odin norge - odin fond

ODIN Norge Årskommentar 2014

Fondens portfölj

ODIN Norge – december 2014

Avkastning senaste månaden och hittills i år

• Fonden steg 1,7 procent under den senaste månaden. Fondens referensindex sjönk under samma

tidsperiod 1,4 procent.

• Fondens avkastning hittills i år är 4,6 procent. Referensindex avkastning hittills i år är -1,8 procent.

Köp och försäljning i fonden, senaste månaden och hittills i år

• Denna månad har vi köpt aktier i Prosafe och sålt alla våra aktier i Norsk Hydro, Farstad Shipping och

Photocure.

• I år är de största förändringarna i portföljen köp av Borregaard, DnB, Norwegian Air och Opera Software

och vi har sålt Ganger Rolv, Hafslund B, Nordic Semiconductor, Royal Caribbean Cruises, Statoil, Aker

Solution, Norsk Hyrdom, Austevoll Seafood och Farstad Shipping.

Bidragsgivare, senaste månaden och hittills i år

• De bästa bidragsgivarna till denna månads avkastning var PGS, Yara, Borregaard, Tomra och Subsea 7.

• De bolag som bidrog minst till avkastningen denna månad var DNB, Kongsberg Gruppen, Farstad, Q-Free

och SR-Bank.

• I år har bolagen Statoil, Yara, SalMar, Schibsted och Marine Harvest bidragit mest.

• De svagaste bidragen till avkastningen i portföljen i år är PGS, Subsea 7, Farstad, EMGS och Det norske

oljeselskap.

ODIN Norge – december 2014

Prissättning av fonden

• Fonden prissätts till 11,1 gånger de kommande 12 månadernas resultat.

• Fonden ger en direktavkastning på 4,2 procent. Utöver detta tillkommer även återköp av aktier i bolagen.

• Mätt mot bokfört egenkapital prissätts fonden till 1,4 gånger .

• Innehaven i fonden har en genomsnittlig egenkapitalavkastning på 11,4 procent.

Prissättning av den globala aktiemarknaden - MSCI Global

• MSCI Global prissätts till 11,2 gånger de kommande 12 månadernas resultat.

• MSCI Global ger en direktavkastning på 4 procent.

• Mätt mot bokfört egenkapital prissätts MSCI Global till 1,4.

• Bolagen i MSCI Global har en genomsnittlig egenkapitalavkastning på 11 procent.

5

2014 – året då ODIN Norge slog tillbaka ODIN Norge skapade god avkastning under 2014 för sina

andelsägare, både absolut och jämfört med marknaden.

Fonden hade en avkastning på cirka 11 %, vilket är 7 %

bättre än marknaden. Fonden har haft problem med

mindreavkastning i förhållande till marknaden under de

senaste åren och det har gjorts stora ändringar i fonden för

att vända den trenden. Det är därför tillfredsställande att se

resultaten av dessa förändringar.

Det finns flera orsaker till att det gick bättre för fonden än för

marknaden. Fonden hade ett stort innehav i Statoil under

den första hälften av året, men sålde under sommaren detta

och undkom därmed den kraftigt fallande aktiekursen under

den senare delen av året. Fonden har dessutom haft

begränsad exponering mot oljeservice och har bland annat

inte ägt några aktier i Seadrill, Prosafe och Fred Olsen

Energy.

Goda nyheter och uppjustering av priset för flera av våra

teknikinvesteringar har också bidragit positivt (det gäller

bland andra Vizrt och Schibsted). Nya investeringar i

fonden, till exempel Norwegian, Borregaard, DNB och

Opera Software har också bidragit positivt till fondens

avkastning. Källa: ODIN

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

jan.14

feb.14

mar.14

apr.14

mai.14

jun.14

jul.14

aug.14

sep.14

okt.14

nov.14

des.14

jan.15

Re

lati

v av

kast

nin

g jä

mfö

rt m

ed

O

SEFX

20

14

ODIN Norge, mer-/mindreavkastning

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

STATOIL YARA SALMAR SCHIBSTED MARINEHARVEST

BORREGAARD NORSK HYDRO NORWEGIAN AIR

ODIN Norge: Bidrag till avkastningen 2014

ODIN Norge Förvaltarens årskommentar 2014

6

ODIN Norge

Oslobörsen präglad av lägre oljepris Oljeprisfallet har präglat Oslobörsen på senare tid.

Oljepriset minskade med hela 53 USD under 2014,

vilket är det största årliga prisfallet i historien (oljepriset

minskade med 48 USD under 2008).

Möjliga förklaringar till oljeprisfallet är svag efterfrågan,

ökad skifferproduktion i USA, ökad produktion i Libyen

och Irak och OPEC som beslöt att behålla kvoterna

oförändrade.

Prisfallet påverkar i synnerhet två sektorer på

Oslobörsen, olje- och oljeservicebolagen. Dessa två

sektorer utgör dock endast 24 % av fondindex.

Dessutom oroar sig marknaden för att bankerna

kommer att få ökade förluster till följd av lägre intjäning

hos sina lånekunder.

En del av bolagen på Oslobörsen kommer att gynnas av

det lägre oljepriset, eftersom olja är en del av kostnaden

för att driva verksamheten. Flygbolag, kryssningsfartyg

och shipping kommer att göra bättre resultat med lägre

oljepris, oavsett vad som händer. Detsamma gäller även

bolag som förbrukar stora mängder energi.

Även om oljepriset är viktigt för den norska börsen är

betydelsen faktiskt mindre än vad många tror.

$0

$20

$40

$60

$80

$100

$120

$140

2011 2012 2013 2014 2015

pe

r fa

t

Oljepris, Brent

Finans

15 %

Bygg

4 %

Råmateriale

15 %

Varig konsumgoder

12 %

Fiskeoppdrett

7 %

Industri

7 %

Olje

11 %

Oljeservice

13 %

Shipping

3 %

Helse

0 %

IT

4 %

Telekom

9 %

Oslobörsen, fondindex

Källa: Bloomberg, ODIN

7

ODIN Norge

Norskt oljeserviceindex ned 41 % Redan innan oljepriset började falla kraftigt hade

oljebolagen som mål att förbättra sitt kassaflöde så att

ägarna skulle kunna få ut mer i utdelning. Oljebolagen

hade under de sista åren fått svagare avkastning på

investerat kapital, trots kraftiga ökningar av oljepriset.

En ökning av det fria kassaflödet skulle uppnås genom

att minska investeringarna, så att det skulle gå att

finansiera utdelning utan att öka bolagens

skuldbeläggning.

Minskade investeringar från oljebolagen innebär lägre

efterfrågan på oljeservicetjänster. Efter det kraftiga

oljeprisfallet i kombination med denna trend räds

marknaden nu att oljebolagens investeringsbudgetar

kommer att reduceras med 15 % för 2015, kanske ännu

mer.

Inom enskilda oljeservicesegment har goda tider

medfört hög kontraheringsaktivitet. Tillgångstillväxten på

riggmarknaden, subsea-konstruktionsfartyg, supply-

fartyg och hotellriggar kommer att vara hög framöver

och marginalerna förväntas hamna under press. Med ett

kursfall på 41 % är det möjligt att mycket av detta

marginalfall redan har räknats in i prissättningen.

8

Valuta Lägre oljepris har medfört att den norska kronan

försvagats kraftigt. Mot den amerikanska dollarn har

kronan försvagats med 24 % under 2014. Mot euron är

försvagningen något mindre, endast 8 %.

Norska bolag som har sina intäkter i utländsk valuta och

sina kostnader i norska kronor får bättre resultat med en

svagare krona. Norsk Hydro, Yara, Borregaard, Telenor,

odlingsbolagen och norsk oljeservice kommer alla att

tjäna på en svagare krona.

Bolag som importerar varor från utlandet och säljer dem

i Norge kommer i stället få svagare marginaler på grund

av kronans försvagning, till exempel Orkla och XXL.

Norwegian har beställt över 200 nya flygplan och

samtliga flygplan har beställts i amerikanska dollar.

Beställningen är så stor att det inte är möjligt att

valutasäkra den. En försvagning av den norska kronan

gör därmed beställningen betydligt dyrare. Det svaga

oljepriset bidrar positivt för Norwegian och är viktigare

för bolaget än försvagningen av den norska kronan.

ODIN Norge

9

Stora förändringar i portföljen De största köpen under 2014 var Borregaard, Opera

Software, Norwegian, Marine Harvest, Telenor, PGS och

DnB. Många av dessa nya investeringar har bidragit

positivt till fondens avkastning under 2014.

De största försäljningarna var Statoil, Norsk Hydro,

RCL, Aker Solutions och Nordic Semiconductor. Dessa

försäljningar gjordes eftersom marknadens prissättning

var högre än våra interna värdebedömningar.

Dessutom har vi sålt oss ut ur Ganger Rolv, Hafslund,

Farstad Shipping och Austevoll Seafood. Vår

investeringsfilosofi bygger på att vi är aktiva ägare. I en

del av de här bolagen har de största aktieägarna visat

bristande vilja till att lyssna på andra aktieägare och då

har vi valt att dra oss ur helt.

Antalet positioner har minskat från 33 till 30 under året.

Vi har minskat den andel av portföljen som är investerad

i mindre bolag från 49 % till 40 % och ökat andelen

mellanstora bolag.

ODIN Norge

10

ODIN Norge

2015 – Vad händer nu? Den norska aktiemarknaden är lågt prissatt i förhållande

till bokförda värden och högt i förhållande till den

förväntade intjäningen. Det kraftiga oljeprisfallet har

skapat stor oro på marknaden.

För de flesta andra aktiemarknader är ett lägre oljepris

gynnsamt och enligt IMF kommer ett fall i oljepriset på

10 USD att öka den globala BNP-tillväxten med 0,2 %.

Aktier är fortfarande mer attraktivt prissatta än andra

tillgångsslag. Vad som händer med den norska

aktiemarknaden är osäkert, men vi tror dock att

oljeprisfallet redan är mer eller mindre inräknat och

reflekteras i dagens prissättning. En försvagad krona är

positivt för norsk exportverksamhet.

Förutom utvecklingen av oljepriset kommer den norska

marknaden att vara beroende av global ekonomisk

tillväxt. Förutsatt att Norge fortsätter att exponeras mot

råmaterialmarknader så kommer utvecklingen på

tillväxtmarknaderna och i synnerhet i Kina att vara viktig.

0

100

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300

400

500

600

700

800OSEBX och P/B-tal

OSEBX Price book=1.5 Price book=2.0

0

100

200

300

400

500

600

700

800OSEBX och P/E-tal

OSEBX P/E = 15x P/E = 8x

11

ODIN Norge

2015 – sektorexponering På grund av det kraftiga fallet i oljeserviceaktier under 2014

har ODIN Norge köpt in sig i PGS och Subsea 7.

Försäljningen av Statoil har gjort att fondens oljeexponering

är liten jämfört med marknaden. Fondens exponering mot

olje- och oljeservicebolag utgör i dag cirka 16 % av

portföljen.

Fonden har nästan 8 % av sina medel investerade i IT, men

efter en förväntad försäljning av Vizrt kommer denna

exponering minska till under 5 %.

Fondens största sektorexponering är finans med

investeringar i DNB, SpareBank 1 Midt-Norge, SR-Bank och

Gjensidige Forsikring. Finans är fortsatt lågt prissatt med

god avkastning på egenkapitalet och förväntningar om ökad

utdelning.

Vår exponering mot fisk har ökat under 2014 genom

ytterligare köp i Marine Harvest. Goda utsikter, låg

tillgångstillväxt och låg prissättning gör att vi är fortsatt

positiva till denna sektor.

Genom försäljningen av Norsk Hydro och Royal Caribbean

Cruises har fonden reducerat exponeringen mot råmaterial

och varaktiga konsumtionsvaror.

0%

5%

10%

15%

20%ODIN Norge: sektorexponering

OSEFX % ODIN Norge %

0,8 % 0,7 %

-1,5 % -2,7 %

1,5 % 0,2 %

-8,3 %

0,1 %

-0,1 % -0,4 %

3,2 %

0,0 %

6,5 %

-10%-8%-6%-4%-2%0%2%4%6%8%

10%

ODIN Norge: Sektorexponering jämfört med index

12

ODIN Norge

Aktivt ägarskap Fonden består av endast 30 investeringar. Därför har vi all

anledning att ägna ordentligt med tid åt att analysera och följa

upp varje enskilt bolag.

Vi har haft regelbunden kontakt med ledningen i våra

portföljbolag under året som gått. I enlighet med våra principer

har vi röstat vid alla årsstämmor och deltar i flera

valkommittéer. Vi diskuterar alltid ansvarstagande när vi

samtalar med bolagen och i dag känner vi oss trygga med att

vi har en portfölj med kvalitetsbolag. Enligt vår rådgivare som

analyserar bolag ur hållbarhetsperspektiv, Sustainalytics, är

det ingen av fondens investeringar som räknas till

kategorierna ”underperformers” eller ”industry laggards”. Det

innebär att våra bolag ligger bra till inom de branscher de

representerar vad gäller kvalitet och hållbarhet.

Trots detta är det en del bolag i portföljen som har omtalats

negativt i media i samband med anklagelser om

konkurrensförhållanden och korruption. När sådant inträffar

intensifierar vi dialogen med de aktuella bolagen och försöker

att säkerställa att ledning och styrelse hanterar situationen på

ett ansvarsfullt sätt. Under 2014 gällde detta bolagen Yara,

Telenor, Kongsberg Gruppen och Wilh Wilhelmsen.

19,5 %

8,9 %

71,7 %

0,0 % 0,0 %

Industry Leader Outperformer AveragePerformer

Underperformer Industry Laggard

ESG-bedömning av ODIN Norge (Källa: Sustainalytics)

Nyckeltal och nyheter

från portföljen

– allt presenteras på engelska

ODIN Norge Index

Portfolio Return Last 5 years % (EUR)

Historical Return % (EUR)*

Portfolio

Benchmark

Exess Return

Last Month YTD

1,66

-1,44

4,58

-1,83

6,41 3,10

3 Y

6,59

1 Y

4,58

5 Y

2,53

10 Y

5,12

Since

inception

14,65

10,57

4,08

-1,83 10,91 7,53 7,82

6,41 -4,32 -5,01 -2,70

* Returns for periods exceeding 12 months are annualized

Annual returns last 10 years

Sector allocation

16,5

13,2 13,4

7,3 8,2

0,0

18,0

7,5 9,0

0,0

24,4

13,7

7,3

10,8 11,2

0,4

17,4

5,5

9,1

0,2 0

5

10

15

20

25

30

ODIN Norge Benchmark

16

Sector contribution, year to date

17

Current holdings

18

Contribution, year to date

19

Portfolio Index

-0,68

0,76

5,48

-0,83

Alpha

Beta

Tracking Error

Information Ratio

1,06 Sharpe Ratio 1) 1,31

10,05 Standard Deviation 2)

1) Sharpe Ratio uses Norway - 3 MT Bills as risk free rate.

2) Standard Deviation is based upon monthly volatility.

11,59

Risk Statistics (NOK) 3 Years

20

ODIN Norge Significant Portfolio changes year to date

21

Q1 Q2 Q3 Q4

+ - + - + - + -

In o

r o

ut

Borregaard

DNB

Opera

Nordic

Semiconductor

Norwegian Ganger Rolv

Hafslund B

RCCL

Statoil

Aker Solution

Austevoll Seafood

Farstad

Norsk Hydro

Up

or

do

wn

BW Offshore

Marine Harvest

Telenor

PGS SR-Bank Subsea 7

0

3

1 0 0

-1

-4 -4

Q1 Q2 Q3 Q4

Number of changes in portfolio year to date

BuySell

Pricing of the fund

Company Weight Country Industry P/E (LTM)* P/E (NTM)* DivYield (LTM) DivYield (NTM) P/B ROE

Telenor ASA 9,0% Norway Diversified Telecommunication 18,8 14,6 5,2 5,6 3,0 16,0

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 5,0% Norway Energy Equipment & Services 12,2 16,6 5,7 3,4 0,6 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 0,9 12,8

Schibsted ASA 4,5% Norway Media -3 590,0 64,4 0,7 0,8 7,8 -0,2

SalMar ASA 4,3% Norway Food Products 10,8 9,1 4,7 5,9 2,8 26,2

TOMRA Systems ASA 4,2% Norway Commercial Services & Supplies 21,4 16,0 2,6 3,1 2,9 13,5

Subsea 7 S.A. 4,1% Norway Energy Equipment & Services 4,9 7,0 5,9 5,9 0,5 10,0

Topp 10 56,2% 11,7 11,8 3,8 4,0 1,3 11,5

ODIN Norge 12,0 11,1 4,1 4,2 1,4 11,4

* NTM = Next 12 months

LTM = Last 12 months

Adjusted earnings and fully diltuted number of shares

22

MSCI World Price, Earnings and P/E

23

MSCI World Price, Book Value and P/B

24

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

25

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

26

Investments

- ODIN Norge

28

0

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40

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120

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160

180

jan.10 jan.11 jan.12 jan.13 jan.14 jan.15

Performance - last 5 years

Akastor ASA Norway OSE Mutual Fund TR

Market Value (mill.) 5,288 Price 19.30 NOK

Net debt (mill.) 8,261 NOK

Enterprise Value (mill.) 13,549 1.00

2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 54,077 46,267 35,667 44,413 42,804 20,997 18,182

EBIT (Operating Income) (mill.) 3,870 2,886 1,762 3,064 2,295 -568 465

Net Income (mill.) 2,260 1,605 1,555 2,249 997 2,024 174

Price/Earnings 13.4 14.8 9.6 12.7 22.7 424.9 29.6

Price/Book Value 2.3 2.8 1.6 2.7 2.4 0.6 0.5

EV/EBIT 6.3 11.0 12.1 12.0 16.5 - 19.1

Return on Equity (%) 25.9 16.8 14.6 19.6 7.9 0.1 1.8

Dividend Yield (%) 3.1 2.7 5.7 3.5 3.8 8.9 10.4

Akastor ASA Oilfield Services/Equipment

Price currency

Reporting currency

FX rate (NOK)

Akastor is a spin-off from Aker Solution. The idea

was to establish a separate company for all non-

core holdings of Aker Solution. Akastor is now an

oil-services investment company with a portfolio

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 set-

up will allow for swift decision making and

flexibility.

Akastor

http://img4.wikia.nocookie.net/__cb20130726043808/elevatorcommunity/images/6/62/Norway-flag-1-.gif

29

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Atea ASA Norway OSE Mutual Fund


Net debt (mill.) 419 NOK


2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 14,589 17,131 20,228 20,930 22,096 24,287 25,313

EBIT (Operating Income) (mill.) 366 474 651 559 453 604 756

Net Income (mill.) 382 497 593 506 339 480 644

Price/Earnings 13.0 13.1 10.0 11.0 14.2 14.9 11.8

Price/Book Value 1.8 1.9 1.7 1.7 1.7 2.3 2.3

EV/EBIT 13.7 12.3 8.9 10.8 14.5 13.7 11.2

Return on Equity (%) 13.5 16.1 16.4 13.1 9.2 15.2 19.4

Dividend Yield (%) 2.4 3.1 7.1 9.0 9.8 8.3 8.6

Atea ASA Information Technology Services

Price currency

Reporting currency

FX rate (NOK)

Atea is the leading IT infrastructure reseller in the

Nordics, with a turnover that is larger than the

aggregate of the next 10 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.

Atea


30

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100

150

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300

350



Borregaard ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 3,338 3,419 3,810 3,894 3,941 3,965 4,109


Net Income (mill.) 139 180 317 273 335 343 378

Price/Earnings - - - 6.9 9.6 16.5 15.0

Price/Book Value - - - 1.2 1.7 2.7 2.4

EV/EBIT - - - 6.0 8.5 12.2 11.2

Return on Equity (%) - 15.4 30.1 19.3 18.8 16.4 16.0

Dividend Yield (%) - - - 3.6 3.6 2.1 2.3

Borregaard ASA Chemicals: Specialty

Price currency

Reporting currency

FX rate (NOK)

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.

Borregaard


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200



BW Offshore Limited Norway OSE Mutual Fund


Net debt (mill.) 9,791 USD


2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 409 549 846 909 982 1,027 887


Net Income (mill.) -9 -100 -115 - 84 197 96

Price/Earnings - 51.7 42.6 - 5.1 3.6 6.8

Price/Book Value 0.7 1.3 0.8 0.6 0.7 0.5 0.5

EV/EBIT 34.5 34.6 24.5 104.8 13.5 7.7 12.7

Return on Equity (%) -0.9 -9.0 -8.6 0.0 7.5 15.2 7.7

Dividend Yield (%) 0.0 0.0 4.5 10.1 6.4 12.5 12.7

BW Offshore Limited Oilfield Services/Equipment

Price currency

Reporting currency

FX rate (NOK)

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.

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DNB ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 93,105 93,376 90,515 98,989 98,124 49,739 50,378

EBIT (Operating Income) (mill.) - - - - - 28,946 29,374

Net Income (mill.) 8,505 14,739 12,984 13,561 17,522 20,832 20,353

Price/Earnings 10.0 11.8 6.7 8.2 11.3 8.4 8.4

Price/Book Value 1.1 1.6 0.8 0.9 1.3 1.1 1.0

EV/EBIT - - - - - - -

Return on Equity (%) 9.7 14.0 11.3 11.0 13.0 12.9 11.8

Dividend Yield (%) 2.1 4.2 4.3 2.9 2.4 3.5 4.7

DNB ASA Financial Conglomerates

Price currency

Reporting currency

FX rate (NOK)

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.

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.


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Det Norske Oljeselskap ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 255 362 362 325 933 3,487 12,287

EBIT (Operating Income) (mill.) -1,232 -1,813 -1,005 -1,693 -1,572 1,053 6,164

Net Income (mill.) -521 -690 -459 -957 -549 402 1,415

Price/Earnings - - - - - 13.8 5.5

Price/Book Value 1.0 0.9 3.3 3.8 2.7 1.2 1.0

EV/EBIT - - - - - 19.7 3.1

Return on Equity (%) -22.3 -19.7 -13.4 -25.8 -15.8 8.5 18.0

Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Det Norske Oljeselskap ASA Oil & Gas Production

Price currency

Reporting currency

FX rate (NOK)

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 2014 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 USD10/bbl change in the oil price

curve moving the net asset value estimate by

more than NOK 20 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.


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.

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Ekornes ASA Norway OSE Mutual Fund


Net debt (mill.) -345 NOK


2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 2,585 2,869 2,758 2,712 2,561 2,735 3,029


Net Income (mill.) 325 381 274 335 48 221 302

Price/Earnings 13.5 14.4 12.1 13.1 17.7 15.3 11.5

Price/Book Value 3.1 3.6 2.3 2.1 2.0 2.2 2.0

EV/EBIT 7.4 9.8 8.2 8.2 10.2 11.1 7.7

Return on Equity (%) 24.3 23.0 16.1 19.9 3.0 14.3 17.8

Dividend Yield (%) 5.1 5.3 8.0 6.5 6.7 5.5 6.9

Ekornes ASA Home Furnishings

Price currency

Reporting currency

FX rate (NOK)

Ekornes


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.

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ElectroMagnetic GeoServices ASA Norway OSE Mutual Fund

EMGS

Market Value (mill.) 845 Price 4.23 NOK

Net debt (mill.) 1 USD

Enterprise Value (mill.) 846 1.00

2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 59 75 172 201 145 192 199

EBIT (Operating Income) (mill.) -63 -25 25 29 -12 19 16

Net Income (mill.) -81 -55 10 12 -15 11 8

Price/Earnings - - - 16.1 - 12.5 18.5

Price/Book Value 2.5 10.5 5.6 4.1 2.6 1.0 1.1

EV/EBIT - - 16.2 15.3 - 6.6 7.7

Return on Equity (%) -142.0 -428.6 20.5 12.0 -14.4 7.8 5.9

Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0

ElectroMagnetic GeoServices ASA Oilfield Services/Equipment

Price currency

Reporting currency

FX rate (NOK)

35


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.

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.

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Gjensidige Forsikring ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 18,578 20,796 21,472 22,442 22,234 20,322 21,204


Net Income (mill.) 2,305 2,950 2,748 4,280 3,671 4,037 3,695

Price/Earnings - 13.2 10.4 10.2 16.3 15.4 16.3

Price/Book Value - 1.3 1.5 1.7 2.3 2.9 2.9

EV/EBIT - - - - - 11.9 12.7

Return on Equity (%) 11.0 13.1 11.9 17.5 14.1 18.7 17.7

Dividend Yield (%) - 6.0 6.6 7.9 9.8 8.0 5.5

Gjensidige Forsikring ASA Property/Casualty Insurance

Price currency

Reporting currency

FX rate (NOK)

Gjensidige


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.

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Kongsberg Gruppen ASA Norway OSE Mutual Fund


Net debt (mill.) -2,108 NOK


2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 13,816 15,497 15,128 15,652 16,323 16,659 17,085

EBIT (Operating Income) (mill.) 1,263 2,113 2,035 1,866 1,659 1,555 1,728

Net Income (mill.) 820 1,495 1,431 1,325 1,228 1,134 1,240

Price/Earnings 15.2 12.6 8.7 10.8 13.2 13.5 12.2

Price/Book Value 3.1 3.7 2.6 2.4 2.4 2.1 2.0

EV/EBIT 7.3 6.3 5.6 7.0 8.0 7.9 6.8

Return on Equity (%) 29.4 34.9 27.7 22.6 19.0 15.8 16.0

Dividend Yield (%) 3.3 2.5 3.2 3.0 3.2 3.5 3.9

Kongsberg Gruppen ASA Aerospace & Defense

Price currency

Reporting currency

FX rate (NOK)

Kongsberg Gruppen

37


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.

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.

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Marine Harvest ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 14,500 15,191 16,133 15,569 19,230 25,241 28,012

EBIT (Operating Income) (mill.) 1,506 3,191 2,827 992 3,335 4,161 5,953

Net Income (mill.) 1,296 3,078 1,116 409 2,423 1,511 4,225

Price/Earnings 141.0 8.6 3.9 85.3 18.5 15.1 10.7

Price/Book Value 1.4 1.9 0.9 1.7 2.2 3.0 2.7

EV/EBIT 13.3 8.6 5.6 25.8 10.9 12.4 8.7

Return on Equity (%) 12.3 25.7 9.6 3.7 17.3 19.6 25.8

Dividend Yield (%) 6.2 11.1 7.7 0.0 0.0 7.9 7.5

Marine Harvest ASA Agricultural Commodities/Milling

Price currency

Reporting currency

FX rate (NOK)

Marine Harvest


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Norwegian Air Shuttle ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 7,309 8,400 10,529 12,841 15,511 19,451 21,197

EBIT (Operating Income) (mill.) 523 -3 121 722 399 -558 1,170

Net Income (mill.) 446 152 122 457 322 -416 730

Price/Earnings 12.6 20.6 9.0 16.8 12.3 - 15.5

Price/Book Value 2.7 2.2 0.9 2.1 2.3 4.3 3.5

EV/EBIT 7.7 - 40.0 12.3 27.6 - 18.2

Return on Equity (%) 35.7 9.0 6.6 20.9 12.4 -14.0 22.3

Dividend Yield (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Norwegian Air Shuttle ASA Airlines

Price currency

Reporting currency

FX rate (NOK)

Norwegian Air is a leading low-cost carrier in

Europe. Recently, the company established long-

haul 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.

Norwegian Air Shuttle


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.

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Olav Thon Eiendomsselskap ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 2,204 2,647 2,834 2,946 3,055 3,023 3,144


Net Income (mill.) 555 1,324 724 1,119 1,648 1,010 963

Price/Earnings 106.9 11.0 6.7 14.6 5.9 15.3 14.2

Price/Book Value 1.0 1.1 0.9 0.9 0.9 1.0 0.9

EV/EBIT - - - - - 15.3 14.4

Return on Equity (%) 7.1 15.0 7.4 10.5 13.6 6.6 6.7

Dividend Yield (%) 0.8 1.0 1.3 1.3 1.3 1.2 1.3

Olav Thon Eiendomsselskap ASA Real Estate Development

Price currency

Reporting currency

FX rate (NOK)

Olav Thon Eiendomsselskap


Opera has two divisions, the browser division,

and the mobile advertising division.

The browser division has more than 350m 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.

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Opera Software ASA Norway OSE Mutual Fund


Net debt (mill.) -627 USD


2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 97 114 160 216 300 494 740


Net Income (mill.) 5 4 25 17 60 20 98

Price/Earnings 41.3 125.5 34.3 30.5 124.1 31.4 18.0

Price/Book Value 4.0 5.5 5.0 4.8 9.8 4.1 3.3

EV/EBIT 34.8 28.9 14.0 12.0 27.0 22.3 12.1

Return on Equity (%) 5.1 3.8 21.5 13.2 26.2 12.9 18.1

Dividend Yield (%) 0.8 0.6 0.7 0.7 0.3 0.3 0.4

Opera Software ASA Internet Software/Services

Price currency

Reporting currency

FX rate (NOK)

Opera Software


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 2016.

The sharp drop in the share price in 2014 has

made the valuation attractive and we find good

risk/reward at current levels.

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Petroleum Geo-Services ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 1,350 1,135 1,253 1,518 1,502 1,433 1,330


Net Income (mill.) 174 -16 33 186 238 69 55

Price/Earnings 9.8 - 34.7 23.1 10.6 11.7 19.7

Price/Book Value 1.6 2.2 1.4 1.9 1.3 0.6 0.6

EV/EBIT 7.0 24.3 22.5 13.9 8.6 10.6 18.4

Return on Equity (%) 13.4 -1.1 1.8 10.2 12.1 4.9 2.8

Dividend Yield (%) 0.0 0.0 1.3 1.6 3.0 4.6 2.3

Petroleum Geo-Services ASA Oilfield Services/Equipment

Price currency

Reporting currency

FX rate (NOK)

Petroleum Geo Service

42


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.

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ProSafe SE Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 369 397 401 424 523 547 657


Net Income (mill.) 127 199 158 178 199 189 212

Price/Earnings 7.5 10.6 11.0 10.7 10.3 3.9 3.3

Price/Book Value 5.7 4.4 3.5 3.7 2.6 1.0 0.8

EV/EBIT 10.6 13.0 16.3 18.2 10.4 7.1 6.6

Return on Equity (%) 66.7 61.4 34.5 36.7 31.8 24.7 23.2

Dividend Yield (%) 1.8 4.0 5.5 6.9 7.1 13.8 6.9

ProSafe SE Oilfield Services/Equipment

Price currency

Reporting currency

FX rate (NOK)

Prosafe

43


Salmar was established in 1991. 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.

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SalMar ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 2,376 3,400 3,796 4,180 6,246 7,104 7,598

EBIT (Operating Income) (mill.) 595 945 572 324 1,263 1,834 2,136

Net Income (mill.) 471 947 145 467 1,790 1,253 1,542

Price/Earnings 9.7 8.4 6.8 21.0 5.8 11.2 9.7

Price/Book Value 3.0 3.0 1.5 1.9 2.0 2.9 2.6

EV/EBIT 9.3 8.7 10.3 24.4 8.2 9.4 8.0

Return on Equity (%) 31.3 46.8 6.5 19.0 47.4 26.2 26.5

Dividend Yield (%) 3.8 5.8 3.3 0.0 8.1 4.5 5.8

SalMar ASA Food: Meat/Fish/Dairy

Price currency

Reporting currency

FX rate (NOK)

.

Salmar


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.

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Schibsted ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 12,745 13,768 14,378 14,763 15,232 15,001 15,795

EBIT (Operating Income) (mill.) 899 1,532 1,641 1,515 1,169 762 1,718

Net Income (mill.) 68 2,794 742 185 1,536 43 878

Price/Earnings - 15.7 6.4 35.7 - - 62.9

Price/Book Value 2.6 3.3 2.5 3.9 7.1 7.9 6.8

EV/EBIT 14.8 12.7 10.4 17.8 38.0 70.3 30.9

Return on Equity (%) 1.6 48.5 11.3 3.1 23.0 -0.1 10.9

Dividend Yield (%) 1.2 1.5 2.3 1.5 0.9 0.7 0.8

Schibsted ASA Publishing: Newspapers

Price currency

Reporting currency

FX rate (NOK)

Schibsted


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.

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SpareBank 1 SMN Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 4,320 4,329 4,875 5,191 5,817 3,997 3,860


Net Income (mill.) 931 1,017 1,016 1,052 1,360 1,742 1,507

Price/Earnings 3.7 4.8 3.5 3.6 6.8 7.0 7.6

Price/Book Value 0.6 0.7 0.5 0.5 0.7 0.9 0.8

EV/EBIT - - - - - - -

Return on Equity (%) 16.0 14.6 12.7 11.6 12.9 12.8 11.0

Dividend Yield (%) 4.7 5.3 5.7 4.5 3.1 4.0 4.0

SpareBank 1 SMN Regional Banks

Price currency

Reporting currency

FX rate (NOK)

SpareBank 1 SMN


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.

The last years, interest margin has widened from

low levels after the financial crisis, enabling the

bank to show a rapid earnings growth.

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.

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SpareBank 1 SR-Bank ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 6,288 6,189 6,709 7,002 7,622 4,900 4,776


Net Income (mill.) 1,109 1,317 1,081 1,361 1,860 2,096 1,845

Price/Earnings 5.7 4.7 4.6 5.5 9.4 6.7 7.1

Price/Book Value 0.7 0.8 0.5 0.8 1.1 0.8 0.8

EV/EBIT - - - - - - -

Return on Equity (%) 15.8 15.1 11.3 12.2 13.9 12.5 10.8

Dividend Yield (%) 3.1 4.4 4.5 4.0 2.6 4.0 4.4

SpareBank 1 SR-Bank ASA Regional Banks

Price currency

Reporting currency

FX rate (NOK)

SpareBank 1 SR


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Stolt-Nielsen Limited Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 1,645 1,794 2,029 2,072 2,100 2,156 2,273


Net Income (mill.) 95 113 93 70 86 83 109

Price/Earnings 5.9 12.2 10.1 13.4 25.0 15.4 8.4

Price/Book Value 0.6 0.8 0.8 0.7 1.0 0.6 0.6

EV/EBIT 18.1 16.3 20.5 31.3 29.3 16.4 12.9

Return on Equity (%) 6.8 7.5 5.7 4.8 5.7 4.0 7.1

Dividend Yield (%) 3.7 3.8 5.0 4.3 3.5 6.0 6.1

Stolt-Nielsen Limited Marine Shipping

Price currency

Reporting currency

FX rate (NOK)

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 2015 and 2016.

The recent sharp drop in share price has made

valuation attractive.

Stolt Nielsen


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.

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Subsea 7 S.A. Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 2,209 2,369 5,055 6,297 6,297 7,091 6,027

EBIT (Operating Income) (mill.) 308 392 559 756 572 1,011 735

Net Income (mill.) 238 221 391 830 348 739 519

Price/Earnings 3.9 16.8 12.2 9.5 16.3 4.7 6.5

Price/Book Value 2.6 3.5 1.1 1.3 1.0 0.5 0.4

EV/EBIT 7.3 10.8 13.1 11.6 13.3 3.5 5.0

Return on Equity (%) 26.3 19.7 10.4 13.9 5.4 10.0 6.7

Dividend Yield (%) 1.9 0.3 0.0 0.0 0.0 6.1 6.2

Subsea 7 S.A. Oilfield Services/Equipment

Price currency

Reporting currency

FX rate (NOK)

Subsea 7

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Telenor ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 97,650 94,843 98,516 101,718 104,027 110,040 115,288


Net Income (mill.) 9,063 14,749 7,165 10,067 8,748 12,200 15,916

Price/Earnings 15.9 10.7 13.3 47.9 15.3 19.6 15.1

Price/Book Value 1.8 1.8 1.8 2.4 2.9 3.1 3.0

EV/EBIT 10.4 14.1 11.8 12.4 12.5 11.0 10.9

Return on Equity (%) 11.6 18.0 8.3 12.7 11.9 16.0 19.7

Dividend Yield (%) 2.3 3.7 4.8 5.1 4.7 5.0 5.4

Telenor ASA Major Telecommunications

Price currency

Reporting currency

FX rate (NOK)

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.

Telenor


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TOMRA Systems ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 3,321 3,496 3,690 4,073 4,602 4,802 5,137


Net Income (mill.) 249 74 403 440 386 394 525

Price/Earnings 14.4 155.2 15.5 20.7 19.6 21.8 16.5

Price/Book Value 2.3 3.3 2.9 3.5 3.2 3.0 2.7

EV/EBIT 11.7 12.1 10.4 13.3 16.4 16.3 12.4

Return on Equity (%) 12.9 4.0 20.3 19.9 15.4 13.5 16.4

Dividend Yield (%) 1.9 1.5 2.3 2.4 2.3 2.6 3.1

TOMRA Systems ASA Miscellaneous Manufacturing

Price currency

Reporting currency

FX rate (NOK)

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).

Tomra is the clear leader in Collection Solutions,

with a market share around 70%. Growth is

normally low single digit, but make jumps

whenever a new market is introduced.

Tomra is also the leader within Sorting Solutions.

The market for solutions to sort waste, food and

certain mining verticals is considered to be a

mega-trend. Growth is double digit, and the

long-term prospects are promising.

Tomra has a strong market position in a market

that has promising prospects for further growth.



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Veidekke ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 15,452 15,644 17,632 19,729 21,680 23,841 24,894

EBIT (Operating Income) (mill.) 389 334 310 531 537 925 1,097

Net Income (mill.) 402 345 638 448 544 760 880

Price/Earnings 16.6 15.4 11.4 13.3 12.2 13.7 11.5

Price/Book Value 3.6 3.7 2.6 2.9 3.0 3.6 3.2

EV/EBIT 17.6 22.4 18.6 14.7 13.6 9.5 9.4

Return on Equity (%) 19.6 17.3 30.3 19.9 23.3 26.5 27.4

Dividend Yield (%) 5.0 4.8 6.9 5.8 5.9 4.4 4.9

Veidekke ASA Engineering & Construction

Price currency

Reporting currency

FX rate (NOK)

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 2009-11, volumes

have again picked up, driven both by public and

private activity. Both infrastructure as well as

buildings are important areas for the company.

Outlook is good. Too few residental houses are

being built and governments seem to be positive

in relation to expanding infrastructure activities

within tunnels, roads and railroads.

The company generates high return on equity. We

find the valuation attractive and believe the

company has a strong position in a strong market.

Veidekke


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Wilh. Wilhelmsen Holding ASA Class B Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 1,015 1,076 1,247 1,325 1,313 3,328 3,397


Net Income (mill.) 331 60 188 329 260 151 201

Price/Earnings 4.1 21.3 5.1 3.5 7.1 6.7 4.9

Price/Book Value 0.8 1.2 0.8 0.8 0.9 0.6 0.5

EV/EBIT 930.8 56.0 27.4 15.5 25.9 7.3 5.9

Return on Equity (%) 30.5 5.0 13.9 22.3 15.1 8.4 10.6

Dividend Yield (%) 1.6 0.3 3.4 4.3 3.3 3.6 4.0

Wilh. Wilhelmsen Holding ASA Class B Marine Shipping

Price currency

Reporting currency

FX rate (NOK)

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.

Wilh. Wilhelmsen Holding


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Yara International ASA Norway OSE Mutual Fund




2009 2010 2011 2012 2013 2014E 2015E

Sales (mill.) 60,867 64,006 77,726 83,997 84,668 93,379 98,680


Net Income (mill.) 3,782 8,729 12,066 10,602 5,748 7,541 8,024

Price/Earnings 299.7 11.3 6.7 6.6 9.3 13.7 13.6

Price/Book Value 2.7 2.9 1.7 1.6 1.4 1.8 1.7

EV/EBIT 82.6 17.9 7.0 7.3 9.6 10.7 10.4

Return on Equity (%) 12.9 27.3 30.2 22.9 11.2 13.5 12.4

Dividend Yield (%) 1.7 1.6 2.8 4.2 4.1 2.8 3.0

Yara International ASA Chemicals: Agricultural

Price currency

Reporting currency

FX rate (NOK)

Yara is a leading global fertilizer company. The

company has operations in more than 50

countries and offers the most compherhensive

range of fertilizer products in the industry,

including ammonia, nitrates, NPK and specialty

fertilizers.

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.

Yara


Investment Objective Long term value creation

We prefer performing companies, with

strong long term prospects, available

at favourable prices

Investment Philosophy Performance - prospects - price

Performance Operating excellence

Prospects Strong competitive position

Price Favourable valuation

«Doing good business with bad people simply

doesn’t work» Warren E. Buffet

«We don’t focus at beating the market short term.

We want our holdings to beat their competitors

long term»

«The bitterness of poor quality remains long after

the sweetness of a nice price is forgotten»

Börje Ekholm

Unknown

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Om ODIN Norge

ODIN Norge är en aktivt förvaltad aktiefond som

investerar på den norska aktiemarknaden.

Fondens långsiktiga mål är att ge högre avkastning

än den norska aktiemarknaden, mätt med fondens

referensindex.

Fakta om fonden

Startår 26.06.1992

Referensindex OSEFX Oslo Børs Fondindeks

Basvaluta NOK

Förvaltningsavgift 2 %

Tecknings-/inlösenavgift 0 %

Minsta teckningsbelopp 500 EUR

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Om förvaltaren

Fondens ansvariga förvaltare Jarle Sjo kom till ODIN i januari 2011 och blev investeringsdirektör i december 2011. Han har en magisterexamen i finans och lång erfarenhet av portföljförvaltning och analys av shipping- och offshoresektorn.

Jarles långa erfarenhet från och djupa insikt i sjöfarts- och offshoresektorn i synnerhet och aktiv portföljförvaltning i allmänhet har gjort honom till en erkänd sakkunnig i norska medier.

Logga in på

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nyhetsbrev

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Kundservice

09 4735 5100

[email protected]

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mailto:[email protected]

Vi påminner om att…

Historisk avkastning är ingen garanti för framtida avkastning, som bland annat beror på marknadsutvecklingen,

förvaltarens skicklighet, fondens risk samt kostnader för köp och förvaltning. Avkastningen kan bli negativ om

aktiekurserna faller.

Uttalandena i denna rapport speglar ODINs syn på marknaden vid den tidpunkt då rapporten utarbetats. Vi har

använt källor som bedöms vara pålitliga, men vi kan inte garantera att uppgifterna från dessa källor är korrekta

eller fullständiga.

Anställda hos ODIN Forvaltning AS får handla för egen räkning med flera slags finansiella instrument. Det

innebär att anställda hos ODIN Forvaltning AS kan äga värdepapper i företag som omnämns i den här

rapporten, liksom andelar i ODINs fonder. Anställdas egenhandel ska följa ODIN Forvaltning AS interna

riktlinjer för anställdas egenhandel, som har utarbetats i enlighet med den norska lagen om handel med

värdepapper ("verdipapirhandelloven") och Verdipapirfondenes forenings branschstandard.

Mer information finns på www.odin.fi/se

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