www.steria.no

© Steria

Power of sharing

Intern

www.steria.no

Hva er CSR/Forretningsmessig samfunnsansvar

?

Sponsing?

Nødhjelp?

Governance

Global Compact? Etisk handel?

Revisjoner?

Anti korrupsjon?

Sosial dumping?

HMS?

?

Etikk?

Miljø

www.steria.no

CSR handler om å walk the walk

Result:

• Enhanced relations

• Reduced risk

• Better reputation

• Lower costs?

Result:

• Increases satisfaction and loyalty

• Confirmation of identity

• Increased motivation

• Reduces absence and turnover

• Increased empolyee attractivity

• Enhanced reputation

Result:

• Confirmation of customer identity

• Increased customer satisfaction

• Stronger brand value

• Enhanced customer loyality

Suppliers Employees Customers

Focus:

• Standards for HSE, Environment, Work relations aso.

• Revision and control

• Implementation in supply chain

• Communication

Focus:

• HSE, empowerment, corporate values, education and personal development

• Key drivers, incentives

• Feedback and measurment

• Communication

Focus:

• Customer satisfaction

• Make it easy to be good

• Dialogue / feedbacksystems

• Communication

Dialog ue with stakeholders

Values + Corporate culture + Ethical codes

www.steria.no

Ansattes førstevalg • ”72% of Americans want their

employers to do more to support

a cause or social issue, up from

52% in 2004”

• ”93% say it is important for their

companies to provide them with

opertunities to become involved in

social issues”

Kundenes førstevalg • ”87% are likely to switch from

one product to another (price

and quality beeing equal) if the

other product is associated

with a good cause”

• ”75% of men say they consider

a company’s commitment to

social issues when deciding

what to buy or where to shop,

compared to 58% in 2004.”

Eieres førstevalg • ”70% of global investment managers surveyed

believe that integrating environmental, social and

governance issues into analysis will become

mainstream in 3-10 years”

• ”66% of investors state that a company’s

commitment to a social issue is important when

deciding which stocks or mutual fonds to invest

in.”

Bedriften som

foretrukket

selskap

Ansatte

Kunder Eiere

CSR kan handle om å skape (et nødvendig)

konkurransefortrinn

www.steria.no

Økonomi; gjennom gode

prosesser knyttet til korrupsjon,

økonomistyring og governance

reduseres risiko knyttet til

underslag og økonomisk

kriminalitet – med betydelige

følger

Interesseorganisasjoner: Ved

å gjøre ”de riktige tingene”

knyttet til miljø og HMS vil

risiko for aksjoner fra aktivister,

fagforeninger og andre

reduseres betydelig

Politiske rammefaktorer:

Gjennom gode rutiner for

avfallshåndtering,

arbeidsmiljø,

produktutvikling etc

reduseres risiko for endring

av rammebetingelser og

pålegg som kan ramme

bedriften i særlig grad

Antipati: Gjennom et

substansielt godt omdømme

reduserer man risiko for

generell antipati som på et

tidspunkt vil ramme ens

evne til å rekruttere og

beholde de riktige ansatte –

og kunder

Leverandører: Gjennom gode

revisjonsrutiner og egne regler reduseres

risiko for uegnede leverandører og

underleverandører

Og om å redusere risiko

Ansatte

Eiere Leverandører

Omverdenen

Bedriften som

trygt

selskap

Investorer: Investorer søker sikre

investeringer – der alt det ovenstående

er sikret – basert på gode og trygge

rutiner

www.steria.no

Power of Sharing - Steria

Trend shift through transformation

12th June 2012

www.steria.no

Trend shift through transformation

19 investments to date

Independent team of 18 Scandinavian professionals with offices in Oslo, Stockholm and Copenhagen

€ 525 million long term equity capital under management

Investor base includes: Nordic and international leading private and public pension plans,

endowments and foundations, funds of funds, banks and insurance companies

Investor returns generated through transforming companies into significantly more competitive, international and

profitable entities

Main investment focus on Nordic mid cap growth companies with international potential

Implementation of aggressive organic expansion and globalisation initiatives

Buy and build strategies

Three funds under management

Overall realised return: IRR 35%, ROI 3,1x.

Total NAV: IRR 25%, ROI 2,0x

2001 FSN Capital I € 54 million; fully realised; ROI 3.2x

2005 FSN Capital II € 151 million; fully invested; NAV 2.7x

2008 FSN Capital III € 375 million; eight platform investments made to date; NAV 1.3x

www.steria.no

FSN Capital Partners’ Ethos

“We are decent people making a decent return in a decent way”

By decent people we mean that we are trustworthy individuals that behave with integrity

Making a decent return means generating alpha return, i.e. a risk adjusted return which is significantly

higher than what our investors can achieve by investing in public market index funds

Generating this return in a decent way means that we operate according to the Internal Ethical

Guidelines we have developed, that we implement similar ethical guidelines in our portfolio companies

and that we adhere to the UN Global Compact, the UN Convention Against Corruption and the OECD

Guidelines for Corporate Governance for Multinational Enterprises

We believe there is plenty of money at the centre of the court

We see no need to play around the edges

www.steria.no

2.0x

0.5x

-0.5x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

ROI FSN II ROI OMX Small Cap

Creating Alpha return on a P.E setting

FSN Capital Fund II benched to 2.0x leveraged OMX Small Cap investment

Alpha 22,8 %

Note: OMX adjusted for mgmt fee of 0.5% + dividend yield of 1.0%

Index rebased to match FSN II draw downs

Risk management Active ownership

ROI (x)

www.steria.no

Example: UK Equities 1693 - 2009

Extreme Observations in 08 and 09

Source: Bank of England

08 09

www.steria.no

Complacently Low Implied Volatilities Preceded the Crisis

10

20

30

40

50

60

70

Jan-8

5

Jan-8

7

Jan-8

9

Jan-9

1

Jan-9

3

Jan-9

5

Jan-9

7

Jan-9

9

Jan-0

1

Jan-0

3

Jan-0

5

Jan-0

7

Jan-0

9

50

80

110

140

170

200

230Market-Implied Equity Volatility (VXO,VIX) (lhs)

Market-Implied Tsy Yield Volatility (MOVE) (rhs)

0

3

6

9

12

15

18

Jan-8

7

Jan-8

9

Jan-9

1

Jan-9

3

Jan-9

5

Jan-9

7

Jan-9

9

Jan-0

1

Jan-0

3

Jan-0

5

Jan-0

7

Jan-0

9

Emerging Market Debt Spread

U.S. High-Yield Bond Spread

Low

volatility

Low risk

premiums

Low Volatility. Low Risk Premiums. High Risk

Example: Emerging market and US high yield debt spread

www.steria.no

FSN Capital actively seeks to categorise, control and

manage risk

www.steria.no

FSN Capital has a framework for categorising and managing

risk exposure (on the fund and company level)

FSN Capital believes risk management is about avoiding the biggest

mistakes through disciplined decision making structures and by

creating robust portfolios of companies

Beta risk

Exogenously determined (cyclicality, FX exposure,

commodity, etc)

Alpha risk

FSN Capital controlled (operational, integration,

technology, corporate governance, etc)

www.steria.no

We break the risk factors into categories and split between

Alpha and Beta

Macro ▬ Cyclicality

▬ FX

▬ Commodity

Industry ▬ Political

▬ Competitiveness

▬ Substitution

Commercial ▬ Operating leverage

▬ Concentration

▬ Visibility

Operational Management risk

Integration risk

Internal / External

Financial Liquidity

Leverage

Covenants

Exit Multiple sustainability

Marketability

Dependency on trend shift

Active ownership Majority shareholder

Ultimate control

FSN risk categories

β

www.steria.no

EBITDA at Risk – quarterly loss potential at the fund level

Analysis based on historical changes in

quarterly portfolio company EBITDA

Definitions

Standard deviation: Std dev of portfolio including 8 assets

VaR 99%: Minimum quarterly loss in worst 1% of cases

VaR 95%: Minimum quarterly loss in worst 5% of cases

FUND II

Standard deviation 10.0%

Assets 7

VaR (99% level) -20,6%

VaR (95% level) -13,8 %

Q4 2011

| 16

CONFIDENTIAL

VaR (99% level) -20.6 %

Adjusted EBITDA 54.5

Blended multiple 7.2x

EV 393.3

Net debt -123.6

Fund value 269.7

Reduction in value -27%

VaR (95% level) -13.8 %

LTM EBITDA 59.1

Blended multiple 7.2x

EV 426.9

Net debt -123.6

Fund value 303.3

Reduction in value -18%

FSN II would still generate value to investors in a tail end event

ROI 2.4x ROI 1.7x ROI 2.0x

Note:

ROI for All shareholders

Figures excludes CTEK and Norlandia

Value at Risk (€ million) Fund II

LTM EBITDA 68.6

Blended multiple 7.2x

EV 495.5

Net debt -123.6

Fund value 371.9

| 17

CONFIDENTIAL

Labor market in Nordics allow restructuring with

relatively swift P&L and cash flow effects

ASAB - LTM EBITDA Via - LTM EBITDA

LTM recurring

LTM no action

LTM recurring

LTM no action

Cost reduction: SEK 63 mill (20%) Cost reduction: NOK 112 mill (25% - 250 FTEs)

-60

-40

-20

0

20

40

60

80

Q1-08 Q3-08 Q1-09 Q3-09 Q1-10 Q3-10 Q1-11 Q3-11

-20

0

20

40

60

80

100

120

140

160

180

200

08Q1

08Q2

08Q3

08Q4

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

11Q3

11Q4