Report of the Board of Directors

2008 was the most dramatic year for the global economy since World War II. Triggered by a serious financial crisis, the problems have gradually spread to the real economy, with a sharp decline in demand in many market segments. Moreover it is not inconceivable that the global economy will see negative economic growth in 2009.

The global economic crisis has had a negative impact on the Orkla Group. However, with a differentiated portfolio, a strong balance sheet and a robust, long-term financing structure, the Group is well equipped to meet the challenges ahead. In addition, Orkla has the capacity to exploit any new opportunities that may arise in the wake of the crisis.