ODIN Norge. Årskommentar 2014

Transkript

1 ODIN Norge Årskommentar 214

2 Fondens portfölj

3 ODIN Norge december 214 Avkastning senaste månaden och hittills i år Fonden steg 1,7 procent under den senaste månaden. Fondens referensindex sjönk under samma tidsperiod 1,4 procent. Fondens avkastning hittills i år är 4,6 procent. Referensindex avkastning hittills i år är -1,8 procent. Köp och försäljning i fonden, senaste månaden och hittills i år Denna månad har vi köpt aktier i Prosafe och sålt alla våra aktier i Norsk Hydro, Farstad Shipping och Photocure. I år är de största förändringarna i portföljen köp av Borregaard, DnB, Norwegian Air och Opera Software och vi har sålt Ganger Rolv, Hafslund B, Nordic Semiconductor, Royal Caribbean Cruises, Statoil, Aker Solution, Norsk Hyrdom, Austevoll Seafood och Farstad Shipping. Bidragsgivare, senaste månaden och hittills i år De bästa bidragsgivarna till denna månads avkastning var PGS, Yara, Borregaard, Tomra och Subsea 7. De bolag som bidrog minst till avkastningen denna månad var DNB, Kongsberg Gruppen, Farstad, Q-Free och SR-Bank. I år har bolagen Statoil, Yara, SalMar, Schibsted och Marine Harvest bidragit mest. De svagaste bidragen till avkastningen i portföljen i år är PGS, Subsea 7, Farstad, EMGS och Det norske oljeselskap.

4 ODIN Norge december 214 Prissättning av fonden Fonden prissätts till 11,1 gånger de kommande 12 månadernas resultat. Fonden ger en direktavkastning på 4,2 procent. Utöver detta tillkommer även återköp av aktier i bolagen. Mätt mot bokfört egenkapital prissätts fonden till 1,4 gånger. Innehaven i fonden har en genomsnittlig egenkapitalavkastning på 11,4 procent. Prissättning av den globala aktiemarknaden - MSCI Global MSCI Global prissätts till 11,2 gånger de kommande 12 månadernas resultat. MSCI Global ger en direktavkastning på 4 procent. Mätt mot bokfört egenkapital prissätts MSCI Global till 1,4. Bolagen i MSCI Global har en genomsnittlig egenkapitalavkastning på 11 procent.

5 ODIN Norge Förvaltarens årskommentar 214 Relativ avkastning jämfört med OSEFX året då ODIN Norge slog tillbaka ODIN Norge skapade god avkastning under 214 för sina andelsägare, både absolut och jämfört med marknaden. Fonden hade en avkastning på cirka 11 %, vilket är 7 % bättre än marknaden. Fonden har haft problem med mindreavkastning i förhållande till marknaden under de senaste åren och det har gjorts stora ändringar i fonden för att vända den trenden. Det är därför tillfredsställande att se resultaten av dessa förändringar. Det finns flera orsaker till att det gick bättre för fonden än för marknaden. Fonden hade ett stort innehav i Statoil under den första hälften av året, men sålde under sommaren detta och undkom därmed den kraftigt fallande aktiekursen under den senare delen av året. Fonden har dessutom haft begränsad exponering mot oljeservice och har bland annat inte ägt några aktier i Seadrill, Prosafe och Fred Olsen Energy. Goda nyheter och uppjustering av priset för flera av våra teknikinvesteringar har också bidragit positivt (det gäller bland andra Vizrt och Schibsted). Nya investeringar i fonden, till exempel Norwegian, Borregaard, DNB och Opera Software har också bidragit positivt till fondens avkastning. 3,5% 3,% 2,5% 2,% 1,5% 1,%,5%,% 6,% 4,% 2,%,% -2,% -4,% -6,% jan. 14 ODIN Norge, mer-/mindreavkastning feb. mar. apr. mai. jun jul. 14 aug. 14 sep. 14 Källa: ODIN okt. 14 nov. 14 ODIN Norge: Bidrag till avkastningen 214 STATOIL YARA SALMAR SCHIBSTED MARINE HARVEST des. 14 jan. 15 BORREGAARD NORSK HYDRO NORWEGIAN AIR 5

6 per fat ODIN Norge Oslobörsen präglad av lägre oljepris Oljeprisfallet har präglat Oslobörsen på senare tid. Oljepriset minskade med hela 53 USD under 214, vilket är det största årliga prisfallet i historien (oljepriset minskade med 48 USD under 28). Möjliga förklaringar till oljeprisfallet är svag efterfrågan, ökad skifferproduktion i USA, ökad produktion i Libyen och Irak och OPEC som beslöt att behålla kvoterna oförändrade. Prisfallet påverkar i synnerhet två sektorer på Oslobörsen, olje- och oljeservicebolagen. Dessa två sektorer utgör dock endast 24 % av fondindex. Dessutom oroar sig marknaden för att bankerna kommer att få ökade förluster till följd av lägre intjäning hos sina lånekunder. En del av bolagen på Oslobörsen kommer att gynnas av det lägre oljepriset, eftersom olja är en del av kostnaden för att driva verksamheten. Flygbolag, kryssningsfartyg och shipping kommer att göra bättre resultat med lägre oljepris, oavsett vad som händer. Detsamma gäller även bolag som förbrukar stora mängder energi. Oljepris, Brent $14 $12 $1 $8 $6 $4 $2 $ Oslobörsen, fondindex Oljeservice 13 % Helse % Olje 11 % IT 4 % Shipping 3 % Telekom 9 % Finans 15 % Bygg 4 % Råmateriale 15 % Även om oljepriset är viktigt för den norska börsen är betydelsen faktiskt mindre än vad många tror. Industri 7 % Fiskeoppdrett 7 % Varig konsumgoder 12 % Källa: Bloomberg, ODIN 6

7 ODIN Norge Norskt oljeserviceindex ned 41 % Redan innan oljepriset började falla kraftigt hade oljebolagen som mål att förbättra sitt kassaflöde så att ägarna skulle kunna få ut mer i utdelning. Oljebolagen hade under de sista åren fått svagare avkastning på investerat kapital, trots kraftiga ökningar av oljepriset. En ökning av det fria kassaflödet skulle uppnås genom att minska investeringarna, så att det skulle gå att finansiera utdelning utan att öka bolagens skuldbeläggning. Minskade investeringar från oljebolagen innebär lägre efterfrågan på oljeservicetjänster. Efter det kraftiga oljeprisfallet i kombination med denna trend räds marknaden nu att oljebolagens investeringsbudgetar kommer att reduceras med 15 % för 215, kanske ännu mer. Inom enskilda oljeservicesegment har goda tider medfört hög kontraheringsaktivitet. Tillgångstillväxten på riggmarknaden, subsea-konstruktionsfartyg, supplyfartyg och hotellriggar kommer att vara hög framöver och marginalerna förväntas hamna under press. Med ett kursfall på 41 % är det möjligt att mycket av detta marginalfall redan har räknats in i prissättningen. 7

8 ODIN Norge Valuta Lägre oljepris har medfört att den norska kronan försvagats kraftigt. Mot den amerikanska dollarn har kronan försvagats med 24 % under 214. Mot euron är försvagningen något mindre, endast 8 %. Norska bolag som har sina intäkter i utländsk valuta och sina kostnader i norska kronor får bättre resultat med en svagare krona. Norsk Hydro, Yara, Borregaard, Telenor, odlingsbolagen och norsk oljeservice kommer alla att tjäna på en svagare krona. Bolag som importerar varor från utlandet och säljer dem i Norge kommer i stället få svagare marginaler på grund av kronans försvagning, till exempel Orkla och XXL. Norwegian har beställt över 2 nya flygplan och samtliga flygplan har beställts i amerikanska dollar. Beställningen är så stor att det inte är möjligt att valutasäkra den. En försvagning av den norska kronan gör därmed beställningen betydligt dyrare. Det svaga oljepriset bidrar positivt för Norwegian och är viktigare för bolaget än försvagningen av den norska kronan. 8

9 ODIN Norge Stora förändringar i portföljen De största köpen under 214 var Borregaard, Opera Software, Norwegian, Marine Harvest, Telenor, PGS och DnB. Många av dessa nya investeringar har bidragit positivt till fondens avkastning under 214. De största försäljningarna var Statoil, Norsk Hydro, RCL, Aker Solutions och Nordic Semiconductor. Dessa försäljningar gjordes eftersom marknadens prissättning var högre än våra interna värdebedömningar. Dessutom har vi sålt oss ut ur Ganger Rolv, Hafslund, Farstad Shipping och Austevoll Seafood. Vår investeringsfilosofi bygger på att vi är aktiva ägare. I en del av de här bolagen har de största aktieägarna visat bristande vilja till att lyssna på andra aktieägare och då har vi valt att dra oss ur helt. Antalet positioner har minskat från 33 till 3 under året. Vi har minskat den andel av portföljen som är investerad i mindre bolag från 49 % till 4 % och ökat andelen mellanstora bolag. 9

10 ODIN Norge 215 Vad händer nu? Den norska aktiemarknaden är lågt prissatt i förhållande till bokförda värden och högt i förhållande till den förväntade intjäningen. Det kraftiga oljeprisfallet har skapat stor oro på marknaden. För de flesta andra aktiemarknader är ett lägre oljepris gynnsamt och enligt IMF kommer ett fall i oljepriset på 1 USD att öka den globala BNP-tillväxten med,2 %. Aktier är fortfarande mer attraktivt prissatta än andra tillgångsslag. Vad som händer med den norska aktiemarknaden är osäkert, men vi tror dock att oljeprisfallet redan är mer eller mindre inräknat och reflekteras i dagens prissättning. En försvagad krona är positivt för norsk exportverksamhet. Förutom utvecklingen av oljepriset kommer den norska marknaden att vara beroende av global ekonomisk tillväxt. Förutsatt att Norge fortsätter att exponeras mot råmaterialmarknader så kommer utvecklingen på tillväxtmarknaderna och i synnerhet i Kina att vara viktig OSEBX och P/B-tal OSEBX Price book=1.5 Price book=2. OSEBX och P/E-tal OSEBX P/E = 15x P/E = 8x 1

11 ODIN Norge 215 sektorexponering På grund av det kraftiga fallet i oljeserviceaktier under 214 har ODIN Norge köpt in sig i PGS och Subsea 7. Försäljningen av Statoil har gjort att fondens oljeexponering är liten jämfört med marknaden. Fondens exponering mot olje- och oljeservicebolag utgör i dag cirka 16 % av portföljen. Fonden har nästan 8 % av sina medel investerade i IT, men efter en förväntad försäljning av Vizrt kommer denna exponering minska till under 5 %. Fondens största sektorexponering är finans med investeringar i DNB, SpareBank 1 Midt-Norge, SR-Bank och Gjensidige Forsikring. Finans är fortsatt lågt prissatt med god avkastning på egenkapitalet och förväntningar om ökad utdelning. Vår exponering mot fisk har ökat under 214 genom ytterligare köp i Marine Harvest. Goda utsikter, låg tillgångstillväxt och låg prissättning gör att vi är fortsatt positiva till denna sektor. Genom försäljningen av Norsk Hydro och Royal Caribbean Cruises har fonden reducerat exponeringen mot råmaterial och varaktiga konsumtionsvaror. 2% 15% 1% 5% % 1% 8% 6% 4% 2% % -2% -4% -6% -8% -1%,8 %,7 % ODIN Norge: sektorexponering -1,5 % -2,7 % OSEFX % ODIN Norge % ODIN Norge: Sektorexponering jämfört med index 1,5 %,2 % -8,3 %,1 % -,1 % -,4 % 3,2 %, % 6,5 % 11

12 ODIN Norge Aktivt ägarskap Fonden består av endast 3 investeringar. Därför har vi all anledning att ägna ordentligt med tid åt att analysera och följa upp varje enskilt bolag. ESG-bedömning av ODIN Norge (Källa: Sustainalytics) 71,7 % Vi har haft regelbunden kontakt med ledningen i våra portföljbolag under året som gått. I enlighet med våra principer har vi röstat vid alla årsstämmor och deltar i flera valkommittéer. Vi diskuterar alltid ansvarstagande när vi samtalar med bolagen och i dag känner vi oss trygga med att vi har en portfölj med kvalitetsbolag. Enligt vår rådgivare som analyserar bolag ur hållbarhetsperspektiv, Sustainalytics, är det ingen av fondens investeringar som räknas till kategorierna underperformers eller industry laggards. Det innebär att våra bolag ligger bra till inom de branscher de representerar vad gäller kvalitet och hållbarhet. Trots detta är det en del bolag i portföljen som har omtalats negativt i media i samband med anklagelser om konkurrensförhållanden och korruption. När sådant inträffar intensifierar vi dialogen med de aktuella bolagen och försöker att säkerställa att ledning och styrelse hanterar situationen på ett ansvarsfullt sätt. Under 214 gällde detta bolagen Yara, Telenor, Kongsberg Gruppen och Wilh Wilhelmsen. 19,5 % 8,9 % Industry Leader Outperformer Average Performer, %, % Underperformer Industry Laggard 12

13 Nyckeltal och nyheter från portföljen allt presenteras på engelska

14 Portfolio Return Last 5 years % (EUR) ODIN Norge Historical Return % (EUR)* Index Portfolio Last Month 1,66 YTD 4,58 1 Y 4,58 3 Y 6,59 5 Y 2,53 1 Y 5,12 Since inception 14,65 Benchmark -1,44-1,83-1,83 1,91 7,53 7,82 1,57 Exess Return 3,1 6,41 6,41-4,32-5,1-2,7 4,8 * Returns for periods exceeding 12 months are annualized

15 Annual returns last 1 years

16 Sector allocation ODIN Norge Benchmark ,4 2 16,5 18,17, ,213,7 13,4 7,3 7,3 1,8 11,2 8,2 7,5 5,5 9, 9,1,,4,,2 16

17 17 Sector contribution, year to date

18 18 Current holdings

19 19 Contribution, year to date

20 Risk Statistics (NOK) 3 Years Alpha Beta Tracking Error Information Ratio Portfolio -,68,76 5,48 -,83 Index Sharpe Ratio 1) 1,6 1,31 Standard Deviation 2) 1,5 11,59 1) Sharpe Ratio uses Norway - 3 MT Bills as risk free rate. 2) Standard Deviation is based upon monthly volatility. 2

21 Up or down In or out ODIN Norge Significant Portfolio changes year to date Number of changes in portfolio year to date 3 1 Q1 Q2 Q3 Q4-1 Buy Sell -4-4 Q1 Q2 Q3 Q Borregaard DNB Opera Nordic Semiconductor Norwegian Ganger Rolv Hafslund B RCCL Statoil Aker Solution Austevoll Seafood Farstad Norsk Hydro BW Offshore Marine Harvest Telenor PGS SR-Bank Subsea 7 21

22 Pricing of the fund Company Weight Country Industry P/E (LTM)* P/E (NTM)* DivYield (LTM) DivYield (NTM) P/B ROE Telenor ASA 9,% Norway Diversified Telecommunication 18,8 14,6 5,2 5,6 3, 16, Yara International ASA 8,7% Norway Chemicals 11,6 12,1 3,3 3,3 1,6 13,3 DNB ASA 7,2% Norway Banks 8,8 8,8 3,3 4,5 1,1 12,9 Petroleum Geo-Services ASA 5,% Norway Energy Equipment & Services 12,2 16,6 5,7 3,4,6 4,9 Borregaard ASA 4,6% Norway Chemicals 16,2 14,7 2,2 2,3 2,6 16,4 SpareBank 1 SMN 4,6% Norway Banks 7,3 7,6 3,9 3,8,9 12,8 Schibsted ASA 4,5% Norway Media -3 59, 64,4,7,8 7,8 -,2 SalMar ASA 4,3% Norway Food Products 1,8 9,1 4,7 5,9 2,8 26,2 TOMRA Systems ASA 4,2% Norway Commercial Services & Supplies 21,4 16, 2,6 3,1 2,9 13,5 Subsea 7 S.A. 4,1% Norway Energy Equipment & Services 4,9 7, 5,9 5,9,5 1, Topp 1 56,2% 11,7 11,8 3,8 4, 1,3 11,5 ODIN Norge 12, 11,1 4,1 4,2 1,4 11,4 * NTM = Next 12 months LTM = Last 12 months Adjusted earnings and fully diltuted number of shares 22

23 23 MSCI World Price, Earnings and P/E

24 24 MSCI World Price, Book Value and P/B

25 OECD Leading indicator Level above 1 indicates expanding activity in OECD area 25

26 26 The International Monetary Fund (IMF) Economic growth forecast updated October

27 Investments - ODIN Norge

28 Akastor Akastor is a spin-off from Aker Solution. The idea was to establish a separate company for all noncore holdings of Aker Solution. Akastor is now an oil-services investment company with a portfolio of industrial holdings, real estate and other investments. The company has a flexible mandate for active ownership and long-term value creation. Its mandate allows it to both buy and sell, but we expect the company to opportunistically maximise shareholder value mainly through divestments. Decline in capital spending and a high focus on cutting costs among the oil and gas companies is likely to have a negative impact on Akastor in the short term. Akastor s portfolio holds a range of opportunities for organic growth, but M&A appears to be an inevitable tool to unlock value. The Aker group s proven deal-making track record and the new setup will allow for swift decision making and flexibility Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Akastor ASA Akastor ASA Norway OSE Mutual Fund TR Oilfield Services/Equipment Market Value (mill.) 5,288 Price 19.3 Price currency NOK Net debt (mill.) 8,261 Reporting currency NOK Enterprise Value (mill.) 13,549 FX rate (NOK) E 215E Sales (mill.) 54,77 46,267 35,667 44,413 42,84 2,997 18,182 EBIT (Operating Income) (mill.) 3,87 2,886 1,762 3,64 2, Net Income (mill.) 2,26 1,65 1,555 2, , Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

29 Atea Atea is the leading IT infrastructure reseller in the Nordics, with a turnover that is larger than the aggregate of the next 1 companies. Size is important in this industry for several reasons: 1) The geographical reach is higher, 2) The range of products to be offered is larger (customers appreciate the on-stop-show concept) 3) Discounts from subcontractors are larger, 4) The company can offer a pan-nordic service offering, 5) It is easier to grow through bolt-on acquisitions at low prices. Atea is rather resilliant to changes in economic cycles, as the products are bread-and-butter for customers, a model which proved to be strong during the financial crisis. We believe Atea should grow slightly higher than GDP. Pricing of the company is moderate, but the resilliant business combined with low interest rates make the investment attractive in our view Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Atea ASA Atea ASA Norway OSE Mutual Fund Information Technology Services Market Value (mill.) 7,891 Price Price currency NOK Net debt (mill.) 419 Reporting currency NOK Enterprise Value (mill.) 8,31 FX rate (NOK) E 215E Sales (mill.) 14,589 17,131 2,228 2,93 22,96 24,287 25,313 EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

30 Borregaard Borregaard has one of the world's most advanced and sustainable biorefineries. By using natural, sustainable raw materials, Borregaard produces advanced and environmental friendly biochemicals, biomaterials and bioethanol that can replace oil-based products. Borregaard also holds strong positions within ingredients and fine chemicals. The company produces a wide range of products, including ingredients for cement, ceramics and agricultural products. The company has a leading position in the lignin market. With limited supply growth and stong demand going forward, Borregaard is expected to experience increase in earnings. Despite strong market position and healthy outlook, pricing of the company is considered to be attractive. A weaker NOK improves the results for Borregaard Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Borregaard ASA Borregaard ASA Norway OSE Mutual Fund Chemicals: Specialty Market Value (mill.) 5,675 Price Price currency NOK Net debt (mill.) 722 Reporting currency NOK Enterprise Value (mill.) 6,397 FX rate (NOK) E 215E Sales (mill.) 3,338 3,419 3,81 3,894 3,941 3,965 4,19 EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

31 BW Offshore BW Offshore owns and operates a fleet of floating production vessels (FPSO) globally. Major part of BW Offshore s operation is in West Africa and Latin America (Brazil and Mexico). The market for FPSOs has been challenging with low returns due to poor management of large and complex projects. Several competitors have gone out of business the last years and the market has become consolidated. BW Offshore s existing fleet is generating a high and predicitable cash flow from term-contracts. In addition, BW Offshore has visible growth from a new project, which is based on a newbuild vessel. This project is taken on after an extensive feed study paid by the client. This reduces the project risk compared to earlier projects where old crude tankers have been converted. Dividends are paid on a quaterly basis and the stock is trading on a high running dividend yield Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 BW Offshore Limited BW Offshore Limited Norway OSE Mutual Fund Oilfield Services/Equipment Market Value (mill.) 4,954 Price 7.2 Price currency NOK Net debt (mill.) 9,791 Reporting currency USD Enterprise Value (mill.) 14,745 FX rate (NOK) E 215E Sales (mill.) , EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

32 DnB DNB is Norway's largest financial services group and one of the largest in the Nordic region. The company offers a full range of financial services, including loans, savings, advisory services, insurance and pension products for retail and corporate customers Performance - last 5 years Net interest margin has increased the last few years, and together with the bank s strong investment bank division (DnB Markets), earnings have increased substantially. Although the bank navigated well through the financial crisis, investors are concerned about Norwegian economy given the deteriorated outlook for the oil- and gas sector. We believe the bank will manage to avoid large loan losses going forward and find the valuation attractive. 5 jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 DNB ASA DNB ASA Norway OSE Mutual Fund Financial Conglomerates Market Value (mill.) 171,513 Price 15.3 Price currency NOK Net debt (mill.) 84,879 Reporting currency NOK Enterprise Value (mill.) 976,392 FX rate (NOK) E 215E Sales (mill.) 93,15 93,376 9,515 98,989 98,124 49,739 5,378 EBIT (Operating Income) (mill.) ,946 29,374 Net Income (mill.) 8,55 14,739 12,984 13,561 17,522 2,832 2,353 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

33 Det Norske Oljeselskap Det norske oljeselskap is an E&P company with exploration, development and production activities on the Norwegian Continental Shelf. Det norske oljeselskap acquired Marathon Norway in mid 214 to become a fully-fledged E&P company. However, after this acquisition, det norske became highly sensitive to changes in the oil price, with a USD1/bbl change in the oil price curve moving the net asset value estimate by more than NOK 2 per share. The market is nervous for the company s funding situation with the recent fall in oil prices. The main risks remain continued declining oil prices and impairments related to the Marathon acquisition. However, underlying values are attractive, and with an increasing oil price curve and large discount to net asset value, we see strong upside at current levels Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Det Norske Oljeselskap ASA Det Norske Oljeselskap ASA Norway OSE Mutual Fund Oil & Gas Production Market Value (mill.) 7,744 Price Price currency NOK Net debt (mill.) 3,255 Reporting currency NOK Enterprise Value (mill.) 1,999 FX rate (NOK) E 215E Sales (mill.) ,487 12,287 EBIT (Operating Income) (mill.) -1,232-1,813-1,5-1,693-1,572 1,53 6,164 Net Income (mill.) ,415 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

34 Ekornes Ekornes is a global and leading furniture producer. The company s main products are chairs, sofas and mattresses. The majority of Ekornes production is located in Norway. Although Norway is seen as a high-cost country, a lot of the production is automized. Ekornes has struggled to grow the last ten years. Both the financial crises and the lack of exposure to growing regions, such as Asia, have contributed negatively. In addition, higher raw material cost and more intense competitive environment have affected margins negatively. Despite this, we believe the future is somewhat brighter, something the last few quarters have shown, driven by improved markets, optimized operations and product development. Pricing is moderate and we appreciate the strong market posision and the solid balance sheet Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Ekornes ASA Ekornes ASA Norway OSE Mutual Fund Home Furnishings Market Value (mill.) 3,462 Price 94. Price currency NOK Net debt (mill.) -345 Reporting currency NOK Enterprise Value (mill.) 3,117 FX rate (NOK) E 215E Sales (mill.) 2,585 2,869 2,758 2,712 2,561 2,735 3,29 EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

35 EMGS EMGS is a leading global provider of electromagnetic seismic data (EM). The company has conducted impressive surveys in the Mexico Gulf and in the Barents Sea. EM is used by the oil industry as a supplement to ordinary seismic in search for hydrocarbons. EMGS is operating a fleet of four vessels. The challenge has been to acheive full utilisation on a continued basis. The willingnes to use the EM technology among oil companies is increasing, but more slowly than expected. EMGS is a small company with a limited sales force. Agreements and joint venture projects with seismic companies like TGS, Spectrum and Western Geco, where seismic data is being bundled with EM data are expected to contribute to increased sales and broader technology adoption. The company has a strong balance sheet and is generating a positive cash flow. It can be viewed as an option on increased adoption of EM and as an aquisition candidate for larger seismic players Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 ElectroMagnetic GeoServices ASA ElectroMagnetic GeoServices ASA Norway OSE Mutual Fund Oilfield Services/Equipment Market Value (mill.) 845 Price 4.23 Price currency NOK Net debt (mill.) 1 Reporting currency USD Enterprise Value (mill.) 846 FX rate (NOK) E 215E Sales (mill.) EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

36 Gjensidige Gjensidige is a leading Nordic general insurance company. The company operates in several verticals, including car insurance. Combined ratio has the last couple of years been low, driven by lower costs and diciplined market participants. Claims have also been low Performance - last 5 years We like the steady nature of general insurance companies, and find the quality of Gjensidige s operations to be solid. Gjensidige has recently paid a high ordinary dividend. In addition, it has distributed large extraordinary dividends, partly as a result of the company divesting its shares in Storebrand, partly due to increased financial leverage. The company has a strong market position and is generating high returns. 5 jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Gjensidige Forsikring ASA Gjensidige Forsikring ASA Norway OSE Mutual Fund Property/Casualty Insurance Market Value (mill.) 62,2 Price Price currency NOK Net debt (mill.) 7,31 Reporting currency NOK Enterprise Value (mill.) 69,51 FX rate (NOK) E 215E Sales (mill.) 18,578 2,796 21,472 22,442 22,234 2,322 21,24 EBIT (Operating Income) (mill.) ,319 5,7 Net Income (mill.) 2,35 2,95 2,748 4,28 3,671 4,37 3,695 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

37 Kongsberg Gruppen Kongsberg Gruppen is a global company operating within the oil&gas,- maritime, - and defence sectors worldwide. The company supplies high-technology systems and solutions. The company is well-known for its strong R&D capabilities and has proven asset-light model with strong returns on capital. Kongsberg Gruppen operates in markets with high barriers to entry and has strong niche positions in different product groups. Consequently the company has an outstanding track record in value creation. We think the company will continue its top-line growth based on strong competitive positions built over the last few years. The risk to our investment case is austerity measures on the defence side which we have seen over the last couple of years, and falling capex among oil companies on the offshore/maritime side. Government of Norway a majority owner Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Kongsberg Gruppen ASA Kongsberg Gruppen ASA Norway OSE Mutual Fund Aerospace & Defense Market Value (mill.) 15,3 Price Price currency NOK Net debt (mill.) -2,18 Reporting currency NOK Enterprise Value (mill.) 13,192 FX rate (NOK) E 215E Sales (mill.) 13,816 15,497 15,128 15,652 16,323 16,659 17,85 EBIT (Operating Income) (mill.) 1,263 2,113 2,35 1,866 1,659 1,555 1,728 Net Income (mill.) 82 1,495 1,431 1,325 1,228 1,134 1,24 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

38 Marine Harvest Marine Harvest is one of the largest seafood companies in the world, and the world s largest producer of Atlantic salmon. The company controls the entire value chain, from feed production and farming to processing and smoking Performance - last 5 years Salmon prices have increased the last years, as capacity growth has not been able to meet the market demand, a situation which is likely to continue the next couple of years. We believe demand for salmon is a mega-trend and Marine Harvest has a strong market position. Despite strong share price recently, valuation of Marine Harvest is still considered to be attractive. 5 jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Marine Harvest ASA Marine Harvest ASA Norway OSE Mutual Fund Agricultural Commodities/Milling Market Value (mill.) 43,9 Price 15. Price currency NOK Net debt (mill.) 8,352 Reporting currency NOK Enterprise Value (mill.) 51,441 FX rate (NOK) E 215E Sales (mill.) 14,5 15,191 16,133 15,569 19,23 25,241 28,12 EBIT (Operating Income) (mill.) 1,56 3,191 2, ,335 4,161 5,953 Net Income (mill.) 1,296 3,78 1, ,423 1,511 4,225 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

39 Norwegian Air Shuttle Norwegian Air is a leading low-cost carrier in Europe. Recently, the company established longhaul operations, mainly on routes from Europe to America and from Europe to Asia. Norwegian Air has grown substantially the last few years as the company has a large aircraft order with Boeing and Airbus. Demand in the airline industry has been strong, so despite a sharp increase in the fleet, industry load factor is at a record high. Going forward, Norwegian Air will continue to have a strong growth in new aircrafts being delivered. The lower fuel price will help Norwegian s earnings going forward, while the weak NOK affects negatively. Pricing of the company is high, but given the growth in earnings capacity and low fuel cost, earnings will grow strongly forward Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Norwegian Air Shuttle ASA Norwegian Air Shuttle ASA Norway OSE Mutual Fund Airlines Market Value (mill.) 1,41 Price Price currency NOK Net debt (mill.) 4,297 Reporting currency NOK Enterprise Value (mill.) 14,698 FX rate (NOK) E 215E Sales (mill.) 7,39 8,4 1,529 12,841 15,511 19,451 21,197 EBIT (Operating Income) (mill.) ,17 Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

40 Olav Thon Eiendomsselskap Olav Thon owns or operates most of the largest shopping centers in Norway. Recently, Olav Thon Eiendomsselskap has also expanded to Sweden. Although shopping from internet represent a challenging trend, we find the quality of the company s assets and the strong operating performance to be supportive for further growth. Olav Thon has a low financial leverage, enablig the company to take advantage of opportunities to grow further. The current low interest rate scenario is favourable for real-estate companies as borrowing cost is low. Low interest rate is also making real-estate an attractive asset class. Valuation is attractive and we do not think it reflects the company s strong track-record and good prospects Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Olav Thon Eiendomsselskap ASA Olav Thon Eiendomsselskap ASA Norway OSE Mutual Fund Real Estate Development Market Value (mill.) 13,731 Price 129. Price currency NOK Net debt (mill.) 14,64 Reporting currency NOK Enterprise Value (mill.) 28,335 FX rate (NOK) E 215E Sales (mill.) 2,24 2,647 2,834 2,946 3,55 3,23 3,144 EBIT (Operating Income) (mill.) ,871 1,973 Net Income (mill.) 555 1, ,119 1,648 1,1 963 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

41 Opera Software Opera has two divisions, the browser division, and the mobile advertising division. 6 Performance - last 5 years The browser division has more than 35m users, most of them on a mobile platform. The main advantage with the Opera browser is the limited data usage, which is both a benefit for telecom operators as its saves network CAPEX, but also for consumers as it enables data access in areas with congestion or weak coverage. The mobile advertising division, which was introduced a few years ago through acquisitions, has a strong market posision and a strong outook. More advertising spending now finds its way through mobile platforms. The company is in the process of building a strong market position in markets with promising outlook jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Opera Software ASA Opera Software ASA Norway OSE Mutual Fund Internet Software/Services Market Value (mill.) 13,85 Price 96.4 Price currency NOK Net debt (mill.) -627 Reporting currency USD Enterprise Value (mill.) 13,178 FX rate (NOK) E 215E Sales (mill.) EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

42 Petroleum Geo Service Petroleum Geo services (PGS) offers a broad range of products including seismic and electromagnetic services, data acquisition, processing, reservoir analysis/interpretation and multi-client library data helping oil companies to find oil and gas reserves offshore. In a currently challenging seismic market, PGS is best positioned in the industry with the most modern and cost efficient fleet and being able to differentiate itself from peers due to its Geostreamer technology. PGS has a solid liquidity reserve and a strong balance sheet to navigate through the downturn in the seismic market and take delivery of two newbuilds coming on stream in 216. The sharp drop in the share price in 214 has made the valuation attractive and we find good risk/reward at current levels Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Petroleum Geo-Services ASA Petroleum Geo-Services ASA Norway OSE Mutual Fund Oilfield Services/Equipment Market Value (mill.) 8,821 Price 4.5 Price currency NOK Net debt (mill.) 4,538 Reporting currency USD Enterprise Value (mill.) 13,359 FX rate (NOK) E 215E Sales (mill.) 1,35 1,135 1,253 1,518 1,52 1,433 1,33 EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

43 Prosafe Prosafe is the world s leading owner and operator of semi-submersible accommodation vessels. The fleet consists of a combination of dynamically positioned and anchored vessels able to operate in nearly all offshore environments. Prosafe has a track record of profitable growth with high return on invested capital, based on term contracts and opportunistic counter cyclical M&A. The market has historically been a niche market with few competitors, however a number of new companies are now entering the market with newbuilding orders. Increasing supply increases risk of pressure on dayrates going forward. Prosafes backlog of contracts is currently at record levels giving visiblity the next few years. Recent share price drop has made the valuation attractive for long-term investors Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 ProSafe SE ProSafe SE Norway OSE Mutual Fund Oilfield Services/Equipment Market Value (mill.) 5,522 Price 23.4 Price currency NOK Net debt (mill.) 4,42 Reporting currency USD Enterprise Value (mill.) 9,564 FX rate (NOK) E 215E Sales (mill.) EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

44 Salmar. Salmar was established in The company is mainly a salmon farming company, but in addition, the company has a compherhensive prosessing activity. The company s assets are located in Mid-Norway, Norhern Norway, as well as some production in Scotland through a joint venture. Salmon prices have increased the last years, as capacity growth has not been able to meet the growth in market demand, a situation which is likely to continue the next couple of years. Salmar has historically shown good cost control and is seen as one of the best salmon farmers in the world. Pricing of the company is considered to be attractive, given the the bright outlook for the industry and the company s strong position Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 SalMar ASA SalMar ASA Norway OSE Mutual Fund Food: Meat/Fish/Dairy Market Value (mill.) 15,12 Price Price currency NOK Net debt (mill.) 1,77 Reporting currency NOK Enterprise Value (mill.) 16,783 FX rate (NOK) E 215E Sales (mill.) 2,376 3,4 3,796 4,18 6,246 7,14 7,598 EBIT (Operating Income) (mill.) ,263 1,834 2,136 Net Income (mill.) ,79 1,253 1,542 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

45 Schibsted Schibsted is a media company with two main business areas; newspapers and online classified. Weak markets for ordinary newspapers, have led Schibsted to focus on cost-cuts and conversion to online. Schibsted owns Aftenposten, VG, several regional newspapers, Aftonbladet and Svenska Dagbladet. Schibsted also owns several leading online classified portals in several European countries, in addition to having strong positions in large and emerging countries such as Brazil and Malaysia. This is a winner-takes-it-all industry, where margins are exceptionally higher for the leaders. An agreement with South African Naspers have led to Schibsted to be part of joint ventures that have the number one positions in several emerging markets. Threats include other online portals such as Facebook and LinkedIn Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Schibsted ASA Schibsted ASA Norway OSE Mutual Fund Publishing: Newspapers Market Value (mill.) 52,69 Price Price currency NOK Net debt (mill.) 1,131 Reporting currency NOK Enterprise Value (mill.) 53,2 FX rate (NOK) E 215E Sales (mill.) 12,745 13,768 14,378 14,763 15,232 15,1 15,795 EBIT (Operating Income) (mill.) 899 1,532 1,641 1,515 1, ,718 Net Income (mill.) 68 2, , Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

46 SpareBank 1 SMN SpareBank 1 SMN is the leading financial institution in the Mid-Norway region, and one of six members of SpareBank 1 Alliansen. As the leading savingsbank in the region, the company offers all services, including investment banking. The bank has historically shown a healthy growth and solid return on equity based on good operations and limited loan losses. The last years, interest margin has widened from low levels after the financial crisis, enabling the bank to show a rapid earnings growth. Pricing of the bank is low despite a solid core capital position and decent prospects Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 SpareBank 1 SMN SpareBank 1 SMN Norway OSE Mutual Fund Regional Banks Market Value (mill.) 7,336 Price 56.5 Price currency NOK Net debt (mill.) 38,652 Reporting currency NOK Enterprise Value (mill.) 45,988 FX rate (NOK) E 215E Sales (mill.) 4,32 4,329 4,875 5,191 5,817 3,997 3,86 EBIT (Operating Income) (mill.) ,183 2,84 Net Income (mill.) 931 1,17 1,16 1,52 1,36 1,742 1,57 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

47 SpareBank 1 SR SpareBank 1 SR is the leading financial institution in the Rogaland region, and one of six members of SpareBank 1 Alliansen. As the leading savingsbank in the region, the company offers all services, including investment banking and asset management. The bank has historically shown a healthy growth and solid return on equity based on good operations and limited loan losses. Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 The last years, interest margin has widened from low levels after the financial crisis, enabling the bank to show a rapid earnings growth. SpareBank 1 SR-Bank ASA SpareBank 1 SR-Bank ASA Norway OSE Mutual Fund Regional Banks With recent decline in oil price, outlook has weakened, but in our view, the market expects too high losses going forward, hence valuation is considered to be attractive. Market Value (mill.) 13,17 Price Price currency NOK Net debt (mill.) 65,238 Reporting currency NOK Enterprise Value (mill.) 78,345 FX rate (NOK) E 215E Sales (mill.) 6,288 6,189 6,79 7,2 7,622 4,9 4,776 EBIT (Operating Income) (mill.) ,853 2,697 Net Income (mill.) 1,19 1,317 1,81 1,361 1,86 2,96 1,845 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

48 Stolt Nielsen Stolt-Nielsen Limited is a leading global provider of bulk-liquid transportation, storage and distribution services through its three largest operating units: Stolt Tankers, Stolthaven Terminals and Stolt Tank Containers. Stolt Sea Farm is a leading producer of turbot, sole and caviar. Stolt Bitumen Services is developing a bitumen distribution network in Asia Pacific. Stolt-Nielsen Gas is focused on the development of opportunities in LPG shipping. The US chemical industry is enjoying low cost feedstock and this should give rise to improving demand for chemical shipping services. Moderate fleet growth coupled with a persisting cost advantage for the US chemical industry should give rise to an improving market. Despite the uptick in new orders, the tanker fleet is expected to grow by 4% annually in 215 and 216. The recent sharp drop in share price has made valuation attractive Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Stolt-Nielsen Limited Stolt-Nielsen Limited Norway OSE Mutual Fund Marine Shipping Market Value (mill.) 8,17 Price 125. Price currency NOK Net debt (mill.) 1,48 Reporting currency USD Enterprise Value (mill.) 18,65 FX rate (NOK) E 215E Sales (mill.) 1,645 1,794 2,29 2,72 2,1 2,156 2,273 EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

49 Subsea 7 Subsea 7 is one of the world s leading global contractors in seabed-to-surface engineering, construction and services to the oil industry. The company provides technical solutions to enable the delivery of complex projects in all water depths and challenging environments. The subsea construction market is characterised by few players and a high number of complex projects. Order intake is therefore lumpy and the industry is typically late cyclical. Current order backlog is strong for execution the next couple of years. Oil companies are reducing E&P spending by postponing projects and there are currently few tenders in the market. Historically, earnings and return on capital have been decent, but is dependent on good project execution. Recent sharp price drop has made valuation attractive. Subsea 7 is paying dividends and is buying back own shares Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Subsea 7 S.A. Subsea 7 S.A. Norway OSE Mutual Fund Oilfield Services/Equipment Market Value (mill.) 24,364 Price Price currency NOK Net debt (mill.) 1,216 Reporting currency USD Enterprise Value (mill.) 25,58 FX rate (NOK) E 215E Sales (mill.) 2,29 2,369 5,55 6,297 6,297 7,91 6,27 EBIT (Operating Income) (mill.) , Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

50 Telenor Telenor is a global leading telecom operator, with operations in 13 countries in Europe and Asia. The company is mainly focused on mobile operations, but also offers fixed line telephony in Norway, Sweden and Denmark as well as owning a broadcasting business in Norway. Telecom operators face challenges in mature markets due to price competition and pressure on networks. Telenor does however have substantial part of its operations in emerging markets such as India, Bangladesh and Pakistan, which still offers upside potential through increased penetration and data usage. Telenor, with top 3 positions in all markets (except India), should therefore be able to grow earnings going forward Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Telenor ASA Telenor ASA Norway OSE Mutual Fund Major Telecommunications Market Value (mill.) 236,329 Price Price currency NOK Net debt (mill.) 45,287 Reporting currency NOK Enterprise Value (mill.) 281,616 FX rate (NOK) E 215E Sales (mill.) 97,65 94,843 98,516 11,718 14,27 11,4 115,288 EBIT (Operating Income) (mill.) 16,372 13,86 15,217 17,662 21,537 25,459 25,688 Net Income (mill.) 9,63 14,749 7,165 1,67 8,748 12,2 15,916 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

51 Tomra Tomra has two core business areas; 1) the traditional reverse vending machines for cans/bottles (Collection Solutions), and 2) the sorting divisions, which has food, mining and waste as core areas (Sorting Solutions) Performance - last 5 years Tomra is the clear leader in Collection Solutions, with a market share around 7%. Growth is normally low single digit, but make jumps whenever a new market is introduced. Tomra is also the leader within Sorting Solutions. The market for solutions to sort waste, food and certain mining verticals is considered to be a mega-trend. Growth is double digit, and the long-term prospects are promising. Tomra has a strong market position in a market that has promising prospects for further growth. 1 5 jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 TOMRA Systems ASA TOMRA Systems ASA Norway OSE Mutual Fund Miscellaneous Manufacturing Market Value (mill.) 8,659 Price 58.5 Price currency NOK Net debt (mill.) 1,392 Reporting currency NOK Enterprise Value (mill.) 1,52 FX rate (NOK) E 215E Sales (mill.) 3,321 3,496 3,69 4,73 4,62 4,82 5,137 EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

52 Veidekke Veidekke is a leading construction company in Scandianavia. The company is also one of the biggest real-estate developers in Norway and Sweden. After some difficult years from 29-11, volumes have again picked up, driven both by public and private activity. Both infrastructure as well as buildings are important areas for the company. Outlook is good. Too few residental houses are being built and governments seem to be positive in relation to expanding infrastructure activities within tunnels, roads and railroads. The company generates high return on equity. We find the valuation attractive and believe the company has a strong position in a strong market Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Veidekke ASA Veidekke ASA Norway OSE Mutual Fund Engineering & Construction Market Value (mill.) 1,28 Price 75. Price currency NOK Net debt (mill.) 712 Reporting currency NOK Enterprise Value (mill.) 1,74 FX rate (NOK) E 215E Sales (mill.) 15,452 15,644 17,632 19,729 21,68 23,841 24,894 EBIT (Operating Income) (mill.) ,97 Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

53 Wilh. Wilhelmsen Holding Wilh. Wilhelmsen Holding is a global maritime industry group focusing on shipping and integrated logistics services for cars and rolling cargo through our shareholding in Wilh. Wilhelmsen ASA. Wilh. Wilhelmsen Holding also occupy a leading position in the global maritime service industry through Wilhelmsen Maritime Services. The historical trend for transport demand was closely related to number of cars sold: the incremental growth in car sales tended to be driven by imported cars. In key markets, this is still the case, but the manufacturing locations are moving closer to the consumers, therby reducing demand for transportation. Demand for high and heavy cargo, dominated by machinery for mining, agriculture and construction, is still slow. The stock trades at a historical high discount to the sum of the parts Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Wilh. Wilhelmsen Holding ASA Class B Wilh. Wilhelmsen Holding ASA Class B Norway OSE Mutual Fund Marine Shipping Market Value (mill.) 7,68 Price 161. Price currency NOK Net debt (mill.) 6,619 Reporting currency USD Enterprise Value (mill.) 14,227 FX rate (NOK) E 215E Sales (mill.) 1,15 1,76 1,247 1,325 1,313 3,328 3,397 EBIT (Operating Income) (mill.) Net Income (mill.) Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

54 Yara Yara is a leading global fertilizer company. The company has operations in more than 5 countries and offers the most compherhensive range of fertilizer products in the industry, including ammonia, nitrates, NPK and specialty fertilizers. Fertilizers are important for optimising agricultural production. Demand for fertilizers is increasing annually by approximately 2%, twice the worlds population growth. Yara s earnings will increase as a result of lower gas prices in most parts of the world, enabling lower costs. There are many moving parts determining Yara s future earnings, such as weather, gas prices, fertilizer prices, Chinese tax regime, nitrate premiums etc. However, historically the company has navigated impressively in this market. Valuation is considered to be attractive Performance - last 5 years jan.1 jan.11 jan.12 jan.13 jan.14 jan.15 Yara International ASA Yara International ASA Norway OSE Mutual Fund Chemicals: Agricultural Market Value (mill.) 18,696 Price Price currency NOK Net debt (mill.) 3,379 Reporting currency NOK Enterprise Value (mill.) 112,75 FX rate (NOK) E 215E Sales (mill.) 6,867 64,6 77,726 83,997 84,668 93,379 98,68 EBIT (Operating Income) (mill.) 1,122 5,989 1,714 1,945 8,126 1,654 1,899 Net Income (mill.) 3,782 8,729 12,66 1,62 5,748 7,541 8,24 Price/Earnings Price/Book Value EV/EBIT Return on Equity (%) Dividend Yield (%)

55 Investment Objective Long term value creation We prefer performing companies, with strong long term prospects, available at favourable prices

56 Investment Philosophy Performance - prospects - price Performance Operating excellence «Doing good business with bad people simply doesn t work» Warren E. Buffet Prospects Strong competitive position «We don t focus at beating the market short term. We want our holdings to beat their competitors long term» Börje Ekholm Price Favourable valuation «The bitterness of poor quality remains long after the sweetness of a nice price is forgotten» Unknown

57 Om ODIN Norge ODIN Norge är en aktivt förvaltad aktiefond som investerar på den norska aktiemarknaden. Fondens långsiktiga mål är att ge högre avkastning än den norska aktiemarknaden, mätt med fondens referensindex. Fakta om fonden Startår Referensindex OSEFX Oslo Børs Fondindeks Basvaluta NOK Förvaltningsavgift 2 % Tecknings-/inlösenavgift % Minsta teckningsbelopp 5 EUR 57

58 Om förvaltaren Fondens ansvariga förvaltare Jarle Sjo kom till ODIN i januari 211 och blev investeringsdirektör i december 211. Han har en magisterexamen i finans och lång erfarenhet av portföljförvaltning och analys av shipping- och offshoresektorn. Jarles långa erfarenhet från och djupa insikt i sjöfarts- och offshoresektorn i synnerhet och aktiv portföljförvaltning i allmänhet har gjort honom till en erkänd sakkunnig i norska medier. 58

59 Logga in på ODIN Online Klicka här Teckna andelar Klicka här Kundservice info@odin.fi Beställ ODINs nyhetsbrev Klicka här 59

60 Vi påminner om att Historisk avkastning är ingen garanti för framtida avkastning, som bland annat beror på marknadsutvecklingen, förvaltarens skicklighet, fondens risk samt kostnader för köp och förvaltning. Avkastningen kan bli negativ om aktiekurserna faller. Uttalandena i denna rapport speglar ODINs syn på marknaden vid den tidpunkt då rapporten utarbetats. Vi har använt källor som bedöms vara pålitliga, men vi kan inte garantera att uppgifterna från dessa källor är korrekta eller fullständiga. Anställda hos ODIN Forvaltning AS får handla för egen räkning med flera slags finansiella instrument. Det innebär att anställda hos ODIN Forvaltning AS kan äga värdepapper i företag som omnämns i den här rapporten, liksom andelar i ODINs fonder. Anställdas egenhandel ska följa ODIN Forvaltning AS interna riktlinjer för anställdas egenhandel, som har utarbetats i enlighet med den norska lagen om handel med värdepapper ("verdipapirhandelloven") och Verdipapirfondenes forenings branschstandard. Mer information finns på 6

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