1 Agasti Holding ASA 4 th quarter 2013 Oslo, February 11 th 2014 Jørgen Pleym Ulvness, Chief Executive Officer Christian Dovland, Chief Financial Officer Disclaimer: Unaudited Q4 and preliminary 2013 figures. This interim report contains certain forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts are forward-looking statements and must not be understood as guarantees for the future.
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statements of historical facts are forward-looking
statements and must not be understood as
guarantees for the future.
2
Agenda
• The positive trend continues
• Interim financial statements
• Outlook
The positive trend continues
Jørgen Pleym Ulvness, Chief Executive Officer
4
3
Challenging strategic goals at the end of 2012
5
0
10
20
30
40
50
60
70
80
2009 2010 2011 2012
Assets under Management
Year 2009 2010 2011 2012
Operating earnings
-36 -27 -71 -56
EBITDA -9 -5 -43 -33
Delivering on strategic ambitions
6
50
55
60
4Q12 1Q13 2Q13 3Q13 4Q13
Assets under Management
Year 2012 2013 ∆
Operating earnings
-56 18 74
EBITDA -33 37 69
4
Operating earnings improving
7
-36
-27
-71
-56
18
-9-5
-43
-33
37
-80
-60
-40
-20
0
20
40
60
EBIT2009
EBIT2010
EBIT2011
EBIT2012
EBIT2013 -
EBITDA2009
EBITDA2010
EBITDA2011
EBITDA2012
EBITDA2013
NOK 37 MILLION
in EBITDA in 2013
Stock returns
2013 2012-2013
AGA 36 % 55 %
OSEBX 24 % 43 %
Subscriptions
• Gross subscriptions on product level of NOK 1,050 million, of which NOK 1,022
million through advisory concepts
Gross subscriptions (mnok) Gross subscriptions per asset class (%)
388 401
590480
805
160 155
162
151
245
548 556
752
631
1 050
0
250
500
750
1 000
4Q12 1Q13 2Q13 3Q13 4Q13
Norway Sweden
67%77%
60%
44%
21%
35%3%
3%
16%
16%12% 14%
8%7% 3%5%
0%
50%
100%
4Q13 4Q12 2013 2012
Equity and Fixed Income funds Equity funds
Fixed Income funds Unit Linked
Real estate Private Equity
Other
8
5
Excellent client returns in 2013
9
• Real estate yielded 19.9 % returns in 2013
• Client investments in “core” equity fund selection yielded returns of 20.5 % in 2013
• Client investments in “spicy” equity fund selection yielded returns of 15.8 % in 2013
Equity under Management (bnok)
0,7 0,7
1,7
4,5
23,7
30,0
20
25
30
4Q12 4Q13
Client return
New business
Net depositsfrom clients
Payments toclients
EuM 4Q12
Equity under Management
• Very strong development in Equity under Management with an increase of NOK 1.9
billion in the quarter and NOK 6.2 billion in 2013
Equity under Management* Equity under Management per asset class*
13 15 15 16 17
1012 12
1313
24
26 2728
30
0
10
20
30
4Q12 1Q13 2Q13 3Q13 4Q13
Norway Sweden
2 2
161
22
3 1
Equity funds Fixed Income funds Real estate
Shipping Private Equity Infrastructure
Unit Linked Other
* Billion NOK 10
6
40
45
50
55
60
65
70
75
80
85
2006 2007 2008 2009 2010 2011 2012 2013 2014 jan
KTI Banker vs Navigea
Danske Bank
DNB
Eika Gruppen
Handelsbanken
Nordea
Skandiabanken
Sparebank 1 gruppen
Sparebanken Sor
Sparebaken Vest
Navigea
Customer satisfaction index
11
CSI Banks vs Navigea Securities
Source: Ratingbyrået EPSI
What does it take to create a dynamic investment management business?
Increased liquidity through institutional investors, improved secondary market and payments to existing
clients
53 BNOK
Static and based on the "hold-to-maturity" vs. dynamic integrated investment management
Parts in the turnaround operation
• Ensure the best possible management of the direct investment in real estate, energy, PE + Infrastructure / Alternative investments
• Necessary resource centre to raise institutional capital
• Need for re-established strategy of investment portfolios
• Individual investment advisory• Advisor to the shareholders of the
managed structures • Restructuring for increased liquidity • Crucial with continuity and trust • Segment in strong growth • Ambition to build institutional advisory
capacity
• Facilitation abilities are essential for the creation of new structures and the restructuring of existing
• Raising new capital through brokerage • Refinancing capacity for investment
portfolios • Driving force for the creation of new
suitable structures
Obligo and AgastiWunderlich
Navigeaand Navexa
• Dynamics also ensures clients more possibilities and better liquidity, but requires an integrated platform
• Dynamics also ensures clients more possibilities and better liquidity, but requires an integrated platform
12
7
The effects of a dynamic investment management business - Obligo
53 BNOK 45 BNOK
The nature of a "hold-to-maturity" strategyDynamic investment management of an
integrated platform
EffectsEffects
13
Improved ratios
14
0%
50%
100%
2008 2009 2010 2011 2012 2013
Recurring revenues / fixed and activity-based costs
0%
50%
100%
150%
2013
Recurring revenues / fixed
costs
8
Continuing restructuring of WM1Q12 3Q12 3Q13
Restructuring and implementation
Employees taken over from Acta
Asset Management
50 000 contacts
with clients
Introduction to Navigeas
serviceconcepts
Training of Wealth
Management
Compliance precontrol of
over 500 cases
New Head of Compliance,
Risk and Legal
New salary model
implemented
Risk-based Control Plan
Raising Competence in the organization
Compliance Roadshow part 1
Compliance Roadshow part 2
Compliance Roadshow part 3 Execute
Strategic changesCustodian
Services taken over from Acta
Asset Management
Notification of site inspection
FSA
One to one compliance guiding
and training
Cost Focus
Downsized staff based on
evaluation
On site inspection of
FSA
Strategy Process; 6 project groups Delivery of sub-conclusions
Risk-based and efficient compliance controls
New internal guidelines and
processes
Numerous controls
New CEO
Extensive training of all employees
New suitability
test and new procedures
The list is non-exhaustive
Corporate and secondary trading desk
transferred to Agasti Wunderlich Capital
Markets
New web pageMAP
Completed nearly 24 000 client meetings
15
Strong research competence and fund selection
16
Jens Morten WembstadNew
Chief Investment Strategist
• Strengthening Navigeas expertise
in macro and analysis
• Focus on portfolios of unlisted
investments
• Contribute to high quality service
delivery and value creation for the
customers
• Further strengthen Navigeas
advisory concept based on
competence, credibility and
confidence
Ann-Elisabeth Tunli MoeInvestment director and head of
fund selection
• Exclusive selection of quality
funds
• Comprehensive selection process
(TRIP Check)
• Active market outlook
• Experienced team for fund
selection
• Excellent track record
• Alfred Berg • Gjensidige NOR• Industrifinans • Forvaltning• Danske Invest
• KLP• Gjensidige
9
Agasti with strategic client agreementwith Griff Kapital AS
• Agasti has signed a strategic client agreement and business cooperation with Griff Kapital
AS (“Griff”)
• Griff is a highly reputable investment advisor founded, owned and managed by Morten
Christensen and Jaran Sørebø. Griff targets institutional clients, primarily within pension
and life insurance as well as large family offices and foundations
• Griff will support our Wealth Management activities and further enhance our value adding
investment advisory business
• Griff will provide continuous investment advice and asset allocation evaluations to
strengthen Navigea’s existing value chain of investment advisory
• Further, Griff will evaluate and provide thematic investment analysis as well as allocation
advice and advice regarding new investment cases
New CFO – Christian Dovland
• Christian Dovland appointed CFO for the Agasti Group with effect from today
• Previously Senior Director at Obligo Investment Management; Christian is well
known with Agasti’s strategic platform and ambitions
• Extensive capital markets experience and from various roles within business and
finance, amongst other from Arthur Andersen, Controller and Investment
Director at Stormbull AS and CFO of Nesthood International ASA
• Christian worked more than 11 years with corporate finance in Swedbank First
Securites
• Responsible for Private Equity, Infrastructure and Renewable Energy
investments in Obligo with AUM of more than NOK 5 billion
• Education; Siviløkonom, MBA, MA from Heriot-Watt University and Monterey
Institute of International Studies
18
10
Interim financial statements
Christian Dovland, Chief Financial Officer
19
Key financial data
* After tax 20
• Substantial increase in revenues mainly related to insourcing of investment mandates and increased transaction activity
• Scalable business model
• Operating earnings increased by NOK 74 million Vs 2012
• Strategic ambition for recurring revenues to cover both fixed and activity-based costs on an annual basis achieved
4Q 4Q prelim.
mnok 2013 2012 2013 2012
Transaction revenues 28 11 59 29
Recurring revenues 96 74 362 337
Total revenues 124 86 421 366
Variable operating costs 12 8 23 38
Activity based costs 18 18 63 88
Fixed costs 80 65 298 272
EBITDA 14 -5 37 -33
Depreciation a.o. 4 6 18 24
Operating earnings 10 -12 18 -56
Net income before tax 14 -15 25 -60
Net income 8 -15 16 -54
EPS 0.03 -0.06 0.06 -0.21
ROE* - annualised 13% -31% 8% -26%
11
Balance sheet
• The Agasti Group has a robust financial position
• Bank deposits of NOK 142 million
• Capital base significantly strengthened through share issues of NOK 43.5 million in total