ODIN Norge. Forvalters årskommentar 2014

Transkript

1 ODIN Norge Forvalters årskommentar 214

2 2 Fondets portefølje

3 ODIN Norge desember Avkastning siste måned og hittil i år Fondet leverte i siste måned en avkastning på 5,4 prosent. Referanseindeksens avkastning var 2,2 prosent. Hittil i år er fondets avkastning 12,6 prosent. Referanseindeksens avkastning er 5,7 prosent hittil i år. Kjøp og salg siste måned og hittil i år Vi har i desember kjøpt aksjer i Prosafe og solgt alle våre aksjer i Norsk Hydro, Farstad Shipping og Photocure. Hittil i år er de største endringene kjøp av Borregaard, DnB, Norwegian Air og Opera Software, samt salg av Ganger Rolv, Hafslund B, Nordic Semiconductor, Royal Caribbean Cruises, Statoil, Aker Solution, Norsk Hydro, Austevoll Seafood, Photocure og Farstad Shipping.. Bidragsytere siste måned og hittil i år De beste bidragsyterne siste måned var PGS, Yara, Borregaard, Tomra og Subsea 7. De svakeste bidragsytere var DNB, Kongsberg Gruppen, Farstad, Q-Free og SR-Bank. Hittil i år er de beste bidragsyterne Statoil, Yara, Salmar, Schibsted og Marine Harvest. De svakeste bidragsyterne hittil i år er Det norske oljeselskap, PGS, Subsea 7, Farstad og EMGS. 3

4 ODIN Norge desember Prising av fondet Fondet prises til 11,1 ganger neste 12 måneders resultater Fondet gir en direkteavkastning på 4,2 prosent. I tillegg kommer tilbakekjøp av aksjer i selskapene. Målt mot bokført egenkapital prises fondet til 1,4 ganger. Selskapene i fondet har en gjennomsnittlig egenkapitalavkastning på 11,4 prosent. Prising av det norske aksjemarkedet fondsindeksen OSEFX Markedet prises til 11,2 ganger neste 12 måneders resultater. Markedet gir en direkteavkastning på 4, prosent. Målt mot bokført egenkapital prises markedet til 1,4 ganger. Selskapene i Oslo Børs Fondsindeks har en gjennomsnittlig egenkapitalavkastning på 11, prosent. Makroøkonomi Seneste registrering av OECDs ledende økonomiske indikatorer peker mot fortsatt vekst i området, men veksttakten er nå svakt fallende, men synes å ha stabilisert seg siste måneder. 4

5 Relativ Avkastning til OSEFX 214 ODIN Norge Forvalters årskommentar året da ODIN Norge slo tilbake ODIN Norge skapte god avkastning i 214 for sine andelseiere, både absolutt og relativt til markedet. Fondet hadde en avkastning på 12,6%, noe som er 5,7% bedre enn markedet. Fondet har slitt med mindreavkastning i forhold til markedet de siste årene og det har blitt gjort store endringer i fondet for å snu denne trenden. Det er derfor tilfredsstillende å se resultater av disse endringene. Det er flere grunner til at fondet gjorde det bedre enn markedet. Fondet eide mye Statoil i første halvdel av året, men solgte seg helt ut i løpet av sommeren og unngikk dermed den kraftige nedturen i aksjekursen i siste del av året. Fondet har i tillegg hatt begrenset eksponering mot oljeservice og har blant annet unngått å eie aksjer i Seadrill, Prosafe eller Fred Olsen Energy. Gode nyheter og reprising av flere av våre teknologiinvesteringer har også bidratt positivt (dette gjelder blant annet Vizrt og Schibsted). Nye investeringer i fondet, slik som Norwegian, Borregaard, DNB og Opera Software, har også bidratt til positiv avkastning for fondet. 3,5% 3,% 2,5% 2,% 1,5% 1,%,5%,% 6,% 4,% 2,%,% -2,% -4,% -6,% jan. 14 ODIN Norge, mer-/mindreavkastning feb. mar. apr. mai. jun jul. 14 aug. 14 sep. 14 Source: ODIN okt. 14 nov. 14 ODIN Norge: Bidrag til avkastning 214 STATOIL YARA SALMAR SCHIBSTED MARINE HARVEST des. 14 jan. 15 BORREGAARD NORSK HYDRO NORWEGIAN AIR 5

6 per fat ODIN Norge Forvalters årskommentar Oslo Børs preget av lavere oljepris Oljeprisfallet har preget Oslo Børs den senere tid. Oljeprisen falt hele $53 i 214, det største årlige prisfallet i historien (oljeprisen falt $48 i 28). Oljeprisfallet forklares med svak etterspørsel, økt skiferproduksjon i USA, økt produksjon i Libya og Irak og OPEC som besluttet å la kvotene være uendret. Prisfallet påvirker spesielt to sektorer på Oslo Børs, olje- og oljeservice-selskapene. Disse to sektorene utgjør likevel ikke mer enn 24% av fondsindeksen. I tillegg frykter markedet at bankene vil få økte tap som følge av lavere inntjening hos sine lånekunder. Noen av selskapene på Oslo Børs vil få fordeler av lavere oljepris, fordi olje er en del av kostnaden for å drive sin virksomhet. Flyindustrien, cruise og shipping vil bedre resultatene sine med lavere oljepris, alt annet like. Det samme vil gjelde for energikrevende industriselskaper. Selv om oljepris er viktig for den norske børsen, så er betydningen mindre enn mange tror. Oljepris, brent $14 $12 $1 $8 $6 $4 $2 $ Oslo Børs, fondsindeksen Oljeservice 13 % Helse % Shipping 3 % Olje 11 % IT 4 % Telekom 9 % Industri 7 % Fiskeoppdrett 7 % Finans 15 % Bygg 4 % Varig konsumgoder 12 % Råmateriale 15 % Source: Bloomberg, ODIN 6

7 ODIN Norge Forvalters årskommentar norsk oljeservice-indeks ned 41% Allerede før oljeprisen begynte å falle kraftig, hadde oljeselskapene som mål å forbedre sin kontantstrøm, slik at eierne skulle få tilbakebetalt mer i utbytte. Oljeselskapene hadde de siste årene oppnådd svakere avkastning på investert kapital, til tross for kraftig økning i oljeprisen. Økt fri kontantstrøm skulle oppnås ved å redusere investeringene, slik at utbytte kunne finansieres uten å måtte øke gjeldsgraden. Reduserte investeringer fra oljeselskapene betyr lavere etterspørsel etter oljeservice-tjenester. Det kraftige fallet i oljeprisen forsterket denne trenden og nå frykter markedet at oljeselskapenes investeringsbudsjett vil bli redusert med 15% i 215, kanskje enda mer. I enkelte oljeservice-segmenter, har gode tider medført høy kontraheringsaktivitet. Tilbudsveksten i riggmarkedet, subsea konstruksjonsskip, supplyskip, og hotell-rigger vil være høy fremover og marginene forventes å komme under press. Med kursfall på 41%, så er det mulig at mye av dette marginfallet allerede er priset inn. 7

8 ODIN Norge Forvalters årskommentar valuta Lavere oljepris har ført til en kraftig svekkelse av den norske kronen. Mot amerikanske dollar har kronen svekket seg med 24% i 214. Mot Euro er svekkelsen noe mindre, kun 8%. Norske selskaper som har inntekter i utenlandsk valuta og kostnader i norske kroner, vil få bedret resultat med en svakere krone. Norsk Hydro, Yara, Borregaard, Telenor, oppdrettsselskapene og norsk oljeservice vil tjene på en svakere krone. Selskaper som importerer varer fra utlandet og selger dem i Norge vil kunne få svakere marginer på grunn av kronesvekkelsen, slik som Orkla og XXL. Norwegian har bestilt over 2 nye fly og alle flyene er bestilt i amerikansk dollar. Bestillingen er så stor at det ikke er mulig å valutasikre bestillingen. En svekkelse av den norske kronen gjør dermed bestillingen betydelig dyrere. En svak oljepris bidrar positivt for Norwegian og er viktigere for selskapet enn svekkelse av den norske kronen. 8

9 ODIN Norge Forvalters årskommentar store endringer i porteføljen De største kjøpene i 214 har vært Borregaard, Opera Software, Norwegian, Marine Harvest, Telenor, PGS og DnB. Mange av disse nye investeringene har bidratt positivt til avkastningen for fondet i 214. De største salgene har vært Statoil, Norsk Hydro, RCL, Aker Solutions og Nordic Semiconductor. Disse salgene ble gjort ettersom markedsprisingen var høyere enn våre interne verdivurderinger. I tillegg har vi solgt oss ut av Ganger Rolv, Hafslund, Farstad Shipping og Austevoll Seafood. Vår investeringsfilosofi er basert på at vi er aktive eiere. I noen av disse selskapene har hovedaksjonær vist manglende vilje til å lytte til andre aksjonærer og vi har derfor valgt å selge oss helt ut. Antall posisjoner er redusert fra 33 til 3 i løpet av året. Vi har redusert andel av porteføljen som er investert i mindre selskaper fra 49% til 4% og økt andel mellomstore selskaper % 6% 5% 4% 3% 2% 1% % 67 ODIN Norge: redusert andel små selskaper 65% - 3% 37% ODIN Norge: redusert antall posisjoner 5 15% + 8% 18% 2% 38% Large Caps Mid Caps Small Caps OSEFX % ODIN Norge % - 9%

10 ODIN Norge Forvalters årskommentar hva nå? I forhold til historien er det norske aksjemarkedet lavt priset i forhold til bokførte verdier og høyt priset i forhold til forventet inntjening. Det er stor frykt i markedet på grunn av det kraftige fallet i oljeprisen og hvilken effekt det har på inntjeningen til norske selskaper. For de fleste andre aksjemarkeder, så er en lavere oljepris gunstig og ifølge IMF vil et fall i oljeprisen på USD 1 øke global BNP-vekst på,2%. Aksjer er fortsatt mer attraktivt priset enn mange andre aktivaklasser. Hva som skjer med det norske aksjemarkedet er usikkert, men vi tror likevel at oljeprisfallet er mer eller mindre reflektert i dagens prising. En svekket krone er positivt for norske eksportbedrifter. I tillegg til utviklingen i oljeprisen vil det norske markedet være avhengig av global økonomisk vekst. Gitt at Norge fremdeles er eksponert mot råmaterialmarkeder, så vil utviklingen i fremvoksende markeder og spesielt Kina være viktig OSEBX og Pris/Bok-bånd OSEBX Price book=1.5 Price book=2. OSEBX og P/E-bånd OSEBX P/E = 15x P/E = 8x 1

11 ODIN Norge Forvalters årskommentar sektoreksponering På grunn av det kraftige fallet i oljeservice-aksjer i 214, har ODIN Norge kjøpt seg opp i PGS og Subsea 7. Salg av Statoil har gjort at fondets oljeeksponering er liten relativt til markedet. Fondets eksponering mot olje- og oljeservice-selskaper utgjør I dag ca 16% av porteføljen. Fondet har nesten 8% av midlene investert i IT, men etter et forventet salg av Vizrt vil denne eksponeringen falle til under 5%. Fondets største sektoreksponering er finans, med investeringer i DNB, SpareBank 1 Midt-Norge, SR- Bank og Gjensidige Forsikring. Finans er fortsatt lavt priset med god avkastning på egenkapitalen og forventning om økt utbytte. Vår eksponering mot fisk har økt gjennom 214 med ytterligere kjøp i Marine Harvest. Gode utsikter, lav tilbudsvekst og lav prising gjør at vi er fortsatt positiv til sektoren. Med salg av Norsk Hydro og Royal Caribbean Cruises, har fondet redusert eksponeringen mot råmateriale og varige konsumgoder. 2% 15% 1% 5% % 1% 8% 6% 4% 2% % -2% -4% -6% -8% -1%,8 %,7 % ODIN Norge: sektoreksponering -1,5 % -2,7 % OSEFX % ODIN Norge % ODIN Norge: sektoreksponering relativt til indeks 1,5 %,2 % -8,3 %,1 % -,1 % -,4 % 3,2 %, % 6,5 %

12 ODIN Norge Forvalters årskommentar 214 Aktivt eierskap Fondet består av kun 3 investeringer. Vi har derfor anledning til å bruke mye tid på å analysere og følge opp hvert enkelt selskap. ESG-vurdering av ODIN Norge (kilde: Sustainalytics) 71,7 % 12 Vi har hatt jevnlig kontakt med ledelsen i selskapene i porteføljen i løpet av året som gikk. I henhold til våre prinsipper har vi stemt på alle generalforsamlinger og deltar i flere valgkomiteer. Vi diskuterer alltid ansvarlighet når vi har samtaler med selskapene og er trygge på at vi i dag har en portefølje kvalitetsselskaper. I følge vår rådgiver som analyserer selskaper utfra bærekraftskriterier, Sustainalytics, er det ingen av fondets investeringer som faller inn i kategorier som såkalte "underperformers" eller "industry laggards". Det betyr at våre selskaper skårer høyt i de industriene de representerer på tema som beskriver kvalitet og bærekraft. Likevel er det enkelte selskaper i vår portefølje som har vært gjenstand for negativ medieomtale knyttet til anklager om konkurranseforhold eller korrupsjon. I disse tilfellene intensiverer vi dialogen med de aktuelle selskapene og søker å sikre at ledelse og styre håndterer situasjonen på en ansvarlig måte. I 214 gjaldt dette selskapene Yara, Telenor, Kongsberg Gruppen og Wilh Wilhelmsen. 19,5 % 8,9 % Industry Leader Outperformer Average Performer, %, % Underperformer Industry Laggard

13 13 Følg ODIN Norge på

14 Nøkkeltall og nyheter fra porteføljen - presentert på engelsk

15 Portfolio Return Last 5 years % (NOK) ODIN Norge Historical Return % (NOK)* Index Portfolio Last Month 5,38 YTD 12,6 1 Y 12,6 3 Y 12,17 5 Y 4,28 1 Y 6,1 Since inception 14,95 Benchmark 2,17 5,7 5,7 16,72 9,38 8,83 1,85 Exess Return 3,21 6,91 6,91-4,55-5,9-2,73 4,1 * Returns for periods exceeding 12 months are annualized 15

16 16 Annual returns last 1 years

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

18 18 Sector contribution, year to date

19 19 Current holdings

20 2 Contribution, year to date

21 Risk Statistics (NOK) 3 Years Alpha Beta Tracking Error Information Ratio Portfolio -,68,76 5,48 -,83 Index Sharpe Ratio 1) 1,6 1,31 Standard Deviation 2) 1,5 11,59 1) Sharpe Ratio uses Norway - 3 MT Bills as risk free rate. 2) Standard Deviation is based upon monthly volatility. 21

22 Up or down In or out ODIN Norge Significant Portfolio changes year to date Number of changes in portfolio year to date 3 1 Q1 Q2 Q3 Q4-1 Buy Sell -4-4 Q1 Q2 Q3 Q Borregaard DNB Opera Nordic Semiconductor Norwegian Ganger Rolv Hafslund B RCCL Statoil Aker Solution Austevoll Seafood Farstad Norsk Hydro BW Offshore Marine Harvest Telenor PGS SR-Bank Subsea 7 22

23 Pricing of the fund Company Weight Country Industry P/E (LTM)* P/E (NTM)* DivYield (LTM) DivYield (NTM) P/B ROE Telenor ASA 9,% Norway Diversified Telecommunication 18,8 14,6 5,2 5,6 3, 16, Yara International ASA 8,7% Norway Chemicals 11,6 12,1 3,3 3,3 1,6 13,3 DNB ASA 7,2% Norway Banks 8,8 8,8 3,3 4,5 1,1 12,9 Petroleum Geo-Services ASA 5,% Norway Energy Equipment & Services 12,2 16,6 5,7 3,4,6 4,9 Borregaard ASA 4,6% Norway Chemicals 16,2 14,7 2,2 2,3 2,6 16,4 SpareBank 1 SMN 4,6% Norway Banks 7,3 7,6 3,9 3,8,9 12,8 Schibsted ASA 4,5% Norway Media -3 59, 64,4,7,8 7,8 -,2 SalMar ASA 4,3% Norway Food Products 1,8 9,1 4,7 5,9 2,8 26,2 TOMRA Systems ASA 4,2% Norway Commercial Services & Supplies 21,4 16, 2,6 3,1 2,9 13,5 Subsea 7 S.A. 4,1% Norway Energy Equipment & Services 4,9 7, 5,9 5,9,5 1, Topp 1 56,2% 11,7 11,8 3,8 4, 1,3 11,5 ODIN Norge 12, 11,1 4,1 4,2 1,4 11,4 * NTM = Next 12 months LTM = Last 12 months Adjusted earnings and fully diltuted number of shares 23

24 24 MSCI World Price, Earnings and P/E

25 25 MSCI World Price, Book Value and P/B

26 OECD Leading indicator Level above 1 indicates expanding activity in OECD area 26

27 27 The International Monetary Fund (IMF) Economic growth forecast updated October

28 Investments - ODIN Norge

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

56 Investment Objective Long term value creation 56

57 Investment Philosophy Performance - prospects - price 57

58 58 Om ODIN Norge

59 59 Om forvalter

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