Oslo Børs VPS Holding ASA1st Quarter 2016

28 April 2016

1st quarter at a glance• Growth in underlying earnings despite a relatively calm market

• Continued growth in listing of fixed income issues - 127 new issues admitted to listing in the quarter

• Higher level of trading activity than in the previous three quarters

• Continuing high level of underlying activity in the securities registration and mutual funds areas at VPS

• VPS ends its agreement with Percival CSD Partners – write-down of NOK 34 million

• Oslo Børs launches a new tradable seafood index

• Oslo Børs extends its technology partnership with the London Stock Exchange Group

• Oslo Børs launched the marketplace Merkur Market for smaller and medium-sized companies in January – seven companies admitted for trading2

1st quarter at a glance

• Revenues of NOK 227 million –in line with Q115

• Expenses down NOK 2 million to NOK 119 million from Q115

• EBITDA up NOK 2 million to NOK 107 million from Q115

• Write-down of NOK 34 million on core system project

231 222209

232 226 234211

223 227

0

50

100

150

200

250

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

NO

K m

illio

n

Revenues Oslo Børs VPS

115 120109 109 106

124110 102 10750%

54%52%

47% 47%

53% 52%

46%47%

40%42%44%46%48%50%52%54%56%

020406080

100120140

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

NO

K m

illio

n

EBITDA and EBITDA-margin Oslo Børs VPS

EBITDA EBITDA margin

3

Oslo Børs

• Revenues of NOK 108 million –in line with Q115

• EBITDA up NOK 6 million to NOK 59 million from Q115

64 59 61 6453

6859 60 59

55% 56% 58%53%

49%59% 57% 55% 54%

0%

20%

40%

60%

0

20

40

60

80

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

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illio

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EBITDA and EBITDA-margin Oslo Børs

EBITDA EBITDA margin

0

50 000

100 000

150 000

Q12014

Q22014

Q32014

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Q12015

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K 10

00

Revenues Oslo Børs

Equity Markets Fixed Income Markets Derivatives Markets Financial Market data Other

4

Oslo Børs – primary market

• Steady increase in number of listed bonds and certificates

• Fixed fees from issuers NOK 25 million – up NOK 1 million or 4% from Q115

• Fixed fees driven by number of issuers and market capitalisation January 1

- Market cap. equity issuers 1 January 2016 up 4% from 2015

0

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Revenues primary market

Fixed fees- issuers Prospectus and admission fees

213 216 219 220 216 218 215 213 212

2003 2145 2097 1955 2088 2091 1939 20421777

-500

500

1500

2500

0

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Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

No.

of i

ssue

rs

Number of and market capitalisation of issuers of equity

No. of issuers Market cap (NOK bill)

1 6131 679 1 690 1 695 1 709 1 715 1 713 1 721 1 735

1442 1454 1475 15091571 1546 1571 1580

1635

1000

1500

2000

1 000

1 200

1 400

1 600

1 800

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

Num

ber

Number and market value of listed bonds and certificates

Number Value (NOK bill)

5

Oslo Børs – primary market

• Prospectus and admission fees down NOK 3 million to NOK 5 million in Q116

• Revenues driven by number and size of IPOs and issues

• No new equity listings on Oslo Børs or Oslo Axess in Q116

• Continued interest for listing of both equities and fixed income

• Merkur Market launched 13 January 2016

- Seven companies admitted for trading

1

76

5

3

7

02

0012345678

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

New listings Oslo Børs/Oslo Axess

02 0004 0006 0008 000

10 00012 00014 00016 000

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

NO

K m

illio

n

Issues of equity

6

Oslo Børs – secondary market

• Revenues from trading on Oslo Børs and Fish Pool up NOK 1 million to NOK 37 million from Q115

• Value of equity turnover on Oslo Børs down 12% from Q115

- Revenues down NOK 2 million

• Derivatives revenues driven by activity level and composition of derivatives trading

- No of contracts on Oslo Børs down 5% from Q115

- Volume on Fish Pool up 690% from Q115

- Revenues up NOK 3 million from Q115

291242 230

344 337283 262 283 297

5 529 4 982 5 460

7 878 7 4795 989 6 002 6 170

6 837

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4 000

6 000

8 000

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Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

Valu

e

Equities - value of turnover and number of transactions

Value (NOK bill) Trans (1000)

0

10 000

20 000

30 000

40 000

50 000

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NO

K 10

00

Revenues secondary market

Equities trading Derivatives trading Fixed Income trading

7

Oslo Børs – market data

• Revenues NOK 35 million – up NOK 1 million from Q115

• Revenues primarily driven by number of professional end users of data from Oslo Børs

• Underlying number of professional users estimated down 1% from Q115

40 338 39 039 39 351 40 36942 043 40 707 40 272 40 785 41 901

0

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Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

Market data - number of end-users

05 000

10 00015 00020 00025 00030 00035 00040 000

Q12014

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Revenues market data

8

Key market activities

• Market activities to attract issuers- Domestic and international

- Equities and fixed income

• Marketing Merkur Market

• Market activities to attract new trading members and increase market share in trading

- Continuous improvement of microstructure

- Efficient post trade

• Millennium release November 2016

• Preparing for MiFID 2

9

VPS

• Revenues NOK 119 million – up NOK 1 million from Q115

• EBITDA down NOK 3 million to NOK 51 million from Q115

• VPS has ended the agreement with Percival CSD Partners to deliver CSD core system

0

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NO

K 10

00

Revenues VPS

Investor products Issuer products Settlement productsFund products Other revenues

5462

49 4654 59

5243

51

47%54%

49%41%

46%50% 49%

38%43%

0%10%20%30%40%50%60%

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60

80

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EBITDA and EBITDA-margin VPS

EBITDA EBITDA margin

10

VPS – investor products

• Revenues NOK 35 million –up NOK 4 million from Q115

• Revenues primarily driven by number of VPS accounts and market value of holdings January 1

• Increase in revenues from messages

05 000

10 00015 00020 00025 00030 00035 00040 000

Q12014

Q22014

Q32014

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NO

K 10

00

Revenues investor products

1063 1066 1076 1065 1077 1098 1102 1094 1114

4641 4781 4743 4581 4773 4737 4575 4659 4524

2000

3000

4000

5000

600

800

1000

1200

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

No.

of a

ccou

nts (

1000

)

Number of investor accounts and market value of holdings

Income-earning accounts (1000) Holdings (NOK bill)

11

VPS – issuer products

• Revenues NOK 30 million – down NOK 2 million from Q115

• Revenues driven by number and composition of issuers and level and composition of corporate activity

- AGM-season in Q2

• Additional revenue from value added products

- AGM-services

- Bond holders’ meeting

- Stock purchase programs

- Nominee-ID

0

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30 000

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K 10

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Revenues issuer products

1 102 1 104 1 098 1 097 1 063 1 056 1 042 1 038 1 024

2338 2378 2383 2354 2341 2332 2337 2317 2307

0

1 000

2 000

3 000

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

Number of companies and bond issues registered

Companies Bond issues

12

VPS – settlement products

• Revenues down NOK 2 million to NOK 25 million in Q116

• Revenues driven by number of participants and number of settlement transactions 0

5 000

10 000

15 000

20 000

25 000

30 000

Q12014

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K 10

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Revenues settlement products

3 0272 760 2 784

3 450 3 3662 896 2 966 3 155 2 978

0

1 000

2 000

3 000

4 000

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

Number of trade transactions processed in VPS (1000)

13

VPS – fund products

• Revenues in Q116 up NOK 1 million to NOK 27 million from Q115

• Evolution up NOK 0.3 million

• Revenues in Q116 affected by windup of a customer in March

• Revenues in VPS primarily driven by assets under management and number of transactions

• Strong competition from international providers and internal IT in targeted markets

05 000

10 00015 00020 00025 00030 000

Q12014

Q22014

Q32014

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NO

K 10

00

Revenues fund products

461499 498 508

542 536 514 539

432

1015 901 884 919 989 945 946 986

1302

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1500

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700

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

Nok

bill

ion

Asset under management and number of transactions

AUM (NOK bill) Transactions (1000)

14

Oslo Market Solutions

• Revenues down NOK 0.1 million from Q115

• EBITDA down NOK 0.4 million from Q115

6,3

5,14,2

5,2 5,15,7

4,75,5

5,0

1,1 1,50 0,5 0,2 1,0 0,7 0,7

(0,2)-101234567

Q114 Q214 Q314 Q414 Q115 Q215 Q315 Q415 Q116

Revenues and EBITDA Oslo Market Solutions

Revenues EBITDA

15

Summary

• Continued relatively good activity in the capital markets

• Continued intense competition and pressure on market share

• Continuous focus on operating costs

• Continuous assessment of new products and new positions in order to adapt to challenging competitive environment

• Focus forward

- Attract new listings/registrations and members

- Increased sale to existing customers

- Strengthen competitive position in secondary market

- Reorganising the modernisation of VPS serviceplatform to a step by step approcah

- Implementation of new regulation

16

Appendix

P&L 1st Quarter 1st Quarter Change 2016 2015 in % 2015

Operating revenues 226 606 226 231 0 % 894 858

Operating expenses

Capitalisation of internal resources 0 0 0Salary and other personnel expenses 73 286 71 214 267 094Other operating expenses 46 052 49 379 186 563Depreciations and write-downs 44 463 13 178 49 267Amortisations 940 815 3 261

Operating expenses before capitalisation of internal resources, depreciations and amortisations 119 338 120 593 -1 % 453 657Total operating expenses 164 741 134 586 22 % 521 278

EBITDA 107 269 105 638 2 % 441 201

Operating profit (EBIT) 61 866 91 645 -32 % 373 580

Net financial items 1 891 3 650 14 382

Ordinary pre-tax profit 63 757 95 295 387 962

Tax 15 939 25 088 89 269

Earnings for the period 47 818 70 207 -32 % 298 693

Actuarial gains/losses defined benefit pension plans 0 0 8 025Tax-effect 0 0 -2 167

Total comprehensive income 47 818 70 207 -32 % 304 551

Earnings per share (NOK) 1,11 1,63 -32 % 6,95Diluted earnings per share (NOK) 1,11 1,63 -32 % 6,95Earnings per share (NOK) before amorisations 1,13 1,65 -31 % 7,35Earnings per share (NOK) before amorisations and write-dow 1,72 1,65 5 % 7,3518

Breakdown revenues – Oslo Børs segmentOSLO BØRSRevenues per area Q1 2016 Q1 2015 2015

Equity Markets 47 038 51 828 211 071Fixed Income Markets 12 056 11 791 48 707Derivatives Markets 10 881 7 539 33 025Financial Market data 34 250 33 580 132 393Other 3 348 3 244 10 867

Total Oslo Børs 107 573 107 982 436 063

Revenues per category Q1 2016 Q1 2015 2015

Fixed fees- issuers 25 489 24 510 102 665Trading fees 36 788 35 998 134 526Prospectus and admission fees 4 616 7 400 42 372Financial market data 34 250 33 580 132 393Other income 6 429 6 494 24 107

Total Oslo Børs 107 573 107 982 436 063

19

Breakdown revenues – VPS segmentVPS Q1 2016 Q1 2015 2015

Investor products 35 119 31 211 117 669Issuer products 30 183 32 558 133 760Settlement products 25 083 27 293 105 923Fund products 26 673 25 262 91 576Other revenues 1 482 1 530 5 770

Total VPS 118 540 117 854 454 698

20

Balance sheet 31 March 31 March 31 Dec 2016 2015 2015Fixed assets

IT-systems 62 247 87 942 93 143 Registrations 6 200 9 700 6 200 Goodwill 491 551 500 988 491 551

Deferred tax assets 52 602 59 580 52 496 Tangible assets 46 947 57 773 51 745 Financial fixed assets 18 989 18 034 18 989

Current assets

Receivables 116 515 106 312 97 480 Cash and cash equivalents 743 043 937 725 578 482

Assets 1 538 094 1 778 054 1 390 086

Equity

Contributed equity 1 065 225 1 246 137 1 017 774 Non-controlling interests 356 603 337 Total equity 1 065 581 1 246 740 1 018 111

Liabilities

Pension liabilities 158 118 167 832 158 265 Deferred tax liabilities 3 824 4 772 4 031 Current liabilities 310 571 358 710 209 679

Equity and liabilities 1 538 094 1 778 054 1 390 086 21

Cash flow 1st Quarter 1st Quarter2016 2015 2015

Cash flow from

- operational activities 172 106 164 901 298 307

- investment activities -7 780 -7 776 -37 620 - investments in systems and tangible assets -9 709 -11 506 -51 370 - investments in subsidiaries 0 0 0 - investments in treasury bills and bonds 0 0 0 - received cash collateral from members 0 0 0 - financial income 1 929 3 730 13 750

- financing activities 235 -617 -463 422

Cash and cash equivalents at period's start 578 482 781 217 781 217Change in cash and cash equivalents 164 561 156 508 -202 735Cash and cash equivalents at period's end 743 043 937 725 578 482

Cash flow per share (NOK) 3,83 3,64 -4,71

22

Equity 1st Quarter 1st Quarter 31 Dec

2015 2014 2015

Equity at period's start 1 018 111 1 177 430 1 177 430Total comprehensive income 47 818 70 207 298 693Dividends 0 0 -462 975Purchase of own shares 273 -537 9Acturial gains/losses in the period 0 0 5 858Change in non-controlling interests -622 -360 -904Equity at period's end 1 065 581 1 246 740 1 018 111

Equity ratio 69 % 70 % 73 %

23

Largest shareholders 15 April 2016

24

Share price Oslo Børs VPS Holding ASA

25