254235_orkla engelsk
FACTS ABOUT ORKLA
– long-term value creation
❘❙◗ Orkla is a leading supplier of branded consumer goods to the Nordic grocery market
and holds positions on many markets in Central and Eastern Europe and Russia. ❘❙◗ Orkla is a well-positioned manufacturer of speciality materials such as silicon-related
metals, aluminium, wood-based speciality chemicals, value-added aluminium profiles and aluminium building systems and heat transfer strip. ❘❙◗ Orkla is a long-term stock investor with one of Norway’s largest share portfolios.
Orkla ASA
Branded Consumer Goods
Speciality Materials
Financial Investments
Orkla Foods
Elkem
Portfolio
Orkla Brands
Sapa
Orkla Finans
Borregaard
Real Estate
The Group Executive Board Orkla Group
Dag J. Opedal
Group President and CEO
Business areas
Torkild Nordberg Ole Enger Roar Engeland
Branded Consumer Goods Speciality Materials Financial Investments/Corporate Development
Corporate Staff
Hilde Myrberg Inger Johanne Solhaug Terje Andersen
Corporate Staff Corporate Development Marketing and Sales Finance
Dag J. Opedal
Torkild Nordberg
Ole Enger
Roar Engeland
Hilde Myrberg
Inger Johanne Solhaug
Terje Andersen
The Group Management Committee - The Group Executive Board, supplemented by: Branded Consumer Goods Speciality Materials Financial Investments Corporate Development Corporate Staff
Atle Vidar Johansen, Mikael Aru, Bente Brevik John G. Thuestad, Lennart Evrell, Per Sørlie Audun Bø Frode S. Marthinsen, Pål Eikeland, John Jørgensen Tor Aamot, Karl Otto Tveter, Ole Kristian Lunde, Håkon Mageli
Orkla’s strategy Primary goal Orkla’s primary goal is long-term value creation
Key values Long-term value creation can only be achieved if we as individuals, companies and a Group operate in accordance with Orkla’s key values: ❘❙◗
Commitment to profitable growth
❘❙◗
Respect for unity and diversity
❘❙◗
A long-term, active approach
❘❙◗
Adaptability and thoroughness
Branded Consumer Goods Orkla Foods ❘❙◗ Orkla Foods is a leading developer, marketer and supplier of food
products in the Nordic region, and has a growing presence in Central and Eastern Europe and Russia. Activities are concentrated around the company’s own strong brands and concepts. Orkla Foods currently holds no. 1 and no. 2 positions in most of its focus segments: pizzas/pies, sauces, seafood, ready meals, fruit and berry products, baking ingredients and bakery products. Orkla Foods has around 11,000 employees.
Orkla Brands ❘❙◗ Orkla Brands comprises several companies that manufacture
products requiring intensive sales and marketing, such as detergents, personal care products, confectionery, snacks, biscuits, textiles, dietary supplements and health products. The company develops, manufactures and markets branded consumer goods that have the potential to achieve dominant or strong market positions. Orkla Brands has around 3,200 employees.
Our strategy ❘❙◗
Create long-term value through •
specialised products
•
strong market positions
•
a competent organisation and a sound corporate culture
❘❙◗
focus on improving operations and seeking new structural opportunities.
Speciality Materials Elkem ❘❙◗ Elkem is one of Norway’s major industrial companies and one of the world’s
Strategy for Branded Consumer Goods ❘❙◗
consolidate Orkla’s position as the leading supplier of branded consumer goods to Nordic households.
❘❙◗
strengthen consumer loyalty through innovation and marketing investments in strong brands and products with growth potential.
❘❙◗
leading manufacturers of silicon-related metals and materials. The company is actively involved in the development of world-class high technology for industrial applications, including a new process for manufacturing silicon for solar cells. ❘❙◗ The company’s main products are aluminium, energy, silicon metal, ferrosil-
icon and special alloys for foundries, carbon and microsilica. ❘❙◗ Elkem has production plants in Europe, North America, South America and
Asia, in addition to an extensive network of sales offices and agents in all its main markets. Elkem has around 3,100 employees.
pursue a policy of gradual growth outside the Nordic region, primarily in selected markets in Eastern Europe.
Strategy for Speciality Materials ❘❙◗ ❘❙◗
improve operations through consistent
❘❙◗ Sapa is an international industrial group that develops, manufactures and markets
increase customer value through speciali-
value-added aluminium profiles and profile-based building systems and heat transfer strip in aluminium. ❘❙◗ Its business concept is based on close collaboration with customers, who are primarily located in Europe, North America and Asia. Its largest customer segments are the construction, transport and engineering industries and the domestic and office sectors. ❘❙◗ Sapa consists of five business areas: Profiles North & Central Europe, Profiles South & West Europe, Profiles North America, Building System and Heat Transfer. Sapa has 7,900 employees in 26 countries. The company has production plants in 13 countries in Europe, the USA and China.
sation, differentiation and innovation. ❘❙◗
actively seek out structural opportunities, i.e. acquisitions, mergers, reorganisations.
Strategy for Financial Investments ❘❙◗
continue to be a significant equity investor based on strong analytical expertise.
❘❙◗
Sapa
use of effective systems and tools.
maintain a long-term perspective with emphasis on the Nordic region.
Borregaard
Facts and figures 2005
❘❙◗ Borregaard is an international chemicals company that holds strong posi-
tions in selected niches of the global market for wood-based speciality chemicals (speciality cellulose, lignin products and bioethanol), ingredients (vanillin, yeast products and Omega-3 products) and fine chemicals (pharmaceutical intermediates). Borregaard also runs an energy company with activities that include power production for Borregaard’s own operations. ❘❙◗ The company manufactures products that are used in a wide range of consumer and industrial products: foods and medicines, and products used in the construction industry, agriculture, aquaculture, the textile industry and for a broad range of other chemical-technical purposes. ❘❙◗ Borregaard has production plants in 14 countries and sales offices in 21 countries in Europe, America, Asia and Africa. The company has around 1,900 employees.
• Sales: NOK 47.3 billion • Operating profit before amortisation and other revenues and expenses: NOK 4.5 billion • Number of employees: approx. 28,000*
Breakdown of Group operating revenues Financial Investments 2%
Borregaard 9%
Orkla Foods 29% Sapa 27% Orkla Brands 14% Elkem 19%
Financial Investments The Portfolio section ❘❙◗ manages one of Norway’s largest share portfolios with particular
focus on Nordic shares.
Orkla Finans
Breakdown of Group operating profit before amortisation and other revenues and expenses
❘❙◗ focuses on advisory services and products in the fields of capital
management, insurance brokerage and pension planning. ❘❙◗ operates independently of Orkla’s own portfolio investments.
Financial Investments 7% Borregaard 7%
Orkla Foods 27%
Sapa 11%
The Real Estate section ❘❙◗ develops properties, including properties no longer used in Orkla’s
industrial operations.
Elkem 25%
Orkla Brands 23%
❘❙◗ is one of the largest private forest owners in Norway.
Solar energy ❘❙◗ In the last few years Orkla has secured strong positions in the solar energy sector
through Elkem Solar and the acquisition of an interest in the Renewable Energy Corporation (REC). Furthermore, Sapa develops and supplies complete systems for solar cell panels with aluminium frames. Solar energy is one of the fastest growing industries in the world.
Sales, by geographical region Other 10% Norway 22%
Asia 5%
Rest of Western Europe 30%
Nordic region excl. Norway 24%
Elkem Solar ❘❙◗ Elkem has spent many years developing its own processing and product tech-
nology for high-purity silicon for the solar cell market. The challenge now lies in the transition from the test stage to full-scale production. The aim of the project is to significantly reduce production costs in this part of the value chain.
Renewable Energy Corporation (REC) (27.5 per cent interest)
❘❙◗ REC was established in 1996 and is the only player in the industry that is posi-
tioned across the entire value chain, from the production of raw materials to the manufacture of solar energy products. REC has more than 1,100 employees in four countries on three continents.
Advantages of solar energy:
Central and Eastern Europe 9%
Number of employees, by geographical region Asia 3%
America 5%
Rest of Western Europe 16%
Central and Eastern Europe 23% Nordic region excl. Norway 27%
❘❙◗ In sunny countries, where the potential is greatest, production of solar energy is at
peak level when energy consumption is highest (because of air conditioning). ❘❙◗ Production takes place at the consumption site, thereby helping to eliminate
peaks in consumption and reduce total consumption. ❘❙◗ Plants have a long lifetime and require little maintenance (no moving parts). ❘❙◗ Well suited for many micro-purposes: remote weather stations, outdoor light-
ing, clocks, calculators, etc.
Norway 26%
* Excluding Orkla Media
www.los-grafisk.no • 254235 • October -06
Historical development of the Orkla Group 2006 Orkla Media is sold. Orkla acquires Dansk Droge and the Russian chocolate company Krupskaya Confectionery Company.
Sales, 1986-2005*
2005 Dag J. Opedal takes over as Group President and CEO. Orkla takes over Elkem and Sapa, Chips Abp and Collett Pharma.
NOK billion 60 55 50
2004 Carlsberg Breweries is sold. Orkla acquires SladCo, a leading Russian manufacturer of chocolate, biscuits and confectionery.
45 40 35
2000 Orkla acquires a 40 % interest in Carlsberg Breweries and purchases the media group Det Berlingske Officin.
30 25 20 15
1995 Orkla takes over Procordia Food and Abba Seafood in Sweden. The Swedish brewery Pripps and the Norwegian brewery Ringnes merge and are jointly owned by Orkla and Volvo. Orkla invests heavily in Russia through Baltic Beverages Holding. 1991 A merger with Nora Industrier lays the foundation for focus on the Nordic branded consumer goods market. The Group’s name is now Orkla.
2004
2003
2002
2001
2000
1998
1997
1999
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
5
2005**
10
Operating profit before amortisation and other revenues and expenses, 1986-2005* NOK billion
5,0 4,5
4,0 3,5
1987 Mining operations at the Løkken Works are closed down.
3,0 2,5
1986 A merger results in Orkla Borregaard which has three core business areas: Branded Consumer Goods, Chemicals and Financial Investments.
2,0 1,5 1,0
1941 Orkla Industrier begins to build its investment portfolio.
0,5
2003
2004
2005**
2003
2004
2005**
2001
2002
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
2001 2002
1904 Orkla Grube-Aktiebolag is founded to continue pyrite mining operations at the Løkken Works.
1988
1938 Orkla is listed on the stock exchange.
1987
1986
0
Number of employees, 1986-2005* Persons 35000
30000
1654 Copper pyrite mining operations begin at the Løkken Works.
25000
20000
15000
10000
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
5000
The yield on NOK 1 invested in Orkla, 1986-2005*
A signatory of Orkla ASA P.O. Box 423 Skøyen, NO-0213 Oslo, Norway Tel.: +47 22 54 40 00 e-mail: [email protected] • www.orkla.com
Main Norwegian sponsor for
270 260 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 1
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006***
Index 1.1.82 = 1
Orkla Oslo Stock Exchange
SOS Children's Villages
*
Figures for 2004 and 2005 are stated according to IFRS, while figures for prior years are stated according to Norwegian accounting principles ** Including Orkla Media in 2005 *** As of 21 October 2006
– long-term value creation
❘❙◗ Orkla is a leading supplier of branded consumer goods to the Nordic grocery market
and holds positions on many markets in Central and Eastern Europe and Russia. ❘❙◗ Orkla is a well-positioned manufacturer of speciality materials such as silicon-related
metals, aluminium, wood-based speciality chemicals, value-added aluminium profiles and aluminium building systems and heat transfer strip. ❘❙◗ Orkla is a long-term stock investor with one of Norway’s largest share portfolios.
Orkla ASA
Branded Consumer Goods
Speciality Materials
Financial Investments
Orkla Foods
Elkem
Portfolio
Orkla Brands
Sapa
Orkla Finans
Borregaard
Real Estate
The Group Executive Board Orkla Group
Dag J. Opedal
Group President and CEO
Business areas
Torkild Nordberg Ole Enger Roar Engeland
Branded Consumer Goods Speciality Materials Financial Investments/Corporate Development
Corporate Staff
Hilde Myrberg Inger Johanne Solhaug Terje Andersen
Corporate Staff Corporate Development Marketing and Sales Finance
Dag J. Opedal
Torkild Nordberg
Ole Enger
Roar Engeland
Hilde Myrberg
Inger Johanne Solhaug
Terje Andersen
The Group Management Committee - The Group Executive Board, supplemented by: Branded Consumer Goods Speciality Materials Financial Investments Corporate Development Corporate Staff
Atle Vidar Johansen, Mikael Aru, Bente Brevik John G. Thuestad, Lennart Evrell, Per Sørlie Audun Bø Frode S. Marthinsen, Pål Eikeland, John Jørgensen Tor Aamot, Karl Otto Tveter, Ole Kristian Lunde, Håkon Mageli
Orkla’s strategy Primary goal Orkla’s primary goal is long-term value creation
Key values Long-term value creation can only be achieved if we as individuals, companies and a Group operate in accordance with Orkla’s key values: ❘❙◗
Commitment to profitable growth
❘❙◗
Respect for unity and diversity
❘❙◗
A long-term, active approach
❘❙◗
Adaptability and thoroughness
Branded Consumer Goods Orkla Foods ❘❙◗ Orkla Foods is a leading developer, marketer and supplier of food
products in the Nordic region, and has a growing presence in Central and Eastern Europe and Russia. Activities are concentrated around the company’s own strong brands and concepts. Orkla Foods currently holds no. 1 and no. 2 positions in most of its focus segments: pizzas/pies, sauces, seafood, ready meals, fruit and berry products, baking ingredients and bakery products. Orkla Foods has around 11,000 employees.
Orkla Brands ❘❙◗ Orkla Brands comprises several companies that manufacture
products requiring intensive sales and marketing, such as detergents, personal care products, confectionery, snacks, biscuits, textiles, dietary supplements and health products. The company develops, manufactures and markets branded consumer goods that have the potential to achieve dominant or strong market positions. Orkla Brands has around 3,200 employees.
Our strategy ❘❙◗
Create long-term value through •
specialised products
•
strong market positions
•
a competent organisation and a sound corporate culture
❘❙◗
focus on improving operations and seeking new structural opportunities.
Speciality Materials Elkem ❘❙◗ Elkem is one of Norway’s major industrial companies and one of the world’s
Strategy for Branded Consumer Goods ❘❙◗
consolidate Orkla’s position as the leading supplier of branded consumer goods to Nordic households.
❘❙◗
strengthen consumer loyalty through innovation and marketing investments in strong brands and products with growth potential.
❘❙◗
leading manufacturers of silicon-related metals and materials. The company is actively involved in the development of world-class high technology for industrial applications, including a new process for manufacturing silicon for solar cells. ❘❙◗ The company’s main products are aluminium, energy, silicon metal, ferrosil-
icon and special alloys for foundries, carbon and microsilica. ❘❙◗ Elkem has production plants in Europe, North America, South America and
Asia, in addition to an extensive network of sales offices and agents in all its main markets. Elkem has around 3,100 employees.
pursue a policy of gradual growth outside the Nordic region, primarily in selected markets in Eastern Europe.
Strategy for Speciality Materials ❘❙◗ ❘❙◗
improve operations through consistent
❘❙◗ Sapa is an international industrial group that develops, manufactures and markets
increase customer value through speciali-
value-added aluminium profiles and profile-based building systems and heat transfer strip in aluminium. ❘❙◗ Its business concept is based on close collaboration with customers, who are primarily located in Europe, North America and Asia. Its largest customer segments are the construction, transport and engineering industries and the domestic and office sectors. ❘❙◗ Sapa consists of five business areas: Profiles North & Central Europe, Profiles South & West Europe, Profiles North America, Building System and Heat Transfer. Sapa has 7,900 employees in 26 countries. The company has production plants in 13 countries in Europe, the USA and China.
sation, differentiation and innovation. ❘❙◗
actively seek out structural opportunities, i.e. acquisitions, mergers, reorganisations.
Strategy for Financial Investments ❘❙◗
continue to be a significant equity investor based on strong analytical expertise.
❘❙◗
Sapa
use of effective systems and tools.
maintain a long-term perspective with emphasis on the Nordic region.
Borregaard
Facts and figures 2005
❘❙◗ Borregaard is an international chemicals company that holds strong posi-
tions in selected niches of the global market for wood-based speciality chemicals (speciality cellulose, lignin products and bioethanol), ingredients (vanillin, yeast products and Omega-3 products) and fine chemicals (pharmaceutical intermediates). Borregaard also runs an energy company with activities that include power production for Borregaard’s own operations. ❘❙◗ The company manufactures products that are used in a wide range of consumer and industrial products: foods and medicines, and products used in the construction industry, agriculture, aquaculture, the textile industry and for a broad range of other chemical-technical purposes. ❘❙◗ Borregaard has production plants in 14 countries and sales offices in 21 countries in Europe, America, Asia and Africa. The company has around 1,900 employees.
• Sales: NOK 47.3 billion • Operating profit before amortisation and other revenues and expenses: NOK 4.5 billion • Number of employees: approx. 28,000*
Breakdown of Group operating revenues Financial Investments 2%
Borregaard 9%
Orkla Foods 29% Sapa 27% Orkla Brands 14% Elkem 19%
Financial Investments The Portfolio section ❘❙◗ manages one of Norway’s largest share portfolios with particular
focus on Nordic shares.
Orkla Finans
Breakdown of Group operating profit before amortisation and other revenues and expenses
❘❙◗ focuses on advisory services and products in the fields of capital
management, insurance brokerage and pension planning. ❘❙◗ operates independently of Orkla’s own portfolio investments.
Financial Investments 7% Borregaard 7%
Orkla Foods 27%
Sapa 11%
The Real Estate section ❘❙◗ develops properties, including properties no longer used in Orkla’s
industrial operations.
Elkem 25%
Orkla Brands 23%
❘❙◗ is one of the largest private forest owners in Norway.
Solar energy ❘❙◗ In the last few years Orkla has secured strong positions in the solar energy sector
through Elkem Solar and the acquisition of an interest in the Renewable Energy Corporation (REC). Furthermore, Sapa develops and supplies complete systems for solar cell panels with aluminium frames. Solar energy is one of the fastest growing industries in the world.
Sales, by geographical region Other 10% Norway 22%
Asia 5%
Rest of Western Europe 30%
Nordic region excl. Norway 24%
Elkem Solar ❘❙◗ Elkem has spent many years developing its own processing and product tech-
nology for high-purity silicon for the solar cell market. The challenge now lies in the transition from the test stage to full-scale production. The aim of the project is to significantly reduce production costs in this part of the value chain.
Renewable Energy Corporation (REC) (27.5 per cent interest)
❘❙◗ REC was established in 1996 and is the only player in the industry that is posi-
tioned across the entire value chain, from the production of raw materials to the manufacture of solar energy products. REC has more than 1,100 employees in four countries on three continents.
Advantages of solar energy:
Central and Eastern Europe 9%
Number of employees, by geographical region Asia 3%
America 5%
Rest of Western Europe 16%
Central and Eastern Europe 23% Nordic region excl. Norway 27%
❘❙◗ In sunny countries, where the potential is greatest, production of solar energy is at
peak level when energy consumption is highest (because of air conditioning). ❘❙◗ Production takes place at the consumption site, thereby helping to eliminate
peaks in consumption and reduce total consumption. ❘❙◗ Plants have a long lifetime and require little maintenance (no moving parts). ❘❙◗ Well suited for many micro-purposes: remote weather stations, outdoor light-
ing, clocks, calculators, etc.
Norway 26%
* Excluding Orkla Media
www.los-grafisk.no • 254235 • October -06
Historical development of the Orkla Group 2006 Orkla Media is sold. Orkla acquires Dansk Droge and the Russian chocolate company Krupskaya Confectionery Company.
Sales, 1986-2005*
2005 Dag J. Opedal takes over as Group President and CEO. Orkla takes over Elkem and Sapa, Chips Abp and Collett Pharma.
NOK billion 60 55 50
2004 Carlsberg Breweries is sold. Orkla acquires SladCo, a leading Russian manufacturer of chocolate, biscuits and confectionery.
45 40 35
2000 Orkla acquires a 40 % interest in Carlsberg Breweries and purchases the media group Det Berlingske Officin.
30 25 20 15
1995 Orkla takes over Procordia Food and Abba Seafood in Sweden. The Swedish brewery Pripps and the Norwegian brewery Ringnes merge and are jointly owned by Orkla and Volvo. Orkla invests heavily in Russia through Baltic Beverages Holding. 1991 A merger with Nora Industrier lays the foundation for focus on the Nordic branded consumer goods market. The Group’s name is now Orkla.
2004
2003
2002
2001
2000
1998
1997
1999
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
5
2005**
10
Operating profit before amortisation and other revenues and expenses, 1986-2005* NOK billion
5,0 4,5
4,0 3,5
1987 Mining operations at the Løkken Works are closed down.
3,0 2,5
1986 A merger results in Orkla Borregaard which has three core business areas: Branded Consumer Goods, Chemicals and Financial Investments.
2,0 1,5 1,0
1941 Orkla Industrier begins to build its investment portfolio.
0,5
2003
2004
2005**
2003
2004
2005**
2001
2002
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
2001 2002
1904 Orkla Grube-Aktiebolag is founded to continue pyrite mining operations at the Løkken Works.
1988
1938 Orkla is listed on the stock exchange.
1987
1986
0
Number of employees, 1986-2005* Persons 35000
30000
1654 Copper pyrite mining operations begin at the Løkken Works.
25000
20000
15000
10000
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
5000
The yield on NOK 1 invested in Orkla, 1986-2005*
A signatory of Orkla ASA P.O. Box 423 Skøyen, NO-0213 Oslo, Norway Tel.: +47 22 54 40 00 e-mail: [email protected] • www.orkla.com
Main Norwegian sponsor for
270 260 250 240 230 220 210 200 190 180 170 160 150 140 130 120 110 100 90 80 70 60 50 40 30 20 10 1
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006***
Index 1.1.82 = 1
Orkla Oslo Stock Exchange
SOS Children's Villages
*
Figures for 2004 and 2005 are stated according to IFRS, while figures for prior years are stated according to Norwegian accounting principles ** Including Orkla Media in 2005 *** As of 21 October 2006
