ** Target applicable to BCG incl HQ

12

*** 2018 Adjusted for the loss of the distribution agreement with Wrigley

Sustainability strategy and targets towards 2025

• 60% renewable energy

• 65% reduction in greenhouse gas emissions from own operations (80% reduction by 2040) 1,2
• 30% reduction in greenhouse gas emissions in the value chain, outside own operations (75% reduction by 2040) 1,3
• 30% reduction in energy and water consumption
• 50% reduction in food waste

Sustainable sourcing Partnership for sustainable raw materials

• Ensure respect for workers' rights
• Achieve verified sustainable production of key raw materials⁴
• Promote sustainable farming and fishing
• 100% recyclable packaging
• 75% packaging made of recycled materials
• 50% plastic packaging made of recycled or renewable materials

Nutrition and wellness Making it easier to live healthily

• Double consumption of products and services that promote a healthier lifestyle
• 15 per cent less salt and sugar⁵
• Inspire people to adopt a healthier lifestyle

Safe products Safe products build trust

• 100% food manufacturing facilities at green level⁶
• 100% approved suppliers⁶
• Continue to ensure that all products are safe

Care for people and society Strong local engagement for sustainability

• Create strong local engagement for sustainability
• 100% compliance with Orkla's human rights policy
• Create healthy workplaces with zero injuries
• Women in 50% of leadership positions at all levels

• Create a culture of integrity everywhere

• 1) Targets for greenhouse gas reduction have been validated by the Science-based Targets initiative.

• 2) Scope 1 and Scope 2 in accordance with the Greenhouse Gas Protocol. Base year 2014.
• 3) Scope 3 in accordance with the Greenhouse Gas Protocol. Base year 2014.
• 4) The assessment of importance is based on the risk related to and scope of the Group's sourcing
• 5) Reduction in overall consumption of salt and sugar from Orkla's food products. Base year 2015.
• 6) In accordance with the Orkla Food Safety Standard

M&A and portfolio management to support value creation strategy

Funding considerations & allocation priorities

Funding considerations Allocation priorities

• Maintain a financial and business risk profile consistent with an investment grade credit rating
• Secure funding when you don't need it avoid expensive bridge financing and restrictive covenants which can be challenging to reverse
  • o Diversified funding sources
  • o Diversified maturity structure

• Retain capacity to seize attractive opportunities when they arise, with available funding on competitive and non-restrictive terms

• 1 priority is maintaining an attractive and predictable dividend policy – have never reduced ordinary dividends

• 2 priority is value accretive M&A and organic investments in strengthening the future Orkla

• 3 priority is to return excess capital to shareholders

Operating model

Orkla Group in figures

* Full-year figures 2020 ** As at Q3 2021 *** Orkla holds 42.6% ownership in Jotun AS

Operating model

Optimized means that Orkla will win through taking out more scale than smaller, local players and being closer and more flexible so as to accommodate local preferences

Multi-national

"Improving everyday life through enjoyable and sustainable local brands" Orkla Optimized Model

A leading Nordic-based

• Long heritage in the Nordic region
• Strong presence in the Baltics, Central Europe and South Asia
• Listed on Euronext Oslo

BCG company Strong Brands Local presence Scale advantages

• Strong positions in smaller markets
• ~80% of revenue from #1 and #2 brands
• Market shares typically in the range of 30-80%

• Being close to the consumer and customer
• Superior local insight and set-up
• Autonomous units with full P+L responsibility

• Develop concepts across markets
• Synergy realization throughout supply chain
• Centres of competence in select areas

A unique portfolio of strong local brands

Norway Nordics ex. Norway Baltics Europe other World other

Increased exposure outside Norway and ~25% of revenue in Out of Home

Sales revenues by geographical region* BCG channel split (net sales), FY 2020

80% of revenue from number 1 and 2 market positions

	Norway	Sweden	Finland	Denmark	Estonia	Latvia
Snacks	#2	#1	#1	#1	#3	#1
Ketchup	#1	#1	#1	#1	#1	#1
Health supplements	#1	#3	#1	#1	#1	#1

Example of market positions and brands in the grocery channel:

Operating model

Examples: Growing the core

How Stratos has doubled its market share over the last three years

Over the last three years the Stratos chocolate brand has doubled its market share and increased its sales revenues by + 115%. Stratos' performance accounts for 32% of the value growth in the chocolate tablet category.

Excellent brand-building with high media investments based on clear and distinct brand positioning.

Brand-building

Strategic innovation In-store activation

Strategic innovation within the core, investing in unique new technology to improve the taste experience.

Strong and consistent in-store activation including both new innovations and core products.

Restart of local Home Care brand Grumme in Sweden in 2016, after acquisition of Cederroth

• Positioning as the sustainable pioneer
• Investment in brand -building
• Bold insight -driven communication
• Strong innovation program based on utilizing portfolio cross -border
• ➢ + 60% sales growth, all time high market shares

We have replicated the success of Paulúns in Sweden in other markets, with a clear health positioning and tasty products

Building a new Biscuit factory in Latvia will serve Orkla's needs going forward and significantly reduce our climate footprint

New Orkla Biscuit Production (OBP) factory

Status on 1st November 2021

Key Figures

• 32 000 square meters
• 300 employees
• 13 production lines
• Strong local brands serving all markets
• Increased innovation capabilities in the category
• Improved cost position

Sustainability vision for Orkla Biscuit Production (OBP) "OBP is a guiding star for sustainable production"

50% waste reduction

25% lower water consumption consumption

25% decrease in energy

Best practice waste water treatment

Growth initiatives (i)

Plant-based

Growing sales from 1 to 3 BNOK in 2025

Long-term consumer trends are driving the inevitable shift towards plant-based – Orkla uniquely positioned to bring down barriers

CONSUMER DRIVERS	CONSUMER BARRIERS
SUSTAINABILITY	AWARENESS
HEALTH	TASTE & TEXTURE
ANIMAL WELFARE	PRICE

Orkla has set an ambitious target of NOK +3 billion turnover in 2025 in plant-based

31 1) Not adjusted for currency fluctuations. Growth YTD Q3-21 vs. YTD Q3-20 was 22% 2) Not including distribution agreements. Growth mainly driven by organic growth, supported by smaller acquisitions

Orkla is uniquely positioned to be a leading player within Plant-based

Orkla strengths

Competence in meat and dairy replacements built over the last 30 years

Strong brands with NATURLI' and Anamma paired with market-leading position in the Nordics

Expanding footprint fueled by strong local organizations in 12 European markets

Strong capabilities and leading positions in meat and dairy replacement – built over 30 years

Current Orkla Plant-based

• Orkla has built strong competence in plant-based categories for the last 30 years through our brands NATURLI' and Anamma
• We have market leading positions across our Nordic markets

  • 1 in dairy and meat in Denmark

  • 1 in meat in Sweden

  • 1 in select meat segments in Norway

• We are growing our positions in the Baltics and Central- and Eastern Europe

The NATURLI' brand and product portfolio have proven successful, and are growing across 20+ markets

Plant-based, NATURLI' potential

• NATURLI' products can be found in more than 20+ markets globally …from Denmark to South Korea, Australia and New Zealand
• With NATURLI' we have a brand and a product portfolio that we can expand to new markets as the plantbased category grows worldwide
• As an example, NATURLI' Vegan Block (vegan butter alternative) has proven highly successful with yearon-year growth in all markets where it has been launched

Orkla has several award-winning plant-based products driving our strong positions

Examples of award-winning products

Expanding footprint fueled by strong local organizations in 12 European markets

Local presence

• Local business units in 12 European markets, providing knowledge of consumer insight, taste preferences, and strong go-to-market capabilities
• Local production, technology and innovation for meat and dairy replacements
• NOK +500 million invested over the last 3 years in our 6 plant-based factories
• Increasing investment levels across meat and dairy replacements going forward

Orkla Alternative Proteins (OAP) as new business unit to set a broader and more ambitious strategy for meat and dairy replacements

Orkla Alternative Proteins focus

Strengthen Orkla's long-term technology roadmap fueled by a proactive partnership strategy

Broaden Orkla's focus on alternative protein technologies beyond plantbased

Increase focus on finding value outside existing markets and upstream activities in the value chain

… to increase Orkla's long-term competitiveness and value creation

Growth initiatives (ii)

Out of Home strategy

Building a leading European Pizza Franchise

Changing consumer preference is driving the desire to establish a sizeable position in the Out of Home market

Why Out of Home? Why Pizza?

• Consumers are spending an increasing share of wallet Out of Home (OOH), driving strong growth in the market
• Increase demand for convenience and accessibility - take away & delivery segments are growing faster than traditional dine-in
• Closer connection to consumers with potential to yield a competitive advantage in digital sales and marketing

• Sizeable market with industrialization potential
• Strong underlying growth
• A preferred choice across occasions
• Timeless concept
• Fairly resilient to market cycles / economic downturns
• Strong in-house competence

Limited-Service Pizza represents a strong and growing market

Development in addressable1) European Limited-Service Restaurants (LSR) pizza markets

• Addressable1) European pizza markets have historically grown strongly, with CAGR of 6.4% 2015-2019
  • Representing 19% of the total European pizza market, including both Full-service and Limited-Service restaurants across all countries
• Strong historical growth expected to continue in coming years
• LSR pizza market has proved fairly resilient through economic crisis, compared to other restaurant markets and segments

Out of Home pizza platform with tangible growth potential, both organically and structurally

Kotipizza and New York Pizza have historically grown strongly through same-store sales and network expansion

Orkla with strong in-house competence across several key dimensions supporting accelerated growth in the Out of Home market

Three key growth pillars to develop a sizable European Out of Home platform

• High quality products & services
• Loyalty programs
• Continued product development
• Digital Marketing

1 Same store growth 2 Network expansion 3 Structural initiatives

• Available white spots in all current markets
• Increase penetration in larger areas – increasing delivery efficiency

• Strengthen and expand our geographical footprint in and around our core markets
• Leverage M&A possibilities when and where appropriate

Growth initiatives (iii)

Consumer Health

Increase sales +50% by end of 2025

WE BELIEVE resilience is a key to better health and a better life

WE BELIEVE in healthy minds in healthy bodies

WE BELIEVE beauty starts

Consumer Health

with an inside job WE BELIEVE social well-being is a key to healthy living

The current business is a strong foundation for future growth within consumer health

The Orkla companies offering solutions for consumer health. Total revenue base of ~4.6 BNOK*

Consumer Health – a lot of possibilities

We are physically active We get older and want to We are overweight

We are using technology

Science is new knowledge

have an active lifestyle

We want to live and eat healthy

We care about the environment

We have less time

Orkla intends to take an even more holistic approach to consumer health across our categories

The consumer health landscape is shifting

The combination of our capabilities will be our competitive edge in taking a bigger stake in the growing consumer health market

Local consumer insight

Strong capabilities in consumer health

Strong local brands – with proven export success

Trusted partner in the markets we are in

Consumer health in Orkla – 6 strategic growth pillars

Strategic growth pillars

1 Develop / acquire new health concepts & capabilities	2 Revitalize and grow the core retail	3 New channels: accelerate D2C & online	5 Geographic expansion	6 New growth areas
• Revitalize our current portfolio to meet the demand of the modern consumers • Focus on continuous work and launches across markets	• Develop and rejuvenate grocery retail positions • Develop and grow pharmacy positions • Support digital journey of traditional b&m retail	• Develop and acquire relevant concepts, shifting our portfolio towards D2C • Supply chain adapted for digital sales	• Pursue geographic expansion opportunities – International niche positions through distributors and marketplaces	• Expand into new categories • Explore opportunities to play a larger role with regard to health, for instance innovating new concepts for easier selfcare

Services: develop personalization and product-related services

4

Portfolio management and M&A

Top three priority approaches to reaching our targets

We value trust-based and long-term partnerships

Examples

54 Note: Orkla's ownership in Dragsbæk is 67%, Lofoten Marine Oils 50%, Eastern 68% (pre-merger) and New York Pizza ~75%

We see growth potential through geographic expansion in three clusters

Faster growing geographies, a successful business model, and existing category expertise. Food Ingredients, Wound Care and Out of Home have a broader European catchment area

Orkla Portfolio Transformation Framework

Summarizing Orkla's M&A strategy

Long term value creation

Appendices

Five-year earnings and margin performance

Cost breakdown FY 2020

BCG incl. HQ, cost breakdown 2020 (BNOK), % of revenues

30 BNOK in external spend in 2020

Third party spend (BNOK)

Orkla Investments

Hydro Power

Fully consolidated into Orkla's financial statements

Orkla 85% Reservoir plant 1.9 TWh**

Orkla 100% Run of the river plant 0.6 TWh

Volume (GWh): YTD Q3-21: 1,432 (2,182)

Power prices* (NOK/kWh): YTD Q3-21: 0.59 (0.09)

EBIT adj. (NOK million): YTD Q3-21: 287 (17)

Financial Investments

Fully consolidated into Orkla's financial statements

Book value real estate: NOK 1.8 billion

Jotun (42.6%) Accounted for using equity method

** Saudefaldene leases approximately 1 TWh per year from Statkraft and has corresponding energy commitments, resulting in a net effect of zero. ⁶³

Strong balance sheet and financial flexibility

64

Funding sources and maturity profile*

Alternative Performance Measures (APM)

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 and currency effects. In calculating organic growth, acquired companies will be excluded 12 months after the transaction date. Sold companies will be 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 used to identify and analyse the turnover growth in the existing business portfolio. Organic growth provides an important picture of the Group's ability to carry out innovation, product development, correct pricing and brand-building.

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 and write-downs on 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 key financial figures, internally and externally. The figure is used to identify and analyse the Group's profitability from 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 and currency effects. In calculating the change in underlying EBIT (adj.), acquired companies will be included pro forma 12 months before the transaction date. Sold companies will be excluded pro forma 12 months prior to the transaction date. Currency effects are neutralised by calculating this year's EBIT (adj.) at last year's currency exchange rates. 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 Group's ability to develop growth and improve profitability in the existing business. The measure is important because it shows the change in profitability on a comparable structure over time.

Alternative Performance Measures (APM)

Earnings per share (adj.)

Earnings per share (adj.) show earnings per share adjusted for "Other income and expenses" (OIE) after estimated tax. Items included in OIE. The effective tax rate for OIE is lower than the Group's tax rate in both 2021 and 2020 chiefly due to non-deductible transaction costs. Write-downs were also taken in 2020 with no tax effect.

If other items of a special nature occur under the company's operating profit or loss, adjustments will also be made for these items. No such adjustments had been made as at 30 September 2021. As at 30 September 2020, adjustments were made for a gain on the sales of the associates Andersen & Mørck AS and Allkärrsplans Utvecklings AB.

In the second quarter of 2021, Orkla awarded share options to senior executives (see Note 9 in quarterly report). This could have a dilutive effect for other shareholders and diluted figures are therefore presented for earnings per share and earnings per share (adj.).

Net replacement and expansion investments

When making decisions regarding investments, the Group distinguishes between replacement and expansion investments. Expansion investments are the part of overall reported investments considered to be investments either in new geographical markets or new categories, or which represent significant increases in capacity.

Net replacement investments include new leases and are reduced by the value of sold fixed assets to sales 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) is investments which must be expected to generate increased contributions to profit in future, exceeding expectations of normal operations.

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 liquid assets, interest-bearing derivatives and other interest-bearing receivables.

Net interest-bearing liabilities are the Group's primary management parameter for financing and capital allocation, which is used actively in the Group's financial risk management strategy. The statement of cash flows (Orkla format) therefore shows the change in net interest-bearing liabilities at Group level

Structure (acquired and sold companies)

Structural growth includes adjustments for the acquisition of the businesses Eastern, NutraQ, New York Pizza, Sigurd Ecklund, Hans Kaspar, Nói Siríus, Cake Décor Limited, For All Baking Limited, Ambasador92, Proteinfabrikken, Seagood Fort Deli, Norgesplaster, Win Equipment, Gortrush and Havrefras. Adjustments have been made for the sale of SaritaS, Vestlandslefsa, Italiensk Bakeri, Gorm's and the Skin Care business in Poland, as well as for the closure of Pierre Robert Sverige. Adjustments have also been made for the loss of the distribution agreements with Panzani and OTA Solgryn. A structural adjustment was made at business area level for the internal relocation of Frödinge. In 2020, adjustments were also made for Lecora, Easyfood, Confection by Design, Risberg, Kanakis, Credin Sverige, Vamo, Kotipizza, Helga, Anza Verimex and the sale of Glyngøre.