Orkla (ORK) UBS Global Consumer and Retail Conference presentation summary

Company overview and structure

• Operates as an industrial investment company with a focus on brands and consumer-oriented businesses.

• Achieved NOK 70.7 billion in operating revenues and NOK 8.1 billion profit before tax in 2024, with a market cap of ~NOK 110 billion and ~20,000 employees.

• Transformed into an industrial investment company in 2023, managing 10 portfolio companies across food, snacks, health, and other sectors.

• Portfolio includes major brands such as Jotun, Orkla Foods, Orkla Snacks, and Orkla Food Ingredients.

• Nordic region accounts for about 60% of revenues, with significant presence in Central and Eastern Europe.

Financial performance and growth

• Demonstrated steady revenue and EBIT growth over the past decade.

• Maintains a stable and increasing dividend, with a policy of distributing 50-70% of adjusted earnings per share.

• Record high cash flow from operating activities in 2024, while acquisition spending remains at historically low levels.

• Net debt to EBITDA stands at 1.5x as of December 2024, below the long-term target of 2.5x, supporting an A- credit rating.

• Main capital allocation priorities are stable dividends, value-accretive acquisitions/divestments, and returning excess capital to shareholders.

Portfolio company highlights

• Jotun, with NOK 34 billion in sales, operates in over 100 countries and is a global leader in paints and coatings.

• Orkla Foods generates NOK 21 billion in revenues, with ~80% from #1 or #2 market positions in the Nordics, Baltics, and Central Europe.

• Orkla Snacks is the top snacking choice in the Nordics/Baltics, with NOK 10 billion in 2024 revenues and a portfolio of iconic local brands.

• Orkla Food Ingredients focuses on bakery, sweet, and plant-based products, with 64% of sales from bakery ingredients and a strong acquisition track record.

• Strategic partnership with Rhône to build a leading European and US food ingredients company.