Slides
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Third quarter results 14 November 2025
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Disclaimer This presentation has been prepared by Orkla ASA (the “Company”) solely for information purposes. The presentation does not c onstitute 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 vi ews with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “pl an,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of the se forward-looking statements. Others can be identified from the context in which the statements are made. Although we believe that the expectat ions reflected in such forward-looking statements are reasonable, these forward -looking statements are based on a number of assumptions and foreca sts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those pr ojected in a forward- looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differenc es include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputat ion and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, po litical 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 c hange without notice. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accura cy 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. 2All Alternative Performance Measures (APMs) are presented in the appendices. All figures in NOK million unless otherwise stated
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Q3 2025 1.1% EBIT (adj.) growth2 NOK 1.85 EPS (adj.)3 4.4% Organic growth1 3 Note: 1. Organic growth in the Consolidated Portfolio Companies; 2. Underlying EBIT (adj.) growth in the Consolidated Portfolio Companies including Orkla ASA and Business Services; 3. Fully diluted
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Q3 2025 4 IPO of Orkla India
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Announcement of share buyback programme 5 Stable and increasing dividend M&A and organic investments Return excess capital to shareholders Orkla initiates a share buyback programme of NOK 4 billion1 Main priorities for capital allocation Note: 1. The program will commence on 17 November 2025 and continue until 31 December 2026 at the latest.
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Organic growth Note: 1. Growth year-over-year. Figures not adjusted for timing effects such as the timing of Easter, etc. 6 Organic growth1 | Consolidated Portfolio Companies 7.8% 5.9% 1.0% 2.3% 2.6% 1.5% 2.3% 1.4% 1.3% -1.8% 2.6% 1.0% 1.2% 1.8% -1.1% 2.4% 3.1% Q3-23 -0.6% Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 6.0% 5.3% 3.6% 3.3% 3.9% 3.3% 1.2% 3.8% 4.4% Volume/mix Price
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Breakdown of portfolio companies’ performance in Q3-25 Note: 1. Orkla’s share (42.7%) of Jotun EBITA; 2. Including Business Services 7 700 2,098 2,032 313 108 413 248 122 108 71 15 Orkla Foods Orkla Snacks Orkla Home & Personal Care Orkla Food Ingredients Orkla Health Orkla India The European Pizza Company Orkla House Care Health and Sports Nutrition Group Consolidated Portfolio Companies Orkla ASA2 Consolidated Portfolio Companies incl. Orkla ASA2 (66) Underlying EBIT (adj.) growth (Q3-25 vs. Q3-24) Anchor Grow and build Transform or exit 2.4% -8.4% 7.6% 1.6% -1.8% 7.0% 49% 126%-16% 811 Jotun1 -0.4% 1.1% EBIT (adj.) in NOKm
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EBIT (adj.) margin Note: 1. Including Orkla ASA and Business Services 8 11.6% 11.5% 9.0% 10.0% 10.3% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 9.7% Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 11.1% Consolidated Portfolio Companies | R12M EBIT (adj.) margin1
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9 6.9% 11.8% 2023 CAGR2 2023-263 8%-10% (CAGR) 9.0% 10.3% 2023 R12M 20263 10.5%-11% 9.9% 11.9% 2023 R12M 20263 13% Portfolio company targets 2023-2026 (consolidated)1 Note: 1. Including Orkla ASA and Business Services; 2. CAGR from 31/12/2023 to 30/09/2025; 3. Total of the targets for the C onsolidated Portfolio Companies communicated at the Capital Markets Day in November 2023 Abbreviation: R12M = Rolling twelve-month (also applicable to other pages in this presentation) Return on Capital Employed (ROCE) EBIT (adj.) margin Underlying EBIT (adj.) growth 9
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Financial performance Arve Regland, EVP and CFO
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Income statement Note: 1. Earnings per share (diluted) 11 Key quarterly figures Q3-25 Q3-24 ∆ Q3 Operating revenues 17,946 17,209 4% EBIT (adj.) Consolidated Portfolio Companies 2,098 2,086 1% EBIT (adj.) Orkla Real Estate 7 12 EBIT (adj.) Orkla ASA and Business Services (66) (100) EBIT (adj.) 2,039 1,998 2% Other income and expenses (401) (740) EBIT 1,638 1,258 Profit from Jotun & associates 603 550 Net interest and other financial items (244) (303) Profit before tax 1,997 1,505 Taxes (305) (293) Profit after tax 1,692 1,212 Discontinued operations - 74 Profit for the period 1,692 1,286 Profit attributable to non-controlling interests 121 100 Profit attributable to owners of the parent 1,571 1,186 Earnings per share (adj.)1 1.85 1.70 9% Earnings per share1 1.57 1.18
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Cash flow 12 Cash flow statement (NOKbn) YTD-25 YTD-24 EBIT (adj.) 5.7 5.4 Depreciation and write-downs 2.0 1.9 Change in net working capital (1.0) (0.5) Net replacement investments (1.8) (1.3) Cash flow from other income & exp. and pensions (0.1) (0.3) Cash flow from operations 4.8 5.2 Tax paid (1.0) (0.7) Dividend received (from Jotun) 0.9 0.9 Cash flow from financial items and other transactions (0.7) (0.9) Cash flow before capital allocation 4.1 4.5
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Capital allocation and leverage . 13 Net interest- bearing debt (31.12.2024) 4.1 Cash flow before capital allocation 10.4 Dividends paid and sale/purchase of treasury shares 0.4 Expansion investments 0.6 Purchase of companies 5.5 Sale of companies/discontinued operations 0.1 Currency effects Net interest- bearing debt (30.09.2025) 16.0 17.7 1.7x EBITDA 1.3x EBITDA Figures in NOK billion (excl. Orkla Food Ingredients)
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Portfolio companies All Alternative Performance Measures (APMs) are presented in the appendices. All figures in NOK million unless otherwise stated.
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2,496 2,654 4,754 4,865 4,991 0 16.7% Aug’21 14.5% Aug’22 22.0% Aug’23 21.6% Aug’24 21.7% Aug’25 KEY HIGHLIGHTS • Excluding negative currency effects, revenue growth was 4.4% August YTD, with positive development in all segments • EBITA improvement driven by increased sales and higher gross margin Jotun Anchor Grow and build Transform or exit Aug’21 Aug’22 Aug’23 Aug’24 Aug’25 7.6% 21.8% 18.3% 4.6% 1.9% REVENUE GROWTH - YTD EBITA - YTD EBITA EBITA margin 3% EBITA growth (42.7% - associated company) Note: All figures refer to the Jotun Group, August YTD Revenue (NOKm) 22,998 Revenue growth YoY (Fixed rate) 4.4% ROCE (R12M) 32.5% KEY FIGURES | Aug YTD 2025 15
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KEY HIGHLIGHTS • Modest sales growth and improving market share in growth categories • Temporary volume decline from delivery issues in the Czech Republic • EBIT (adj.) growth driven by positive sales growth and favourable product mix Orkla Foods Anchor Grow and build Transform or exit 1.4% 1.3% Q3’24 0.9%0.2% Q4’24 0.9% -3.8% Q1’25 Q2’25 1.6% -0.8% Q3’25 2.7% 1.1% -2.9% 1.0% 0.8% Price Volume/mix ORGANIC GROWTH 675 681 589 614 700 12.1% Q3’24 12.3% Q4’24 12.5% Q1’25 12.4% Q2’25 12.5% Q3’25 EBIT (ADJ.) EBIT (adj.) EBIT (adj.) margin (R12M) KEY FIGURES | Q3 2025 2.4% Underlying growth 16 Revenue (NOKm) 5,129 ROCE (R12M) 14.8% Cash conversion (R12M) 93%
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KEY HIGHLIGHTS • Cocoa and chocolate market development still impacting overall results • Positive contribution from biscuit category • Promising launch of BUBS in the US Orkla Snacks 4.4% Q3’24 6.8% -0.5% Q4’24 6.0% -4.1% Q1’25 6.1% -1.8% Q2’25 9.1% -1.6% Q3’25 4.4% 6.2% 1.8% 4.3% 7.5% ORGANIC GROWTH 339 424 260 263 313 0 500 0.01 12.5% Q3’24 13.1% Q4’24 13.0% Q1’25 12.8% Q2’25 12.3% Q3’25 EBIT (adj.) EBIT (adj.) margin (R12M) Revenue (NOKm) 2,546 ROCE (R12M) 11.5% Cash conversion (R12M) 103% KEY FIGURES | Q3 2025 EBIT (ADJ.) Anchor Grow and build Transform or exit -8.4% Underlying growth 17 Price Volume/mix
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100 62 87 89 108 0 0.01 0.02 11.0% Q3’24 11.7% Q4’24 11.9% Q1’25 12.0% Q2’25 12.3% Q3’25 KEY HIGHLIGHTS • Continued volume/mix increase and market share growth in core markets, offset by decline in contract manufacturing • EBIT (adj.) improvement from volume growth and solid cost control • Continued improved ROCE from EBIT (adj.) growth Orkla Home & Personal Care 1.0% 2.9% Q3’24 0.5% 9.0% Q4’24 0.7% 6.1% Q1’25 0.5% 7.9% Q2’25 -0.4% 1.3% Q3’25 3.9% 9.5% 6.8% 8.5% 0.9% Price Volume/mix ORGANIC GROWTH EBIT (ADJ.) EBIT (adj.) EBIT (adj.) margin (R12M) Revenue (NOKm) 682 ROCE (R12M) 24.3% Cash conversion (R12M) 114% KEY FIGURES | Q3 2025 7.6% Underlying growth Anchor Grow and build Transform or exit 18
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KEY HIGHLIGHTS • Volume/mix growth in Plant-Based with lower contribution ratio • Price increases to compensate for higher raw material prices across the clusters • Continued EBIT (adj.) growth in Sweet Ingredients, partly offset by volume-driven decline in Bakery Ingredients Orkla Food Ingredients Anchor Grow and build Transform or exit -1.1% 4.1% Q3’24 0.5% 3.4% Q4’24 3.6% 1.0% Q1’25 3.8% 5.4% Q2’25 4.4% 3.9% Q3’25 3.1% 4.0% 4.6% 9.2% 8.3% Price Volume/mix ORGANIC GROWTH 400 314 280 460 413 0 200 400 600 6.6% Q3’24 6.8% Q4’24 6.9% Q1’25 7.1% Q2’25 7.0% Q3’25 EBIT (ADJ.) EBIT (adj.) EBIT (adj.) margin (R12M) Revenue (NOKm) 5,492 ROCE (R12M) 12.2% Cash conversion (R12M) 85% KEY FIGURES | Q3 2025 (Orkla ownership 59.4%) 1.6% Underlying growth 19
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293 85 310 209 248 0 500 13.4% Q3’24 12.8% Q4’24 12.7% Q1’25 11.9% Q2’25 11.3% Q3’25 KEY HIGHLIGHTS • Price and volume/mix driven organic growth in most markets and categories • EBIT (adj.) decline driven by contribution margin pressure, as well as increased SG&A and advertising spend Orkla Health 3.7% 6.6% Q3’24 3.6% 2.5% Q4’24 3.4% -0.9% Q1’25 3.1% -0.9% Q2’25 0.9% 1.6% Q3’25 10.3% 6.2% 2.5% 2.2% 2.5% Price Volume/mix ORGANIC GROWTH EBIT (ADJ.) EBIT (adj.) EBIT (adj.) margin (R12M) Revenue (NOKm) 1,958 ROCE (R12M) 8.6% Cash conversion (R12M) 119% KEY FIGURES | Q3 2025 -15.7% Underlying growth Anchor Grow and build Transform or exit 20
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KEY HIGHLIGHTS • Organic growth driven by volume growth supported by the festive season • Price growth hampered by declining raw material prices • Underlying EBIT (adj.) affected by higher advertising costs, GST transition costs and the government grants recorded in Q3-24 (NOK 6.4m) Orkla India Anchor Grow and build Transform or exit Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 1.4% -3.6% -0.1% -1.4% 4.3% ORGANIC GROWTH EBIT (ADJ.) Revenue (NOKm) 754 EBIT (adj.) margin (Q3’25) 16.1% KEY FIGURES | Q3 2025 Note: 1. Excluding the impact of government grants, Orkla India’s underlying EBIT (adj.) growth was 6.2%. The information set out herein does not represent the audited financial information of Orkla India, as per the Indian Accounting Standards (Orkla ownership 75%) -1.8% Underlying growth1 EBIT (adj.) EBIT (adj.) margin (R12M) 21 137 102 131 131 122 0 200 0.00 0.01 0.02 0.03 14.5% Q3’24 14.9% Q4’24 16.1% Q1’25 16.3% Q2’25 16.1% Q3’25
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100 70 77 100 108 0 0.0111.2% Q3’24 11.1% Q4’24 11.1% Q1’25 11.4% Q2’25 11.5% Q3’25 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 2.3% 0.2% -1.6% 1.2% 2.2% ORGANIC GROWTH EBIT (ADJ.) EBIT (adj.) EBIT (adj.) margin (R12M) Revenue (NOKm) 816 ROCE (R12M) 8.1% KEY FIGURES | Q3 2025 KEY HIGHLIGHTS • Consumer sales growth in all businesses • Targeted growth and marketing initiatives started to pay off • Improved EBIT (adj.) margin on the back of consumer sales momentum and solid cost control The European Pizza Company Cash conversion (R12M) 132% Anchor Grow and build Transform or exit 7.0% Underlying growth 22
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23 • Organic revenue of 3.5% driven by new and expanded distribution in home markets • EBIT (adj.) of NOK 71m, representing an underlying growth of 49% due to sales and margin growth, as well as lower operating costs Orkla House Care • Flat organic growth with better D2C sales, however, offset by lower B2B sales • EBIT (adj.) of NOK 15m, representing an underlying growth of 126% driven by improved contribution margin, warehouse efficiency and fixed cost control Health and Sports Nutrition Group Anchor Grow and build Transform or exit
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Closing remarks Nils K. Selte, President and CEO
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25 3 COMMITMENTS Perform value-adding structural transactions Reduce the complexity of existing portfolio Drive organic value in existing portfolio
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Q&A
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Upcoming events 27 Fourth quarter results 12 February 2026
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Appendices
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Net interest-bearing liabilities Note: 1. Including Orkla Food Ingredients NIBD / R12M EBITDA1Net interest-bearing liabilities (NOKbn)1 4.9 2019 4.9 2020 10.8 2021 15.2 2022 16.5 2023 13.7 2024 15.5 Q3-25 6.6 6.4 12.8 17.2 18.8 16.0 17.7 NIBD (ex. leasing) Leasing debt 1.0x 0.9x 1.5x 1.8x 2.0x 1.5x 1.7x 2019 2020 2021 2022 2023 2024 Q3-25 29
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Funding sources and maturity profile per Q3-25 Funding sources (in NOKbn) Debt maturity average maturity 2.3 years 0 10 2 4 6 8 NOKbn 2025 2026 2027 2028 2029 2030 2031 Drawn amounts - Orkla Group excl. Orkla Food Ingredients (ex. leasing) Drawn amounts - Orkla Food Ingredients (ex. leasing) Unutilised credit facilities 1.5 9.0 8.1 9.0 Cash, cash equivalents and interest-bearing assets Bonds and CP Bank Unutilised credit facilities 30
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Overview of financial targets (1/3) 31 6.6% 0.8% 2023 CAGR Target1,2 2-3% Revenue Anchor -2.2% -0.3% 2023 CAGR Target >2.0% EBIT margin Cash conversion 11.1% 12.5% 2023 R12M Target 13-14% 127% 93% 2023 R12M Target >100% 11.4% 12.3% 2023 R12M Target >15.0% 50% 103% 100% 2023 R12M Target 9.9% 11.5% 13.0% 2023 R12M Target Note: 1. Organic CAGR from 2024 to 2026; 2. Communicated target of positive volume/mix growth CAGR represent period from 31/12/2023 to 30/09/2025; 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.) ROCE 12.4% 14.8% 2023 R12M Target >15.0% Orkla Foods Orkla Snacks Orkla Home & Personal Care Underlying EBIT Cash conversion 35.5% 29.0% 2023 CAGR Target1 >10.0% 128% 114% 100% 2023 R12M Target Volume-mix EBIT margin Cash conversion ROCE
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Overview of financial targets (2/3) 32 Grow and build 6.3% 6.2% 2023 CAGR Target1 7-9% 2.6% 0.9% 2023 CAGR Target >5.0% 13.4% 11.3% 14.0% 2023 R12M Target €23m €30m 2023 R12M Target €35-40m Note: 1. Organic CAGR from 2024 to 2026; 2. Orkla Food Ingredients has a target of 5% revenue growth (organic growth of 3-4% (50/50 price and volume/mix)), plus minor add-ons (represents ~1-2% of revenue growth). Underlying EBIT (adj.) target of 9-10%, plus 2-3% additional growth from minor add-ons CAGR represent period from 31/12/2023 to 30/09/2025; 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.) Orkla Food Ingredients Orkla Health The European Pizza Company Revenue EBIT margin ROCE Consumer sales Revenue EBIT margin EBIT by 2026 (YE) 8.7% 4.8% 2023 CAGR Target1,2 2-3% 6.9% 12.7% 2023 R12M Target 13-14% 10.8% 12.2% 2023 R12M Target 12.5-13%
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Overview of financial targets (3/3) 33 Transform or exit Orkla House Care Health and Sports Nutrition Group Note: 1. Organic CAGR from 2024 to 2026; 2. Communicated target of positive volume/mix growth CAGR represent period from 31/12/2023 to 30/09/2025; 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.) 9.6% 12.2% 2023 R12M Target 14-15% 10.4% 0.8% 2023 CAGR Target1 >5.0% 2.9% 4.1% 5.0% 2023 R12M Target 262% 100% 2023 R12M Target Neg. Revenue EBIT margin Cash conversion EBIT margin
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Alternative Performance Measures (APM) 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. 34
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Alternative Performance Measures (APM) 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 ofintangible 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” 35
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Alternative Performance Measures (APM) 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. 36
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Alternative Performance Measures (APM) 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 agreement for 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 dental health business and adjustments for changes in distribution and production agreements between portfolio companies. 37