Oslo Børs VPS Holding ASA 1st Quarter 2012

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2 Oslo Børs VPS Holding ASA 1st Quarter April 212

3 NOK million NOK million 1st quarter at a glance Continued good level of activity in the fixed income market Challenging conditions in the primary and secondary equities and derivatives market Revenues Oslo Børs VPS Revenues down 9% to NOK 222 million from 11 EBITDA down 13% to NOK 12 million from 11 EPS NOK 1.15 down 17% from Revenues EBITDA and EBITDA-margin Oslo Børs VPS % 6 % 5 % 4 % 3 % 2 % 1 % % EBITDA EBITDA margin 3

4 NOK million NOK million Reduced revenues in most segments Reduced revenues in most segments compared to 11 Reduced operating expenses compared to 11 3 Revenues per segment 18 Operating expenses Oslo Børs VPS Oslo Clearing Oslo Market Solutions Operating expenses before capitalisastion, depreciation and amortisation Capitalisastion, depreciation and amortisation 4

5 NOK million NOK 1 Oslo Børs Revenues down 13% to NOK 15 million from 11 EBITDA down 2% to NOK 57 million from Revenues Oslo Børs Reduced activity in equities Increased activity in fixed income instruments 212 Equity Markets Fixed Income Markets Derivatives Markets Financial Market data Other Implementation of Millennium in EBITDA and EBITDA-margin Oslo Børs % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % EBITDA EBITDA margin 5

6 Number No. of bonds Value (NOK bill) Value No. of issuers Market cap (NOK bill) NOK 1 Oslo Børs primary market Fixed fees from issuers down 3% from 11 Fixed fees driven by number of issuers and market capitalisation January 1 Reduced market cap. 1 Jan 212 Steady increase in number of listed bonds and certificates Fixed fees- issuers Revenues primary market Prospectus and admission fees Number and market value of listed bonds and certificates Number of and market capitalisation of issuers of equity Number Value (NOK bill) No. of issuers Market cap (NOK bill) 6

7 NOK million Oslo Børs primary market Prospectus and admission fees down 25% from 11 Revenues driven by number and size of IPOs and issues No new listings and three delistings in 12 Low level of issues in New listings No. of listings Issues of equity Issues (NOK mill) 7

8 Value Trans NOK 1 Oslo Børs secondary market Low market activity in 12 Revenues down 19% from 11 Equity revenues driven by trading activity and members choice of fee structures Derivatives revenues driven by activity level and composition of derivatives trading - No of contracts down 2% from 11 - Revenues down 44% from Revenues secondary market Equities - value of turnover and number of transactions Value (NOK bill) Trans (1) 212 Equities trading var Derivatives trading Fixed Income trading

9 Order book lit - market share Market share - equities trading Total YTD 212 On-exchange trading March 212 Nasdaq OMX Nordic 6 % Turquoise 3 % LSE Group 2 % Other 2 % 8 % 7 % 6 % CHI-X 13 % 5 % Markit BOAT 19 % Oslo Børs 55 % 4 % 3 % 2 % 46 % 55 % 62 % 67 % 1 % % London Stockholm Frankfurt Oslo Increased use of Smart Order Routers Increased internalisation in Europe (Source: Thomson Reuters) 9

10 Key market activities Continous dialogue with customers North Sea Dark Pool - Execution of non-displayed block orders in a fully regulated exchange environment - Attract Dark Pool Volume Millennium to be implemented 12 - Owned and used by London Stock Exchange Group - One of the world s fastest trading system - A flexible system - Attract new members and trading volume Continous development of microstructure - marketplace rules, pricing structure, technology, networks and products Efficient post trade 1 - Interoperability

11 NOK 1 Oslo Børs market data Revenues down 13% from Revenues market data Revenues primarily driven by number of professional end users of data from Oslo Børs Professional users down 7% from Market data - number of end-users 212 Increase in private users One-off items in 11 - Customer audits

12 Contractsc Turnover NOK 1 Oslo Clearing Revenues down 26% from 11 Shift from transaction to value based fee-schedules Derivatives activity down 2% from 11 Clearing revenues driven by trading activity and members choice of fee structures activity level and composition of derivatives trading National FSAs approval of interoperability agreements Opening up for implementation of the first interoperability agreements in 1st half 212 Oslo Clearing is reviewing its timeline for interoperability Magica increased competetiveness in derivatives clearing Revenues clearing Equities clearing Derivatives clearing Derivatives - number of standardised contracts and value of turnover Contracts (1) Turnover (MNOK)

13 NOK million NOK 1 VPS Revenues up 2% to NOK 15 million from 11 EBITDA up 19% to NOK 45 million from 11 Increased revenues in all areas except fund Fund system delayed to June Revenues VPS 212 Investor products Issuer products Settlement products Fund products Other revenues EBITDA and EBITDA-margin VPS % 7 % 6 % 5 % 4 % 3 % 2 % 1 % % EBITDA EBITDA margin 13

14 NOK 1 VPS investor products Revenues up 4% from Revenues investor products Revenues primarily driven by number of VPS accounts and market value of holdings January Number of investor accounts and market value of holdings VPS accounts (1) Holdings (NOK bill)

15 NOK 1 VPS issuer products Revenues up 9% from 11 Revenues driven by number and composition of issuers and level and composition of corporate activity Revenues issuer products - AGM-season in Additional revenue from value added products - AGM-services - Stock purchase programs - Nominee-ID Number of companies and bond issues registered Companies Bond issues 15

16 NOK 1 VPS settlement products Revenues in level with 11 Revenues driven by number of participants and number of settlement transactions Implementation of Central CounterParty (CCP) for equities in June Revenues settlement products 212 Number of trade transactions processed in VPS (1)

17 AUM (NOK bill) Transaction (1) NOK 1 VPS fund products Revenues down 5% from 11 Reduction in volumes in 212 Revenues primarily driven by assets under management and number of transactions Development of first part of new fund system delayed to June Program extended with development of new functionality Revenues fund products Asset under management and number of transactions AUM (NOK bill) Transactions (1)

18 European regulation - implications MiFID II and MiFIR - More level playing field and increased transparency EMIR - Opportunity for CCPs in mandatory clearing - Requirements for CCPs organisation, capital and access and interoperability CSD-legislation - Increased competition opportunity and threat Financial transactions tax? 18

19 Largest shareholders 13 April 212 Name Nationality Holding Holding in numbers in percent 1. DNB LIV NOR ,82 % 2. KLP FORSIKRING NOR , % 3. PARETO AS NOR ,52 % 4. ORKLA ASA NOR ,16 % 5. NBI HF ICELAND (NOM) ISL ,54 % 6. JP MORGAN CLEARING (NOM) USA ,82 % 7. ARENDALS FOSSEKOMPANI NOR ,64 % 8. NORSK HYDROS PENSJONSKASSE NOR 1 9 4,42 % 9. STATE STREET BANK (NOM) USA ,33 % 1. MSF-MUTUAL USA 911 2,12 % 11. JP MORGAN CHASE BANK (NOM) GBR ,69 % 12. NORDEA NORDIC SMALL FIN ,67 % 13. MUST INVEST AS NOR ,65 % 14. CITIBANK N.A. NEW YORK (NOM) USA ,56 % 15. SUNDT AS NOR ,53 % 16. FRANKLIN TEMPLETON E LENDING ACCOUNT 2 LUX 622 1,45 % 17. STATE STREET BANK (NOM) USA ,4 % 18. CLEARSTREAM BANKING (NOM) LUX 351 5,82 % 19. MSF-MUTUAL EUROPE USA 34,79 % 2. ELTEK HOLDING AS NOR 3,7 % Sum 2 largest ,27 % Total number of shares , % 19

20 Summary Revenues affected by reduced volumes on trading and listing Underlying operating costs somewhat below 11 Focus forward - Attract new listings/registrations and members - Increased sale to existing customers - Strengthen competitive position in secondary market - Trading, clearing and settlement - Successful execution of projects - Millennium, Magica, Fund project, modernisation of VPS IT - Consider opportunities to increase scale in post trade, e.g. share technology 2

21 Appendix

22 P&L 1st Quarter 1st Quarter Change 212 in % Operating revenues % Operating expenses Capitalisation of internal resources Salary and other personnel expenses Other operating expenses Depreciations and write-downs Amortisations Operating expenses before capitalisation of internal resources, depreciations and amortisations % Total operating expenses % EBITDA % Operating profit (EBIT) % Net financial items Ordinary pre-tax profit Tax Earnings for the period % Actuarial gains/losses defined benefit pension plans Tax-effect Total comprehensive income % Earnings per share (NOK) 1,15 1,39-17 % 5,42 Diluted earnings per share (NOK) 1,15 1,39-17 % 5,42 22

23 Breakdown revenues Oslo Børs segment Revenues per area 212 Equity Markets Fixed Income Markets Derivatives Markets Financial Market data Other Total Oslo Børs Revenues per category 212 Fixed fees- issuers Trading fees Prospectus and admission fees Financial market data Other income Total Oslo Børs

24 Breakdown revenues VPS segment VPS 212 Investor products Issuer products Settlement products Fund products Other revenues Total VPS

25 Balance sheet 31. March 31. March 31. Dec 212 Fixed assets IT-systems Customer relations Registrations Goodwill Deferred tax assets Tangible assets Financial fixed assets Current assets Market value of outstanding derivatives positions Receivables Investments Cash and cash equivalents Assets Equity Contributed equity Earned equity Total equity Liabilities Pension liabilities Deferred tax liabilities Cash collateral Market value of outstanding derivatives positions Current liabilities Equity and liabilities

26 Cash flow 1st Quarter 1st Quarter 212 Cash flow from - operational activities investment activities financing activities Cash and cash equivalents at period's start Change in cash and cash equivalents Cash and cash equivalents at period's end Cash flow per share (NOK) 2,73 3,33 -,14 26

27 Equity 1st Quarter 1st Quarter 2 12 Equity at period's start Total comprehensive income Dividends Purchase of own shares -122 Acturial gains/losses in the period Equity at period's end Equity ratio 57 % 52 % 62 % 27

28 Price Share price Oslo Børs VPS Holding ASA