DNB Renewable Energy

DNB ECO Absolute Return Long only and Long/Short products within the Renewable Energy sector

March 2012 - Vienna

Jon Sigurdsen, Portfolio Manager

The DNB GROUP • One of the world's leading Energy, Shipping and Offshore banks

• Represented at 274 locations in Norway with some 14.000 employees

• Represented in 20 countries with over 24 rep. offices and international branches around the world

Luxembourg

Established: 1990

Staff: 6

Sales and marketing

Chennai

Established: 1997

Staff: 2

Investments

Hong Kong

Established: 1995

Staff: 9

Investments

Scandinavia

Oslo (HQ) / Bergen

Established: 1966

Staff: 128

Investments, back office and

sales operations

Stockholm

Established: 1990

Staff: 74

Investments, back office and

sales operations

DNB Asset Management - Our footprint

2

DNB Asset Management

DNB is the third largest Asset Manager in the Nordic Region

• More than 75 portfolio managers and analysts with more than 61 billion EUR under

management

• A global manager with offices in Hong Kong, Chennai, Stockholm, Bergen and Oslo

• The asset manager is 100% owned by Oslo-listed DNB Group, the third largest

Financial Group in Scandinavia

• One of the largest Shipping and Energy banks in the world

We hold a strong commitment to hedge funds

• We manage both single style hedge funds and fund of hedge funds

• Total AUM in hedge funds approximately € 1,5 billion

• New funds are seeded with internal money

• Hedge fund management is a natural extension of our successful long only global

platform

3

The Team Jon Sigurdsen is lead portfolio manager for the long/short and long only renewable energy strategies with DNB

Asset Management. While starting up the Absolute Return strategy during the fall of 2099, Mr. Sigurdsen has

since June 2008 run the renewable energy long/short part of Skandia Global Hedge fund with great success.

Mr. Sigurdsen joined the technology team at DNB Asset Management in 2005 from Carnegie Securities where

he was an equity analyst. He was appointed co-manager for the Renewable Energy strategy in 2007 and has

also been responsible fro the managing the semiconductor universe in the Global Equity portfolio. Between 1998

and 2004 Mr. Sigurdsen was an equity analyst at Nordea Securities in Oslo, specializing in the IT, Telecom and

Media sectors.

He received his BA in Business from the Liverpool John Moores University and speaks Norwegian and English.

Christian Rom is co-portfolio manager for the long/short and long only renewable energy strategies with DNB

Asset Management, where he has been supporting Jon Sigurdsen since joining the team.

Mr. Rom joined DNB Asset Management in 2010 from Carnegie Securities where he was an equity analyst for

3.5 years.

He received his Master in Business and Economics from the Norwegian School of Management (BI) in Norway

and speaks Norwegian and English.

Investment results:

Long only renewable energy since April 2007: IR 1.66

Long only semiconductor since April 2006: IR 0.82

Long/short hedge renewable energy for Skandia FoHF since June 2008: IR 0.91

Running ~€500m in Renewable Energy mandates of which ~ €100m in hedge

Source: Internal 4

DNB Renewable Energy Fund Long only equity fund within the Renewable Energy sector

“DNB bucked the trend of negative returns among clean energy funds. The fund ended up taking the

top spot with a gain of 12.9%. It retained its top position even on a volatility adjusted basis. Selected

constitutions in the solar and energy efficiency sectors contributed to the gains made in 2010“

Bloomberg New Energy Finance 2010

Clean energy funds - Performance summary

Volatility

Fund 5 Year 3 Year 1 Year 5 Year 3 Year 1 Year 2010

DnB NOR 10.5 % -7.9 % 12.9 % 10.1 % -8.4 % 6.4 % 13.9 %

Vontobel Global Trend New Power 1.8 % -13.5 % 6.2 % 1.8 % -13.5 % 6.2 % 15.0 %

PowerShares Clean Energy -10.7 % -25.7 % 1.3 % -8.5 % -27.9 % -5.5 % 22.5 %

New Alternatives 0.1 % -9.4 % -1.5 % 2.6 % -12.0 % -8.1 % 19.6 %

Pictet Clean Energy NA -13.9 % -2.0 % NA -16.6 % -8.6 % 14.2 %

Sarasin New Power NA -21.9 % -6.2 % NA -21.9 % -6.2 % 14.2 %

Blackrock BGF New Energy -2.4 % -19.1 % -6.5 % 0.0 % -21.4 % -12.8 % 16.6 %

Sarasin New Energy -4.8 % -22.6 % -6.6 % -4.8 % -22.6 % -6.6 % 14.0 %

SAM Smart Energy 5.4 % -9.5 % -8.1 % 5.4 % -9.5 % -8.1 % 15.7 %

PowerShares Global Clean Energy NA -21.7 % -10.2 % NA -23.9 % -16.2 % 19.6 %

Lyxor New Energy NA -25.3 % -12.2 % NA -25.3 % -12.2 % 16.9 %

Market Vectors Global Alternative Energy NA -28.6 % -14.2 % NA -30.6 % -20.0 % 22.2 %

Calvert Global Alternative Energy NA -23.5 % -14.4 % NA -25.6 % -20.1 % 17.3 %

Blackrock New Energy IT -5.1 % -21.8 % -16.2 % -0.9 % -17.7 % -19.1 % 20.7 %

iShares S&P Clean Energy NA -33.5 % -23.2 % NA -30.0 % -25.8 % 19.4 %

Claymore MAC Global Solar / Guggenheim Solar ETF NA NA -23.6 % NA NA -28.8 % 29.7 %

Average -0.7 % -19.9 % -7.8 % 0.7 % -20.5 % -11.6 % 18.2 %

Median -1.2 % -21.8 % -7.4 % 0.9 % -21.9 % -10.4 % 17.1 %

WilderHill New Energy GI Index -2.8 % -20.1 % -8.4 % -0.4 % -22.4 % -14.6 % 15.1 %

Performance (EUR) Performance (Local)

DNB rated #1 clean energy fund by BNEF Rated #1 for all periods measured (1, 3 and 5 years)

6 Note: 5 year and 3 year performance reflects annualized % changes

DNB Renewable Energy

7 Source: Internal updated internal as of March 17, 2012. Please note that historical performance is no guarantee of future returns. Future returns will depend on market development, manager skill, portfolio / fund's risk exposure and the costs associated with the management / investment. The return can at times be negative

-80%

-60%

-40%

-20%

0%

20%

40%

DNB Renewable Energy BM NEXUST

Performance distribution (arithmetic)

8 Source: Internal March 2012

Annual Outperformance Monthly histogram

Top holdings valuation

9 Source: Internal/Bloomberg February 2012

Stock Weight Bet P/E current P/Tang. Book Business

Johnson Controls 4.89 % 3.51 % 11.8 7.00 Energy storage/saving

Green Plains Renewable Energy 4.72 % 4.72 % 11.6 0.70 Biofuel

China Suntien 4.54 % 3.99 % 10.3 1.81 Wind farms

EDP Renovaveis 4.19 % 2.85 % 20.1 0.83 Wind farms

Prysmian 4.15 % 4.15 % 12.7 9.82 Grid

Renewable Energy Group 4.10 % 4.10 % 6.1 n.a. Biofuel

Acciona 3.55 % 2.15 % 19.7 0.88 Wind farms

China Metal Recycling 3.54 % 3.54 % 6.3 2.00 Energy saving

Tianneng Power International Ltd 3.53 % 3.53 % 6.2 1.87 Energy storage

General Cable Corp 3.42 % 3.42 % 11.8 1.60 Grid

AMG Advanced Metallurgical Group. 3.21 % 3.21 % 9.6 2.06 Equipment/metals

Abengoa 3.21 % 1.96 % 8.8 n.a. Biofuel and various

Veeco 3.17 % 1.50 % 26.1 1.54 LED

Verbund 2.91 % 1.06 % 14.0 2.05 Hydro

Nexans 2.62 % 2.62 % 12.6 1.22 Grid

Median 11.8 1.8

Sector allocation - Result from bottom-up stock selection

Source: Internal as of February 2012

Adding in Biofuel (16% 19%), funding with Power Gen (24% 21%)

10

23%

21%

15% 15%

11%

7%

6%

0%

24% 24%

10%

3%

7%

21%

4%

8%

0%

5%

10%

15%

20%

25%

Savin

g

Pow

er G

en

Bio

fuel

Grid

Sto

rag

e /

Tra

nspo

rt

Sola

r

Ma

teria

ls

Win

d

Fund Index

Geographic allocation - Result from bottom-up stock selection

Source: Internal as of 31st January 2012

Adding in Americas (44% → 47%), funding with Europe (33% → 31%)

11

46%

3%

22%

30% Americas

Japan

APAC (ex JP)

Europe

DNB Renewable Energy - Fund profile

Fund managers: Jon Sigurdsen/Christian Rom

Strategy: Long only bottom-up equity fund

Fund type UCITS: FCP Long only equity fund

Benchmark: NEX - Wilderhill New Energy Global Innovation Index

AUM: EUR 350m

Target alpha: 7-12 % gross

Risk target: 8-12 % TE

Number of holdings: 45-75

Country range: Global

Turnover: ca. 200 %

Inception date: 16 August 2007

12

Terms - LU0302296149

13 As of November 2011

Liquidity and NAV: Daily

Management fee: 1.5 %

Performance fee: 20 %

Front end fee: Maximum 5 %

Back end fee: No

High watermark: No

Domicile: Luxembourg

Classes: EUR, SEK and NOK

Minimum investment: EUR 1000 / SEK 10 000 / NOK 10 000

DNB ECO Absolute Return Fund Long/Short equity fund within the Renewable Energy sector

15

Skandia Global Hedge – the pre-runner to ECO

Source: Internal updated internal as of March 17, 2012. Please note that historical performance is no guarantee of future returns. Future returns will depend on market development, manager skill, portfolio / fund's risk exposure and the costs associated with the management / investment. The return can at times be negative.

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

-6.0 %

-4.0 %

-2.0 %

0.0 %

2.0 %

4.0 %

6.0 %

8.0 %

18.0

6.2

008

18.1

1.2

008

18.0

4.2

009

18.0

9.2

009

18.0

2.2

010

18.0

7.2

010

18.1

2.2

010

18.0

5.2

011

18.1

0.2

011

Accumulated Return

Daily Relative

Portfolio (Skandia Global Hedge MILJO)

Benchmark (OMRX TBILL)

16

DNB ECO Absolute Return

Source: Internal updated internal as of March 26th, 2012. Please note that historical performance is no guarantee of future returns. Future returns will depend on market development, manager skill, portfolio / fund's risk exposure and the costs associated with the management / investment. The return can at times be negative.

Performance +14.29 % return since inception in December 2010.

-10%

-5%

0%

5%

10%

15%

20%

25%

DNB ECO Absolute Return EUR BM GETB1 BM

Accumulated return on long and short adj. for NEX return

Source: internal, Figures based on gross data before fees

* We run a historical simulation based on the current weights for both the absolute portfolio and the investment universe (NEX) and then perform a uniformly weighted least square regression using three years of data. The coefficient (slope) from the regression analysis represents the beta for the portfolio. This process is then repeated for different periods in time

17

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

31.1

0.2

010

30.1

1.2

010

31.1

2.2

010

31.0

1.2

011

28.0

2.2

011

31.0

3.2

011

30.0

4.2

011

31.0

5.2

011

30.0

6.2

011

31.0

7.2

011

31.0

8.2

011

30.0

9.2

011

31.1

0.2

011

30.1

1.2

011

31.1

2.2

011

31.0

1.2

012

29.0

2.2

012

Adj short Adj long

Net invested and beta development

18

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

28.1

0.2

010

28.1

1.2

010

28.1

2.2

010

28.0

1.2

011

28.0

2.2

011

31.0

3.2

011

30.0

4.2

011

31.0

5.2

011

30.0

6.2

011

31.0

7.2

011

31.0

8.2

011

30.0

9.2

011

31.1

0.2

011

30.1

1.2

011

31.1

2.2

011

31.0

1.2

012

29.0

2.2

012

Net Beta (3Y)

Source: Internal as of February 29, 2012

Current portfolio weekly performance vs NEX index

Source: Internal as of February 29, 2012

Completely uncorrelated to market moves

19

-4.0 %

-3.0 %

-2.0 %

-1.0 %

0.0 %

1.0 %

2.0 %

3.0 %

4.0 %

5.0 %

-8.0 % -6.0 % -4.0 % -2.0 % 0.0 % 2.0 % 4.0 % 6.0 %

Perf

orm

an

ce

Net regional exposure % of NAV Result of bottom-up picks but looking for <20% net exposure

Source: Internal as of February 29, 2012 20

14%

-16% -9%

0%

-10%

72%

17%

43%

32%

164%

57%

33%

52%

32%

174%

-50%

0%

50%

100%

150%

200%

North America Japan Asia (ex Japan) Europe Total

Net Long Short

Fund sector attribution since inception

Source: Internal as of February 29, 2012 21

-2.0 %

24.7 %

-4.6 %

1.9 %

4.4 %

-4.7 %

-6.3 %

6.0 %

0.1 %

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Net sector exposure % of NAV Result of bottom-up picks

Source: Internal as of February 29, 2012 22

-1%

-26%

20%

-14%

-34%

10%

17% 16%

3% 0%

15%

24%

14%

33%

10%

28%

25%

16%

1%

42%

4%

28%

67%

0%

11% 9%

13%

-40%

-20%

0%

20%

40%

60%

80%

Wind Solar Biofuel Services &Suppliers

Energy Saving Hydrogen &Fuel Cells

PowerStorage

Grid &Transmission

PowerGeneration

Net Long Short

Geographical return since inception

Source: internal, Figures based on gross data before fees

8%

6%

4% 4%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Asia (ex Japan) Europe America Japan

Performance – largest contributors YTD

24 Source: Internal as of February 29, 2012

Contributors Selection

OCI Co Ltd 3.82 %

Phoenix Solar AG 3.71 %

Capstone Turbine Corp 3.36 %

Wacker Chemie AG 3.05 %

Powercom Co Ltd 2.75 %

Gamesa Corp 2.64 %

Gintech Energy Corp 2.48 %

centrotherm photovoltaics AG 2.42 %

Dynapack International Technology Corp 2.33 %

EMCORE Corp 2.33 %

Detractors Selection

A Power Energy Generation Systems Ltd -4.84 %

Solar Millennium AG -4.46 %

EnerNOC Inc -3.65 %

Comverge Inc -3.65 %

China High Speed Transm. Eq. Group Ltd -3.53 %

Landi Renzo SPA -3.53 %

China Ming Yang Wind Power Group Limited - ADR -3.36 %

Advanced Battery Technologies Inc -3.21 %

STR Holdings Inc(New) -3.19 %

Exide Technologies -3.17 %

Largest positions

Source: Internal as of February 29, 2012 25

Long Positions Weight MCAP

Tianneng Power International Ltd 4.35 % 606

Darling International Inc 4.12 % 2,011

Renewable Energy Group Inc 4.08 % 69

Prysmian SpA 4.06 % 3,853

HORIBA Ltd 4.02 % 1,381

NGK Insulators 3.96 % 4,535

General Cable Corp 3.95 % 1,534

Veeco Instruments. Inc. 3.92 % 1,108

LS Corporation 3.91 % 2,484

Johnson Controls 3.88 % 22,744

Short Positions Weight

NICHICON -4.65 %

Novozymes ASB -4.51 %

Sanken Electric -4.48 %

Roper Industries --4.32 %

Power Integrations Inc -4.06 %

Cree Inc -4.00 %

Johnson Matthey PLC -3.93 %

MEIDENSHA CORP -3.90 %

Polypore International Inc -3.76 %

AeroVironment Inc -3.34 %

Long positions as of February 29, 2012 Short positions as of November 30, 2011

Valuation example Exide Technologies (selected parts)

Source: Internal as of September 2011

Target EBIT multiple 13 Increased from 12 to 13 in spring 2011

Attractive fundamental position a positive

Big parts still commodity oriented a negative

Normalized revenue Factors we are looking at:

- Transportation Americas 980 Historical levels

- Transportation Europe and Row 1,160 M&A

- Industrial Energy Americas 335 Point in industry cycle

- Industrial Energy Europe and Row 850 Point in product cycle

- Group 3,325 Point in economic cycle

Short- to medium term growth outlook

Normialized operating margin: Factors we are looking at:

- Transportation Americas 11 % Same as for revenue

- Transportation Europe and Row 10 % True one-off related items

- Industrial Energy Americas 9 % Mix shifts

- Industrial Energy Europe and Row 3 % Trends in Porters' 5 forces

Normalized EBIT:

- Transportation Americas 108

- Transportation Europe and Row 116

- Industrial Energy Americas 30

- Industrial Energy Europe and Row 26

- Unallocated -75 Historical levels adj for true one-offs

Normalized group EBIT 204

Value of operations 2,658

Net cash -628 Last available with possible adjustments

Minority items -15 Estimated share of normalized EBIT

Pension liabilities -107 Assumed fair value

Fair value of equity 1,908

# shares 77.5

Target 24.62

Upside ~400%

26

Exide Non-numerical analsysis example

• Start stop exposure: Purest play on start stop battery trend. Start stop batteries for automobiles saves a lot of energy and pollution at a low cost. Rule of thumb for battery suppliers is doubling in ASP and triple EBIT per unit.

• Secular growth: We have just seen the beginning of the impact of start stop in the numbers, as only European OEM market has been addressed so far. US will follow, and the important replacement market has not contributed at all yet. Great growth visibility.

• Transition: Exide stock is in transition from an indebted commodity player to gradually higher technology content and new growth markets. It is currently trading like an indebted commodity player, we believe perception will move towards the latter.

• Flexibility improving: Improving cash flow and debt profile will give Exide better financial flexibility. Should allow for pending investments that should yield strong returns

• Lead recycling assets: has good value as lead price is high and does not seem to weaken

• Market noise: (a common thing we are looking for). Market is overemphasising weakness in Transport Americas segment which is only ~1/4 of sales. From this was reported the stock fell 26% the two following days. Also, we believe the trends might revert

• Cyclicality overstated: The auto battery replacement cycles should only improve if new auto sales (OEM market) disappoint. Aftermarket is >3x bigger than OEM market.

• Earnings momentum next couple of quarters

27

Factor risk analysis, based on GRAM from Citi

• ~73% of risk attributed to alpha

• Risk target;

10-20% annual standard deviation

Source: Internal as of February 29, 2012 28

Exposures to 1 Stdev Factor Event

Higher commodity prices (ex-oil) 17.46% 1.70 %

Rising global yield 20.02% 0.39 %

Positive global market shock 11.04% 0.14 %

Global small caps beat large caps 4.50% 0.14 %

Global grow th beats value 3.65% -0.65 %

Global Credit Default Risk 52.68% -1.76 %

Stronger USD vs EUR 11.37% -2.87 %

Stronger USD vs JPY 10.78% -3.54 %

Rising emerging market yield 13.34% -5.04 %

Largest Factor Contributions to TE

Rising emerging market yield 12.46 %

Stronger USD vs JPY 10.41 %

Taiw an 8.40 %

Higher oil prices 4.10 %

Rising global yield 2.27 %

Global Credit Default Risk 1.11 %

Information Technology 0.69 %

Higher commodity prices (ex-oil) 0.60 %

Hong Kong 0.43 %

Japan 0.39 %

Estimated Risk

Estimated TE 16.73 %

Expl by Factors 27.6 %

Expl by Stock Specifics 72.4 %

Portfolio Statistics

Portfolio Size 58.2 MEUR YTD Excess Return -5.80 %

Cash 107.52 % MTD Excess Return -7.19 %

WTD Excess Return -0.20 %Stocks In Portfolio 146

Stocks In Benchmark Estimated TE 16.73 %

Gross Bet 318.85 % TE Daily Obs.

% Outside Benchmark TE Weekly Obs.

DNB ECO Absolute Return - Fund profile

Fund managers: Jon Sigurdsen/Christian Rom

Investment Universe: Global Renewable Energy

Strategy: Market neutral long/short equity fund

Fund type: UCITS compliant Luxembourg FCP

Benchmark: EUR – GETB1 BM, NOK – ST1X , SEK – OMRX TBILL

Target alpha: 7-12 % gross

Risk target: 10-20 % annual standard deviation

Number of holdings: 100-200

Turnover: 200–300 %

Exposure: 200–400 % gross and +/- 20 % net

Inception date: 17 December 2010 (Strategy 20th October 2010)

29

Terms - LU0547714286

Liquidity and NAV: Daily

Management fee: 1.5 %

Performance fee: 20 %

Front end fee: Maximum 5 %

Back end fee: No

High watermark: Yes - no resets

Hurdle rate: Yes

Domicile: Luxembourg

Classes: EUR, SEK and NOK

Minimum investment: EUR 1 000 / SEK 10 000 / NOK 10 000

30

Contact

For more information regarding our Renewable Energy Funds:

www.dnb.no/lu

Portfolio Managers

Jon Sigurdsen – Head of Renewable Energy

Øvre Slottsgate 3, 0157 Oslo, Norway

Christian Rom – Portfolio Manager

Øvre Slottsgate 3, 0157 Oslo, Norway

Sales

Mike Judith, Vice President

13, rue Goethe, 1637 Luxembourg, Luxembourg

T +352 45 49 45 503

E mike.judith@dnb.no

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