ODIN Norge. Årskommentar 2015

ODIN Norge Årskommentar 2015

Fondens portfölj

ODIN Norge december 2015 Avkastning senaste månaden och i år Fonden hade en avkastning på -5,5 procent under den senaste månaden. Avkastningen för fondens referensindex under samma tidsperiod var -7,2 procent. Fonden har haft en avkastning på -0,4 procent i år. Avkastningen för fondens referensindex under samma tidsperiod var -2,3 procent. Köp och försäljning i fonden, senaste månaden och i år Denna månad har vi inte gjort några större förändringar i portföljen. I år är de största ändringarna i portföljen köp av Norsk Hydro, Yara, Multiconsult, Statoil, Protector Forsikring och Akastor och försäljning av aktier i Schibsted B, Norwegian Air, Stolt-Nielsen, Q-Free, Bakkafrost, IM Skaugen och Wilh. Wilhelmsen B. Bidragsgivare, senaste månaden och i år De bästa bidragsgivarna till denna månads avkastning var Hexagon och Kongsberg Gruppen. De bolag som bidrog minst denna månad var Statoil och Yara. De bästa bidragsgivarna i år är Tomra och Yara. De bolag som bidragit minst i år är BW Offshore och SR-Bank.

ODIN Norge december 2015 Prissättning av fonden Fonden prissätts till 12,8 gånger de kommande 12 månadernas resultat. Fonden ger en direktavkastning på 3,7 procent. Mätt mot bokfört egenkapital prissätts fonden till 1,2 gånger. Innehaven i fonden har en genomsnittlig egenkapitalavkastning på 7,9 procent. Prissättning av den norska aktiemarknaden - fondsindeksen OSEFX Marknaden prissätts till 13,0 gånger de kommande 12 månadernas resultat. Marknaden ger en direktavkastning på 3,8 procent. Mätt mot bokfört egenkapital prissätts marknaden till 1,4 gånger. Bolagen på Oslo Børs fondindex har en genomsnittlig egenkapitalavkastning på 9,8 procent.

Målsättning Vår investeringsfilosofi ligger fast; nämligen att investera i bolag med dokumenterat goda resultat, som har starka konkurrenspositioner inför framtiden och som kan köpas till ett attraktivt pris. Detta är lättare sagt än gjort. Vi tror det är viktigt att lägga mycket tid på att försöka hitta rätt bolag. Naturligtvis kan det vara svårt att avgöra om ett bolag kommer att kunna upprätthålla sin ställning på marknaden under lång tid. Vi ägnar en stor del av vår tid åt att identifiera bra, solida bolag som år efter år skapar värden åt sina aktieägare. I bra bolag jobbar tiden för en. Om aktien är lite för dyr under en period täcker intäkterna i bolaget så småningom upp för detta. Vi letar efter kvalitetsbolag som erbjuder stadigt hög avkastning på kapitalet och långsiktiga konkurrensfördelar på marknaden. Sådana bolag skyddas ofta av höga inträdesbarriärer och ledningen i dem är duktig på att generera fritt kassaflöde. Det händer inte ofta att man får chansen att köpa sådana här bolag till ett rimligt pris. Vi vill kunna investera i bolag där ledningen förstår hur värden skapas. En god ledning har förmåga att allokera kapital på rätt plats och vid rätt tillfälle. Kort sagt strävar vi efter att investera i bolag som leds av folk som samtidigt är goda investerare. Vår målsättning för fonden är enkel. Vi ska skapa god avkastning för andelsägarna över tid.

Marknadskommentar Den makroekonomiska utvecklingen i Norge präglades under 2015 av oljeprisfallet. Från att ha legat på omkring 110 USD började oljepriset att sjunka sommaren 2014 och låg vid utgången av 2015 på 37 USD. Detta är dramatiskt för olje- och oljerelaterade branscher och påverkar den norska ekonomin negativt. Som en följd av oljeprisfallet har den norska kronan försvagats betydligt mot de flesta andra valutor. Således har delar av den norska ekonomin blivit mer konkurrenskraftig, vilket underlättar den omställning som krävs till följd av det lägre oljepriset. Arbetslösheten har ökat något och beräknas fortsätta öka under 2016. Prisökningen på bostadsmarknaden avtog under hösten och det finns stora regionala skillnader i områden med nära anknytning till oljeverksamheten. Trots det kraftiga oljeprisfallet gick Oslobörsen upp under 2015. Bättre konkurrensförmåga tack vare en svagare norsk krona, stor offentlig sektor i kombination med låga räntor dämpar effekterna av oljeprisfallet. För många verksamheter har oljeprisfallet bidragit positivt. Genom stärkt konkurrenskraft, lägre kostnadspress och bättre tillgång på arbetskraft har en del bolag förbättrat sin position.

Viktiga bidrag Positiva bidrag ODIN Norge fick en avkastning på -0,4 procent under 2015. Referensindex var ned 2,3 procent. Kronförsvagningen är goda nyheter för många av bolagen i ODIN Norge, som har större delen av sina intäkter i utlandet samtidigt som merparten av kostnaderna ligger i Norge. Detta gör bolagen mer konkurrenskraftiga vilket bör resultera i ökade intäkter framöver. Med undantag av bank- och försäkringssektorn har majoriteten av de bolag vi investerar i en internationell profil. I det avseendet är de endast delvis beroende av hur det går för norsk ekonomi. Tomra, Yara, Marine Harvest och Telenor var de bolag som bidrog mest till avkastningen. Samtliga av dessa har tjänat på den svagare norska kronan i och med att man har större delen av verksamheten utomlands. Bolagen har starka konkurrenspositioner på de flesta av de marknader man verkar på. Telenor uppvisar också en bra omsättnings- och resultatökning vad gäller antalet abonnenter. Med stora delar av verksamheten utanför Norge, tjänar såväl Tomra som Telenor på den svagare norska kronan. Aktiekursen i Marine Harvest följde laxpriset under året som gick. Den ryska bojkotten av livsmedel från EU dämpade laxpriserna i början av året. Stark efterfrågan i EU och Asien och den försvagade kronan har drivit upp priset på lax. God drift och höga priser skapar goda resultat i Europa. De chilenska verksamhetsgrenen är förlusttyngd på grund av låga priser och biologiska utmaningar. Aktiekursuppgången beror i huvudsak på det ökade laxpriset och effekten av den svagare norska valutan. Tomras omsättning och resultat har utvecklats bra i så väl pant- som sorteringsdivisionen.

Negativa bidrag De bolag som bidrog minst till avkastningen i fonden var BW Offshore, SR Bank, Akastor och Opera Software. Den svaga kursutvecklingen för de tre förstnämnda kan förklaras genom en minskad tro på den framtida intjäningen till följd av oljeprisfallet. Makroförhållandena i offshore-branschen har försämrats avsevärt och man räknar med ytterligare minskningar av investeringar i sektorn. Förväntningarna på intjäningen i BW Offshore och Akastor har därför skruvats ned, vilket återspeglas i de lägre aktiekurserna. SR Bank har sin huvudsakliga verksamhet i Rogaland en region som drabbats särskilt hårt av oljeprisfallet. Pressade utlåningsmarginaler i kombination med ökad risk i portföljen har bidragit till nedgången i aktiekursen. Kursnedgången för Opera Software beror på att bolagets resultat inte matchar den intäktsökning som värderingen av aktien utgått från.

Ändringar i portföljen Under årets gång har de största förändringarna i fonden bestått i köp av aktier i Hexagon, Norsk Hydro, Protector och Prosafe. Vi sålde även aktier i Norwegian Air Shuttle, PGS, Det norske oljeselskap, Salmar och Opera Software. Den ökade aluminiumexporten från Kina ledde till fallande priser på aluminium och ett betydligt fall i aktiekursen för Norsk Hydro. Vi valde att köpa in oss i Norsk Hydro efter att aluminiumpriserna hade sjunkit så mycket att inte heller de kinesiska producenterna tjänade några pengar. Vi tror att den långsiktiga utvecklingen av aluminium är positiv eftersom innehållet av aluminium i bilar och flygplan kommer att öka framöver. En ny investering i fonden är Protector Forsikring. Bolaget upplever stark tillväxt och tar marknadsandelar på försäkringsmarknaden. Låga kostnader gör att tillväxten är lönsam. Bolaget är lågt prissatt med tanke på den lönsamma tillväxten. Hexagon Composites är en annan ny investering i fonden. Bolaget har upplevt stark tillväxt på senare år. När aktiekursen minskade något blev prisbilden mer attraktiv varför vi valde att köpa in oss i bolaget. Vi tror på god efterfrågan på bolagets produkter framöver. Till följd av ett kraftigt ökat utbud och låga oljepriser har aktiekursen i världens största producent av bostadsriggar, Prosafe, sjunkit betydligt. Vi tar tillfället i akt att utnyttja värdefallet genom att köpa in oss i bolaget. Prosafe har bra kontraktstäckning vilket ger god överblick under de kommande åren. Norwegian Air Shuttle sålde vi i början av året efter att aktien ökat med över 50 procent de föregående tolv månaderna. Inom loppet av andra kvartalet såldes fondens aktier i Det norske oljeselskap. Efter köpet av Marathon Oil sjönk oljepriset kraftigt. Förvärvet har finansierats med mer skuld, bland annat utfärdade bolaget nyligen en icke säkerställd obligation till 10,25 procents ränta. Då vi tyckte att den finansiella risken ökat för mycket valde vi att sälja av vårt innehav i bolaget. Till följd av uppvärderingen av laxsektorn och den ökade biologiska risken, valde vi att minska vår exponering här genom att sälja vårt innehav i Salmar. Opera Software levererade svaga resultat under 2015 och framtidsutsikterna är också svagare än vad både vi och marknaden räknat med. Därför valde vi att sälja ut oss ur bolaget. Våra aktier i PGS såldes också under 2015 till följd av det fallande oljepriset och de svaga marknadsutsikterna för bolaget.

Utsikter för framtiden Den makroekonomiska utvecklingen i Norge präglas av oljeprisfallet. Det finns tecken på att effekterna av raset och de minskade oljeinvesteringarna sprider sig till sektorer där tillväxten fram till nu hållit i sig. Konsumentförtroendet har fortsatt att dala och den privata konsumtionen antas avta något. Dessutom kan ett lägre oljepris bidra till något större fall i oljeinvesteringar under kommande år än man tidigare anat. Ökningen av offentlig konsumtion och investeringar håller ångan uppe i den ekonomiska tillväxten. Utsikterna för våra handelspartner ser ljusare ut och den tillväxt de åstadkommit förväntas hålla i sig. Tillväxten i den inhemska efterfrågan i den industrialiserade världen är god men den svagare utvecklingen i tillväxtekonomierna tynger exportsektorn i många industriländer. Den pågående övergången till en mer konsumtionsdriven tillväxt i Kina leder till minskad efterfrågan på råvaror. Detta drabbar både övriga tillväxtekonomier och ett flertal i-länder. Tillväxten i den globala handeln ligger i dagsläget nära noll. Den försiktiga uppgången fortsätter i euroområdet. Utvecklingen i den europeiska efterfrågan är stabil och backas upp av en stärkt arbetsmarknad, ökad reallönetillväxt och expansiv penningpolitik. I USA har tillväxten ökat något. Arbetsmarknaden har utvecklats positivt och såväl bilförsäljningen som bostadsmarknaden har stärkts. Arbetslösheten är nu tillbaka på samma nivåer som före finanskrisen. Löneökningen har tilltagit något men är ändå måttlig jämfört med tidigare uppgångar. Detta kan vara ett tecken på att det fortfarande finns lediga resurser på arbetsmarknaden. Den privata konsumtionen har utvecklats starkt och löneökningar i kombination med ökade bostadsvärden gör att den inhemska efterfrågan hålls uppe. Penningpolitiken förväntas bli något mindre expansiv, vilket är i linje med signalerna från norska centralbanken. Tillväxten i världsekonomin är fortsatt måttlig. Tillväxten för Norges handelspartner har goda utsikter att stärkas.

Utsikter för framtiden Fortsatt låga räntor gör aktier till ett attraktiv val. De norska räntorna ligger fortfarande på låga nivåer i ett historiskt perspektiv. Detta återspeglas också i inlåningsräntorna som i de flesta fall ligger under två procent. Bankinsättningar ger därmed sämre köpkraft efter skatt och inflation. Vi menar att aktier är ett bra alternativ och letar därför efter bolag med både stabila och växande kassaflöden och utbyten. Den relativa avkastningen kan emellertid svänga mycket månad från månad och år från år. Detta beror på att vi har koncentrerade fonder där det är stor skillnad mellan våra bolagsval och sammansättningen av index. Dessutom investerar vi i bolag som ska ge avkastning åt våra kunder på tre till fem års sikt.

Nyckeltal och nyheter från portföljen allt presenteras på engelska

Investment Objective Long term value creation

Portfolio Return Last 5 years % (SEK) ODIN Norge C Index Historical Return % (SEK)* Last Month YTD 1 Y 3 Y 5 Y 10 Y Since inception Portfolio -5,50-0,35-0,35 4,77-2,05 0,43 14,84 Benchmark -7,25-2,30-2,30 4,71 2,71 3,76 10,83 Exess Return 1,74 1,95 1,95 0,06-4,76-3,33 4,01 * Returns for periods exceeding 12 months are annualized

Annual returns last 10 years

Pricing of the fund Company Weight Country Industry P/E (LTM)* P/E (NTM)* DivYield (LTM) DivYield (NTM) P/B ROE DNB ASA 9,0% Norway Banks 8,2 8,8 3,8 3,9 1,0 12,2 Yara International ASA 8,8% Norway Chemicals 10,6 10,9 3,7 3,9 1,5 13,9 Borregaard ASA 6,8% Norway Chemicals 14,1 11,1 2,8 2,9 2,3 16,5 Statoil ASA 6,0% Norway Oil Gas & Consumable Fuels 18,3 17,3 5,8 5,8 1,1 6,0 Telenor ASA 5,8% Norway Diversified Telecommunication 14,6 13,4 5,1 5,4 3,5 24,0 Norsk Hydro ASA 4,6% Norway Metals & Mining 12,0 16,9 3,2 3,0 0,9 7,8 Kongsberg Gruppen ASA 4,6% Norway Aerospace & Defense 18,3 15,6 3,6 3,4 2,8 15,5 Marine Harvest ASA 4,2% Norway Food Products 22,6 13,5 4,3 5,5 3,0 13,1 TOMRA Systems ASA 4,1% Norway Commercial Services & Supplies 25,3 19,9 2,0 2,7 3,9 15,6 SpareBank 1 SR-Bank ASA 4,0% Norway Banks 5,8 6,5 3,9 3,8 0,6 10,3 Topp 10 57,8% 12,0 11,8 3,9 4,1 1,4 11,8 ODIN Norge 15,8 12,8 3,8 3,7 1,2 7,9 * NTM = Next 12 months LTM = Last 12 months Adjusted earnings and fully diltuted number of shares

Sector allocation

Sector performance*, year to date (Sorted by weight in portfolio)

Sector contribution, year to date

Current holdings

Share price performance*, year to date (Sorted by weight in portfolio) *) Share price performance for equities included in the benchmark. Equities not included in the benchmark are calculated from portfolio figures.

Contribution, year to date

Risk Statistics (NOK) 3 Years Portfolio Index Active share 0,47 Sharpe ratio 1) 1,27 Standard Deviation 2) 8,36 1,04 10,21 Portfolio Alpha 2,76 Beta 0,73 Tracking error 4,70 Information ratio 0,01 1) Sharpe Ratio uses Norway - 3 MT Bills as risk free rate. 2) Standard Deviation is based upon monthly volatility.

Pricing - Norwegian Equities (OSE Benchmark Index)

OECD Leading indicator Level above 100 indicates expanding activity in OECD area

The International Monetary Fund (IMF) Economic growth forecast

ODIN Norge - 31/12/2015 Security (Company) Currency Market Number of shares Market price Cost price Market value Unrealised gain (loss) Local currency NOK 1000 NOK 1000 NOK 1000 % of assets under management Ekornes NOK Oslo 1 690 862 99,50 144 111 168 241 24 130 3,2 Schibsted NOK Oslo 530 570 292,20 55 955 155 033 99 078 2,9 Total Consumer Discretionary 200 065 323 273 123 208 6,1 Marine Harvest NOK Oslo 1 872 517 119,60 161 613 223 953 62 340 4,3 Total Consumer Staples 161 613 223 953 62 340 4,3 Akastor NOK Oslo 7 840 060 12,00 108 214 94 081-14 133 1,8 BW Offshore NOK Oslo 17 139 152 2,57 192 271 44 048-148 224 0,8 Electromagnetic Geoservices NOK Oslo 53 307 963 0,34 55 223 18 125-37 099 0,3 Prosafe NOK Oslo 6 058 000 21,00 147 090 127 218-19 872 2,4 Statoil NOK Oslo 2 549 952 123,70 332 845 315 429-17 416 6,0 Subsea 7 NOK Oslo 2 310 491 63,05 241 755 145 676-96 079 2,8 Total Energy 1 077 398 744 577-332 822 14,1 DNB NOK Oslo 4 336 376 109,80 486 215 476 134-10 081 9,0 Gjensidige Forsikring NOK Oslo 827 186 142,10 71 416 117 543 46 127 2,2 Olav Thon Eiendomsselskap NOK Oslo 1 013 122 142,00 108 148 143 863 35 716 2,7 Protector Forsikring NOK Oslo 1 410 233 73,75 86 696 104 005 17 309 2,0 Sparebank 1 SMN, Egenkapitalbevis NOK Oslo 3 826 686 50,50 159 749 193 248 33 498 3,7 Sparebank 1 SR-Bank NOK Oslo 5 381 793 39,30 264 887 211 504-53 383 4,0 Total Financials 1 177 111 1 246 297 69 186 23,7 Hexagon Composites NOK Oslo 7 329 090 22,90 126 794 167 836 41 043 3,2 Kongsberg Gruppen NOK Oslo 1 680 646 145,00 134 062 243 694 109 631 4,6 Multiconsult NOK Oslo 1 048 786 108,00 84 625 113 269 28 644 2,2 Tomra Systems NOK Oslo 2 246 781 95,50 107 603 214 568 106 965 4,1 Veidekke NOK Oslo 1 210 832 108,50 50 170 131 375 81 205 2,5 Total Industrials 503 254 870 742 367 488 16,5 Atea NOK Oslo 2 628 887 73,50 179 845 193 223 13 378 3,7 Total Information Technology 179 845 193 223 13 378 3,7 Borregaard NOK Oslo 7 234 478 49,40 335 949 357 383 21 435 6,8 Norsk Hydro NOK Oslo 7 372 658 33,13 251 348 244 256-7 092 4,6 Yara International NOK Oslo 1 210 671 382,90 379 135 463 566 84 431 8,8 Total Materials 966 431 1 065 205 98 774 20,2 Telenor NOK Oslo 2 050 208 148,30 296 390 304 046 7 655 5,8 Total Telecommunication Services 296 390 304 046 7 655 5,8 Total portfolio 4 562 108 4 971 316 409 208 94,4

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

Investments - ODIN Norge

Akastor Company description: 120 100 Performance - last 5 years Akastor is a spin-off from Aker Solution. The idea was to establish a separate company for all non-core holdings of Aker Solution. Akastor is now an oil-services investment company with a portfolio mainly consisting of industrial holdings. 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 maximize shareholder value mainly through divestments. 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Akastor ASA Norway OSE Mutual Fund TR Akastor ASA Oilfield Services/Equipment Why invested? Akastor has been a disappointing investment so far. 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 the company in the short term. We do however believe the company has strong market positions within several segments Market Value (mill.) 3,151 Price 11.50 Price currency NOK Net debt (mill.) 2,622 Reporting currency NOK Enterprise Value (mill.) 5,773 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 46,267 35,667 44,413 42,804 21,155 15,382 13,016 EBIT (Operating Income) (mill.) 2,886 1,762 3,064 2,295 156-1,946-371 Net Income (mill.) 1,605 1,555 2,249 997-1,398-2,120-659 Price/Earnings 14.8 9.6 12.7 22.7 13.2 - - Price/Book Value 2.8 1.6 2.7 2.4 0.6 0.4 0.4 EV/EBIT 11.0 12.1 12.0 16.5 54.4 - - Return on Equity (%) 16.8 14.6 19.6 7.9-12.3-27.0-9.4 Dividend Yield (%) 2.6 4.4 3.5 3.7 19.0 0.0 0.0

Atea Company description: Atea is the leading IT infrastructure reseller in the Nordics, with a turnover that is larger than the aggregate of the next 10 companies. Why invested? The company s main advantage, is size, and this 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-stopshow 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 has shown to be rather resilliant to changes in economic cycles, as the products are bread-and-butter for customers. We believe Atea should grow slightly higher than GDP. 180 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Atea ASA Atea ASA Performance - last 5 years Norway OSE Mutual Fund Information Technology Services Market Value (mill.) 7,704 Price 73.25 Price currency NOK Net debt (mill.) 819 Reporting currency NOK Enterprise Value (mill.) 8,522 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 17,131 20,228 20,930 22,096 24,588 27,715 29,298 EBIT (Operating Income) (mill.) 474 651 559 453 585 579 742 Net Income (mill.) 497 593 506 339 429 397 537 Price/Earnings 13.1 11.3 11.0 14.3 19.3 19.6 14.6 Price/Book Value 1.9 1.7 1.7 1.7 2.4 2.5 2.6 EV/EBIT 12.3 8.9 10.8 14.5 15.2 15.6 12.2 Return on Equity (%) 16.1 16.4 13.1 9.2 12.1 12.8 17.5 Dividend Yield (%) 2.1 3.3 8.3 9.2 11.0 8.8 8.8

Borregaard 350 Performance - last 5 years Company description: 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. 300 250 200 150 100 50 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Borregaard ASA Norway OSE Mutual Fund Why invested? We like the company s leading position in the growing lignin market. With limited supply growth and stong demand going forward, Borregaard is positioned to grow its earnings. Also, currency is set to help the company going forward as most of the company s revenues are generated abroad, while a significant share of the cost base is domestic. Borregaard ASA Chemicals: Specialty Market Value (mill.) 4,800 Price 48.00 Price currency NOK Net debt (mill.) 624 Reporting currency NOK Enterprise Value (mill.) 5,424 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 3,419 3,810 3,894 3,941 3,848 4,129 4,380 EBIT (Operating Income) (mill.) 241 486 491 443 395 503 638 Net Income (mill.) 180 317 273 335 334 351 449 Price/Earnings - - 6.9 9.6 16.8 13.5 10.7 Price/Book Value - - 1.2 1.7 2.7 2.2 2.0 EV/EBIT - - 6.0 8.5 15.7 10.5 8.0 Return on Equity (%) 15.4 30.1 19.3 18.8 17.6 16.5 18.6 Dividend Yield (%) - - 0.0 3.3 2.0 2.9 3.1

BW Offshore Company description: BW Offshore owns and operates a fleet of floating production vessels (FPSO) globally. Major part of BW Offshore s operation is in West Africa, Brazil and Mexico. Why invested? BW Offshore has been a disappointing investment so far. 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 termcontracts. Performance - last 5 years 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 BW Offshore Limited Norway OSE Mutual Fund BW Offshore Limited Oilfield Services/Equipment Market Value (mill.) 1,844 Price 2.68 Price currency NOK Net debt (mill.) 11,874 Reporting currency USD Enterprise Value (mill.) 13,718 FX rate (NOK) 8.90 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 549 846 909 982 1,070 1,007 801 EBIT (Operating Income) (mill.) 81 122 21 186 283 135 99 Net Income (mill.) -100-115 - 84 187 30-0 Price/Earnings 51.7 42.6-5.1 4.4 4.6 - Price/Book Value 1.3 0.8 0.6 0.7 0.7 0.2 0.2 EV/EBIT 34.6 24.5 104.8 13.5 9.5 13.9 20.9 Return on Equity (%) -9.0-8.6 0.0 7.5 14.9 3.7 0.0 Dividend Yield (%) 0.0 4.5 10.1 6.4 9.7 10.4 0.0

DnB Company description: 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. Why invested? 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. Stricter capital requirements delay higher dividend payout ratio Performance - last 5 years 200 180 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 DNB ASA DNB ASA Norway OSE Mutual Fund Financial Conglomerates Market Value (mill.) 175,259 Price 107.60 Price currency NOK Net debt (mill.) 997,053 Reporting currency NOK Enterprise Value (mill.) 1,172,312 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 93,376 90,515 98,989 98,124 79,249 54,111 52,580 EBIT (Operating Income) (mill.) - - - - - 32,519 31,384 Net Income (mill.) 14,739 12,984 13,561 17,522 20,639 22,959 20,327 Price/Earnings 11.8 6.7 8.2 11.3 8.4 7.9 8.5 Price/Book Value 1.6 0.8 0.9 1.3 1.2 1.0 0.9 EV/EBIT - - - - - - - Return on Equity (%) 14.0 11.3 11.0 13.0 13.7 12.2 10.6 Dividend Yield (%) 2.1 6.8 2.8 1.9 2.4 4.0 4.1

Ekornes Company description: 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. Performance - last 5 years 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Why invested? Ekornes ASA Norway OSE Mutual Fund 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, driven by improved markets, optimized operations and product development. Pricing is moderate and we appreciate the strong market posision and the solid balance sheet. Weak NOK is supporting margins, but hedges delay this effect. Ekornes ASA Home Furnishings Market Value (mill.) 3,664 Price 99.50 Price currency NOK Net debt (mill.) 196 Reporting currency NOK Enterprise Value (mill.) 3,860 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 2,869 2,758 2,712 2,561 2,757 3,368 3,478 EBIT (Operating Income) (mill.) 534 387 349 263 266 336 392 Net Income (mill.) 381 274 335 48 160 221 275 Price/Earnings 14.4 12.1 13.1 17.7 22.9 16.6 13.3 Price/Book Value 3.6 2.3 2.1 2.0 2.3 2.5 2.3 EV/EBIT 9.8 8.2 8.2 10.2 13.9 11.2 9.4 Return on Equity (%) 23.0 16.1 19.9 3.0 10.9 20.4 22.0 Dividend Yield (%) 4.4 9.2 8.1 6.7 5.8 5.1 6.2

EMGS Company description: 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. Performance - last 5 years 180 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Why invested? EMGS has been a disappointing investment. 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. The company has issued new equity and is in better position to stear through challenging times. With E&P companies continuing to cut spending, the company experiences a very challenging market. ElectroMagnetic GeoServices ASA Norway OSE Mutual Fund

Gjensidige Forsikring Company description: Gjensidige is a leading Nordic general insurance company. The company operates in several verticals, including car insurance. 300 250 200 150 100 50 Performance - last 5 years Why invested? Combined ratio has the last couple of years been low, driven by lower costs and diciplined market participants. Claims have also been low. 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. 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Gjensidige Forsikring ASA Gjensidige Forsikring ASA Norway OSE Mutual Fund Property/Casualty Insurance Market Value (mill.) 69,450 Price 138.90 Price currency NOK Net debt (mill.) 9,938 Reporting currency NOK Enterprise Value (mill.) 79,388 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 20,796 21,472 22,442 22,234 25,095 21,262 22,124 EBIT (Operating Income) (mill.) - - - - - Net Income (mill.) 2,950 2,748 4,280 3,671 4,190 3,661 4,021 Price/Earnings 13.2 10.4 10.2 16.3 14.0 18.4 16.9 Price/Book Value 1.3 1.5 1.7 2.3 2.7 3.0 3.0 EV/EBIT - - - - - 14.3 13.3 Return on Equity (%) 13.1 11.9 17.5 14.1 17.5 16.5 17.8 Dividend Yield (%) 0.0 6.8 5.7 5.9 10.5 5.7 5.0

Hexagon Composites Company description: Hexagon Composites is a global market leader in lightweight composite cylinders for storage and transport of gases under pressure. 700 600 500 400 300 200 100 Performance - last 5 years Why invested? The shale gas revolution in North America has fuelled the company s high pressurue business. Within that segment, Hexagon has a leading position both in designing fuel tanks for high-duty vehicles and passenger cars, but also within the pipeline segment, where the company designes larger cylinders for transportation of compressed gas. We believe the continous development for engine choices as well as infrastucture will drive demand for Hexagon s fuel tanks going forward. We have been positively surprised by the strong demand although oil (and therefore diesel) prices have fallen both absoluterly and relatively to CNG prices. 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Hexagon Composites ASA Hexagon Composites ASA Norway OSE Mutual Fund Electrical Products Market Value (mill.) 2,932 Price 22.00 Price currency NOK Net debt (mill.) 95 Reporting currency NOK Enterprise Value (mill.) 3,028 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 846 992 1,033 1,280 1,651 1,403 1,549 EBIT (Operating Income) (mill.) 36 35 32 147 257 16 163 Net Income (mill.) 18 19 5 87 160-12 102 Price/Earnings 38.4 18.9 89.4 56.7 23.3 249 27.5 Price/Book Value 3.4 1.2 2.2 12.8 7.1 6.4 5.3 EV/EBIT 34.8 18.6 27.0 30.6 12.2 193.9 18.7 Return on Equity (%) 7.2 7.4 2.1 28.5 38.4-2.7 19.2 Dividend Yield (%) 3.5 2.8 0.0 0.5 1.4 0.0 1.2

Kongsberg Gruppen Company description: 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. Performance - last 5 years 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Why invested? Kongsberg Gruppen ASA Norway OSE Mutual Fund 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 falling capex among oil companies on the offshore/maritime side. Kongsberg Gruppen ASA Aerospace & Defense Market Value (mill.) 17,160 Price 143.00 Price currency NOK Net debt (mill.) -3,766 Reporting currency NOK Enterprise Value (mill.) 13,394 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 15,497 15,128 15,652 16,323 16,552 16,951 17,084 EBIT (Operating Income) (mill.) 2,113 2,035 1,866 1,659 1,500 1,271 1,508 Net Income (mill.) 1,495 1,431 1,325 1,228 873 957 1,095 Price/Earnings 12.6 8.7 10.8 13.2 12.1 17.7 15.2 Price/Book Value 3.7 2.6 2.4 2.4 2.1 2.8 2.5 EV/EBIT 6.3 5.6 7.0 8.0 7.3 10.5 9.6 Return on Equity (%) 34.9 27.7 22.6 19.0 13.5 15.5 16.5 Dividend Yield (%) 1.5 3.2 3.0 2.9 3.5 3.7 3.5

Marine Harvest 250 Performance - last 5 years Company description: 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. Why invested? 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 long-term trend and Marine Harvest has a strong market position. 200 150 100 50 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Marine Harvest ASA Norway OSE Mutual Fund Marine Harvest ASA Agricultural Commodities/Milling Market Value (mill.) 52,705 Price 117.10 Price currency NOK Net debt (mill.) 11,486 Reporting currency NOK Enterprise Value (mill.) 64,191 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 15,191 16,133 15,569 19,230 25,265 27,493 30,255 EBIT (Operating Income) (mill.) 3,191 2,827 992 3,335 3,974 3,306 5,620 Net Income (mill.) 3,078 1,116 409 2,423 731 1,397 3,983 Price/Earnings 8.6 3.9 85.3 18.5 19.0 37.7 13.0 Price/Book Value 1.9 0.9 1.7 2.2 3.0 2.9 2.7 EV/EBIT 8.6 5.6 25.8 10.9 15.5 18.5 10.8 Return on Equity (%) 25.7 9.6 3.7 17.3 4.7 13.1 20.8 Dividend Yield (%) 5.7 30.9 0.0 0.0 2.1 4.5 5.7

Multiconsult Company description: Multiconsult is one of the leading firms of consulting engineers and designers in Norway. The company was listed in 2015 as a main shareholder reduces its holding. 140 120 100 80 60 40 Performance - last 5 years Why invested? We believe Multiconsult s markets are very interesting. 1/3 of the companys business are related to buildings and properties, while another third is related to transportation and infrastructure. Less than 10% is related to oil and gas. The main markets are growing rapidely, and as a result, the order backlog are 24% higher than the same period last year. We believe the bright market outlook combined with the long experience and competance will help the company grow also going forward. 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Multiconsult ASA Multiconsult ASA Norway OSE Mutual Fund Engineering & Construction Market Value (mill.) 2,782 Price 106.00 Price currency NOK Net debt (mill.) -438 Reporting currency NOK Enterprise Value (mill.) 2,344 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 1,523 1,739 1,850 2,042 2,266 2,263 2,682 EBIT (Operating Income) (mill.) 73 104 123 228 212 232 251 Net Income (mill.) 48 78 95 166 167 175 190 Price/Earnings - - - - - 15.6 14.4 Price/Book Value - - - - - 9.0 6.8 EV/EBIT - - - - - 10.1 10.5 Return on Equity (%) - 24.0 24.9 39.8 39.4 57.9 47.6 Dividend Yield (%) - - - - - 6.6 3.3

Norsk Hydro Company description: Hydro is a global aluminium company with production, sales and trading activities throughout the value chain, from bauxite, alumina and energy generation to the production of primary aluminium and rolled products as well as recycling. Why invested? The company has struggled with declining aluminum prices for a long time, but has still managed to be profitable due to the leading cost position in the market. Still it seems like the market will continue to be challenging as production in China is set to increase going forward, which will contriubute to further oversupply. We believe the long term outlook for aluminium is positive as cars and aircrafts to a larger degree will have more aluminium content. Norsk Hydro also have a solid balance sheet, enabling the company to utilize growth oppertunities. Performance - last 5 years 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Norsk Hydro ASA Norway OSE Mutual Fund Norsk Hydro ASA Aluminum Market Value (mill.) 66,291 Price 32.04 Price currency NOK Net debt (mill.) -415 Reporting currency NOK Enterprise Value (mill.) 65,876 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 75,754 91,444 64,181 64,880 77,907 87,249 84,555 EBIT (Operating Income) (mill.) 3,254 5,096 1,915 2,301 4,581 8,994 6,459 Net Income (mill.) 1,888 6,705-705 -1,110 797 2,587 4,065 Price/Earnings 76.0 6.2 - - 235.8 25.6 16.3 Price/Book Value 1.2 0.7 0.8 0.8 1.3 0.9 0.9 EV/EBIT 15.3 11.6 31.6 25.9 20.1 7.0 10.0 Return on Equity (%) 3.7 10.0-1.0-1.6 1.1 7.9 5.4 Dividend Yield (%) 1.1 2.7 2.7 2.8 1.8 3.3 3.1

Olav Thon Eiendomsselskap Company description: Olav Thon owns or operates most of the largest shopping centers in Norway. Recently, Olav Thon Eiendomsselskap has also expanded to Sweden. 250 200 150 100 50 Performance - last 5 years Why invested? 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, enabling 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. 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Olav Thon Eiendomsselskap ASA Olav Thon Eiendomsselskap ASA Norway OSE Mutual Fund Real Estate Development Market Value (mill.) 14,902 Price 140.00 Price currency NOK Net debt (mill.) 16,364 Reporting currency NOK Enterprise Value (mill.) 31,266 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 2,647 2,834 2,946 3,055 3,020 3,175 3,287 EBIT (Operating Income) (mill.) - - - - - 2,036 2,075 Net Income (mill.) 1,324 724 1,119 1,648 1,170 2,727 1,194 Price/Earnings 11.0 6.7 14.6 5.9 11.5 5.5 13.5 Price/Book Value 1.1 0.9 0.9 0.9 1.0 0.9 0.9 EV/EBIT - - - - - 14.6 14.2 Return on Equity (%) 15.0 7.4 10.5 13.6 8.7 6.2 6.3 Dividend Yield (%) 0.9 1.3 1.1 1.1 1.1 1.3 1.4

Prosafe Company description: 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. Why invested? 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 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 ProSafe SE Norway OSE Mutual Fund ProSafe SE Oilfield Services/Equipment Market Value (mill.) 5,503 Price 21.20 Price currency NOK Net debt (mill.) 5,306 Reporting currency USD Enterprise Value (mill.) 10,809 FX rate (NOK) 8.90 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 397 401 424 523 549 494 661 EBIT (Operating Income) (mill.) 176 143 136 245 248 183 222 Net Income (mill.) 199 158 178 199 179 113 165 Price/Earnings 10.6 11.0 10.7 10.3 4.7 4.9 3.4 Price/Book Value 4.4 3.5 3.7 2.6 1.2 0.7 0.6 EV/EBIT 13.0 16.3 18.2 10.4 6.9 10.8 9.8 Return on Equity (%) 61.4 34.5 36.7 31.8 22.3 14.2 17.1 Dividend Yield (%) 4.0 5.5 6.9 7.1 16.6 4.2 0.0

Protector Forsikring Company description: Protector was established in 2004, and listed in 2007. The company is a low cost insurance company, having a leading position within change of ownership, and is a challenger within public insurance. 700 600 500 400 300 200 100 Performance - last 5 years Why invested? Protector s business model is to solely distribute its products through insurance brokers. The major part of the company s revenues are generated in Norway, but an increasing share comes from Sweden and Denmark. The company plans to expand the business to UK within the next few years. We are impressed with the growth of the company, being able to increase gross written premiums from NOK 516m in 2006, to NOK 2.8bn last twelve months. In addition to the growth, Protector has been able to pay an increasing dividend. We believe the high return on equity and growth profile will continue to contribute to value creation for shareholders. 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Protector Forsikring ASA Protector Forsikring ASA Norway OSE Mutual Fund Multi-Line Insurance Market Value (mill.) 6,311 Price 73.25 Price currency NOK Net debt (mill.) -60 Reporting currency NOK Enterprise Value (mill.) 6,251 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 879 987 1,315 1,541 2,109 2,872 3,331 EBIT (Operating Income) (mill.) - - - - - Net Income (mill.) 142-8 199 287 383 422 429 Price/Earnings 6.6-4.0 9.1 8.7 14.3 14.4 Price/Book Value 1.8 2.2 1.8 2.3 3.5 3.9 3.5 EV/EBIT - - - - - Return on Equity (%) 24.6-1.6 41.1 42.2 43.3 27.6 23.9 Dividend Yield (%) 10.6 13.9 0.0 6.3 4.5 2.8 2.8

Schibsted Company description: Schibsted is a media company with two main business areas; newspapers and online classified. Why invested? 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 winnertakes-it-all industry, where margins are exceptionally higher for the leaders. Schibsted has also partnered with South African company Naspers to gain access to several new interesting markets. Threats include other online portals such as Facebook and LinkedIn. Performance - last 5 years 400 350 300 250 200 150 100 50 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Schibsted Asa Class A Norway OSE Mutual Fund Schibsted Asa Class A Publishing: Newspapers Market Value (mill.) 63,233 Price 282.20 Price currency NOK Net debt (mill.) 2,083 Reporting currency NOK Enterprise Value (mill.) 65,316 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 13,768 14,378 14,763 15,232 14,975 15,118 15,967 EBIT (Operating Income) (mill.) 1,532 1,641 1,515 1,169 1,474 2,228 1,951 Net Income (mill.) 2,794 742 185 1,536-180 1,836 983 Price/Earnings 80.0 6.4 35.7 - - 34.4 64.3 Price/Book Value 3.3 2.5 3.9 7.1 7.9 5.5 5.3 EV/EBIT 12.7 10.4 17.8 38.0 36.1 28.1 31.7 Return on Equity (%) 48.5 11.3 3.1 23.0-2.5 5.9 8.3 Dividend Yield (%) 0.9 2.0 1.5 0.9 0.7 0.6 0.7

Sparebank 1 Midt- Norge Company description: 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. Performance - last 5 years 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 SpareBank 1 SMN Norway OSE Mutual Fund Why invested? 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. Stricter regulations and fear for higher losses have led to weak share price performance lately. Pricing of the bank is low and the bank has limited exposure to the oilservice segment. SpareBank 1 SMN Regional Banks Market Value (mill.) 6,492 Price 50.00 Price currency NOK Net debt (mill.) 40,430 Reporting currency NOK Enterprise Value (mill.) 46,922 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 4,329 4,875 5,191 5,817 6,087 3,941 4,141 EBIT (Operating Income) (mill.) - - - - - 2,028 2,135 Net Income (mill.) 1,017 1,016 1,052 1,360 1,772 1,480 1,489 Price/Earnings 4.8 3.5 3.6 10.5 6.0 4.4 6.7 Price/Book Value 0.7 0.5 0.5 0.7 0.6 0.7 0.7 EV/EBIT - - - - - - - Return on Equity (%) 14.6 12.7 11.6 12.9 15.0 11.0 10.1 Dividend Yield (%) 4.6 7.6 5.3 2.7 3.0 4.6 4.7

SR Bank Company description: 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. Why invested? The bank has historically shown a healthy growth and solid return on equity based on good operations and limited loan losses. 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. Performance - last 5 years 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 SpareBank 1 SR-Bank ASA Norway OSE Mutual Fund SpareBank 1 SR-Bank ASA Regional Banks Market Value (mill.) 9,898 Price 38.70 Price currency NOK Net debt (mill.) 69,629 Reporting currency NOK Enterprise Value (mill.) 79,527 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 6,189 6,709 7,002 7,622 7,575 4,574 4,703 EBIT (Operating Income) (mill.) - - - - - 2,535 2,592 Net Income (mill.) 1,317 1,081 1,361 1,860 2,095 1,713 1,521 Price/Earnings 4.7 4.6 5.5 9.4 6.1 5.7 6.3 Price/Book Value 0.8 0.5 0.8 1.1 0.9 0.6 0.5 EV/EBIT - - - - - - - Return on Equity (%) 15.1 11.3 12.2 13.9 14.2 10.3 8.5 Dividend Yield (%) 3.1 6.8 3.8 2.5 3.0 4.1 3.9

Statoil Company description: Statoil an energy company, engages in the exploration, production, transportation, refining, and marketing of petroleum and petroleum-derived products in Norway and internationally. Statoil is the largest company in Norway. Why invested? Statoil faces a very challenging future based on the lower oil and gas prices. Lower activity among sub-contractor has helped getting costs down, but this needs to continue also going forward. The company s dividend is unable to last unless the company manages to improve its cash flows. 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Statoil ASA Statoil ASA Performance - last 5 years Norway OSE Mutual Fund Integrated Oil Market Value (mill.) 393,798 Price 123.50 Price currency NOK Net debt (mill.) 84,000 Reporting currency NOK Enterprise Value (mill.) 477,798 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 526,718 645,599 705,700 624,900 606,800 487,276 523,521 EBIT (Operating Income) (mill.) 142,024 176,030 194,300 149,700 114,700 77,111 85,054 Net Income (mill.) 38,082 78,787 68,900 39,900 21,900 (25,871) 23,288 Price/Earnings 12.4 7.8 5.4 12.3 9.2 neg 16.9 Price/Book Value 2.1 1.9 1.4 1.4 1.1 1.1 1.1 EV/EBIT 3.6 3.2 2.5 3.5 4.4 6.6 6.4 Return on Equity (%) 18.2 31.6 23.0 11.8 5.9 6.0 6.4 Dividend Yield (%) 4.3 4.1 4.7 4.6 6.7 6.0 6.0

Subsea 7 Company description: 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. Why invested? 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 supportive for business the next two 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. Performance - last 5 years 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Subsea 7 S.A. Norway OSE Mutual Fund Subsea 7 S.A. Oilfield Services/Equipment Market Value (mill.) 20,673 Price 63.15 Price currency NOK Net debt (mill.) -169 Reporting currency USD Enterprise Value (mill.) 20,505 FX rate (NOK) 8.90 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 2,369 5,055 6,297 6,297 6,870 4,871 3,929 EBIT (Operating Income) (mill.) 392 559 756 572 949 654 221 Net Income (mill.) 221 391 830 348-338 457 159 Price/Earnings 16.8 12.2 9.5 16.3 5.8 4.9 13.8 Price/Book Value 3.5 1.1 1.3 1.0 0.6 0.4 0.4 EV/EBIT 10.8 13.1 11.6 13.3 4.2 3.5 10.4 Return on Equity (%) 19.7 10.4 13.9 5.4-5.2 7.6 2.6 Dividend Yield (%) 1.2 0.0 0.0 0.0 0.0 0.0 0.0

Telenor 250 Performance - last 5 years Company description: 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. 200 150 100 50 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Why invested? Telenor ASA Norway OSE Mutual Fund Telecom operators face challenges in mature markets due to price competition, and pressure on networks, while regulatory risk also is significant through distribution of licenses and spectrum. 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. Telenor ASA Major Telecommunications Market Value (mill.) 218,012 Price 145.20 Price currency NOK Net debt (mill.) 55,203 Reporting currency NOK Enterprise Value (mill.) 273,215 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 94,843 98,516 101,718 104,027 106,540 127,814 133,476 EBIT (Operating Income) (mill.) 13,086 15,217 17,662 21,537 22,250 26,198 28,504 Net Income (mill.) 14,749 7,165 10,067 8,748 9,177 9,253 16,610 Price/Earnings 10.7 13.3 47.9 15.3 20.8 23.6 13.1 Price/Book Value 1.8 1.8 2.4 2.9 3.5 3.4 3.2 EV/EBIT 14.1 11.8 12.4 12.5 12.9 10.4 9.5 Return on Equity (%) 18.0 8.3 12.7 11.9 13.4 23.8 24.6 Dividend Yield (%) 2.6 3.9 4.5 4.1 4.6 5.3 5.6

Tomra Company description: 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). 300 250 200 150 100 50 Performance - last 5 years Why invested? Tomra is the clear leader in Collection Solutions, with a market share around 70%. 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. 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 TOMRA Systems ASA TOMRA Systems ASA Norway OSE Mutual Fund Miscellaneous Manufacturing Market Value (mill.) 13,988 Price 94.50 Price currency NOK Net debt (mill.) 1,212 Reporting currency NOK Enterprise Value (mill.) 15,200 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 3,496 3,690 4,073 4,602 4,749 5,958 6,477 EBIT (Operating Income) (mill.) 514 629 669 601 668 854 1,060 Net Income (mill.) 74 403 440 386 422 559 731 Price/Earnings 155.2 15.5 20.7 19.6 23.5 24.7 19.4 Price/Book Value 3.3 2.9 3.5 3.2 3.0 3.9 3.5 EV/EBIT 12.1 10.4 13.3 16.4 14.7 17.2 13.6 Return on Equity (%) 4.0 20.3 19.9 15.4 14.1 15.6 18.1 Dividend Yield (%) 1.4 1.5 2.1 2.2 2.3 2.1 2.8

Veidekke Company description: Veidekke is a leading construction company in Scandianavia. The company is also one of the biggest real-estate developers in Norway and Sweden. 250 200 150 100 50 Performance - last 5 years Why invested? After some difficult years from 2009-11, 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. 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Veidekke ASA Veidekke ASA Norway OSE Mutual Fund Engineering & Construction Market Value (mill.) 14,373 Price 107.50 Price currency NOK Net debt (mill.) 31 Reporting currency NOK Enterprise Value (mill.) 14,404 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 15,644 17,632 19,729 21,680 23,918 23,845 27,176 EBIT (Operating Income) (mill.) 334 310 531 537 720 931 1,349 Net Income (mill.) 345 638 448 544 843 793 1,079 Price/Earnings 15.4 11.4 13.3 12.2 12.7 18.4 13.4 Price/Book Value 3.7 2.6 2.9 3.0 4.1 4.7 4.0 EV/EBIT 22.4 18.6 14.7 13.6 13.8 15.8 10.5 Return on Equity (%) 17.3 30.3 19.9 23.3 33.2 25.7 29.8 Dividend Yield (%) 4.8 6.5 6.3 5.1 4.1 3.8 4.2

Yara Company description: Yara is a leading global fertilizer company. The company has operations in more than 50 countries and offers the most compherhensive range of fertilizer products in the industry, including ammonia, nitrates, NPK and specialty fertilizers. Why invested? 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 and nitrate premiums. However, historically the company has navigated impressively in this market. 160 140 120 100 80 60 40 20 0 jan-11 jan-12 jan-13 jan-14 jan-15 jan-16 Yara International ASA Yara International ASA Performance - last 5 years Norway OSE Mutual Fund Chemicals: Agricultural Market Value (mill.) 103,101 Price 374.80 Price currency NOK Net debt (mill.) 11,823 Reporting currency NOK Enterprise Value (mill.) 114,924 FX rate (NOK) 1.00 2010 2011 2012 2013 2014 2015E 2016E Sales (mill.) 64,006 77,726 83,997 84,668 95,047 113,703 114,312 EBIT (Operating Income) (mill.) 5,989 10,714 10,945 8,126 10,700 16,528 13,991 Net Income (mill.) 8,729 12,066 10,602 5,748 7,625 10,164 10,220 Price/Earnings 11.3 6.7 6.6 9.3 15.8 10.3 10.6 Price/Book Value 2.9 1.7 1.6 1.4 1.6 1.4 1.3 EV/EBIT 17.9 7.0 7.3 9.6 10.1 6.6 7.9 Return on Equity (%) 27.3 30.2 22.9 11.2 12.9 13.9 12.4 Dividend Yield (%) 1.3 2.3 2.6 5.0 3.0 3.8 4.0

Investment Objective Long term value creation

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 Ansvarig förvaltare Förvaltare sedan 2016-01-01 Referensindex Basvaluta Rune Selmar och Thomas Nielsen OSEFX Oslo Børs Fondindeks NOK Förvaltningsavgift 2 % Tecknings-/inlösenavgift 0 % Minsta teckningsbelopp 3 000 NOK 56

Om förvaltarna Rune Selmar är koncerndirektör och investeringsdirektör för ODIN Forvaltning och övertog ansvaret för ODIN Norge 1 januari 2016. Rune är civilekonom från NHH och autoriserad finansanalytiker från NFF. Rune har lång erfarenhet från chefsroller i finansbranschen och har arbetat som investeringsdirektör och VD i Folketrygdfondet samt inom corporate finance. Thomas Nielsen har arbetat som portföljförvaltare på ODIN Fonder sedan augusti 2013 och är medförvaltare av ODIN Norge sedan 1 januari 2015. Han förvaltar även ODN Fastighet. Thomas är civilekonom och har lång erfarenhet som aktieanalytiker på Fondsfinans, Kaupthing och Pareto. 57

Använd våra tjänster Kontrollera innehav, avkastning m.m. Logga in på dina fondsidor hos ODIN Online Sätt dina pengar i arbete Teckna andelar i våra fonder på nätet med BankID Håll dig uppdaterad Anmäl dig till vårt nyhetsbrev Prata med oss +47 24 00 48 04 kundeservice@odinfond.no

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 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. Faktablad och informationsbroschyr för fonden finns på www.odinfond.no