Orkla sells its hydro power portfolio

24 Jan 2025 08:00 CET

Orkla has entered into agreements to sell its entire hydro power portfolio in
two separate transactions. The transactions value the portfolio at NOK 6.1
billion on a cash and debt-free basis.

The hydro power portfolio is held through 100% ownership of three separate
holding companies: Sarpsfoss Limited, Orkla Energi AS (85% owner of AS
Saudefaldene), and Trælandsfos Holding AS.

Hafslund AS (90%) and Svartisen Holding AS (10%) acquire Sarpsfoss Limited. The
underlying assets consist of run-of-the-river hydro power production in
Sarpefossen and Mossefossen, with a combined average annual production of 536
GWh.

Å Energi acquires Orkla Energi AS and Trælandsfos Holding AS. The Saudefaldene
assets are leased until the end of 2030, when Statkraft assumes ownership in
exchange for a regulated compensation. The assets have an average annual
production of 1,860 GWh, of which 1,072 GWh are subject to fixed delivery
commitments. The Trælandsfos assets have an average annual production of 61 GWh.

At the Capital Markets Day in November 2023, Orkla communicated that the company
was exploring opportunities to best create value from the hydro power assets,
including a potential sales process.

"Orkla is an industrial investment company with a brands and consumer-oriented
scope. By selling the hydro power portfolio, we reduce complexity and deliver on
our communicated strategy," says Orkla's President and CEO Nils K. Selte.

Orkla's estimated accounting gain from these transactions is approximately NOK 5
billion.

The transactions are subject to approval by the relevant competition authorities
and the Norwegian Ministry of Energy. The transactions are expected to close by
the end of the third quarter of 2025.

In connection with the transaction, DNB Markets, a part of DNB Bank ASA, acted
as financial adviser and Wiersholm law firm as legal adviser to Orkla.

About Hafslund AS
Hafslund is an energy and infrastructure group consisting of three business
areas, all working towards a world in balance with renewable energy. Hafslund
owns and operates 81 hydro power plants, amounting to 21 TWh, from four power
production areas: Aurland, Hallingdal and Valdres, Innlandet and Glomma.
Hafslund AS is 100% owned by the Oslo municipality.

About Svartisen Holding AS
Svartisen Holding is a Norwegian entity owned by three Finnish utilities; i)
Vantaan Energia Oy, ii) Oy Turku Energia - Åbo Energi Ab and iii)
Keskusosuuskunta Oulun Seudun Sähkö. Svartisen Holding AS owns 55 year off-take
rights related to the Svartisen hydro power plant in Meløy and 10% of Hafslund
Produksjon Holding AS.

About Å Energi AS
Å Energi is Norway's largest vertically integrated renewable energy company,
with operations across the entire value chain, from power production to end
customers. Å Energi operates 73 wholly and partly owned hydropower plants,
generating around 11.3 TWh each year, and is the second largest grid operator,
supplying power to approximately 432,000 customers in Buskerud and Agder. Å
Energi is owned by 30 municipalities in Agder and Buskerud, Vardar, Lier Everk
Holding, and Statkraft.

About Orkla ASA
Orkla ASA is a leading industrial investment company. Its scope of activity is
brands and consumer-oriented companies. At present, Orkla has 11 portfolio
companies operating in segments including paints, food, chocolate, sweets and
snacks, health products and food ingredients. In 2023, Orkla generated revenues
of NOK 67.8 billion and achieved a pre-tax profit of NOK 7.0 billion. The Orkla
Group has approximately 20,000 employees. Orkla is headquartered in Oslo,
Norway, and is listed on the Oslo Stock Exchange.

Orkla ASA
Oslo, 24 January 2025

Ref.:

SVP Investor Relations & Communication
Annie Bersagel
Tel.: +47 986 03 664

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Ole Andreas Steensland Dahl,
Investor Relations Manager in Orkla ASA, on 24 January 2025 at 08.00 CET.

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