ABG Sundal Collier

Quarterly Report • Apr 26, 2022

2022 Q1 INTERIM REPORT

CEO comments | Historically strong revenues amid geopolitical tensions

I am very pleased to again report a solid quarter with revenues just shy of the NOK 500m mark. Although revenues are down compared to the outstanding Q1 last year, the first quarter is normally seasonally slow, and this year's performance is particularly strong in a historical context.

The year got off to a good start, with market activity remaining high in the first half of the quarter, until we sadly again witnessed armed aggression in Europe. The Russian war against Ukraine has resulted in human suffering beyond comprehension, and has impacted the financial markets through increased uncertainty and volatility. The markets for new issuance of debt and equity felt the effects immediately, with several planned transactions being put on hold or rescheduled.

Despite this more challenging and turbulent macroeconomic and geopolitical sentiment, ABGSC executed on a strong pipeline of transactions in Q1. The slowdown in equity capital market activity, and especially IPOs, has been offset by the closing of several mergers and acquisitions during the quarter. Also, our brokerage operation has been less affected by the more volatile conditions.

ABGSC's ability to keep up activities in a changing market shows that we have transformed from a highly specialised transaction advisor and brokerage firm into a full-service investment bank with a broader and diverse revenue base. As an independent financial advisor with a broad product range, we can help our clients through the different stages in a business cycle and always provide the best advice regardless of the state of the market.

Outlook

We entered 2022 with more mandated transactions than we did in 2021, and the pipeline remains at solid levels. Some projects have been postponed due to market circumstances, and despite a decent start to Q2, the current sentiment provides limited visibility.

Jonas Ström, CEO

Key financial figures | Strong first quarter in an historical context and against the backdrop of significant market turbulence

Macro and market backdrop | Ukraine war, inflation fears and rising interest rates sparked volatility in second half of the quarter

• The S&P 500 Volatility Index (VIX) spiked in the mid-30s after the Russian invasion, but it came down to the low 20s towards the end of the quarter
• Rising long-term interest rates in the both US and Europe as inflation fears are looming
• S&P 500 down 5% and MSCI Nordic down 9% in the quarter, having partly recovered initial reactions

Capital market and M&A market perspectives | Significant slowdown in capital markets, while M&A activity has been more stable

Nordic M&A transactions (#) Nordic primary ECM volumes (NOKbn 3) ) 1) Nordic primary DCM volumes (NOKbn) 2)

33 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Source: Refinitiv, Stamdata, Mergermarket

• 1) Issuers listed on Nordic stock exchanges
• 2) Corporate high y ield, Nordic issuers

3) Nordic targets, announced transactions with financial advisors

Corporate Financing | A wide range of transactions concluded prior to primary capital markets closing temporarily in the second half of the quarter

M&A and Advisory | Solid activity in M&A with several transactions closed both in Norway and Sweden in the quarter

Brokerage and Research: Secondary brokerage activity remains high amid market turmoil

Comments

• Falling asset values and rising volatility in Q1 provided headwinds for secondary trading, but revenues at a similar level as last year
• Improving client rankings in both Kapital (Norway) and Prospera (Sweden) show continued progress for ABGSC in both Research and Sales
• We continue to grow our research coverage successfully, which now spans over 400 companies, more than any of our peers

Operating costs | Lower compensation costs in accordance with our model while non-compensation costs have increased from a combination of factors

• Lowered compensation costs reflecting our revenue- and profitability-driven compensation model
• Headcount has increased by approx. 8%, reflecting our strategic decision to further expand the investment banking operation
• Increase in Non-Compensation up due to a combination of a higher headcount, more normalised travel and interaction activity, general cost inflation, and higher infrastructure costs

Closing remarks

• Solid Q1 revenues in a historical context
• ABGSC has further developed the organisation and will continue to expand the service offering
• Diverse and broad revenue base
• High market share of completed transactions across all relevant products
• M&A partly compensating for lower ECM activity
• Decent activity at the start of Q2, but limited visibility in current sentiment

Financial statements and supplementary information

Consolidated income and cash flow statements

Condensed consolidated income statement (unaudited)				Other comprehensive income
NOKm	Q1 2022	Q1 2021	2021	NOKm
Corporate Financing	195.7	491.7	1,712.8	profit Net
M&A and Advisory	142.8	90.5	594.7	reclassified profit Items that may be to or loss
Brokerage and Research	148.4	155.9	603.5	differences foreign Exchange on translating operations
Total revenues	486.9	738.0	2,911.0	of foreign Hedging investment in subsidiaries
Personnel costs	-265.6	-395.4	-1,563.3	Income relating items that may be reclassified tax to
Other operating costs	-69.2	-54.2	-248.9	Total other comprehensive income
Depreciation	-20.2	-14.4	-63.0	Total comprehensive income for the period
Total operating costs	-355.1	-464.1	-1,875.2
Operating profit	131.9	274.0	1,035.8	Comprehensive income non-controlling interests to
Net interest	-8.8	-3.3	-6.0	Comprehensive income owners of the to parent
Associates	-2.1	-2.0	-3.9
Other	0.2	1.1	-0.8
Net financial result	-10.7	-4.2	-10.7
Profit before tax	121.2	269.8	1,025.1	Condensed cash flow statement
Taxes	-30.3	-63.1	-248.0	NOKm
profit Net	90.9	206.7	777.1	Cash and cash equivalents - opening balance
				Net cash flow from operating activities
/ Profit loss non-controlling interests to	0.1	-1.5	17.2	Net cash flow from investing activities
Profit / loss owners of the to parent	90.8	208.2	759.9	flow from financing Net cash activities

NOKm	Q1 2022	Q1 2021	2021
Net profit	90.9	206.7	777.1
Items that may be reclassified profit or loss to
Exchange differences on translating foreign operations	-11.8	-15.9	-15.9
Hedging of investment in foreign subsidiaries	8.7	12.7	19.0
Income relating items that may be reclassified tax to	-2.2	-3.2	-4.7
Total other comprehensive income	-5.2	-6.3	-1.6
Total comprehensive income for the period	85.7	200.4	775.5
Comprehensive income non-controlling interests to	0.1	-1.5	17.2
Comprehensive income owners of the to parent	85.6	201.9	758.2

Condensed cash flow statement
NOKm	Q1 2022	Q1 2021	2021
Cash and cash equivalents - opening balance	1,388.5	1,251.3	1,251.3
Net cash flow from operating activities	189.6	-292.1	746.3
Net cash flow from investing activities	-1.6	2.4	-39.5
Net cash flow from financing activities	168.5	-22.0	-569.6
Net change in cash and cash equivalents	356.6	-311.8	137.2
Cash and cash equivalents - closing balance	1,745.0	939.5	1,388.5

Consolidated balance sheet

Consolidated balance sheet (unaudited)

NOKm	31/03/2022	31/03/2021	31/12/2021
Intangible assets	177.1	161.8	179.5
Financial non-current assets	73.9	67.2	79.1
Tangible assets	531.4	263.8	553.9
Total non-current assets	782.4	492.8	812.5
Receivables	2,784.4	5,828.5	1,392.3
Investments	66.2	36.9	541.2
Cash and bank deposits	1,745.0	939.5	1,388.5
Total current assets	4,595.6	6,804.9	3,322.0
Total assets	5,378.0	7,297.7	4,134.4
Paid-in capital	115.6	112.6	114.0
Retained earnings	1,168.2	971.6	1,099.9
Equity attributable owners of the to parent	1,283.8	1,084.2	1,213.9
Non controlling interests	19.8	88.4	19.8
Total equity	1,303.6	1,172.7	1,233.6
Long-term liabilities	485.5	235.3	496.6
Short-term interest bearing liabilities	198.4	0.0	0.0
Short-term liabilities	3,390.5	5,889.8	2,404.2
Total liabilities	4,074.4	6,125.1	2,900.8
Total equity and liabilities	5,378.0	7,297.7	4,134.4

Condensed statement of changes in equity

NOKm	Q1 2022	Q1 2021	2021
Equity attributable to owners of the parent - opening balance	1,213.9	893.9	893.9
Comprehensive income owners of the to parent	85.6	201.9	758.2
Payment shareholders to	0.0	0.0	-473.3
New issuing of shares	0.0	0.0	0.0
Change in own shares	-15.7	-11.6	35.0
Equity attributable owners of the - closing balance to parent	1,283.8	1,084.2	1,213.9
Equity attributable non-controlling interests - opening balance to	19.8	89.9	89.9
Comprehensive income to non-controlling interests	0.1	-1.5	17.2
Payment shareholders to	0.0	0.0	-87.4
Business combinations	0.0	0.0	0.0
Equity attributable non-controlling interests - closing balance to	19.8	88.4	19.8
Total equity - closing balance	1,303.6	1,172.7	1,233.6

Notes to the financial statements

1) Accounting principles

The quarterly report is prepared in accordance with IAS 34 Interim Financial Reporting and International Financial Reporting Standards (IFRS) published by the International Accounting Standards Board (IASB) and all interpretations from the Financial Reporting Interpretations Committee (IFRIC), which have been endorsed by the European Commission for adoption within the EU. The quarterly report is prepared using the same principles as those used for the 2021 annual report. The quarterly report is unaudited.

2) Judgments, estimates and assumptions

The preparation of condensed consolidated interim financial statements in accordance with IFRS and the application of the chosen accounting policies require management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a continuous basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. When preparing these condensed consolidated interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimate uncertainty were the same as t hose that applied to the consolidated financial statements as of the period ending 31 December 2021.

3) Risk and uncertainty

As described in ABGSC's annual report, ABGSC's total risk exposure is analysed and evaluated at the group level. Risk evaluat ions are integrated in all business activities both at the group and business unit levels, increasing ABGSC's ability to take advantage of business opportunities. There has not been any significant change in the risk exposure or the risks and uncertainties described in the annual report.

4) Related parties

There have not been any changes or transactions with any related parties that significantly impact the Group's financial position or results for the period.

5) Segment information

The group segments its business primarily on a product level as this provides the best understanding of the Group's integrated operation. The Group does not allocate profits or split the balance sheet per product. Revenues are also split at an overall geographical level. Segment information is presented on other pages of this report, including on the historical quarterly summary pages.

Cost ratios

Shareholder matters | Share count and shareholder structure

Share count
Figures in thousands	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Shares outstanding (period end)	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,
(period end) - Treasury shares	26 870 ,	18 288 ,	18 063 ,	19 371 ,	11 738 ,
(period end) + Forward outstanding contracts	104 373 ,	102 791 ,	102 436 ,	101 511 ,	101 004 ,
Diluted shares (period end)	548 249 ,	555 249 ,	555 119 ,	552 887 ,	560 013 ,
Shares outstanding (average)	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,
(average) - Treasury shares	26 832 ,	21 820 ,	18 267 ,	19 973 ,	16 874 ,
+ Forward outstanding (average) contracts	96 645 ,	103 661 ,	102 751 ,	102 280 ,	101 221 ,
Diluted shares (average)	540 560 ,	552 588 ,	555 231 ,	553 054 ,	555 094 ,

Shareholder structure

Shares held by Directors and staff	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Shares Staff / Shares held by Directors and outstanding	20%	22%	22%	22%	24%
Shares fwd Staff / and held by Directors and Diluted shares contracts	36%	37%	37%	37%	38%

Shareholders (shares outstanding) by country	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Norway	69%	67%	67%	67%	69%
Great Britain	4%	4%	4%	4%	3%
USA	9%	11%	11%	11%	9%
Sweden	7%	8%	8%	9%	8%
Other	10%	10%	9%	9%	10%

Share transactions

During the quarter, ABGSC purchased 5m shares at NOK 8.40 per share in a buy-back offering. ABGSC sold 12.2m shares on forward contracts as part of the annual partner share offering and to new partners. ABGSC also sold 11.6m treasury shares to partners as settlement of forward contracts previously entered into.

Shareholder information

For more information about the ABGSC share and its largest shareholders, please visit the Investor Relations section on the ABGSC website (www.abgsc.com).

Shareholder matters | ABGSC sold a total of 12.2m shares to partners and repurchased 5m shares from the market in Q1

The Board currently has a mandate from the shareholders to acquire a number of ABGSC shares corresponding to approximately 10% of the share capital. The one-year mandate is valid until the end of June 2022.

Expiry year	Forward (1 000) contracts ,	Forward price average
2022	8 396 ,	2 40
2023	10 192 ,	3 53
2024	38 722 ,	2 22
2025	19 620 ,	1 47
2026	12 934 ,	7 00
2027	11 140 ,	7 95
Total	101 004 ,

As part of the partner share incentive programme, several partners in the firm have entered into forward contracts for the future delivery of shares. Under the programme, new and certain existing partners are given the opportunity to acquire restricted partner shares at market price, with a 15% price adjustment reflecting several restrictions with regards to the selling (or purchasing) of these shares.

The final settlement price will be adjusted to reflect any distribution to shareholders paid prior to settlement. The interest element in the forward contract will also lead to an adjustment of the settlement price in cases where the contract is settled prior to the original expiry date.

Shareholder matters | Distribution to shareholders

▪ The Board is committed to returning excess capital to shareholders through cash and buy-backs of shares over time. Excess capital will be evaluated on a continuous basis, taking into consideration a number of factors, including market conditions, regulatory requirements, counterparty and market perceptions and the nature of our business

Capital and balance sheet summary | Highly liquid asset base and solid capitalisation with satisfactory buffers to regulatory requirement

▪ ABGSC is well capitalised with a core capital ratio of 1.6x the current regulatory minimum requirement and 2.6x the expected future requirement

• Liquid balance sheet with limited proprietary trading activity and a modest and conservative security financing operation
• Net working capital shall be close to neutral over time, but may be subject to short-term fluctuations1)
• Cash & Bank includes collateral cash deposits (stock borrowing, clearing, etc.)

Historical figures | Key financials in last nine quarters

Income statement
NOKm	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Revenues	263	408	363	893	738	809	561	803	487
Operating costs	-226	-291	-264	-509	-464	-499	-386	-527	-355
Operating profit	36	116	99	384	274	310	175	276	132
Net financial result	0	-4	-3	-7	-4	-2	-4	0	-11
Profit before tax	37	112	96	377	270	308	171	276	121
Taxes	-11	-29	-24	-95	-63	-74	-44	-67	-30
Non-controlling interests	-1	-8	-5	-38	1	-9	-2	-7	0
Net profit	25	76	67	243	208	225	126	201	91

Balance sheet
NOKm	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Total non-current assets	557	546	541	531	493	494	484	812	782
Receivables	4,841	4,238	4,762	1,623	5,828	6,278	5,245	1,392	2,784
Investments	102	78	249	65	37	52	74	541	66
Cash and bank deposits	780	507	752	1,251	940	1,195	1,250	1,388	1,745
Total current assets	5,723	4,822	5,763	2,939	6,805	7,526	6,569	3,322	4,596
Total assets	6,280	5,368	6,304	3,470	7,298	8,019	7,053	4,134	5,378
Equity attributable to owners of the parent	676	658	726	894	1,084	913	1,039	1,214	1,284
Non-controlling interests	63	49	54	90	88	10	12	20	20
Total equity	739	706	779	984	1,173	923	1,051	1,234	1,304
Long-term liabilities	277	263	265	256	235	238	234	497	485
Short-term interest bearing liabilities	212	14	223	0	0	0	0	0	198
Short-term liabilities	5,053	4,385	5,036	2,230	5,890	6,859	5,767	2,404	3,390
Total liabilities	5,541	4,662	5,524	2,486	6,125	7,097	6,002	2,901	4,074
Total equity and liabilities	6,280	5,368	6,304	3,470	7,298	8,019	7,053	4,134	5,378

Historical figures | Segment revenues in last nine quarters

Segment revenues
NOKm	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Corporate Financing	50	236	180	579	492	534	260	427	196
M&A and Advisory	78	46	82	175	90	137	142	225	143
Brokerage and Research	134	126	101	139	156	138	159	151	148
Group	263	408	363	893	738	809	561	803	487

NOKm	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Norway	136	211	168	524	343	375	246	429	238
Sweden	85	132	133	224	287	312	208	285	199
Denmark	8	10	23	37	21	52	55	28	14
International	34	54	39	108	87	70	51	61	36
Group	263	408	363	893	738	809	561	803	487

Historical figures | Key figures in last nine quarters

Key figures
NOK	Q1 2020	Q2 2020	Q3 2020	Q4 2020	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022
Headcount (average)	275	278	287	298	301	307	315	323	324
(average) Revenues head per	0 95	1 46	1 27	2 99	2 45	2 63	1 78	2 48	1 50
Operating (average) head costs per	-0 82	-1 05	-0 92	-1 70	-1 54	-1 62	-1 23	-1 63	-1 10
Operating / Revenues cost	86%	72%	73%	57%	63%	62%	69%	66%	73%
Total compensation / Revenues	57%	54%	54%	48%	54%	52%	55%	54%	55%
Operating margin %	14%	28%	27%	43%	37%	38%	31%	34%	27%
Return Equity (annualised) on	15%	45%	39%	56%	84%	90%	51%	74%	58%
Shares outstanding (period end)	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,
(period end) Treasury shares	-32 534 ,	-30 219 ,	-29 364 ,	-26 940 ,	-26 870 ,	-18 288 ,	-18 063 ,	-19 371 ,	-11 738 ,
Forward outstanding (period end) contracts	99 801 ,	97 836 ,	96 531 ,	94 483 ,	104 373 ,	102 791 ,	102 436 ,	101 511 ,	101 004 ,
Diluted shares (period end)	538 015 ,	538 365 ,	537 915 ,	538 290 ,	548 249 ,	555 249 ,	555 119 ,	552 887 ,	560 013 ,
Earnings share (basic) per	0 06	0 17	0 15	0 55	0 47	0 50	0 28	0 45	0 20
(diluted) Earnings share per	0 05	0 14	0 13	0 45	0 39	0 41	0 23	0 37	0 17
Book value share (basic) per	1 54	1 49	1 64	2 01	2 44	2 02	2 30	2 69	2 80
Book value share (diluted) per	1 86	1 77	1 89	2 17	2 62	2 12	2 35	2 68	2 88
Total capital adequacy	3 546 ,	2 958 ,	3 294 ,	3 386 ,	3 892 ,	4 323 ,	4 043 ,	4 843 ,	4 994 ,
Core capital	450	462	386	441	431	503	506	648	625
Total capital adequacy ratio	13%	16%	12%	13%	11%	12%	13%	13%	13%
Minimum requirement ratio coverage	1 6x	2 0x	1 5x	1 6x	1 4x	1 5x	1 6x	1 7x	1 6x

Financial calendar

27 April 2022 | Ex. dividend date 8 July 2022 | Q2 2022 earnings release 14 October 2022 | Q3 2022 earnings release

8 February 2023 | Q4 2022 earnings release / preliminary full-year figures

Company overview

ABGSC enables businesses and capital to grow and perform

25 1) Source: Mergermarket (M&A). Pending and completed transactions with targets from Norway, Sweden or Denmark

2) Source: Refinitiv (ECM): Companies listed in Norway, Sweden or Denmark

3) Source: Stamdata (DCM). Non-Shipping related high yield issuers located in Norway, Sweden or Denmark and with documentation in Norway, Sweden or Denmark

Our vision is to be the most agile and respected Nordic investment bank

Norway

ABG Sundal Collier ASA Pb. 1444 Vika Ruseløkkveien 26 8th floor NO-0251 Oslo

Tel +47 22 01 60 00 Fax +47 22 01 60 60

Sweden

ABG Sundal Collier AB Box 7269 Regeringsgatan 25 8th floor SE-11153 Stockholm Tel +46 8 566 286 00 Fax +46 8 566 286 01

United Kingdom

ABG Sundal Collier Ltd. St Martin's Court 25 Newgate St 5th floor UK-EC4M 7EJ London Tel +44 207 905 5600

Fax +44 207 905 5601

Denmark ABG Sundal Collier ASA

Copenhagen Branch Forbindelsesvej 12 DK-2100 Copenhagen Ø

Tel +45 3546 3000 Fax +45 3546 3010

Germany

ABG Sundal Collier ASA Frankfurt Branch Schillerstrasse 2 5. Obergeschoss DE-60313 Frankfurt /Main

Tel +49 69 96 86 96 0 Fax +49 69 96 86 96 9

USA

ABG Sundal Collier Inc. 850 Third Avenue Suite 9-C US-10022 New York Tel +1 212 605 3800 Fax +1 212 605 3801

Singapore

ABG Sundal Collier Pte Ltd 10 Collyer Quay Ocean Financial Center #40-07, Singapore 049315

Tel +65 6808 6082

This material has been prepared by ABG Sundal Collier ASA, or an affiliate thereof ("ABGSC").

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