ABG Sundal Collier

Quarterly Report • Apr 26, 2023

Navigating a turbulent market Q1 revenues of NOK 426m (NOK 487m) Q1 diluted EPS of NOK 0.12 (NOK 0.17) The product mix is working in our favour

2023 Q1 INTERIM REPORT

CEO comments | Navigating a turbulent market

Following the Silicon Valley Bank collapse and the subsequent turbulence in the banking and finance sector, the supporting capital markets environment heading into 2023 was negatively impacted by increased market volatility. Consequently, activity was high in the secondary brokerage and research part of our business while some of the planned primary capital markets transactions were postponed or put on hold. Still, we completed several equity private placements and high-yield bond transactions in the quarter, albeit with short execution windows, including the IPOs of Seacrest (Norway), Gubra (Denmark) and Himalaya Shipping (US). We experienced decent activity in the M&A segment, but there were fewer transactions closed relative to the highly active first quarter of last year.

Total Q1 revenues of NOK 426m fell 12% short of last year, but this was still a fair performance given the market sentiment compared to the same time period historically. We are staying committed to the strategy of strengthening our position and offering to our clients, while keeping the long-term proven track record of strong profitability. While we have grown headcount significantly in recent years, we have still managed to retain a solid revenue-per-head, and further increased our focus on costs and efficiency.

We are also working actively to continue to diversify our operations, with a focus on broadening and further developing the talent pool to maximize the potential of our teams. The increase in headcount this year is partly been related to the expansion into new business areas that are not yet contributing to the stream of revenues. The process of setting up these business areas is running according to plan, and they are expected to start generating revenues in 2024.

I often talk about our ambition to reach higher highs, and higher lows, and I believe that this past quarter is an indication of the latter. While we cannot influence challenging markets, we can impact how we operate in such conditions and how we perform on a relative basis. I believe that we are delivering solid results and that having a broad product mix is working in our favour. The pipeline is continuously being replenished, and I feel confident in our ability to continue developing our business and our organisation as well as increase our profitability.

JonasStröm, CEO

Key financial figures | Revenues of NOK 426m and diluted EPS of NOK 0.12

Macro and market backdrop | Stabilising long-term interest rates support equity markets amid turbulence in the financial sector

0 50 100 150 200 250 300 350 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 S&P 500 MSCI Nordic

• Long-term interest rates have stabilised both in the US and Europe
• S&P 500 increased 7.0% and MSCI Nordic was up 4.9% in the quarter
• Volatility spiked mid-March following the Silicon Valley Bank collapse

Capital market and M&A perspectives | Signs of improvement in primary capital markets, driven by energy-related sectors

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

IPO Primary placement Rights issue

2020 2021 2022 L4Q +18%

1) Source: Refinitv. Issuers listed on Nordic stock exchanges

2) Source: Stamdate. Corporate high yield, Nordic issuers

3) Source: Mergermarket. Nordic targets, announced transactions with financial advisors

Corporate Financing | Several deals completed prior to the market slowing down towards the end of the quarter

M&A and Advisory | Decent activity at regular Q1 levels, but fewer transactions closed relative to the highly active start last year

Brokerage and Research | Strong performance in a turbulent market

• High activity in the secondary market with turbulent markets and turmoil in the financial sector
• Strong position and performance for all brokerage and research products ensures a historically strong quarter

Operating costs | Total operating costs down 5% compared to last year, but weaker NOK offsets some of the underlying cost reduction

▪ Operating costs increased by approx. NOK 9m due to weakening NOK relative to last year

• Compensation costs slightly down due to revenue and profitability driven compensation model
• Non-compensation costs are up due to increased headcount, increased travel and interaction activity, in addition to general cost inflation and higher infrastructure costs
• Headcount in line with Q4, but some additions in new business areas

• With the exception of M&A, all business areas have improved or delivered in line with Q1 last year
• The capital markets environment was negatively impacted by the financial sector turmoil during the second half of the quarter
• Continuous work to diversify our operations, with a focus on broadening and further developing the talent pool to maximize the potential of our teams
• Maintained focus on efficiency and streamlining operations to ensure our strong track record of profitability

Financial statements and supplementary information

Consolidated income and cash flow statements

Condensed consolidated income statement (unaudited)				Other comprehensive income
NOKm	Q1 2023	Q1 2022	2022	NOKm
Corporate Financing	182.0	195.7	519.0	profit Net
M&A and Advisory	78.4	142.8	618.2	Items that may be reclassified profit or loss to
Brokerage and Research	165.9	148.4	567.1	Exchange differences on translating foreign operations
Total revenues	426.3	486.9	1,704.3	Hedging of investment in foreign operations
Personnel costs	-242.0	-265.6	-943.0	Income relating items that may be reclassified tax to
Other operating costs	-73.7	-69.2	-279.6	Total other comprehensive income
Depreciation	-22.4	-20.2	-85.4	Total comprehensive income for the period
Total operating costs	-338.1	-355.1	-1,308.0
Operating profit	88.2	131.9	396.3	Comprehensive income to non-controlling interests
Net interest	2.2	-8.8	-12.1	Comprehensive income owners of the to parent
Associates	-2.2	-2.1	-6.3
Other	-0.9	0.2	-2.1
Net financial result	-0.9	-10.7	-20.5
Profit before tax	87.4	121.2	375.8	Condensed cash flow statement
Taxes	-21.8	-30.3	-93.8	NOKm
Net profit	65.6	90.9	282.0	Cash and cash equivalents - opening balance
				Net cash flow from operating activities
/ Profit loss non-controlling interests to	0.7	0.1	11.8	flow from Net cash investing activities
/ Profit loss owners of the to parent	64.9	90.8	270.3	Net cash flow from financing activities

NOKm	Q1 2023	Q1 2022	2022
Net profit	65.6	90.9	282.0
Items that may be reclassified profit or loss to
Exchange differences on translating foreign operations	31.4	-11.8	15.9
Hedging of investment in foreign operations	-28.5	8.7	-17.2
Income relating items that may be reclassified tax to	7.1	-2.2	4.3
comprehensive income Total other	10.0	-5.2	2.9
comprehensive income for period Total the	75.5	85.7	284.9
Comprehensive income non-controlling interests to	1.5	0.1	11.8
Comprehensive income owners of the to parent	74.1	85.6	273.2

Condensed cash flow statement
NOKm	Q1 2023	Q1 2022	2022
Cash and cash equivalents - opening balance	832.0	1,388.5	1,388.5
Net cash flow from operating activities	-36.5	189.6	-53.4
Net cash flow from investing activities	-17.3	-1.6	-18.9
Net cash flow from financing activities	21.3	168.5	-484.3
Net change in cash and cash equivalents	-32.6	356.6	-556.5
Cash and cash equivalents - closing balance	799.4	1,745.0	832.0

Consolidated balance sheet

Consolidated balance sheet (unaudited)

NOKm	31/03/2023	31/03/2022	31/12/2022
Intangible assets	178.4	177.1	178.6
Financial non-current assets	86.1	73.9	70.5
Tangible assets	538.0	531.4	531.3
Total non-current assets	802.5	782.4	780.3
Receivables	4,903.2	2,784.4	2,241.7
Investments	75.1	66.2	63.1
Cash and bank deposits	799.4	1,745.0	832.0
Total current assets	5,777.6	4,595.6	3,136.8
Total assets	6,580.1	5,378.0	3,917.1
Paid-in capital	136.7	115.6	134.3
Retained earnings	902.3	1,168.2	884.8
Equity attributable owners of the to parent	1,039.1	1,283.8	1,019.1
Non controlling interests	11.4	19.8	7.6
Total equity	1,050.5	1,303.6	1,026.7
Long-term liabilities	497.2	485.5	480.4
Short-term interest bearing liabilities	163.5	198.4	70.0
Short-term liabilities	4,868.9	3,390.5	2,340.0
Total liabilities	5,529.6	4,074.4	2,890.4
equity liabilities Total and	6,580.1	5,378.0	3,917.1

Condensed statement of changes in equity

NOKm	Q1 2023	Q1 2022	2022
Equity attributable owners of the - opening balance to parent	1,019.1	1,213.9	1,213.9
Comprehensive income owners of the to parent	74.1	85.6	273.2
Payment shareholders to	0.0	0.0	-470.7
New issuing of shares	4.2	0.0	16.3
Change in own shares	-58.3	-15.7	-13.5
Equity attributable owners of the - closing balance to parent	1,039.1	1,283.8	1,019.1
Equity attributable non-controlling interests - opening balance to	7.6	19.8	19.8
Comprehensive income non-controlling interests to	1.5	0.1	11.8
Payment shareholders to	0.0	0.0	-23.9
Business combinations	2.4	0.0	0.0
Equity attributable non-controlling interests - closing balance to	11.4	19.8	7.6
Total equity - closing balance	1,050.5	1,303.6	1,026.7

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 2022 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 2022.

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

2.6 3.5 5.0 2.8 2.7 0.8 0.7 1.0 1.0 1.0 1.1 1.1 0.3 0.3 3.6 4.5 6.0 3.9 3.8 1.1 1.0 2019 2020 2021 2022 L4Q 3M 22 3M 23 Compensation Non-Compensation

Cost per head (NOKm) Total compensation/Revenue Non-compensation/Revenue

Shareholder matters | Share count and shareholder structure

Share count
Figures in thousands	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Shares outstanding (period end)	470 747 ,	483 343 ,	483 343 ,	483 343 ,	497 463 ,
(period end) - Treasury shares	11 738 ,	7 069 ,	6 419 ,	5 669 ,	13 401 ,
(period end) + Forward outstanding contracts	101 004 ,	81 306 ,	80 726 ,	81 776 ,	76 176 ,
Diluted shares (period end)	560 013 ,	557 580 ,	557 650 ,	559 450 ,	560 238 ,
Shares outstanding (average)	470 747 ,	474 900 ,	483 343 ,	483 343 ,	483 657 ,
(average) - Treasury shares	16 874 ,	8 405 ,	6 904 ,	6 142 ,	9 875 ,
(average) + Forward outstanding contracts	101 221 ,	91 908 ,	81 142 ,	80 801 ,	82 605 ,
Diluted shares (average)	555 094 ,	558 402 ,	557 581 ,	558 002 ,	556 386 ,

Shareholder structure

Shares held by Directors and staff	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Shares held by Directors and Staff / Shares outstanding	24%	25%	25%	25%	27%
Shares and fwd held by Directors and Staff / Diluted shares contracts	38%	37%	36%	36%	38%

Shareholders by (shares outstanding) country	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Norway	69%	71%	70%	69%	69%
Great Britain	3%	3%	4%	5%	5%
USA	9%	9%	9%	9%	9%
Sweden	8%	7%	7%	6%	7%
Other	10%	10%	10%	10%	10%

Share transactions

During the quarter, ABGSC purchased 9.6m shares at NOK 6.70 per share in a buy-back offering. ABGSC sold 10.4m shares as part of the annual partner shares offering. ABGSC also sold 1.4m treasury shares and issued 14.1m new 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 10.4m shares to new partners and repurchased 9.6m 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 2023.

Expiry year	Forward (1 000) contracts ,	Forward price average
2023	8 040 ,	2 54
2024	30 322 ,	1 22
2025	1 750 ,	1 43
2026	12 934 ,	6 25
2027	11 410 ,	6 88
2028	11 720 ,	6 45
Total	76 176 ,

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 forward settlement price is adjusted for changes in interest rates and any cash distribution paid to shareholders. The interest element in the forward contract will also be adjusted 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 1.5x the current regulatory minimum requirement and 2.4x 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 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Revenues	738	809	561	803	487	406	303	508	426
Operating costs	-464	-499	-386	-527	-355	-301	-269	-383	-338
Operating profit	274	310	175	276	132	106	34	125	88
Net financial result	-4	-2	-4	0	-11	-6	-7	4	-1
Profit before tax	270	308	171	276	121	99	27	129	87
Taxes	-63	-74	-44	-67	-30	-23	-9	-31	-22
Non-controlling interests	1	-9	-2	-7	0	-5	-2	-5	-1
Net profit	208	225	126	201	91	71	16	93	65

Balance sheet
NOKm	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Total non-current assets	493	494	484	812	782	771	752	780	803
Receivables	5,828	6,278	5,245	1,392	2,784	4,775	4,931	2,242	4,903
Investments	37	52	74	541	66	98	95	63	75
Cash and bank deposits	940	1,195	1,250	1,388	1,745	1,213	922	832	799
Total current assets	6,805	7,526	6,569	3,322	4,596	6,087	5,948	3,137	5,778
Total assets	7,298	8,019	7,053	4,134	5,378	6,858	6,700	3,917	6,580
Equity attributable to owners of the parent	1,084	913	1,039	1,214	1,284	912	933	1,019	1,039
Non-controlling interests	88	10	12	20	20	1	3	8	11
Total equity	1,173	923	1,051	1,234	1,304	913	936	1,027	1,051
Long-term liabilities	235	238	234	497	485	478	476	480	497
Short-term interest bearing liabilities	0	0	0	0	198	70	49	70	163
Short-term liabilities	5,890	6,859	5,767	2,404	3,390	5,397	5,238	2,340	4,869
Total liabilities	6,125	7,097	6,002	2,901	4,074	5,945	5,764	2,890	5,530
Total equity and liabilities	7,298	8,019	7,053	4,134	5,378	6,858	6,700	3,917	6,580

Historical figures | Segment revenues in last nine quarters

Segment revenues
NOKm	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Corporate Financing	492	534	260	427	196	137	62	124	182
M&A and Advisory	90	137	142	225	143	122	121	232	78
Brokerage and Research	156	138	159	151	148	147	120	152	166
Group	738	809	561	803	487	406	303	508	426

NOKm	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
Norway	343	375	246	429	238	212	190	266	209
Sweden	287	312	208	285	199	147	74	167	144
Denmark	21	52	55	28	14	18	18	38	15
International	87	70	51	61	36	30	21	37	58
Group	738	809	561	803	487	406	303	508	426

Historical figures | Key figures in last nine quarters

Key figures
NOK	Q1 2021	Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022	Q3 2022	Q4 2022	Q1 2023
(average) Headcount	301	307	315	323	324	327	336	341	340
(average) Revenues head per	2 45	2 63	1 78	2 48	1 50	1 24	0 90	1 49	1 25
Operating head (average) costs per	-1 54	-1 62	-1 23	-1 63	-1 10	-0 92	-0 80	-1 12	-0 99
Operating / Revenues cost	63%	62%	69%	66%	73%	74%	89%	75%	79%
/ Total compensation Revenues	54%	52%	55%	54%	55%	53%	60%	56%	57%
Operating margin %	37%	38%	31%	34%	27%	26%	11%	25%	21%
Return Equity (annualised) on	84%	90%	51%	74%	29%	26%	7%	25%	24%
Shares (period end) outstanding	470 747 ,	470 747 ,	470 747 ,	470 747 ,	470 747 ,	483 343 ,	483 343 ,	483 343 ,	497 463 ,
Treasury shares (period end)	-26 870 ,	-18 288 ,	-18 063 ,	-19 371 ,	-11 738 ,	-7 069 ,	-6 419 ,	-5 669 ,	-13 401 ,
Forward outstanding (period end) contracts	104 373 ,	102 791 ,	102 436 ,	101 511 ,	101 004 ,	81 306 ,	80 726 ,	81 776 ,	76 176 ,
Diluted shares (period end)	548 249 ,	555 249 ,	555 119 ,	552 887 ,	560 013 ,	557 580 ,	557 650 ,	559 450 ,	560 238 ,
(basic) Earnings share per	0 47	0 50	0 28	0 45	0 20	0 15	0 03	0 19	0 14
Earnings share (diluted) per	0 39	0 41	0 23	0 37	0 17	0 13	0 03	0 17	0 12
Book value share (basic) per	2 44	2 02	2 30	2 69	2 80	1 92	1 96	2 13	2 15
Book value share (diluted) per	2 62	2 12	2 35	2 68	2 88	2 01	2 05	2 21	2 33
Total capital adequacy	3 892 ,	4 323 ,	4 043 ,	4 843 ,	4 994 ,	4 860 ,	4 683 ,	5 006 ,	4 966 ,
Core capital	431	503	506	648	625	628	627	671	614
Total capital adequacy ratio	11%	12%	13%	13%	13%	13%	13%	13%	12%
Minimum requirement ratio coverage	1 4x	1 5x	1 6x	1 7x	1 6x	1 6x	1 7x	1 7x	1 5x

Financial calendar

27 April 2023 | Ex. dividend date 7 July 2023 | Q2 2023 earnings release 13 October 2023 | Q3 2023 earnings release 9 February 2024 | Q4 2023 earnings release

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").

This material is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the materials. It should not be regarded by recipients as a substitute for the exercise of their own judgement. Any opinions expressed in this material are subject to change without notice and may differ or be contrary to opinions expressed by other business areas or groups of ABGSC as a result of using different assumptions and criteria. ABGSC is under no obligation to update or keep current the information contained herein. ABGSC, its directors, officers and employees' or clients may have or have had interests or long or short positions in the securities or other financial instruments referred to herein and may at any time make purchases and/or sales in them as principal or agent. ABGSC may act or have acted as market-maker in the securities or other financial instruments discussed in this material. Furthermore, ABGSC may have or have had a relationship with or may provide or has provided investment banking, capital markets and/or other financial services to the relevant companies. Neither ABGSC nor any of its affiliates, nor any of ABGSC' or any of its affiliates, directors, employees or agents accepts any liability for any loss or damage arising out of the use of all or any part of this material.

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