Arctic Norwegian Value Creation Monthly Report January 2021

FUND COMMENTS Arctic Norwegian Value Creation (Class B) declined by 2.2% in January. Since inception in August 2014, the fund has returned 97.5% compared to a return of 67.4% for the Norwegian OSEFX benchmark. The largest positive contributors to fund performance in January were Aker, Borregaard, and Yara. Aker Horizons, previously 100% owned by Aker ASA, announced the EUR 785 mill investment in 75% of Mainstream Renewable Power, a producer of onshore and offshore wind as well as solar energy. Additionally, Aker Horizons acquired the hydropower consultancy firm Rainpower, while Aker Offshore Wind entered into a cooperation agreement with Statkraft. Most importantly, Aker Horizons, which main assets are Aker Carbon Capture, Mainstream, Aker Offshore Wind and REC Silicon, successfully raised NOK 4.15 bn in equity and NOK 1.5 bn in a convertible loan. Following the equity issue, Aker ASA will own 80% of Aker Horizons, which was listed on Euronext Growth on 1 February. Borregaard’s end user markets are developing well as price increases for various petrochemicals and dissolving wood pulp are expected to stimulate demand for the company’s wood-based chemicals. Yara and other fertilizer and ag-chem stocks generally witnessed a positive development in January as urea and fertilizer prices rocketed. Moreover, grain prices continued their ascent, supporting farm economics. The most negative contributors to fund performance last month were NRC, Schibsted, and Europris. NRC issued a profit warning for Q4 2020 and reduced the guiding for 2021, sending the share down 36% in the following day of trading. The profit warning for Q4 was to a large degree driven by a write-down of a project won in 2018 but not carried out before late 2020. For 2021 the company guides for an operating margin of 1.75% to 2.5%, previously “up towards 4%”, driven by intense competition in Sweden as well as meagre order intake in civil engineering in . Schibsted’s largest investment, Adevinta, declined double digit last month as extended lockdowns in major markets like France and Spain will have a negative impact on revenues. Additionally, new lockdowns in central parts of Norway might negatively affect advertising revenues in Schibsted’s News Media. Due to covid-19 restrictions in the Greater Oslo imposed by the Norwegian government, Europris had to close 25 of its 266 stores temporarily. As Europris was one of the beneficiaries of the lockdowns last year, the closures were a negative surprise as the company last year was treated in line with the retail groceries. We added Orkla, a leading provider of branded consumer goods and services, to the portfolio in January. We increased our stake in Norske Skog, while we reduced our positions in Aker ASA and Borregaard. At the end of January, the portfolio was valued at 16.2 times earnings (12m fwd) and 1.6 times book value. Corresponding figures for the Norwegian market were 18.3 and 2.0 respectively.

Oslo, February 2021 Sindre Sørbye Ole E. Dahl Tore Mengshoel Kay-Erik Mamre-Johansen Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager ABOUT THE FUND Arctic Norwegian Value Creation is research driven and truly index-independent UCITS fund. The investment process focus on identifying companies which are considered to be value-creating over time at a reasonable price. The portfolio is con- structed by bottom up stock picking. There are no constraints regarding sectors and the goal is to achieve the best possible long-term risk-adjusted return. The funds benchmark is Mutual Fund Index (OSEFX).

15% 13.7 %12.1 % 11.1 % 10% 8.5 % 8.1 % 8.2 % 7.7 % 8.3 %

5%

0% -1.1 % -1.1 % -5% -2.2 % -2.2 % Month YTD 12m 36m p.a. 60m p.a. Incep. p.a. Arctic Norwegian Value Creation Class B (25/8-14) OSEFX FUND COMPOSITION END OF MONTH

Real Estate 0.0% 10 largest positions Energy 8.1% Leroy Seafood Group ASA 6.0 % ASA 3.7 % Industrials 12.3% Kongsberg Gruppen ASA 5.0 % XXL ASA 3.3 % Health Care 2.8% Schibsted ASA 4.7 % DNB ASA 3.2 % Consumer Discretionary 15.2% Europris ASA 4.5 % ASA 3.2 % Materials 14.2% Borregaard ASA 3.9 % Aker BP ASA 3.1 % Information Technology 5.5% Financials 19.6% 5 largest overweights +/- 5 largest underweights +/- Consumer Staples 7.9% Lerøy Seafood Group 4.6 % ASA -9.2 % Telecommunication Services 10.3% Borregaard ASA 4.0 % DNB ASA -6.0 % Utilities 1.5% Europris ASA 3.9 % ASA -5.3 % Kongsberg Gruppen 3.8 % -5.0 % 0% 5% 10% 15% 20% 25% Schibsted ASA CL B 2.6 % Nel ASA -3.2 %

FUND PERFORMANCE AND RISK FIGURES —CLASS B NOK (FORMER CLASS A)

3 6 Since Month months months YTD 1 year 3 years launch Fund -2.2 % 16.6 % 16.8 % -2.2 % 8.5 % 26.8 % 97.5 % Benchmark -1.1 % 19.5 % 18.1 % -1.1 % 8.1 % 24.9 % 67.4 % Difference -1.1 % -2.9 % -1.3 % -1.1 % 0.4 % 2.0 % 30.1 % Vinx Nordic Net, NOK 0.0 % 7.0 % 12.2 % 0.0 % 20.6 % 47.2 % 126.3 % Euro Stoxx 600, EUR -0.7 % 15.9 % 11.8 % -0.7 % -1.6 % 8.3 % 37.1 % S&P 500 TR, USD -1.0 % 14.0 % 14.5 % -1.0 % 17.2 % 39.4 % 111.5 % MSCI AC World, LC -0.2 % 15.5 % 15.9 % -0.2 % 14.7 % 27.6 % 78.7 %

5 top contribut. Fund Fund Contri- 5 bottom contribut. Fund Fund Contri- year to date weight return bution year to date weight return bution Aker Asa-A Shares 2.9 % 22.0 % 0.67 % Nrc Group Asa 2.0 % -52.3 % -1.27 % Borregaard Asa 3.9 % 10.9 % 0.40 % Schibsted Asa-B Shs 4.9 % -13.3 % -0.70 % Yara International A 3.3 % 12.5 % 0.39 % Europris Asa 4.6 % -7.1 % -0.33 % Xxl Asa 3.2 % 8.3 % 0.23 % Norske Skog Asa 1.2 % -24.3 % -0.32 %

Standard Sharpe Tracking Information Portfolio characteristics Deviation Ratio Error Ratio Arctic Norwegian Value Creation 19.7 % 0.4 5.3 % 0.1 Benchmark 17.9 % 0.4 *) Based on 36 months performance Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2021 -2.23 % -2.23 % 2020 -2.21 % -8.08 % -19.38 % 11.03 % 6.36 % 2.70 % 3.37 % 3.52 % 1.92 % -5.07 % 13.68 % 4.90 % 8.51 % 2019 6.64 % 4.75 % 0.42 % 1.88 % -3.92 % 2.27 % -1.84 % -0.34 % 1.98 % 1.18 % 1.74 % 4.41 % 20.41 % 2018 -0.75 % -0.84 % -0.69 % 6.85 % 4.70 % -0.03 % 0.80 % 2.02 % 1.70 % -7.32 % -0.19 % -6.84 % -1.47 % 2017 1.70 % 0.29 % -2.35 % 4.19 % 0.70 % -0.07 % 3.81 % -0.48 % 4.53 % 3.17 % -2.03 % 3.09 % 17.51 % 2016 -7.33 % 2.60 % 2.10 % 4.08 % 3.70 % -3.14 % 3.81 % 1.29 % 1.71 % 3.60 % 1.99 % 3.96 % 19.23 % 2015 4.66 % -1.15 % 1.42 % 3.48 % 0.13 % -2.25 % 1.62 % -5.13 % -1.22 % 3.68 % 4.05 % -0.76 % 8.34 % 2014 0.44 % 0.28 % -0.88 % 1.49 % 2.05 % 3.39 %

Disclaimer: Historical returns are no guarantee for future returns. Future 120.0 % returns will depend, inter alia, on market developments, the fund man- 100.0 % ager’s skill, the fund’s risk profile and subscription and management fees. The return may become negative as a result of negative price develop- 80.0 % ments. Arctic Asset Management AS seeks to the best of its ability to ensure that all information given in this report is correct, however, makes reserva- 60.0 % tions regarding possible errors and omissions. Statements in the report 40.0 % reflect the portfolio managers’ viewpoint at a given time, and this view- point may be changed without notice. The report should not be perceived 20.0 % as an offer or recommendation to buy or sell financial instruments. Arctic 0.0 % Asset Management AS does not assume responsibility for direct or indirect loss or expenses incurred through use or understanding of the report. -20.0 % Employees of Arctic Asset Management AS may be owners of securities 08/14 02/15 08/15 02/16 08/16 02/17 08/17 02/18 08/18 02/19 08/19 02/20 08/20 issued by companies that are either referred to in this rapport or are part of Arctic Norwegian Value Creation Class B (Start 22.08.14) OSEFX the fund's portfolio.