Orkla (ORK) AGM 2017 presentation summary

2016 performance

• Revenue was NOK 37.758bn, up 13.7% YoY; adjusted EBIT was NOK 4.298bn vs NOK 3.609bn in 2015.

• EPS rose 30.2% to NOK 4.22; profit was NOK 4.3bn, up 19.1% YoY.

• Foods revenue rose 17% to NOK 15.476bn and adjusted profit rose 16% to NOK 1.968bn; Confectionery & Snacks revenue rose 7% and profit 11%.

• Care revenue increased 22% to NOK 6.740bn and profit 9%; Food Ingredients revenue rose 7% to NOK 8.161bn and profit 6%.

Strategy and sustainability

• “One Orkla” initiatives included cross-country launches, sharing innovation, rationalising factory and warehouse footprints, exploiting sales scale and centralising back-office functions.

• Strategy targets for 2016–2018 included organic growth at least in line with market growth and annual BCG adjusted EBIT growth of 6–9%, including add-ons and excluding FX and large acquisitions or divestments.

• Sustainability pledges cover healthier lifestyles, food safety throughout the supply chain, sustainable sourcing and a lower environmental footprint.

• Health initiatives included TORO soups with up to 50% less salt than in 1983 and Picnic Original with 29% less salt than its closest competitor.

Capital allocation and shareholder returns

• Continued capital reallocation toward Branded Consumer Goods; associates Sapa and Jotun continued to deliver good results.

• The Board proposed a NOK 2.60/share dividend for 2016, payable 3 May 2017; NOK 44.5bn had been returned to shareholders since 2004.

• Capital-allocation principles included a stable dividend of at least NOK 2.50/share, maintaining investment-grade status and a clear policy for excess capital.