Goals and strategies

Orkla's mission statement, «Developing people – creating value”, reflects the Group's financial objective of giving its shareholders a return on their investment that well exceeds the stock market average, and since 1982 the annual return on the Orkla share has averaged 23 %.

While responsibility for continuous focus on sound operations lies with the individual business areas, the Group establishes the fundamental premises for their activities and facilitates human resource development, structural development, exploitation of synergies and transfer of best practices throughout the Group. Against this backdrop, the business areas pursue their own goals and strategies which aim specifically to ensure long-term value creation.

 

 

 Orkla Brands

    

Goals

Strategy

 
  • High and durable value creation by delivering products that consumers and retailers «cannot do without».
  • Achieve growth both by increasing revenues in existing businesses and through acquisitions. This growth will primarily take place in the markets in which Orkla Brands currently operates.
  • Ensure continuous focus on cost-effectiveness throughout the value chain.
 Orkla Brands operates on the basis of a multi-local model where responsibility for value creation in the core business rests at the local level with each individual company. The main focus is on gaining a deep insight into customer and consumer needs, and utilising this insight to deliver innovations that create high, durable value. The use of strong branded consumer goods is key to securing consumer loyalty. Inter-company synergies are achieved by sharing best practices and common, cost-effective support functions.

 

Orkla Aluminium Solutions

    

Goals

Strategy

 
  • Achieve continuous improvement in productivity by means of the Genesis business system (Toyota Production System).
  • Ensure world-class Environment, Health and Safety performance.
  • Increase the proportion of customised solutions instead of selling standard profiles and strips.
 Customer proximity means creating greater added value through continuous efforts to strengthen cooperation with customers. Sapa is developed by developing people. The three strategic pillars EHS, Genesis and customer proximity, are crucial factors in this work. EHS activities must be con­tinuously reassessed in improvement efforts. Genesis is Sapa's interpretation and adaptation of the Toyota Production System, and serves as an important foundation for Sapa's overall business culture.

 

Orkla Materials

    

Goals

Strategy

 
  • Elkem's overarching goals are customer satisfaction, continuous improvement and value creation.
  • Borregaard will further develop its biorefinery concept while generating new growth through innovation in its current operations.
  • Highest possible Environment, Health and Safety standards.
 Elkem and Borregaard will focus on the development and application of technology, expertise and business systems that generate continuous process and cost improvements. Commercialising and renewing the innovation portfolio will also help to increase product specialisation and strengthen market positions by continuously orienting the product portfolio towards products tailored to customer needs. Substantial resources are used on research and development within both Elkem and Borregaard.

 

Orkla Associates

  

Goals and Strategy

 
  • Orkla Associates comprises investments in companies where full ownership is not desirable or is not possible, and mainly consists of Orkla's investments in REC ASA and Jotun AS.

  • In both these investments, Orkla has an equity interest of approximately 40 %. Orkla has three representatives on REC's Board of Directors and two representatives on Jotun's Board of Directors. The Group's profit from these companies is presented in Orkla's consolidated financial statements on the line for «Profit from associates».

 

Orkla Financial Investments

   

Goals

Strategy

 
  • Orkla Financial Investments aims to maximise long-term return on invested capital.
  • Contribute to providing the Group with industrial options.
 The strategy of this business area is to identify and invest in value-creating assets, primarily in the form of shares and real estate. These investments will primarily be made within the geographical areas in which Orkla has industrial operations. The shareholdings in the Share Portfolio will also be selected with a view to providing possible options for the Orkla Group's industrial development. Orkla Finans provides investment services for institutional and private investors. Orkla Eiendom is engaged in extensive property development.

  

1 Operating profit before amortisation, write-down of inventory Sapa Profiles, restructuring and significant impairment charges

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