DNB Technology A global long only equity TMT fund

May 2014

Anders Tandberg-Johansen, Portfolio Manager

Sverre Bergland, Portfolio Manager

Erling Thune, Portfolio Manager

DNB Technology

2

• Long-only UCITS global equity fund which invests in

technology, media and telecom sectors

• Strong and consistent performance record

• Dedicated and experienced investment team

• Compliant with DNB Asset Managements SRI policy

Agenda

3

1 DNB Asset Management

3 Investment Process

2 Portfolio Management Team & Track Record

4 Risk Management

5 Fund Facts

DNB Asset Management

4

DNB is among the largest Asset Managers in the Nordic Region

• Specialist approach to investing

• 77 portfolio managers and analysts

• € 58 billion under management

• Offices in Oslo, Bergen, Stockholm, Luxembourg, Hong Kong and Chennai

• 100% owned by Oslo-listed DNB Group

The DNB Group

• DNB is Norway's largest financial services group and one of the largest in the Nordic

region in terms of market capitalization, represented in 21 countries worldwide

• The Group is among the world’s leading banks within shipping, energy and seafood

• The Group offers a full range of financial services, including loans, savings, advisory

services, insurance and pension products for retail and corporate customers and the

public sector

Agenda

5

1 DNB Asset Management

3 Investment Process

2 Portfolio Management Team & Track Record

4 Risk Management

5 Fund Facts

Experienced Team

Anders Tandberg-Johansen – Head of Global Technology

Anders joined DNB Asset Management in 1998 as a portfolio manager being responsible for Norwegian technology portfolios. Since 2002 he serves as Head of Global Technology Equities within the Global Equity team. Between 1996 and 1998 Anders was a technology analyst with Enskilda Securities. He holds a BA in Finance from the Norwegian School of Management (BI).

Sverre Bergland – Portfolio Manager, Software Sverre joined DNB Asset Management in 2001 as a technology equity analyst. He started out his professional

career in 1995, working for ABG Securities as an IT analyst. Sverre holds a BA in Finance from the University of San Francisco, USA.

Erling Thune – Portfolio Manager, Telecom & Media Erling joined DNB Asset Management's global technology team in early 2008 where he is responsible for

global telecommunications companies and media. Erling started his career in 1993 as a financial journalist for the Norwegian Financial Daily. Between 1996 and 2000 he was Senior Vice President and Investor Relations Officer at Elkjøp ASA, Norway's leading retail company, before joining Telenor ASA – Norway's leading Telecom operator – in 2000 where he held the position of the Head of Investor Relations. Erling is a graduate of the Norwegian School of Economics and Business Administration (NHH).

6

7

Best Global TMT fund over the last 5 years

Note: Returns as of May 2014, source morningstar.de out of152 Global Technology funds. Index is "MSCI World TMT" (66% MSCI Global IT, 22% MSCI

Global Telecom Services, 12% MSCI Global Media). Inception of fund is August 16th 2007. Historical performance is no guarantee of future returns.

Future returns will depend on market development, manager skill, portfolio / fund's risk exposure and the costs associated with the management /

investment. The return can at times be negative.

22.7 % 22.0 %

18.9 % 18.9 % 18.7 % 17.9 % 17.7 % 17.7 % 17.5 % 17.4 %

0%

5%

10%

15%

20%

25%

DNB Nordic Technology (NOK)

Massively beating peers over more than 10 years

Global TMT funds – last 10 years (annual)

Note: Inception of DNB Nordic Technology is August 8th 2001. Performance data as of May 2014 (NOK). Peers comparison from Morningstar last 10

years as of January 2014.Historical performance is no guarantee of future returns. Future returns will depend on market development, manager skill,

portfolio / fund's risk exposure and the costs associated with the management / investment. The return can at times be negative.

Acc. net return of 440 % since inception in 2001

8

16.8 %

8.2 %

7.0 % 6.5 %

5.6 % 5.3 % 4.9 %

4.1 % 4.1 % 3.8 %

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

-100%

0%

100%

200%

300%

400%

500% DNB Nordic Technology Benchmark

Successful Absolute Return strategy

9

Source: Grapht is Morningstar Direct pr April 2014. Performance is net of fees for TMT with gross swap performance only for Global Hedge. Table shows annual Global Hedge performance untli inception of TMT from 2011 until May 13, 2014. Historical performance is no guarantee of future returns. Future returns will depend on market development, manager skill, portfolio / fund's risk exposure and the costs associated with the management / investment. The return can at times be negative.

40

60

80

100

120

140

160

180

200

220

240

DNB TMT Absolute Return NOK ST1X

MSCI World (NOK) Global Hedge TMT Period MSCI TMT Net return*

sep.07 +2.6% 3.0%

2008 -55.1% 21.3%

2009 +61.9% 22.7%

2010 +10.2% -1.6%

2011 +1.4% +10.2%

2012 +12.7% -10.9%

2013 +26.0% +13.2%

2014 YTD +1.7% +0.4%

10

Note: Returns are as of . Index is "MSCI World TMT" (66% MSCI Global IT, 22% MSCI Global Telecom Services, 12%

MSCI Global Media). Inception of fund is August 16th 2007. Prior to 31. March 2010 the index was ABG TMT Nordic. . Historical

performance is no guarantee of future returns. Future returns will depend on market development, manager skill, portfolio / fund's risk

exposure and the costs associated with the management / investment. The return can at times be negative.

May 13, 2014

Performance - DNB Technology

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

120%

140% DNB Technology Benchmark

ANNUALIZED PERFORMANCE

YTD

1 year

3 year

5 year

19.7

12.3

7.2

-1.0

Relative

-1.2 -2.9

Performance Absolute

21.8 2.2

11

Performance relative to benchmark YTD - DNB Technology

Note: Returns are as of . Index is "MSCI World TMT" (66% MSCI Global IT, 22% MSCI Global Telecom Services, 12%

MSCI Global Media). Inception of fund is August 16th 2007. Prior to 31. March 2010 the index was ABG TMT Nordic. . Historical

performance is no guarantee of future returns. Future returns will depend on market development, manager skill, portfolio / fund's risk

exposure and the costs associated with the management / investment. The return can at times be negative.

May 13, 2014

Contributors Selection

Ubisoft Entertainment 0.56 %

Oracle Corp 0.49 %

TriQuint Semiconductor Inc 0.45 %

Softbank Corp 0.31 %

Samsung Electronics Co Ltd GDR 0.30 %

Hewlett-Packard Co 0.23 %

F5 Networks Inc 0.22 %

O2micro International Ltd ADR 0.18 %

Cisco Systems Inc 0.18 %

MasterCard Inc 0.17 %

Detractors Selection

Millennial Media Inc -1.08 %

Jds Uniphase Corp -0.92 %

Oclaro Inc -0.63 %

GameLoft SE -0.52 %

King Digital Entertainment Plc -0.25 %

Mellanox Technologies Ltd -0.24 %

Microsoft Corp -0.22 %

eBay Inc -0.21 %

Adva Optical Networking Se -0.20 %

Emc Corp/Ma -0.20 %

12

Tech stocks are cheap and grow faster than the market

Source Bloomberg per March 2014

Sector

PE 2014

Financials 12.7x

Energy 12.8x

Materials 15.5x

Utilities 15.8x

Information Tech 16.0x

Industrials 16.0x

Consumer Staples 17.5x

Telecom Services 17.5x

Health Care 17.7x

Consumer Discret. 18.5x

Sector Forecast EPS

Growth

Consumer Discretionary. 17.0%

Information Tech 13.9%

Health Care 13.2%

Industrials 11.9%

Materials 11.6%

Financials 11.1%

Energy 10.2%

Consumer Staples 9.2%

Telecom Services 4.0%

Utilities 2.6%

13

10 largest holdings

2014 PE of 13 on 8% EPS CAGR

Source: Bloomberg per March 2014

PE' 14 adjusted for net cash/debt

5.3

8.0 9.0 9.5

11.3 12.0

18.0 19.5 19.8

21.5

0

5

10

15

20

25

Estimated eps CAGR next three years

2.2 % 3.5 %

5.1 % 7.1 % 7.5 %

8.7 %

12.9 % 13.0 %

18.5 %

24.8 %

0%

5%

10%

15%

20%

25%

30%

14 Source: Bloomberg per May 2014

«Old tech» is fine…

Share price chg last three months EV/SALES 2014

11%

8%

6%

4% 3%

1% 0%

-4%

-7%

-10%

-15%

-10%

-5%

0%

5%

10%

15%

0.6 0.7 0.7 1.3 2.0 2.1

2.9 3.4 4.5

5.7

0

2

4

6

8

10

12

14

16

18

15 Source: Bloomberg per May 2014

While high multiple/momentum stocks have taken a beating

-64%

-49%

-43% -42% -42% -39%

-35% -35%

-28% -27% -26% -26%

-21% -17%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

Share price chg last three months

16.2

14.0

10.5 9.7

8.1 7.4

6.6 6.0 5.5 5.5 5.0

3.1

1.4 1.0

0

2

4

6

8

10

12

14

16

18

EV/SALES 2014

DNB Technology – Largest positions

DNB Technology

Position

16 Note: As of

APPLE 9.00 %

ORACLE CORP 7.31 %

SAP STAMM 5.51 %

Jds Uniphase Corp 4.49 %

Samsung Electronics Co Ltd GDR 4.41 %

CITRIX SYSTEMS 4.39 %

Netgear Inc 4.31 %

EBAY 3.89 %

EMC CORP 3.27 %

GOOGLE C 2.92 %

May 13, 2014

Agenda

17

1 DNB Asset Management

3 Investment Process

2 Portfolio Management Team & Track Record

4 Risk Management

5 Fund Facts

18

Four key elements of stock selection

Valuation Earnings rev/

momentum

Continously monitoring approx. 500 stocks

Value

Creation Themes

Themes - Six Important Megatrends

Smartphones-growth Services moving to the cloud

From Offline to Online New gaming platforms

The battle for the TV interface

19

Mobile payments

Google

Strong positions and reasonable valuation

Value

Creation

Valuation

Earnings rev/

momentum

Theme

• Totally dominating search

• Strong and visionary management team

• Economies of scale – "The winner takes it all"

• Net cash adjusted P/E of 20 in 2014

• EPS growing by appr 20%

• Above 70% gross margin

• USD 45 billion in net cash

• Inflection point mobile search

• Undervalued other assets such as YouTube

• Facebook-threat overrated

• Winner in transition from Offline to online

• Well positioned in most TMT megatrends

20

Reduce

Buy Buy

Reduce

Buy

Revenues (USD Bn)

EPS (USD)

0

10

20

30

40

50

60

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Q4

Q3

Q2

Q1

0

5

10

15

20

25

30

35

40

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Q4

Q3

Q2

Q1

eBay

Leader in online payments

Value

Creation

Valuation

Earnings rev/

momentum

Theme

• Dominant position within online payments

• Scalable online shopping mall – no inventories

• Good management

• PayPal at 15x EBITDA (EBITDA CAGR of 20%)

• Marketplaces at 10x EBITDA (EBITDA CAGR of 10%)

• = 30% upside to current share price

• Activist involvement

• Strong indicators from ChannelAdvisor

• Strong growth in eCommerce and online payments

21

Reduce

Buy Buy

Reduce

Buy

Active PayPal users (mill)

Number of payments (mill)

0

20

40

60

80

100

120

140

160

2009 2010 2011 2012 2013

0

500

1000

1500

2000

2500

3000

3500

2009 2010 2011 2012 2013

Gameloft

Explosive growth in addressable market

Value

Creation

Valuation

Earnings rev/

momentum

Theme

• Top line growth and margin expansion

• Broad portfolio – no one hit wonders

• PE of 20 in 2014

• EPS growing by approximately 40%

• Above 80% gross margin

• Smartphone growth in emerging markets will grow faster than most people expect

• Rapid growth in mobile internet devices

22

Reduce

Buy Buy

Reduce

Buy

Global Internet device sales

Revenues (EUR)

-40

10

60

110

160

210

260

2008 2009 2010 2011 2012 2013e 2014e

Samsung

Quality company at a big discount

Value

Creation

Valuation

Earnings rev/

momentum

Theme

• Strong management

• Scale leader in handset and memory

• Uniquely cheap vs. own industry and universe

• Estimates marginally slipping (like the industry), but minor compared to valuation

• Tailwinds from mobility growth and increased storage

23

Reduce

Buy Buy

Reduce

Buy

Dominant in mobile memory

Historical fwd P/E ex cash

51%

25%

22% 1%

Samsung

Hynix

Micron

Other

Netgear

Well positioned - strong management - cheap

Value

Creation

Valuation

Earnings rev/

momentum

Theme

• Strong, commercial and hands on management

• EV/Sales: 0.7

• EV/EBIT: 9

• PE: 13

• Loss of large customer in 2013

• Growth rate will pick up in 2014

• Internet of things

• Increased IPTV-viewing

24

Reduce

Buy Buy

Reduce

Buy

• Extremely good at sourcing and managing retail channels

WiFi extender

Nighthawk WiFi router

Agenda

25

1 DNB Asset Management

3 Investment Process

2 Portfolio Management Team & Track Record

4 Risk Management

5 Fund Facts

WorldPort

• Proprietary portfolio management

system

• Interactive platform

• Performance attribution

Risk Modelling

• Multiple risk models used interactively

• What-if scenarios

Order processing

• Integrated platform

• Integrated short availability control

• CDD in Oslo, Hong Kong, New York

and Stockholm

Continuous Monitoring of Ex-ante Risk

26

DNB Central Dealing Desk

27

CDD - Execution of equity and derivatives according to SDP

- Operationalization and execution of DNB Life equity derivatives allocations

Risk Models & Analytics - RM & Analytics in accordance to current mandate

Equity Index Products - Construction and execution of Equity Index Products globally

Disclosure - Disclosure of long and short positions for DAM as well as for DNB ASA

Global trading team for equities and related derivative instruments with trading

desks located in Stockholm, Oslo, and Hong-Kong able to serve, execute and

monitor orders around the clock.

Understanding Portfolio Sensitivities

• Risk system based on GRAM (Citi)

• Challenges the manager's fundamental bias

Likely Outperformance From Changes In Macro Factors (%)

-3.8 -2.5 -1.3 0.0 1.3 2.5 3.8

Global Credit Default

Risk 74.49%

Rising emerging

market yield 18.95%

Stronger USD vs EUR

10.94%

Global small caps

beat large caps

5.38%

Global growth beats

value 4.87%

Higher oil prices

53.02%

Rising global yield

21.19%

Positive global

market shock

14.44%

Higher commodity

prices (ex-oil)

21.66%

Stronger USD vs JPY

12.89%

New

Current

Skandia Global Hedge NTECH

P/E P/B EV/Sales EV/EBIT Size %Covered Syst.Var Factors Covariance Residual Total Volatility Explained %Covered

Current Portfolio 30.96 0.11 0.37 11.81 0.00 % 18.4 12.6 5.8 69.8 88.3 9.4 % 20.9 % 99.6 %

New Portfolio 42.33 0.06 0.29 11.81 0.00 % 14.7 10.9 3.9 77.4 92.2 9.6 % 16.0 % 99.6 %

Benchmark N/A N/A N/A N/A 0.00 % 0.0 0.0 0.0 0.0 0.0 0.0 % 100.0 %

Current Difference / Tracking N/A N/A N/A N/A 18.42 12.61 5.81 69.84 88.26 9.39 % 20.9 %

New Difference / Tracking 14.74 10.85 3.89 77.44 92.18 9.60 % 16.0 %

Sector Neutral

Current Portfolio N/A N/A N/A N/A 0.00 %

New Portfolio N/A N/A N/A N/A 0.00 %

Benchmark N/A N/A N/A N/A 0.00 %

Current Difference / Tracking N/A N/A N/A N/A

New Difference / Tracking

Risk SummaryFundamental Factor Tilts

'WorldPort' extracts are samples only

28

Agenda

29

1 DNB Asset Management

3 Investment Process

2 Portfolio Management Team & Track Record

4 Risk Management

5 Fund Facts

DNB Technology - Fund Profile

Fund managers: Anders Tandberg-Johansen, Sverre Bergland, Erling Thune

Strategy: Long only equity fund

Fund type UCITS: FCP - Long only equity fund

Benchmark: "MSCI World TMT" (66% MSCI Global IT, 22% MSCI Global

Telecom Services, 12% MSCI Global Media)

Risk target: 6-10% TE

Number of holdings: 30-60

Country range: Flexible

Inception date: August 16, 2007

30

31

DNB Technology - Terms

ISIN: LU0302296495

Liquidity: Daily

Management fee: 1.5% p.a.

Performance fee: 20% (based on accumulated relative performance, no reset)

Front end fee: Up to 5%

Currency: EUR

Minimum investment: EUR 1000

Domiciled: Luxembourg

32

Our ambition is clear cut

Identify winners and losers in changing landscape

Create consistent long-term returns for investors

Always keep tight risk management

This presentation has been prepared in accordance with DNB Asset Management AS' General Business Terms. The presentation was prepared for internal use as information

for our clients and is not intended for public use or distribution. The information contained herein may not be reproduced without DNB Asset Management AS’ prior consent.

This presentation was prepared on the basis of publicly available information. DNB Asset Management AS does not warrant that the information in the presentation is exact,

correct or complete. The opinions expressed herein reflect the views of DNB Asset Management AS at the time. DNB Asset Management AS reserves the right to change its

opinion without notice. Any written material distributed must be seen in the context of the oral presentation. DNB Asset Management AS will not accept responsibility for direct

or indirect losses incurred as a result of the interpretation and/or use of information in this presentation.

This presentation is not an offer or recommendation to purchase or sell financial instruments. Investments in financial instruments are associated with risk, including the

possibility that all or part of invested funds may be lost. Historical returns are no guarantee of future returns.

DNB Bank ASA and/or other entities in the DNB Group or employees and/or representatives of the DNB Group may trade in or hold positions in the presented or related

financial instruments and may give financial advice or provide banking services linked to such financial instruments. Rules regarding confidentiality and other internal rules limit

the exchange of information between different units and group companies in the DNB group. The employees in DNB who prepared this presentation may thus be prevented

from using, or be unaware of, information held in other units/companies in the DNB Group that may be relevant to this presentation.

DNB Asset Management AS is an entity within the DNB Group registered in the Registry of Business Enterprises under Enterprise Number 880 109 162.

Oslo

DNB Asset Management AS

Dronning Eufemias Gate 30

PO Box 1600 Sentrum

N-0021 Oslo, Norway

Stockholm

DNB Asset Management AB

Kungsgatan 18

SE-105 88 Stockholm, Sweden

Hong Kong

DNB Asset Management (Asia) Ltd.

99 Queen's Road Central

3305-3306, The Center, Hong Kong

Bergen

DNB Asset Management AS

Folke Bernadottesvei 40

P.O. Box 7515

N-5020 Bergen, Norway

Luxembourg

DNB Asset Management S.A.

13, rue Goethe

L-1637 Luxembourg

Chennai

DNB Investment Advisory Services (India) Private Ltd.

No.2 Leith Castle Center Street

Santhome High Road

600 028 Chennai, India

33

Disclaimer

Regional and sector allocation

69% 7%

22%

Regional Allocation

Americas

APAC (ex JP)

Europe

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Americas Japan APAC (ex JP) Europe

Net Overweight Underweight

Note: As of . Overweight and underweight is with reference to the assigned benchmark. May 13, 2014

36%

44%

12%

Sector Allocation

Hardware

Software & Services

Media

Semiconductors

Telecom

Retailing

Consumer Durables

-20%

-10%

0%

10%

20%

30%

40%

50%

Net Fund Benchmark

Global internet penetration still small

35 Source: ITU (International Telecommunication Union)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Global Population

Internet Population

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2005 2006 2007 2008 2009 2010 2011 2012 2013

Developed Developing

Only 40% of the world population is online The growth comes from smartphones in

emerging markets Million users Million users

Google

Well positioned within all mega trends

36

YouTube Google Maps Google Chrome/OS

Google mobile search Android Google TV

37

Self driving cars Google glasses

«Connected home» Robotics

Google

New Growth Opportunities