Arctic Norwegian Value Creation Monthly Report June 2021

FUND COMMENTS Arctic Norwegian Value Creation (Class B) increased by 0.6% in June, bringing year-to-date return to 18.1%. Since inception in August 2014, the fund has returned 132.5% compared to a return of 93.9% for the Norwegian OSEFX benchmark. The largest positive contributions to fund performance in June came from Aker BP, Tomra and Nordea. Aker BP’s share price surged as Brent crude oil reached its highest level since 2018. The company submitted a USD 1 bn investment plan for further development of the Alvheim field, doubling production from the field, while cutting CO2 scope 1 emissions per barrel by 50%. Tomra gained on continued focus on recycling and circular economy. EU’s Plastic Tax and Directives for Single Use Plastic, Packaging & Packaging Waste as well as Waste Framework might all increase demand for Tomra’s products. Although not the main driver for the share price, Lucara Diamond recovered a 1174 carat diamond, the third 1000+ carat diamond using Tomra’s sorting technology, showing the diversity of the applications for the technology. Order book at the end of Q1 was “all-time high”. However, the evaluation of deposit return schemes is running behind schedule in some markets. The Nordea share rose as its strong operating momentum continues. There were several analysts’ estimate upgrades while the market is less worried over the potential“ overhang impact” following Sampo’s partial divestment in May. The most negative contributors to fund performance last month were XXL, and Europris. XXL and Europris fell as the market fears that Covid-19 related reopening might shift consumption from goods to services. Like-for-like growth for XXL and Europris for Q2 this year will be negative as last years’ Q2 sales were exceptionally strong and grew 31% and 35%, respectively. Moreover, both companies had to close several stores in April and parts of May due to Covid-19 restrictions, negatively affecting sales. Spot retailers are also hit by supply disruptions of bikes. Europris announced the acquisition of 67% of the online toy store Lekekassen for NOK 501 mill. Lekekassen showed strong growth last year with sales and EBITDA of NOK 545 mill and NOK 94 mill, respectively. Storebrand was negatively impacted by a moderate decline of global long-term bond yields. Year-to-date Lerøy Seafood, Kongsberg and Sbanken have been the best contributors to the fund’s performance, while NRC, Aker Biomarine and Scatec have been the largest detractors. We added Elopak, an international carton packaging producer, Komplett, a Scandinavian online electronic retailer and Multiconsult, a Norwegian engineering consultant firm, to our fund. We bought shares in Salmar, Elkem and Norwegian, while we reduced our position in . At the end of June, the portfolio was valued at 16.2x earnings (12m fwd) and 2.0x book value. Corresponding figures for the Norwegian market were 17.3x and 2.4x, respectively.

Oslo, July 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 Stock Exchange Mutual Fund Index (OSEFX).

50% 42.1 %42.3 % 40%

30%

15.4 % 20% 15.1 %14.6 % 13.8 % 13.1 % 10.6 %10.2 % 10.1 % 10% 0.6 % 1.3 % 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 6.0% Kongsberg Gruppen ASA 5.5 % Borregaard ASA 3.7 % Industrials 14.8% Schibsted ASA 5.4 % ASA 3.5 % Health Care 1.9% Leroy Seafood Group ASA 4.8 % Aker BP ASA 3.3 % Consumer Discretionary 16.4% Europris ASA 4.1 % Elkem ASA 2.8 % Materials 14.4% Orkla ASA 3.9 % DNB ASA 2.8 % Information Technology 5.7% Financials 17.8% 5 largest overweights +/- 5 largest underweights +/- Consumer Staples 8.3% Kongsberg Gruppen 4.0 % ASA -9.0 % Telecommunication Services 10.8% Europris ASA 3.5 % DNB ASA -6.4 % Utilities 1.2% Lerøy Seafood Group 3.3 % ASA -4.9 % Borregaard ASA 2.4 % ASA -4.2 % 0% 5% 10% 15% 20% Nordea Bank AB 2.4 % 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 0.6 % 5.4 % 15.1 % 15.1 % 42.1 % 35.5 % 132.5 % Benchmark 1.3 % 5.8 % 14.6 % 14.6 % 42.3 % 34.0 % 93.9 % Difference -0.7 % -0.4 % 0.5 % 0.5 % -0.2 % 1.5 % 38.6 % Vinx Nordic Net, NOK 2.5 % 10.0 % 14.6 % 14.6 % 32.8 % 70.3 % 159.4 % Euro Stoxx 600, EUR 1.5 % 6.4 % 15.2 % 15.2 % 28.4 % 28.2 % 59.1 % S&P 500 TR, USD 2.3 % 8.5 % 15.3 % 15.3 % 40.8 % 67.1 % 146.2 % MSCI AC World, LC 2.1 % 7.1 % 13.4 % 13.4 % 36.8 % 49.7 % 102.9 %

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 5.5 % 28.0 % 1.57 % Nrc Group Asa 1.4 % -47.5 % -1.23 % Kongsberg Gruppen As 5.2 % 30.6 % 1.51 % Aker Biomarine Asa 1.1 % -34.4 % -0.56 % Sbanken Asa 1.6 % 57.1 % 1.44 % Scatec Asa 1.2 % -32.9 % -0.47 % Borregaard Asa 3.9 % 34.4 % 1.24 % Huddly As 0.9 % -37.0 % -0.40 % Norsk Hydro Asa 2.7 % 41.0 % 1.16 % Link Mobility Group 0.6 % -32.3 % -0.28 %

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 % 15.06 % 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.