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Financial investments

Orkla has been actively engaged in profitable investment management for more than half a century, investing primarily in Nordic shares and real estate. In recent years, Orkla Financial Investments has, on average, managed shares and securities worth in the order of NOK 15-20 billion.

In 2008 the turbulence on the financial markets led to a significant decline in the value of assets under management, although this decline was less than for comparable indices.

Orkla Financial Investments is mandated to identify and invest in value-creating assets, mainly in the form of shares and real estate. This business area also helps to identify industrial options for the Group.

Orkla's Share Portfolio reflects the Group's consistently responsible approach to its investment activities. Over time, Orkla has chosen to pursue an investment practice similar to that of the Norwegian Government Pension Fund – Global. The Government Pension Fund – Global devotes substantial resources to further developing its ethical investment guidelines and assesses relevant companies from an ethical point of view on an ongoing basis. The fund has thereby developed a great deal of expertise in this area, while its practice relating to socially responsible investment (SRI) is public knowledge and publicly available.

Orkla has therefore chosen to apply the same rules. This means that if a company is excluded from the Pension Fund, it will also be an inappropriate investment for Orkla.

In addition to the share portfolio, Orkla Financial Investments consists of the companies Orkla Eiendom and Orkla Finans. Orkla Eiendom is engaged in real estate development, while Orkla Finans offers investment services to institutional and private investors.

The financial sector has faced extremely difficult challenges in the past year. One of the effects of the crisis is generally weaker confidence in some parts of the financial sector.

Confidence is a prerequisite for the achievement of Orkla's goal of long-term value creation. Every securities business is dependent on the trust of its customers and investors for its success. Orkla Finans operates on the basis of internal procedures and rules that aim to promote confidence in the company as a supplier of financial products and services at all times.

Competence is one of Orkla Finans' fundamental values. The Orkla Finance Academy, which offers a comprehensive two-year human resource development programme, has been established to ensure that employees are suitably qualified.