Arctic Norwegian Value Creation Monthly Report May 2021

FUND COMMENTS Fund NAV (class B) increased by 2.0% in May, bringing returns year to date to 14.4%. Since inception in August 2014, the fund has returned 131.1% versus 91.4% for the OSEFX Index. The largest positive contributors to fund performance in May were Kongsberg Gruppen, Q-Free, and Yara. Kongsberg Gruppen posted a strong first quarter with operating profits being up 91% year over year despite a small decline in revenues. The company’s maritime business continued to improve margins and sees a slowly improving market. The defense business is booming and continued to add to its order backlog, which is close to 3 times annual revenues. Moreover, Kongsberg said that it may consider listing its third business area, Kongsberg Digital. In the beginning of May, the board of Q-Free received a non-binding offer of NOK 14,4 per share for 100% of the company. The offer was made by -a US listed company with a consideration of 60% in shares and 40% in cash, subject to satisfactory due diligence and final agreement. While the largest shareholder ofQ-Free with 45% ownership was not willing to sell its shares under the proposed deal structure, the offer nevertheless boosted the share by 50% to NOK10. Yara performed well on the back of a positive market development for fertilizers. The fertilizer market is supported by high grain prices fueling demand and escalating Chinese coal prices. Yara signed an MoU with JERA, a Japanese power generation company, to collaborate on production of blue and green ammonia, following similar previous initiatives. The largest detractors to performance were Huddly, Schibsted and Aker Biomarine. The market took a dim view of Huddly reducing its full year guidance for 2021 by 18% at its first quarterly reporting, just a couple of months after its IPO. While the Q1 numbers were on the weak side, it was clearly the change in guidance that reduced the share price by a third. It seems that the company had not included much margin for error in its guidance, naming the impact of the third wave of covid-19 as the main culprit. The Schibsted share had a strong run in April but fell back in May. Schibsted reported a strong Q1. News Media was particularly strong due to increased digital subscription revenues and cost cuts. Mid-term EBITDA-margin guidance for News Media was increased from 8-10% to 10-12%. Adevinta gained 6% in May. Aker Biomarine delivered, as expected, a weak Q1 as harvest volumes were low in 2H20. There were, however, two negative surprises. First, in Ingredients, sales of Superba (Omega 3) declined by 32% as lower sales to South Korea was not compensated by other markets. Second, Brands’ sales fell by 26% as Q1 last year was particularly strong due to campaigns and hoarding of products. On a positive note, harvest volumes increased by 12%, positive for the next quarters. Year to date, Lerøy Seafood, Sbanken and Kongsberg Gruppen have been the best contributors to the fund’s performance, while NRC, Aker Biomarine and Scatec have been the largest detractors. We added to our holdings in Gjensidige and Orkla, while our position in Lerøy Seafood was reduced during the month. Moreover, we added a minor position in Norwegian Air Shuttle in the company’s private placement. At the end of the month, the portfolio was valued at 16.8 times (12 months forward) earnings and 2.0 times book value. Corresponding figures for the Norwegian market were 18.3 and 2.4, respectively. Oslo, June 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 Oslo Stock Exchange Mutual Fund Index (OSEFX).

50% 45.1 % 40.8 % 40%

30%

20% 14.4 %13.1 % 14.5 %12.8 % 13.2 % 10.4 % 9.8 % 10.1 % 10% 2.0 % 2.5 % 0% 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 5.8% Kongsberg Gruppen ASA 5.4 % Borregaard ASA 3.9 % Industrials 12.9% Schibsted ASA 5.2 % ASA 3.5 % Health Care 2.1% Leroy Seafood Group ASA 5.0 % Aker BP ASA 3.0 % Consumer Discretionary 16.5% Europris ASA 4.4 % XXL ASA 2.9 % Materials 14.0% Orkla ASA 3.9 % Storebrand ASA 2.9 % Information Technology 5.5% Financials 18.0% 5 largest overweights +/- 5 largest underweights +/- Consumer Staples 8.1% Kongsberg Gruppen 4.0 % ASA -9.1 % Telecommunication Services 10.6% Europris ASA 3.7 % DNB ASA -5.8 % Utilities 1.2% Lerøy Seafood Group 3.5 % ASA -4.9 % Schibsted ASA CL B 2.7 % ASA -4.3 % 0% 5% 10% 15% 20% XXL ASA 2.7 % Adevinta 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 2.0 % 9.9 % 20.0 % 14.4 % 45.1 % 34.7 % 131.1 % Benchmark 2.5 % 9.9 % 18.7 % 13.1 % 40.8 % 32.4 % 91.4 % Difference -0.5 % 0.0 % 1.3 % 1.3 % 4.2 % 2.2 % 39.7 % Vinx Nordic Net, NOK 4.2 % 9.8 % 13.4 % 11.8 % 31.5 % 64.2 % 153.0 % Euro Stoxx 600, EUR 2.6 % 11.6 % 16.4 % 13.5 % 30.4 % 25.5 % 56.8 % S&P 500 TR, USD 0.7 % 10.7 % 17.0 % 12.6 % 40.3 % 64.3 % 140.6 % MSCI AC World, LC 1.1 % 8.5 % 15.2 % 11.0 % 37.7 % 46.5 % 98.6 %

5 top contribut. Fund Fund Contri- 5 bottom contribut. Fund Fund Contri- year to date weight return bution year to date weight return bution Leroy Seafood Group 5.6 % 27.8 % 1.55 % Nrc Group Asa 1.4 % -44.5 % -1.15 % Sbanken Asa 1.9 % 57.1 % 1.43 % Aker Biomarine Asa 1.3 % -34.4 % -0.56 % Kongsberg Gruppen As 5.2 % 26.7 % 1.33 % Scatec Asa 1.2 % -34.2 % -0.50 % Borregaard Asa 3.9 % 35.3 % 1.27 % Huddly As 1.0 % -29.0 % -0.31 % Asa 2.8 % 40.5 % 1.14 % Norske Skog Asa 1.2 % -12.0 % -0.14 %

Standard Sharpe Tracking Information Portfolio characteristics Deviation Ratio Error Ratio Arctic Norwegian Value Creation 19.7 % 0.5 5.4 % 0.3 Benchmark 17.7 % 0.5 *) Based on 36 months performance Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD 2021 -2.23 % 6.50 % 4.87 % 2.71 % 2.00 % 14.40 % 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 140.0 % returns will depend, inter alia, on market developments, the fund man- 120.0 % ager’s skill, the fund’s risk profile and subscription and management fees. 100.0 % 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- 20.0 % point may be changed without notice. The report should not be perceived 0.0 % as an offer or recommendation to buy or sell financial instruments. Arctic Asset Management AS does not assume responsibility for direct or indirect -20.0 % loss or expenses incurred through use or understanding of the report. -40.0 % Employees of Arctic Asset Management AS may be owners of securities 08/14 03/15 10/15 05/16 12/16 07/17 02/18 09/18 04/19 11/19 06/20 01/21 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.