Arctic Norwegian Value Creation Monthly Report July 2021

FUND COMMENTS Arctic orwegianN Value Creation (Class B) increased by 3.0% in July. Since inception in August 2014, the fund has returned 139.5% compared to a return of 97,2% for the Norwegian OSEFX benchmark. The largest positive contributors to fund performance in July were Borregaard, Kongsberg and Schibsted. Borregaard reported good second quarter results with underlying profits up 23% year-over-year driven by high price realisations and contained costs within its BioSolutions segment. Moreover, Borregaard announced that it will invest NOK 144 million in two transactions to acquire 25% of Alginor, with a further intention to increase its ownership to 35%. Alginor is Norwegian marine biotech and biomaterials company based in Haugesund which is developing a biorefinery concept based on harvested kelp. The intention is to list Alginor on the stock exchange during the next few months. Kongsberg delivered another strong report with a 62% increase in operating profit year-over-year. Following four quarters of declining revenues, Kongsberg Maritime returned to growth while posting a book to bill ratio above one. Kongsberg’s defence segment reported strong profitability and revenue growth of 22%. Early in July, Kongsberg was awarded defence contracts for NOK 8.2 billion by Germany and to deliver submarine combat systems and naval strike missiles. Schibsted reported a strong Q2 with year- on-year growth in sales and EBITDA of 18% and 49% respectively, clearly ahead of analyst estimates. Nordic Marketplaces and News Media showed particularly strong improvements. For the first quarter ever, Nordic Marketplaces reached more than NOK 1 bn in sales with an impressive EBITDA-margin of 47%, with Finn as the main contributor. News Media improved EBITDA-margin by 6%-points to 14%. The main driver was a recovery in the advertising markets and cost control. Adevinta’s trading update for Q2 showed 24% growth in EBITDA. Adevinta will report Q2 including eBay Classifieds on August 30. The most negative contributors to fund performance last month were Aker BP, Aker Biomarine and Orkla. Aker BP’s strong share price gains from June was reversed in July, a rather volatile month in the oil market. The company delivered a decent second quarter where high exploration costs caused operating profits to be somewhat lower than our expectations. Cash flow, on the other hand, continued to be very strong. Aker Biomarine’s Q2 was in line with market estimates. EBITDA increased by 56% to USD 19 mill. Operations, particularly the Houston krill oil production, improved. However, the company reduced guidance for H2 as well as its long-term earnings aspirations. The harvest for Q2 was disappointing, and the company has reduced expectations for this year’s harvest from 60-70 kilotons to 45-50 kilotons. Moreover, sales of Superba (Omega 3 for humans) declined 36% due to materially lower demand in the important South Korean market. The company has missed guidance several times since the IPO last year.?Orkla delivered a mixed Q2 with reduced margins in its three main divisions, Food, Confectionary & Snacks and Care. Fixed costs increased from a low-level last year and increased raw material prices negatively affected margins. On a positive note, earnings improved in Food Ingredients, Hydro Power and Jotun. For the Group, the EBIT-margin declined by 0.2%- points to 10.7%, despite a 1.1%-points decline to 10.0% for Branded Consumer Goods. Increased raw material prices will continue to be challenging for the remainder of the year. Year to date, Kongsberg, Borregaard and Lerøy Seafood have been the best contributors to the fund’s performance, while NRC, Aker Biomarine and Scatec have been the largest detractors. We increased our stake in in July. At the end of July, the portfolio was valued at 16.8 times earnings (12m fw d) and 1.6 times book value. Corresponding figures for the Norwegian market were 17.1 and 2.3, respectively. , August 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).

50% 41.6 % 39.1 % 40%

30% 18.5 %16.5 % 20% 15.2 %13.5 % 13.4 % 11.4 %10.0 % 10.3 % 10% 3.0 % 1.7 % 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 5.4% Kongsberg Gruppen ASA 5.9 % Orkla ASA 3.6 % Industrials 15.0% Schibsted ASA 5.8 % ASA 3.4 % Health Care 1.6% Leroy Seafood Group ASA 4.8 % Elkem ASA 2.9 % Consumer Discretionary 15.9% Europris ASA 4.3 % Forsikring ASA 2.7 % Materials 14.6% Borregaard ASA 4.2 % Aker BP ASA 2.7 % Information Technology 5.5% Financials 17.3% 5 largest overweights +/- 5 largest underweights +/- Consumer Staples 8.4% Kongsberg Gruppen 4.3 % ASA -8.4 % Telecommunication Services 10.9% Europris ASA 3.6 % DNB ASA -6.2 % Utilities 1.1% Lerøy Seafood Group 3.3 % ASA -5.1 % Borregaard ASA 2.6 % ASA -4.5 % 0% 5% 10% 15% 20% XXL ASA 2.5 % Nordic Semiconductor -3.6 %

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

3 6 Since Month months months YTD 1 year 3 years launch Fund 3.0 % 5.7 % 21.2 % 18.5 % 41.6 % 38.5 % 139.5 % Benchmark 1.7 % 5.6 % 17.8 % 16.5 % 39.1 % 33.3 % 97.2 % Difference 1.3 % 0.1 % 3.4 % 2.0 % 2.5 % 5.2 % 42.3 % Vinx Nordic Net, NOK 7.8 % 15.1 % 23.5 % 23.5 % 38.6 % 76.1 % 179.5 % Euro Stoxx 600, EUR 2.1 % 6.3 % 18.4 % 17.5 % 32.3 % 26.8 % 62.4 % S&P 500 TR, USD 2.4 % 5.5 % 19.2 % 18.0 % 36.4 % 65.0 % 152.1 % MSCI AC World, LC 0.7 % 4.0 % 14.3 % 14.2 % 32.5 % 46.4 % 104.3 %

5 top contribut. Fund Fund Contri- 5 bottom contribut. Fund Fund Contri- year to date weight return bution year to date weight return bution Kongsberg Gruppen As 5.3 % 49.1 % 2.36 % Nrc Group Asa 1.4 % -48.7 % -1.29 % Borregaard Asa 3.9 % 64.4 % 2.11 % Aker Biomarine Asa 1.1 % -55.1 % -0.96 % Leroy Seafood Group 5.4 % 36.6 % 1.94 % Scatec Asa 1.2 % -44.1 % -0.70 % Schibsted Asa-B Shs 5.2 % 28.4 % 1.49 % Huddly As 0.9 % -40.0 % -0.43 % Sbanken Asa 1.4 % 57.1 % 1.46 % Bw Offshore Ltd 1.5 % -19.1 % -0.32 %

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 % 0.58 % 3.01 % 18.53 % 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 160.0 % returns will depend, inter alia, on market developments, the fund man- 140.0 % ager’s skill, the fund’s risk profile and subscription and management fees. 120.0 % The return may become negative as a result of negative price develop- 100.0 % ments. Arctic Asset Management AS seeks to the best of its ability to ensure 80.0 % 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 -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.