ODIN Europa. Årskommentar 2014

ODIN Europa Årskommentar 2014

Fondens portfölj

ODIN Europa december 2014 Avkastning senaste månaden och hittills i år Fonden gav en avkastning på 0,7 procent under den senaste månaden. Fondens referensindex sjönk under samma tidsperiod 1,9 procent. Fondens avkastning hittills i år är 5,9 procent. Referensindex avkastning hittills i år är 6,7 procent. Köp och försäljning i fonden, senaste månaden och hittills i år Denna månad har vi köpt aktier i Continental och sålt i GKN och Travis Perkins. Hittills i år är de största förändringarna i portföljen köp av Aryzta, Publicis och Bureau Veritas och försäljning av Holcim och Allianz. Bidragsgivare, senaste månaden och hittills i år De bästa bidragsgivarna till denna månads avkastning var bolagen SAP, Spectris och Dixons Carphone. De bolag som bidrog minst till avkastningen denna månad var Amec, TUI och Arrow Hittills i år har bolagen Shire, Novo Nordisk och AMS bidragit mest. De svagaste bidragen till avkastningen i portföljen hittills i år är Adidas, Amec och Prysmian.

ODIN Europa december 2014 Prissättning av fonden Fonden prissätts till 15,2 gånger de kommande 12 månaderna. Fonden ger en direktavkastning på 2,7 procent. Utöver detta tillkommer även återköp av aktier i bolagen. Mätt mot bokfört egenkapital prissätts fonden till 3,1. Innehaven i fonden har en genomsnittlig egenkapitalavkastning på 17,7 procent. Prissättning av den europeiska aktiemarknaden - MSCI Europe net Index USD MSCI Europe prissätts till 14,1 gånger de kommande 12 månadernas resultat. MSCI Europe ger en direktavkastning på 3,8 procent Mätt mot bokfört egenkapital prissätts MSCI Europe till 1,7 gånger. Bolagen på MSCI Europe har en genomsnittlig egenkapitalavkastning på 11,3 procent.

ODIN Europa Förvaltarens årskommentar 2014 ODIN Europa Fördelning mellan sektorer Tillbakablick på 2014 ODIN Europa består av 30 bolag. Alla är bolag med god historik som är väl positionerade för framtiden och har en stark ledning som kan tillvarata och utveckla bolagens värden. Vi investerar i en region som i globala sammanhang har solida och förutsebara ramvillkor. Samtidigt är Europa ett centrum för global samverkan. Material Media Informasjons teknologi Bil Energi Finansielle Tjenester Helse Det urval som ODIN Europa kan investera i är enormt och ger oss möjlighet att sätta samman en portfölj av enskilda bolag som är väl rustade för olika faser och ekonomiska cykler. Vi eftersträvar en portfölj med bra bolag som kompletterar varandra. Fonden lägger inte alla ägg i samma korg! Mat & Drikke Industrielle Tjenester Industri En del av de beslut vi fattar kommer att visa sig vara felaktiga och de bolag vi investerar i kommer också ibland att göra några dåliga val. Totalt sett ska vi dock leverera bra resultat. Genom årets tillbakablick vill vi ge våra läsare en inblick i de största val som vi ställts inför, vad som gått bra och vad som gått mindre bra. Konsum

ODIN Europa Vi investerar i bra bolag men vad kännetecknar ett sådant? Bra bolag har en solid historik och en utmärkt utgångspunkt för att skapa starka resultat även i framtiden. Bra bolag är väl positionerade för framtiden. De har någonting unikt i jämförelse med andra bolag. Det kan vara patent, processer, produkter eller kundrelationer som gör att de kan hålla sina priser något högre än konkurrenterna eller ha väsentligt lägre kostnader än konkurrenterna. På det viset kan bolaget säkra goda långsiktiga resultat. Bra bolag har bra ledare och ledarutveckling. Det är viktigt för oss att ledningen i de bolag vi överväger har bra resultat att peka på. Attraherar bolaget de bästa medarbetarna genom att ta hand om sina anställda? Investerar de i miljöåtgärder för att minimera utsläpp? Månar de om sin handlingskraft genom att ha solida balanser? För oss är dessa tre punkter de viktigaste. Vi är inte så noga med om ett bolag är populärt eller inte eller om det är många eller få analytiker som följer det. Vi bryr oss mer om att bolagen är bra och att de kan generera långsiktiga värden åt våra andelsägare.

ODIN Europa Viktiga händelser 2014 2014 var ett händelserikt år. Vad påverkade aktiemarknaderna mest? Hur var ODIN Europas position? 1. Låg ränta Investerare fick generellt mycket låg ränta både från bankerna och på räntemarknaden. Förstahandsalternativet för de som ville få en högre avkastning var att exponera sig mot bolag med hög utdelning. Det är vanligast bland teleoperatörer och bolag i allmännyttan. De ger ofta en direktavkastning (utdelning) på mellan 4 och 5 procent. Telekom och allmännyttiga tjänster var två av de bästa sektorerna på de europeiska börserna under 2014 och ODIN Europa hade tyvärr ingen exponering mot dessa sektorer. En annan effekt av den låga räntan är att bolagen kan låna pengar väldigt billigt. Därmed blev 2014 ett bra år för uppköp och fusioner. Två av bolagen i ODIN Europa köptes upp och ett tredje var föremål för uppköpsrykten. Det gav goda bidrag till fondens avkastning under året.

ODIN Europa Viktiga händelser 2014 2. Oljepriskollaps Mot årets slut kollapsade oljepriset. Olje- och oljeservicenäringen upplevde stora aktiekursfall. Sektorn som helhet var den sämsta på de europeiska börserna med en nedgång på över 20 procent. ODIN Europa minskade exponeringen mot denna sektor kraftigt under det första halvåret och sålde då engelska Weir, norska Subsea och PGS. Samtidigt valde vi att behålla engelska Amec, ett rådgivande ingenjörsbolag med exponering mot förnybar energi, atomenergi samt olja och gas. Aktien föll 15 procent under året, men resultatutsikterna för bolaget är enligt vår mening positiva. Flyg och turism är däremot sektorer som gynnas stort av det låga oljepriset både eftersom de förbrukar mycket olja och eftersom kunderna har mer pengar över att använda för semester och fritid tack vare att oljan har blivit billigare. ODIN Europa ökade sin exponering inom turism i december 2013 genom köpet av Tui Travel.

ODIN Europa Viktiga händelser 2014 3. Rysslands aggressivitet En av de mest skrämmande händelserna under 2014 var Rysslands annektering av Krim och invasionen av Ukraina. President Putins antivästpropaganda och uttalanden om att beskydda alla ryssar var i världen de än befinner sig, ger heller ingen ro i de baltiska staterna. Detta är en pågående konflikt som kommer att påverka även under 2015. Den ryska valutan, rubeln, har försvagats kraftigt. Samtidigt resulterar det låga oljepriset i minskade intäkter för landet. Ryssland har en tuff ekonomisk period framför sig. Bolag med stor export till Ryssland blir lidande. Det kommer att fortsätta under den närmaste tiden. För ODIN Europas del är det först och främst Adidas som påverkas. Med fjorton procent av omsättningen och över tjugo procent av rörelseresultatet exponerat mot Ryssland blev 2014 ett tungt år för sportutrustningsbolaget.

ODIN Europa Viktiga händelser 2014 3. PIGS ODIN Europa Geografisk fördelning PIGS var ett populärt ord 2011. PIGS var benämningen för de länder som påverkades mest negativt av finanskrisen. Spanien, Portugal och Irland är PIGS-länder och har tvingats offra enormt mycket i form av reformer och nedskärningar för att återupprätta sin konkurrenskraft och investerarnas tillit. Italia Sveits Irland Tyskland Grekland däremot utlyste omval i slutet av året och hamnade än en gång i rampljuset för sina svaga statsfinanser. Den grekiska aktiemarknaden föll 28 procent under 2014. Frankrike UK Varken Italien eller Frankrike (som inte från början fanns med bland PIGS-länderna) har gjort särskilt mycket för att förbättra sina situationer. ODIN Europa har inga investeringar i Grekland. Vi har dock bolag som är noterade i Frankrike och Italien. Det rör sig dock om globala bolag som inte är så beroende av den lokala ekonomin. Holland Danmark Norge Sverige

ODIN Europa I tabellen till höger visas de starkaste och svagaste bidragen till avkastningen i portföljen under 2014. Hälsosektorn var en av vinnarna på de europeiska börserna i år. Våra två bolag Shire och Novo Nordisk återfinns på första respektive fjärde plats på listan över de 25 bästa stora hälsobolagen i Europa. Shire blev föremål för uppköpsrykten, vilket fick investerarna att få upp ögonen för bolagets värde. Vi sålde bolaget strax innan budgivaren drog sig ur. Novo Nordisk susar vidare i takt med ökningen av antalet diabetiker. AMS, som tillverkar analoga halvledare till bland andra Apples iphone, ökade rörelseresultatet med 78 procent under 2014, vilket ungefär motsvarar aktiekursutvecklingen under året 73 procent. Bland de svagare bolagen hittar vi Prysmian, en av världens största tillverkare av kablar. Prysmian fick problem med ett stort projekt som halverade årets förväntade resultat. Utsikterna är dock fortsatt goda och vi förväntar oss ett betydligt bättre 2015. Amec är ett konsultbolag som levererar tjänster till olje- och energisektorn och de har blivit lidande tillsammans med den sektorn, samtidigt som det driftmässigt fortfarande går väldigt bra för bolaget. Adidas gav det svagaste bidraget till fondens avkastning under 2014. Med en svag golfmarknad och stor exponering mot Ryssland upplevde de en kraftig nedgång i rörelseresultatet för 2014 (ca 22 procent). Vi tror att det kommer att bli tufft även under kommande år. Efter 10 goda år i fonden var det med tungt hjärta vi sålde ut Adidas helt ur fonden under 2014. % 3 2,5 2 1,5 1 0,5 0-0,5-1 -1,5-2 Bidrag till avkastningen

ODIN Europa Det är i princip omöjligt att sia om hur aktiemarknaderna kommer att utvecklas på kort sikt. Därför väljer vi att inte säga någonting om hur fonden kommer att utvecklas under det kommande året. Men om det förflutna är ett bra tecken på hur framtiden kommer att se ut bör fondägande bli relativt lönsamt generellt och i synnerhet i en ODIN-fond. Om vi tittar på ODIN Europa som nyligen fyllde 10 år i ODIN familjen har avkastningen varit god och bättre än marknaden. En investering på 100 000 på dag ett hade gett 240 000 på kontot den 31 december, 2014. Under dessa tio år har det funnits stora utmaningar definitivt mer än normalt i Europa. Finanskrisen tog nästan knäcken på euron, banker och skuldtyngda bolag. Vi är övertygade om att det på lång sikt lönar sig att investera i aktier. Om du däremot behöver pengar till sommaren så är utfallet vid en investering i aktier mer en funktion av tur än av skicklighet. Så, kära kunder, var långsiktiga och spara i en fond som hela tiden eftersträvar att investera i bra bolag som över tid kommer att ge växande resultat. På de följande sidorna presenterar vi fondens bolag, ett för varje sida. Vi hoppas att detta ger dig en god inblick i vad det är du är delägare i genom ODIN Europa! 200 180 160 140 120 100 80 60 ODIN Europa jämfört med index (MSCI Europe) '10 '11 '12 '13 '14 (INDEX) Odin - Europa Units - Price (INDEX) MSCI Europe - Price

Nyckeltal och nyheter från portföljen presenteras på engelska

Portfolio Return Last 5 years % (EUR) ODIN Europa Historical Return % (EUR)* Index Portfolio Last Month 0,66 YTD 5,87 1 Y 5,87 3 Y 18,88 5 Y 11,36 10 Y 7,07 Since inception 2,03 Benchmark -1,86 6,66 6,66 14,37 8,89 5,78 2,54 Exess Return 2,53-0,79-0,79 4,51 2,46 1,29-0,51 * Returns for periods exceeding 12 months are annualized

Annual returns last 10 years

Sector allocation

Sector contribution, year to date

Current holdings

Contribution, year to date

Risk Statistics (NOK) 3 Years Alpha Beta Tracking Error Information Ratio Portfolio 1,96 1,11 6,70 0,70 Index Sharpe Ratio 1) 2,06 2,24 Standard Deviation 2) 11,45 8,40 1) Sharpe Ratio uses Norway - 3 MT Bills as risk free rate. 2) Standard Deviation is based upon monthly volatility.

Up or down In or out ODIN Europa Significant Portfolio changes year to date Number of changes in portfolio year to date 10 1 1 4 5 Buy Sell Q1 Q2 Q3-1 Q4-5 -9 Q1 Q2 Q3 Q4 + - + - + - + - Amec Publicis Bur. Veritas Allianz Holcim Aryzta Kerry Rolls Royce Arrow Global Nat. Suisse* Dignity Fresenius Elekta Continental Adidas Shire* Nutreco* GKN Travis Perkins Publicis Amec Bur. Veritas Syngenta Bur. Veritas Leoni * acquired 21

Pricing of the fund Company Weight Country Industry P/E (LTM)* P/E (NTM)* DivYield (LTM) DivYield (NTM) P/B ROE SAP SE 6,3% Germany Software 16,8 15,7 1,8 2,0 3,8 22,7 Publicis Groupe SA 4,8% France Media 16,9 15,0 2,0 2,3 2,3 13,7 Bureau Veritas SA 4,7% France Professional Services 19,9 17,8 2,7 2,9 7,4 37,2 Amec Foster Wheeler plc 4,4% United Kingdom Energy Equipment & Services 10,6 9,4 5,2 5,4 1,7 15,7 Prysmian S.p.A. 4,2% Italy Electrical Equipment 17,5 13,1 2,8 3,0 2,6 14,9 Aryzta AG 4,1% Switzerland Food Products 14,5 13,2 1,0 1,1 2,0 13,9 Unilever NV Cert. of shs 4,0% Netherlands Food Products 20,5 19,2 3,5 3,7 6,1 29,6 Spectris plc 3,8% United Kingdom Electronic Equipment Instruments 17,5 16,2 2,2 2,4 2,8 16,0 Diageo plc 3,7% United Kingdom Beverages 19,4 18,8 2,9 3,0 6,4 33,0 Novo Nordisk A/S Class B 3,7% Denmark Pharmaceuticals 26,0 22,5 1,8 2,1 16,1 61,9 Topp 10 43,8% 16,9 15,1 2,6 2,8 3,2 19,1 ODIN Europa 17,4 15,2 2,4 2,7 3,1 17,7 * NTM = Next 12 months LTM = Last 12 months Adjusted earnings and fully diltuted number of shares

MSCI World Price, Earnings and P/E

MSCI World Price, Book Value and P/B

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

The International Monetary Fund (IMF) Economic growth forecast 2014 - updated October

Investments - ODIN Europa

SAP SAP is the largest enterprise applications provider and one of the largest software companies worldwide. One primary aim of its software is to make different business functions work together such as financial systems, supply chain and production planning etc. Today, SAP is used by more than a million business users working for more than 100,000 customers across 120 countries. Large installed base of customers with very high retention rates of 98-99% creates a business model with sustainable high free cash flow generation. At current prices you do not pay much for future growth of the business. The risk relates primarily to large technological shifts, but historically the company has been able to adapt to changes. Currently its cloud-offering offers both risks and opportunities. 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 SAP SE SAP SE MSCI EUROPE Application Software Market Value (mill) 69 030 Price 56,19 Price currency EUR Net debt 1 507 Reporting currency EUR Enterprise Value (mill) 70 537 FX rate (NOK) 9,08 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 10 672 12 464 14 233 16 223 16 815 17 497 18 793 EBIT (operating Income) (mill) 2 802 3 591 3 939 4 081 4 572 5 664 6 014 Net Income (mill) 1 748 1 811 3 438 2 803 3 326 4 156 4 403 Price/earnings 25,7 27,6 21,0 25,3 20,1 16,2 15,2 Price/Book Value 4,6 4,6 3,8 5,1 4,6 3,7 3,3 EV/EBIT 13,5 12,9 12,0 18,4 16,6 12,1 11,0 Return on Equity (%) 22,3 19,8 30,6 20,9 22,1 21,8 20,8 Dividend yield (%) 1,5 1,6 2,7 1,4 1,6 1,8 2,0 28

Publicis Publicis is the world's third largest advertising and public relations agency. It has three core global ad agency networks, Leo Burnett, Publicis and Saatchi & Saatchi, and two multi-hub networks, Fallon and Bartle Bogle Hegarty. The group has operations in over 200 cities in 105 countries. We like Publicis focus on the shift to digital. The intension is to grow from 38 percent to 75 percent of sales by 2018. This change in mix will increase the overall profitability. Long-term margin targets underpins strong FCFgeneration. The company has an under-leveraged and extremely robust balance sheet. 300 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 PUBLICIS GROUPE PUBLICIS GROUPE MSCI EUROPE Advertising Market Value (mill) 12 824 Price 57,99 Price currency EUR Net debt -582 Reporting currency EUR Enterprise Value (mill) 12 242 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 4 524 5 418 5 816 6 610 6 953 7 178 8 108 EBIT (operating Income) (mill) 657 836 914 1 056 1 127 1 146 1 300 Net Income (mill) 403 526 600 732 792 802 896 Price/earnings 19,1 13,0 15,4 17,2 15,8 16,3 14,5 Price/Book Value 1,9 2,1 1,7 2,0 2,7 2,3 2,1 EV/EBIT 8,8 8,4 7,4 8,4 11,7 10,4 8,7 Return on Equity (%) 15,7 17,0 16,5 17,2 16,3 15,5 16,1 Dividend yield (%) 2,1 1,8 2,0 2,0 1,7 2,1 2,4 29

Bureau Veritas Bureau Veritas is the global number two player in the testing, inspection and certification industry. 300 Performance - last 5 years Its network covers more than 1300 offices and laboratories in 140 countries. The group is well diversified across sectors and industries. 180 years of history. Our investment thesis is built on solid barriers to entry (brand and reputation, accreditation requirements, network size), strong growth drivers (increased safety and quality standards, regulation and outsourcing) and an impeccable track record. The shareprice has been weighed down by some weak end markets in the short term. We expect additional value creation form acquisitions (fragmented market). 250 200 150 100 50 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 BUREAU VERITAS S BUREAU VERITAS S MSCI EUROPE Research and Consulting Servic Market Value (mill) 7 871 Price 17,81 Price currency EUR Net debt 1 363 Reporting currency EUR Enterprise Value (mill) 9 233 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 2 648 2 930 3 359 3 902 3 933 4 155 4 465 EBIT (operating Income) (mill) 405 456 480 518 590 671 731 Net Income (mill) 253 290 298 298 345 402 444 Price/earnings 23,9 20,2 31,3 29,8 22,5 19,3 17,6 Price/Book Value 8,1 7,3 5,8 8,1 9,7 7,2 6,2 EV/EBIT 11,5 15,9 15,1 20,4 18,1 14,4 13,1 Return on Equity (%) 66,5 43,5 31,2 26,9 32,9 37,7 36,0 Dividend yield (%) 2,3 2,0 2,3 2,2 2,3 2,8 3,0 30

Amec Foster Wheeler AMEC Foster Wheeler is one of the world s leading engineering, project management and consultancy companies for the oil and gas, mining, clean energy, environment and infrastructure markets. Amec has a capital light, low risk business model with less than 20 percent fixed price projects. The merger with Foster Wheeler which took place at the end of 2014 will be transformational. Foster Wheeler with more downstream and emerging markets exposure is a perfect fit to Amec s upstream, US and North Sea focus. Both sales and cost synergies will help drive growth in the coming years. We expect double digit earnings growth, 90-100% cash conversion and high consistent ROIC around 17 percent. 200 180 160 140 120 100 80 60 40 20 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 AMEC FOSTER WHEE AMEC FOSTER WHEE MSCI EUROPE Oil & Gas Equipment & Services Market Value (mill) 3 338 Price 870,50 Price currency GBp Net debt -121 Reporting currency GBP Enterprise Value (mill) 3 217 FX rate (NOK) 11,53 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 2 539 2 951 3 261 4 088 3 974 3 965 5 522 EBIT (operating Income) (mill) 126 201 232 311 315 289 399 Net Income (mill) 172 231 232 208 179 232 309 Price/earnings 24,3 12,0 16,0 16,0 13,6 11,3 9,9 Price/Book Value 2,6 3,1 2,2 2,9 2,9 1,8 1,8 EV/EBIT 15,4 15,7 11,0 9,6 10,1 12,6 9,0 Return on Equity (%) 16,9 20,1 17,5 17,0 16,3 16,7 17,9 Dividend yield (%) 2,2 2,3 3,4 3,6 3,9 5,1 5,3 31

Aryzta Aryzta is a global food business with a leadership position in specialty bakery. Aryzta was formed in 2008 when IAWS Group merged with Hiestand. Since then, the new company has made numerous, larger acquisitions in order to strengthen its position in the Limited Services Restaurants segment. Aryzta has more than 12,000 employees, and services more than 200,000 customers (McDonalds, Starbucks and Tim Hortons being the largest). Aryzta is the market leader in the par baking industry, which is set to grow faster than the other sub-segments within the global bakery market. Increasing exposure to high growth potential regions like Brazil and Malaysia. Investment in an ERP system and the restructuring plan (ATI) will lead to higher ROCE. Top management with strong financial background. One of a very few staples-names with good value upside. 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 ARYZTA AG ARYZTA AG MSCI EUROPE Packaged Foods & Meats Market Value (mill) 7 147 Price 77,85 Price currency CHF Net debt 1 654 Reporting currency EUR Enterprise Value (mill) 8 801 FX rate (NOK) 9,05 2010 2011 2012 2013 2014 2015E 2016E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 3 010 3 877 4 208 4 504 4 809 5 355 5 541 EBIT (operating Income) (mill) 222 302 338 363 436 572 612 Net Income (mill) 152 213 146 129 136 389 429 Price/earnings 16,7 13,4 25,4 42,9 53,8 13,9 12,9 Price/Book Value 1,7 1,5 1,5 1,5 2,2 2,1 1,9 EV/EBIT 17,8 14,1 13,9 14,0 17,7 13,3 11,9 Return on Equity (%) 10,3 11,4 6,4 4,3 3,9 13,8 14,0 Dividend yield (%) 1,2 1,2 1,3 1,4 1,1 1,1 1,2 32

Prysmian Prysmian is the world leader in the industry of cables and systems for energy and telecommunications. With over 130 years experience and a presence in more than 50 countries around the world the Group is strongly positioned at the high-tech end of the energy and telecom cable sectors. Prysmian is a quality player with the highest margins in the cable industry. We like its exposure to high-end products in segments (submarine cables, HV and Oil&Gas) where we expect strong structural growth in the coming years. Prysmian is increasing its exposure to Emerging Markets through selective growth in high value added business in order to protect ROCE. The steady value creation in Prysmian is undervalued in our view. 200 180 160 140 120 100 80 60 40 20 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 PRYSMIAN SPA PRYSMIAN SPA MSCI EUROPE Electrical Components & Equipm Market Value (mill) 3 171 Price 14,63 Price currency EUR Net debt 837 Reporting currency EUR Enterprise Value (mill) 4 008 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 3 731 4 571 7 583 7 848 7 273 6 789 7 088 EBIT (operating Income) (mill) 425 337 364 480 435 387 443 Net Income (mill) 248 148-136 166 149 189 246 Price/earnings 9,2 12,0 11,5 23,7 20,6 16,8 12,8 Price/Book Value 3,2 3,0 1,9 2,9 3,5 2,5 2,2 EV/EBIT 6,3 8,7 8,6 8,7 11,3 10,7 9,1 Return on Equity (%) 44,1 20,7-15,1 15,4 13,2 15,2 18,9 Dividend yield (%) 3,4 1,3 2,2 2,8 2,2 2,9 3,1 33

Unilever Unilever is the world's third-largest consumer goods company measured by revenue, after Procter & Gamble and Nestlé. Unilever remains the largest Emerging market FMCG company. Growth in emerging markets is supported by a resilient performance in developed countries. Management is slowly building a solid track record. Focus has shifted to accelerating the growth rate. Unilever has built some extremely strong brands (Dove, OMO, Knorr, Ben & Jerries etc.) and today their products are number 1 or 2 in 80 percent of their markets. Investing in the global food, home and personal care sector is a good way to play the theme of rising disposable income in the developing world. High value generation and defensive nature of the company makes Unilever a core holding. 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 UNILEVER NV-CVA UNILEVER NV-CVA MSCI EUROPE Packaged Foods & Meats Market Value (mill) 96 072 Price 31,49 Price currency EUR Net debt 8 257 Reporting currency EUR Enterprise Value (mill) 104 329 FX rate (NOK) 9,07 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 39 823 44 262 46 467 51 324 49 797 48 827 51 199 EBIT (operating Income) (mill) 5 020 6 627 6 420 6 977 7 517 7 367 7 423 Net Income (mill) 3 370 4 244 4 120 4 368 4 842 4 748 4 941 Price/earnings 19,6 16,6 20,1 18,1 18,4 19,6 18,3 Price/Book Value 5,3 4,5 5,2 5,3 5,8 5,7 5,2 EV/EBIT 14,1 11,0 13,1 12,8 12,2 14,1 13,9 Return on Equity (%) 30,6 32,0 28,6 29,4 32,6 31,7 29,0 Dividend yield (%) 2,0 3,5 3,3 3,3 3,6 3,5 3,7 34

Novo Nordisk Novo Nordisk is the world s leading diabetes care company, built on scientific innovation and patientcentered care. The company also holds leading positions in hemophilia care, growth hormone therapy and hormone replacement therapy. Less than 100m of the 350m people with diabetes, are treated. Of these, under half acheive good controll with their insulin levels. 600 500 400 300 200 100 Performance - last 5 years Novo Nordisk has a strong track record of sales growth with 13 percent p.a. over the last 10 years. With 50 percent marketshare, a good innovation pipeline and a growing market. 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 NOVO NORDISK-B MSCI EUROPE Novo is a solid value creator and core holding. NOVO NORDISK-B Pharmaceuticals Market Value (mill) 701 455 Price 264,70 Price currency DKK Net debt -14 254 Reporting currency DKK Enterprise Value (mill) 687 201 FX rate (NOK) 1,22 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 51 078 60 776 66 346 78 026 83 572 88 570 98 027 EBIT (operating Income) (mill) 14 933 18 891 22 374 29 474 31 493 33 979 38 615 Net Income (mill) 10 768 14 403 17 097 21 432 25 184 26 454 29 785 Price/earnings 34,5 25,6 30,0 24,4 28,2 26,3 22,8 Price/Book Value 5,3 9,4 9,8 12,2 12,3 16,1 14,6 EV/EBIT 11,9 6,1 13,8 14,2 16,2 20,3 17,9 Return on Equity (%) 31,3 39,6 46,0 54,9 60,5 61,8 68,3 Dividend yield (%) 2,3 1,6 2,1 2,0 2,3 1,8 2,1 35

Tui AG Tui AG is one of the world s leading leisure travel groups operating in over 180 countries with more than 30 million customers in 31 key markets. 300 250 Performance - last 5 years In a very competitve industry unique content forms the backbone to Tui s tour operating strategy. The increasing barriers to entry will be reflected in higher prices. Combined with a shift to online sales this will increase margins. Management is targeting between 7 and 10 percent profit growth and along with a dividend yield of 3.4 percent should result in a double digit return to shareholders. Furthermore, a rising ROCE and growing cash flow could also see the stock re-rated. Tui is pioneering the sustainability change in the sector. 200 150 100 50 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 TUI TRAVEL PLC TUI TRAVEL PLC MSCI EUROPE Hotels, Resorts & Cruise Lines Market Value (mill) 5 328 Price 437,60 Price currency GBp Net debt -529 Reporting currency GBP Enterprise Value (mill) 4 799 FX rate (NOK) 11,52 2010 2011 2012 2013 2014 2015E 2016E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 13 514 14 687 14 460 15 051 14 619 15 323 15 773 EBIT (operating Income) (mill) 384 447 490 543 764 670 723 Net Income (mill) -123 85 138 60 183 405 453 Price/earnings 20,1 22,6 73,3 26,7 13,1 11,9 Price/Book Value 1,2 0,9 1,7 2,8 2,8 2,8 2,5 EV/EBIT 6,9 3,8 5,6 7,3 5,1 7,1 6,1 Return on Equity (%) -5,9 4,4 8,0 4,0 12,0 25,5 25,0 Dividend yield (%) 5,1 7,6 5,0 3,7 6,3 3,4 3,7 36

Spectris Spectris develops and markets precision instrumentation and controls with a focus on providing niche applications which have a direct impact on process performance for end users. Started as an aviation company in 1915, diversified into high tech electronics and system engineering in 1980 and IPO-ed in 1988. Automation and productivity markets are attractive growth markets and we believe Spectris is the best player in the industry. Due to its leadership in niche businesses, Spectris enjoys very high margins. With a debt-free balance sheet Spectris remains well positioned to take advantage of further acquistions, which have historically provided an average 4 percent growth contribution between 2007 and 2013. This is a highly cash generative and asset light model run by excellent top managers. 450 400 350 300 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 SPECTRIS PLC SPECTRIS PLC MSCI EUROPE Electronic Equipment & Instrum Market Value (mill) 2 450 Price 2 060,00 Price currency GBp Net debt 104 Reporting currency GBP Enterprise Value (mill) 2 554 FX rate (NOK) 11,52 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 787 902 1 106 1 231 1 202 1 154 1 223 EBIT (operating Income) (mill) 69 130 176 231 217 196 214 Net Income (mill) 43 96 126 140 200 143 153 Price/earnings 34,7 14,6 18,5 20,5 12,2 17,1 15,7 Price/Book Value 2,1 3,2 2,7 3,5 3,6 2,8 2,6 EV/EBIT 15,0 13,2 11,1 11,5 14,5 12,9 11,4 Return on Equity (%) 9,7 20,4 22,6 21,6 26,0 16,3 16,7 Dividend yield (%) 3,3 2,1 2,6 1,9 1,7 2,2 2,4 37

Diageo Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, beer and wine. These brands include Johnnie Walker, Smirnoff, Baileys, Captain Morgan, Tanqueray and Guinness among others. 250 200 150 Performance - last 5 years The beverage market is attractive. Quoted spirit companies represent 300m cases, 12 percent of the global spirit market. Annual volume growth is between 5-7 percent. Global business, high leverage, margins increase y-o-y, Net earnings growing at 10 percent+. Diageo has consolidated a lot and ROIC is now at a low point at 14 percent and should improve as FX movements neutralize and sales return to growth. Looking forward, it is well-positioned to drive growth as it benefits from recovering economies in the US and Europe and the rising middle class in emerging markets especially in Latin America and Africa. Furthermore, it has a robust balance sheet that helps underpin dividend growth going forward. 100 50 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 DIAGEO PLC DIAGEO PLC MSCI EUROPE Distillers & Vintners Market Value (mill) 45 196 Price 1 798,00 Price currency GBp Net debt 8 592 Reporting currency GBP Enterprise Value (mill) 53 788 FX rate (NOK) 11,53 2010 2011 2012 2013 2014 2015E 2016E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 9 780 9 936 10 762 11 303 10 258 11 032 11 495 EBIT (operating Income) (mill) 2 574 2 884 3 198 3 380 3 121 3 266 3 423 Net Income (mill) 1 629 1 900 1 942 2 452 2 248 2 413 2 583 Price/earnings 17,8 17,8 23,4 19,7 19,3 18,8 17,5 Price/Book Value 7,3 6,1 7,4 6,7 6,9 5,8 5,1 EV/EBIT 14,5 13,6 15,6 16,7 18,0 17,0 16,1 Return on Equity (%) 45,4 41,1 35,9 38,8 32,4 30,9 29,2 Dividend yield (%) 3,6 3,2 2,6 2,5 2,8 3,0 3,3 38

Smurfit Kappa Smurfit Kappa manufactures paper-based packaging, supported by a network of paper, recycling and forestry operations. Sales in the Americas (25%) and Europe (75%). Smurfit Kappa provides compelling exposure to the fast growing LatAm corrugated markets and offers leverage to a cyclical recovery in Europe. The business model is cash generative and we see potential for M&A and associated synergies to supplement growth and returns on capital. In the absence of M&A we see potential for excess capital to be returned to shareholders through higher dividends. Performance - last 5 years 450 400 350 300 250 200 150 100 50 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 SMURFIT KAPPA GR MSCI EUROPE SMURFIT KAPPA GR Paper Packaging Market Value (mill) 4 058 Price 17,53 Price currency EUR Net debt 2 629 Reporting currency EUR Enterprise Value (mill) 6 687 FX rate (NOK) 9,06 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 6 057 6 677 7 357 7 335 7 957 8 016 8 314 EBIT (operating Income) (mill) 324 485 627 609 688 735 802 Net Income (mill) -122 50 206 240 188 339 406 Price/earnings 19,9 10,1 15,9 21,3 11,4 10,0 Price/Book Value 0,8 0,9 0,5 0,9 1,8 1,6 1,4 EV/EBIT 12,8 10,1 6,4 8,3 10,1 9,2 8,0 Return on Equity (%) -7,3 2,9 11,0 11,3 8,2 13,8 15,0 Dividend yield (%) 0,0 0,0 3,2 3,1 2,3 2,7 3,2 39

Leoni Leoni manufactures cables and cable harnesses for the automobile, construction as well as in key industrial sectors such as telecommunications, IT, health and energy. With a highly flexible low-cost manufacturing footprint in emerging Europe and Africa and close collaboration with the global auto manufacturers, Leoni is able to capture orders to develop cable harnesses for the lifespan of truck- and car models. Although they are operating in a highly cyclical environment, Leoni has consistently enjoyed high returns, with the exception of the financial crisis in 2009. With a record backlog, earnings are set to grow double digit in the next few years. 600 500 400 300 200 100 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 LEONI AG LEONI AG MSCI EUROPE Auto Parts & Equipment Market Value (mill) 1 587 Price 48,57 Price currency EUR Net debt 264 Reporting currency EUR Enterprise Value (mill) 1 850 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 2 160 2 956 3 701 3 809 3 918 4 093 4 420 EBIT (operating Income) (mill) -60 145 247 244 187 187 246 Net Income (mill) -138 67 156 157 106 116 162 Price/earnings 97,6 10,5 5,7 11,1 15,0 13,3 9,9 Price/Book Value 1,3 2,0 1,1 1,2 2,1 1,7 1,5 EV/EBIT #N/A N/A 9,9 4,4 4,9 10,9 10,2 7,6 Return on Equity (%) -33,9 15,8 25,6 20,6 13,1 13,4 16,5 Dividend yield (%) 0,0 2,1 5,8 5,3 1,8 2,5 3,3 40

Hugo Boss Hugo Boss is a leading supplier of premium fashion. Its brand portfolio covers all key fashion segments for both men (90 percent of sales) and women (10 percent), ranging from classic/business tailored fashions, evening (60 percent of sales) and casual fashion (30 percent) to shoes and leather accessories (10 percent). The group distributes its products through ownretail(50 percent of sales) and wholesale (50 percent). Hugo Boss has an attractive mediumterm story given the potential to increase penetration of retail, Greater China, womenswear, leather, luxury and digital shift to support high single digit revenue growth & EBITDA margin expansion. Private equity holds 33 percnt. 700 600 500 400 300 200 100 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 HUGO BOSS -ORD HUGO BOSS -ORD MSCI EUROPE Apparel, Accessories & Luxury Market Value (mill) 7 188 Price 102,10 Price currency EUR Net debt 37 Reporting currency EUR Enterprise Value (mill) 7 225 FX rate (NOK) 9,08 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 1 562 1 729 2 059 2 346 2 432 2 590 2 808 EBIT (operating Income) (mill) 158 264 395 434 457 482 539 Net Income (mill) 104 186 285 306 329 360 406 Price/earnings 29,7 20,4 19,4 22,8 21,4 19,5 17,3 Price/Book Value 6,9 9,8 7,6 9,1 10,0 8,4 7,2 EV/EBIT 11,4 13,7 10,1 13,0 15,8 14,9 13,2 Return on Equity (%) 51,8 68,1 67,6 55,4 49,8 46,0 44,2 Dividend yield (%) 4,7 4,1 5,2 3,9 3,2 3,6 4,1 41

AMS Ams is one of the leading analog semiconductor companies with a product range including sensors, sensor interfaces, power management ICs and wireless ICs, serving a variety of high-growth end markets, including consumer and communication, automotive, industrial and medical. We see significant growth potential in NFC payment solutions and in optical and gesture sensors. ams is continuously expanding gross margins due to favorable product mix shift and upgrade of process technology (3D packaging) in existing fab. Lower depreciation and operating leverage will also drive the margin going forward. The R&D competence is strong and barriers to entry high in analog technology. As a major supplier to Apple and Samsung (30 percent of sales) they face a risk if taken off their supplier lists. 1000 900 800 700 600 500 400 300 200 100 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 AMS AG AMS AG MSCI EUROPE Semiconductors Market Value (mill) 2 610 Price 35,65 Price currency CHF Net debt -39 Reporting currency EUR Enterprise Value (mill) 2 572 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 137 209 276 388 378 463 530 EBIT (operating Income) (mill) -18 27 42 85 65 111 134 Net Income (mill) -17 23 35 82 61 103 124 Price/earnings 13,5 13,4 26,2 13,2 32,7 19,7 16,5 Price/Book Value 0,9 1,9 1,2 2,8 2,9 3,8 3,2 EV/EBIT #N/A N/A 13,8 10,9 13,5 19,0 19,0 15,1 Return on Equity (%) -9,1 12,7 13,5 22,1 14,2 21,1 21,4 Dividend yield (%) 0,0 1,4 2,0 1,8 1,2 1,1 1,5 42

Dixons Carphone Dixons Carphone is a merger between Dixons and Carphone Warehouse. A leading specialist electronics and a telecommunications retailer in Europe. The Company operates 2,900 stores in twelve European countries. 62% from the UK, 26% from the Nordics. Dixons Carphone should benefit from its dominant position in the UK/Nordics, increasing profitability from 100m GBP in merger synergies and the rollout of connect world services. Revenue uplift from Carphone shop in shops at Dixons, procurement benefits from greater size 8bn GBP annual purchases, HQ cost savings and reduction in property losses and financing costs will drive double digit earnings in the years to come. 180 160 140 120 100 80 60 40 20 Performance - 2014 0 Dec-13 Jan-14 Feb-14Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 DIXONS CARPHONE DIXONS CARPHONE MSCI EUROPE Computer & Electronics Retail Market Value (mill) 5 125 Price 445,20 Price currency GBp Net debt 8 Reporting currency GBP Enterprise Value (mill) 5 133 FX rate (NOK) 11,52 2010 2011 2012 2013 2014 2015E 2016E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) #N/A N/A #N/A N/A 3 313 3 694 2 505 10 501 10 752 EBIT (operating Income) (mill) #N/A N/A #N/A N/A 128 119 133 386 447 Net Income (mill) #N/A N/A #N/A N/A -109-5 48 258 312 Price/earnings 9,4 9,5 51,8 20,1 16,7 Price/Book Value #N/A N/A #N/A N/A 0,6 0,7 2,2 1,8 1,7 EV/EBIT #N/A N/A #N/A N/A 3,9 4,1 14,4 12,9 11,1 Return on Equity (%) #N/A N/A #N/A N/A #N/A N/A -0,6 5,6 10,8 10,5 Dividend yield (%) #N/A N/A #N/A N/A 0,0 0,0 1,8 1,6 2,0 43

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. 250 200 150 100 Performance - last 5 years Telecom operators face challenges in mature markets through price competition and pressure on networks. Telenor does however have substantial part of its operatioins in emerging markets such as India, Bangladesh and Pakistan, which still offers great potential through increased penetration and data usage. Telenor, with top 3 positions in all markets (except India), should therefore be able to grow going forward. Hence, we believe pricing today is attractive.. 50 0 2009 2010 2011 2012 2013 2014 TELENOR ASA TELENOR ASA MSCI EUROPE Integrated Telecommunication S Market Value (mill) 229 122 Price 152,60 Price currency NOK Net debt 46 314 Reporting currency NOK Enterprise Value (mill) 275 436 #N/A Invalid FX rate (NOK) Security 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 90 748 94 843 98 516 101 718 104 027 109 814 114 652 EBIT (operating Income) (mill) 15 170 12 501 14 733 17 578 21 478 25 221 25 821 Net Income (mill) 8 653 14 334 7 165 8 809 8 748 12 633 15 713 Price/earnings 10,7 22,2 20,4 24,8 26,6 18,4 14,9 Price/Book Value 1,8 1,8 1,9 2,4 3,0 3,1 3,0 EV/EBIT 11,2 14,6 12,0 12,5 12,5 11,0 10,7 Return on Equity (%) 11,0 17,5 8,3 11,2 11,9 17,1 21,1 Dividend yield (%) 3,1 4,0 5,1 5,3 4,8 5,0 5,5 44

Ultra Electronics Ultra is a UK-based electronics company with exposure to defence (55 percent), cyber security (22 percent) and transport & energy (23 percent). The company is operated with a lean management structure overseeing 29 operationally autonomous businesses driven through innovation and growing through M&A. The goup provides a unique model with specialist solutions into 180 different niche end-markets. We see Ultra as a growth story capable of doing better than peers in a hostile market environment (at the moment). Ultra has historically generated a sector leading FCF generation rate of 80 percent and ROCE of 21 percent, underpinned by the innovation-driven business model and successful M&A. Cheap quality for the time being. 180 160 140 120 100 80 60 40 20 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 ULTRA ELECTRONIC ULTRA ELECTRONIC MSCI EUROPE Aerospace & Defense Market Value (mill) 1 231 Price 1 760,00 Price currency GBp Net debt 16 Reporting currency GBP Enterprise Value (mill) 1 247 FX rate (NOK) 11,52 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 651 710 732 761 745 747 788 EBIT (operating Income) (mill) 103 89 97 85 100 118 124 Net Income (mill) 78 66 66 61 38 85 91 Price/earnings 14,4 14,5 17,3 21,1 32,1 14,4 13,7 Price/Book Value 5,1 4,8 3,6 3,7 4,2 3,5 3,1 EV/EBIT 9,4 12,8 11,0 14,1 13,6 11,4 10,6 Return on Equity (%) 47,9 31,1 25,0 20,4 12,0 24,5 23,9 Dividend yield (%) 2,3 2,0 2,6 2,4 2,2 2,5 2,6 45

Syngenta Syngenta is one of the leading companies worldwide dedicated to «bringing plant potential to life» through products and services which enable yield improvement through crop protection and seed production. Key crops include vegetables, soybean, sugar cane, corn and rice. Syngenta is listed in Switzerland but operates globally in 90 countries. Emerging markets will, in the coming years, constitute about half of revenues. We believe the company will grow its top-line high single digit in the coming years up to about 25bn USD in 2020 driven by strong demand for crop protection and seeds due to robust farm incomes supporting investment globally and a tight global grain supply. 200 180 160 140 120 100 80 60 40 20 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 SYNGENTA AG-REG SYNGENTA AG-REG MSCI EUROPE Fertilizers & Agricultural Che Market Value (mill) 29 129 Price 313,40 Price currency CHF Net debt 2 303 Reporting currency USD Enterprise Value (mill) 31 432 FX rate (NOK) 7,37 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 10 992 11 641 13 268 14 202 14 688 15 088 15 573 EBIT (operating Income) (mill) 1 907 1 952 2 282 2 527 2 291 2 192 2 442 Net Income (mill) 1 371 1 397 1 599 1 847 1 644 1 742 1 924 Price/earnings 18,8 18,4 23,4 19,3 17,9 16,9 15,3 Price/Book Value 3,7 3,6 3,6 4,2 3,9 2,9 2,7 EV/EBIT 14,7 14,6 12,3 15,3 17,0 14,5 12,9 Return on Equity (%) 21,1 19,2 21,4 22,7 18,0 17,2 18,1 Dividend yield (%) 2,0 2,4 3,0 2,4 2,5 3,4 3,7 46

Berendsen Berendsen is a focused European textile service business with leading positions in most of the countries in which they operate. Their customers are industrial (workwear), hotels & restaurants (linen and tablewear) and general commercial buildings (mats). Berendsen s earnings are to some extent driven by the manufacturing cycle in Europe and increased hotel usage. With a new CEO and strategy in place, there is ample opportunity for improvement in operating margins and ROCE through group wide benchmarking and sharing of best practices. Berendsen has a cash conversion of close to 100 percent and there are opportunities to consolidate the market in Europe. 350 300 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 BERENDSEN PLC BERENDSEN PLC MSCI EUROPE Diversified Support Services Market Value (mill) 1 815 Price 1 052,00 Price currency GBp Net debt 389 Reporting currency GBP Enterprise Value (mill) 2 204 FX rate (NOK) 11,51 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 971 986 992 985 1 054 1 041 1 064 EBIT (operating Income) (mill) 112 123 139 141 157 161 168 Net Income (mill) 45 22 57 70 85 106 114 Price/earnings 15,9 32,9 17,8 22,1 21,1 17,0 15,7 Price/Book Value 1,5 1,6 1,6 2,1 3,1 3,3 3,0 EV/EBIT 10,5 10,5 9,1 10,6 12,8 13,4 12,5 Return on Equity (%) 9,4 4,7 12,4 14,8 16,7 18,4 18,9 Dividend yield (%) 5,0 4,9 5,4 4,3 3,0 2,9 3,1 47

Teleperformance Teleperformance is the worldwide leader in multichannel customer experience. Founded in 1978 by Daniel Julien, the company is specialized in customer service, technical support, call center, debt collection and social media. The company operates about 100,000 computerized workstations, with more than 148,000 employees across 270 contact centers in 62 countries. 300 250 200 150 100 50 Performance - last 5 years The outsourcing client contact center market remains largely underpenetrated and has thus a solid growth potential. Higher barriers to entry, as a result of higher technology and stronger client dependence, should limit the natural price pressure in the industry. Free cash flow yield is high and ROCE is expeced to improve further. We believe the cash return to shareholders will increase (net cash today). 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 TELEPERFORMANCE TELEPERFORMANCE MSCI EUROPE Research and Consulting Servic Market Value (mill) 3 213 Price 56,17 Price currency EUR Net debt -87 Reporting currency EUR Enterprise Value (mill) 3 126 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 1 848 2 058 2 126 2 347 2 433 2 730 3 112 EBIT (operating Income) (mill) 130 119 152 193 199 255 308 Net Income (mill) 88 72 92 127 129 171 204 Price/earnings 15,8 12,6 16,9 18,4 24,7 18,5 15,5 Price/Book Value 1,2 1,2 0,7 1,1 1,8 2,1 2,0 EV/EBIT 9,8 12,0 6,1 7,5 12,3 13,4 10,9 Return on Equity (%) 8,2 6,2 7,4 9,6 9,3 11,5 12,8 Dividend yield (%) 1,5 1,3 2,7 2,5 1,8 1,7 1,9 48

C&C Group Produces cider and beer, sells primarily in UK & Ireland, US and to export markets. Cider, 2/3 of profits. Major brands are Bulmers in Ireland and Magners in the UK in the premium segment. Beer comprises 1/3 of profits with the major brand Tennant in Scotland. C&C is positioned to benefit from the internationalisation of cider. With an excellent portfolio of brands and strong management team. Following recent acquisitions in the beverage distribution space, C&C has materially strengthened its routes to market in Scotland and Ireland. Looking ahead, the significant work carried out integrating VHCC should start to bear fruit in due course and with a robust balance sheet, management has flexibility on how to drive further shareholder value in the future. 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 C&C GROUP PLC C&C GROUP PLC MSCI EUROPE Distillers & Vintners Market Value (mill) 1 208 Price 3,47 Price currency EUR Net debt 145 Reporting currency EUR Enterprise Value (mill) 1 353 FX rate (NOK) 9,08 2010 2011 2012 2013 2014 2015E 2016E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 363 510 481 477 620 690 709 EBIT (operating Income) (mill) 75 77 121 115 124 127 131 Net Income (mill) 74 300 96 89 83 102 110 Price/earnings 18,1 12,7 15,1 15,8 14,1 11,5 10,8 Price/Book Value 2,7 1,8 1,7 2,1 2,0 1,3 1,2 EV/EBIT 17,0 15,0 9,2 15,4 14,6 10,3 9,5 Return on Equity (%) 25,4 61,7 14,1 12,0 10,2 11,4 11,3 Dividend yield (%) 2,2 1,9 2,3 1,8 2,0 3,1 3,5 49

IMI IMI is a global engineering group focused on the precise control and movement of fluids in critical applications. The company is split into 3 divisions Critical Engineering, Precision Engineering and Hydronic Engineering. The solutions are addressing global trends such as clean energy, energy efficiency, healthcare and increasing automation. IMI s margins and capital returns are best-in-class! Growth has been lagging peers. Longer term, we think there are opportunities to improve the growth profile of the group, led by the new CEO Mark Selway (strong background in operational excellence). Near-term investment needs to fuel future growth will weigh on near-term margins, but these will be self-funded from efficiency savings. Self-help potential. 500 450 400 350 300 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 IMI PLC IMI PLC MSCI EUROPE Industrial Machinery Market Value (mill) 3 316 Price 1 220,00 Price currency GBp Net debt 206 Reporting currency GBP Enterprise Value (mill) 3 522 FX rate (NOK) 11,52 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 1 785 1 917 2 135 1 696 1 744 1 693 1 795 EBIT (operating Income) (mill) 237 321 373 300 321 287 312 Net Income (mill) 130 225 205 216 224 216 230 Price/earnings 22,8 10,8 17,0 26,7 20,2 15,6 14,4 Price/Book Value 4,4 6,1 4,6 5,9 8,7 6,2 5,4 EV/EBIT 8,1 10,6 7,3 13,1 17,0 12,3 11,3 Return on Equity (%) 30,6 48,6 37,5 36,0 36,2 36,3 38,0 Dividend yield (%) 4,1 2,8 3,9 3,0 2,3 3,1 3,3 50

Arrow Global Arrow Global is one of the largest and fastest-growing purchasers of defaulted unsecured consumer debt portfolios in UK. It primarily sources loan portfolios from financial services companies (bank and credit card operators), but also acquires from retailers and telecommunication companies. The company has a strong underwriting track record and internal rate of return above 20 percent since inception. Barriers to entry are focus around data and analytics capability and increased level of regulation. We believe Arrow is well positied to take market shares in a high growth debt purchase market and sustaining a return on equity in the mid-to-high 20 s. 140 120 100 80 60 40 20 Performance - last 1 year 0 Oct-13 Apr-14 Oct-14 ARROW GLOBAL ARROW GLOBAL MSCI EUROPE Specialized Finance Market Value (mill) 403 Price 231,00 Price currency GBp Net debt 170 Reporting currency GBP Enterprise Value (mill) 573 FX rate (NOK) 11,52 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) #N/A N/A 20 50 66 95 108 150 EBIT (operating Income) (mill) #N/A N/A -2 7 13 34 57 83 Net Income (mill) #N/A N/A -2 4 9 15 28 37 Price/earnings 23,1 13,5 10,8 Price/Book Value #N/A N/A #N/A N/A #N/A N/A #N/A N/A 4,4 3,2 2,7 EV/EBIT #N/A N/A #N/A N/A #N/A N/A #N/A N/A 18,9 12,6 9,4 Return on Equity (%) #N/A N/A #N/A N/A #N/A N/A 120,9 25,7 24,8 26,1 Dividend yield (%) #N/A N/A #N/A N/A #N/A N/A #N/A N/A #N/A N/A 2,3 2,8 51

Groupe SEB SEB is the world leader in small household appliances with a 10 percent market share in small electrical appliances and 15 percent in cookware. The group owns 19 brands and covers a large part of the market from the low-end to the high-end. 250 200 150 Performance - last 5 years The group sells its products in more than 120 countries with a high exposure to emerging markets that represents 48 percent of group sales. SEB enjoys leadership position in emerging markets, where growth is solid, demand exceeds supply and penetration rate is still low. SEB is highly focused on innovation, which is key to success in mature markets. The product portfolio is very diversified with well-known brands and the track-record of integrating acquired companies is good. The margins are relatively resillient due to smaller products than peers. 100 50 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 SEB SA SEB SA MSCI EUROPE Household Appliances Market Value (mill) 3 066 Price 61,12 Price currency EUR Net debt 415 Reporting currency EUR Enterprise Value (mill) 3 482 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 3 176 3 652 3 963 4 060 4 161 4 232 4 464 EBIT (operating Income) (mill) 322 388 411 367 373 336 373 Net Income (mill) 146 220 236 194 200 185 213 Price/earnings 24,6 12,1 11,7 15,9 14,8 16,2 14,1 Price/Book Value 1,7 2,7 2,3 2,0 2,4 2,0 1,8 EV/EBIT 6,9 10,4 8,7 9,2 10,3 10,7 9,3 Return on Equity (%) 14,7 17,8 18,0 15,2 14,7 12,3 13,1 Dividend yield (%) 2,6 1,5 2,2 2,4 2,1 2,3 2,5 52

Fresenius Fresenius engages in the provision of healthcare related products and services. The company has a diversified revenue base with operations in renal dialysis, German hospitals, infusion solutions, clinical nutrition, medical devices and health care infrastructure. All the businesses are supported by underlying demand growth driven by an aging population, growing per capita healthcare consumption in emerging markets and continuing growth of generics. Our investment in Fresenius is based on its leadership positions in attractive markets, strong management team and outstanding track record of generating shareholder value. 450 400 350 300 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 FRESENIUS SE & C FRESENIUS SE & C MSCI EUROPE Health Care Services Market Value (mill) 22 877 Price 42,25 Price currency EUR Net debt 12 374 Reporting currency EUR Enterprise Value (mill) 35 251 FX rate (NOK) 9,05 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 14 164 15 972 16 361 19 290 20 331 23 046 25 182 EBIT (operating Income) (mill) 2 054 2 418 2 563 2 983 2 991 3 138 3 554 Net Income (mill) 494 622 690 926 1 011 1 092 1 277 Price/earnings 20,5 18,0 21,0 20,3 22,4 20,9 18,0 Price/Book Value 1,6 2,1 2,0 2,0 2,4 2,5 2,3 EV/EBIT 9,1 9,2 10,2 10,6 12,7 13,4 11,6 Return on Equity (%) 12,1 13,5 12,6 13,6 12,8 12,6 13,4 Dividend yield (%) #N/A N/A 1,4 1,3 1,3 1,1 1,0 1,2 53

Continental Continental is the largest automotive supplier in the world with over 140 years of history. 3 out of 4 cars have Continental content. We view Continental as one of the highest quality and best-positioned car suppliers globally, exposed to some of the most attractive segments of the component industry. 600 500 400 300 200 Performance - last 5 years It is also the most efficient mid-size tyre maker with a great non-tyre rubber business. This good balance between different types of businesses provides Continental with a more stable backdrop than most pure plays among suppliers. Continental will continue to outperform global car production due to increased content related to emission reduction and safety. Both supported by mandatory targets/laws set by authorities worldwide. 100 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 CONTINENTAL AG CONTINENTAL AG MSCI EUROPE Auto Parts & Equipment Market Value (mill) 34 171 Price 170,85 Price currency EUR Net debt 5 721 Reporting currency EUR Enterprise Value (mill) 39 892 FX rate (NOK) 9,06 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 20 096 26 047 30 505 32 736 33 331 34 584 37 448 EBIT (operating Income) (mill) -385 2 057 2 646 3 198 3 285 3 710 4 278 Net Income (mill) -1 649 576 1 242 1 905 1 923 2 511 2 780 Price/earnings 16,1 13,8 16,5 17,8 13,5 12,3 Price/Book Value 1,7 2,0 1,3 2,3 3,5 3,1 2,6 EV/EBIT #N/A N/A 10,1 6,9 7,8 11,5 10,4 8,7 Return on Equity (%) -36,5 12,0 19,1 25,5 22,9 24,7 22,2 Dividend yield (%) 0,0 0,0 3,1 2,6 1,6 1,8 2,1 54

Bunzl Bunzl is a multinational distribution and outsourcing company. Primarily a distributor of a diverse range of non-food consumable products including food packaging, cleaning and hygiene supplies, personal protective equipment and carrier bags. Bunzl has operations in 23 countries: almost half of its business is conducted in North America, with major operations in Europe as well as a smaller presence in Australasia and Brazil. Business model entails acquisition growth, over the last 10 years Bunzl has made 80 acquisitions for 1.7bn GBP at 6-8x EBIT. The business grows underlying at GDP+, customers are able to outsource to Bunzl the purchasing, consolidation and delivery of a broad range of products, thereby enabling them to achieve efficiencies and savings. Operational efficiencies on Bunzl s side result in high ROIC of 17-18 percent. 350 300 250 200 150 100 50 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 BUNZL PLC Performance - last 5 years BUNZL PLC MSCI EUROPE Trading Companies & Distributo Market Value (mill) 5 744 Price 1 716,00 Price currency GBp Net debt 856 Reporting currency GBP Enterprise Value (mill) 6 600 FX rate (NOK) 11,54 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 4 649 4 830 5 110 5 359 6 098 6 149 6 468 EBIT (operating Income) (mill) 254 255 280 294 332 402 426 Net Income (mill) 149 159 124 191 207 280 299 Price/earnings 15,6 17,3 27,9 23,5 27,0 20,5 19,3 Price/Book Value 3,5 3,2 3,9 4,0 5,1 5,6 5,0 EV/EBIT 12,3 12,9 13,6 14,8 17,1 16,4 15,1 Return on Equity (%) 22,8 21,6 15,4 22,6 22,7 27,3 25,6 Dividend yield (%) 3,2 3,2 3,0 2,8 2,2 2,0 2,1 55

Dignity Dignity is the second-largest provider of funeral services and the largest provider of cremations in the UK. UK mortality rate, which has been falling in recent years, is now expected to stabilise and then begin to increase in the medium term driving an increased demand for funeral services. The typical client chooses a funeral provider based on reputation, as opposed to price. Dignity has historicaly been able to increase prices in excess of inflation. The funeral services industry remains largely fragmented, with 70 percent of the market consisting of companies with less than one percent market share, and therefore still presents significant scope for Dignity to further consolidate the market. Strong cashflow and returns at an ok price. 400 350 300 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 DIGNITY PLC DIGNITY PLC MSCI EUROPE Specialized Consumer Services Market Value (mill) 893 Price 1 816,00 Price currency GBp Net debt 345 Reporting currency GBP Enterprise Value (mill) 1 238 FX rate (NOK) 11,52 2009 2010 2011 2012 2013 2014E 2015E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 185 199 210 230 257 267 283 EBIT (operating Income) (mill) 58 60 65 69 78 84 89 Net Income (mill) 27 29 34 36 40 44 48 Price/earnings 16,9 17,7 16,8 21,0 24,9 22,2 18,7 Price/Book Value 10,9 #N/A N/A 26,1 13,3 18,0#N/A N/A #N/A N/A EV/EBIT 10,7 11,5 11,7 12,5 14,1 15,3 14,4 Return on Equity (%) 98,7 #N/A N/A #N/A N/A 115,5 93,1#N/A N/A #N/A N/A Dividend yield (%) 2,0 1,2 1,8 1,5 0,8 1,1 1,2 56

Elekta Elekta is one of the global market leaders in the production and service of radiotherapy hardware and software. Their products and services are mainly used in the treatment of cancers. The company operates in a global duopoly with Varian Medical Systems. We find the long term industry potential attractive, where penetration in emerging markets will increase in the medium to long term. The new CEO has a strong focus on operational efficiencies and cash conversion. With the launch of new products in the coming years we are positive towards the fundamental development going forward. 400 350 300 250 200 150 100 50 Performance - last 5 years 0 10.2009 10.2010 10.2011 10.2012 10.2013 10.2014 ELEKTA AB-B ELEKTA AB-B MSCI EUROPE Health Care Equipment Market Value (mill) 30 971 Price 80,90 Price currency SEK Net debt 2 239 Reporting currency SEK Enterprise Value (mill) 33 210 FX rate (NOK) 0,96 2010 2011 2012 2013 2014 2015E 2016E -4FY -3FY -2FY -1FY 0FY 1FY 2FY Sales (mill) 7 392 7 904 9 048 10 339 10 694 11 711 12 690 EBIT (operating Income) (mill) 1 193 1 409 1 775 2 042 1 807 2 001 2 250 Net Income (mill) 838 1 031 1 227 1 340 1 148 1 393 1 628 Price/earnings 28,5 25,5 31,4 26,9 26,9 21,8 18,6 Price/Book Value 5,4 6,7 6,5 6,8 5,6 4,5 4,0 EV/EBIT 14,5 18,2 19,7 19,6 20,4 16,4 14,4 Return on Equity (%) 28,9 29,1 27,8 25,4 19,5 21,4 22,7 Dividend yield (%) 1,6 1,5 1,5 2,0 1,6 2,6 2,7 57

Investment Objective Long term value creation

Investment Philosophy Performance - prospects - price

Om ODIN Europa ODIN Europa är en aktivt förvaltad aktiefond som investerar i aktiebolag som är börsnoterade i Europa eller har sitt huvudkontor eller sitt ursprung där. Fondens långsiktiga mål är att ge högre avkastning än den europeiska aktiemarknaden, mätt med fondens referensindex. Fakta om fonden Startår 15.11.1999 Referensindex MSCI Europe Net Index USD Basvaluta NOK Förvaltningsavgift 2 % Tecknings-/inlösenavgift 0 % Minsta teckningsbelopp 500 EUR 60

Om förvaltarna Ansvarig förvaltare Alexandra Morris kom till ODIN 2004. Hon är utbildad civilekonom från universitetet i St. Gallen och är auktoriserad finansanalytiker. Utöver sin långa erfarenhet av och insikt i aktiemarknaderna internationellt från sina år som portföljförvaltare på ODIN har Alexandra också erfarenhet som ledare för investor relations, finansanalytiker i mäklarhus och som business controller. Förvaltare Håvard Opland kom till ODIN 2006. Han är utbildad civilekonom med specialisering i finans från Universitetet i Agder och är auktoriserad finansanalytiker. Håvard har under sina år på ODIN skaffat sig en betydande insikt i aktiemarknaderna internationellt och de senaste åren har han i nära samarbete med Alexandra fokuserat särskilt på Europa. 61

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