ABG Sundal Collier. Preliminary 2008 results. Press Release

Transcription

1 Press Release ABG Sundal Collier Preliminary 2008 results Oslo, 17 February 2008 The loss of confidence and subsequent turmoil in global financial markets following the collapse of some high profile international financial institutions during September and October had a severe negative effect on ABGSC s fourth quarter results. Group revenues amounted to NOK 259 million in the fourth quarter, representing a fall of 61% compared to the fourth quarter in the previous year. Group revenues for the full year were NOK 1,287 million which was a fall of 41% compared to Stockbroking revenues recorded a fall of 49% in the fourth quarter which was a sharper drop than for the full year (-25%). In the Corporate Finance division the activity level remained high but due to the near freeze in access to credit markets several larger projects were put on hold. Corporate Finance revenues fell by 71% in the fourth quarter which was higher than the fall in revenues for the full year (- 55%). One of the few bright spots was the relative improvement in traded volumes within the Equities division versus the market as a whole. In the fourth quarter our market share of traded volume on the Nordic stock exchanges was 3.96% compared to 3.49% during the same period the year before. For the full year 2008 our market share was 3.81% compared to 3.35% in As we outlined in our previous quarterly statement, a cost reduction programme was initiated during the fourth quarter to better align our cost base with reduced revenues and the prospect of more difficult market conditions in In the fourth quarter 26 people left the firm which as a result has incurred a one-off charge of approximately NOK 10 million. The continued high volatility in equity markets during the fourth quarter led to further fall in values of collateral supporting our client financing portfolio and an additional NOK 11 million has been set aside for potential losses in the future, but the losses have so far not been finally realized. The fourth quarter income statement has also been affected by a negative charge in the net financial result of NOK 382 million. The loss is a result of our selling out of our long-term investment in Carnegie and some other minor long-term investments. In view of Carnegie s precarious financial position and the near collapse in its share price during the fourth quarter, a decision was taken to exit our holding. Given the external environment, the visibility for Q1 09 and 2009 is uncertain. However, we remain confident that with a competitive cost base, continued strong balance sheet and after some minor critical expansions during 2008 our firm remains in good condition to weather the difficult times ahead and is well positioned to reap the benefits when markets return to more normal behaviour. At the same time, should the market development in the near-term require further adjustments to the cost base, we are prepared to trim back our costs accordingly. As a precautionary step we have therefore already started a cost reduction programme with the intention of reducing our number of staff with more than 10 per cent during 1H of 2009 as well as intensifying the search for cost cuts in other areas. Our goal in the current market environment is to bring our ordinary yearly operating expenses down to an annual level of NOK 550 million with our current business model and set up. Nordic Companies/Global Money 1

2 In light of the net underlying result, current market conditions, the capital losses incurred during the year and the financing of the assets from which the losses originate, and a thorough analysis of the requirement to maintain a strong balance sheet, the Board proposes a payment to shareholders of NOK 0.50 per share for Q4 Highlights Fourth Quarter Total Revenues were NOK 259 million vs. NOK 667 million last year, a decline of 61%. For 2008, Total Revenues were NOK 1,287 million vs. NOK 2,192 million last year, a decline of 41%. Fourth Quarter Earnings Per Share were minus NOK 0.81 vs. positive NOK 0.58 in the same period last year. For the full year Earnings Per Share were minus NOK 0.18 vs. positive NOK 1.81 in Adjusting for the net effect of the realised capital losses and dividends received on our long-term investments adjusted Earnings Per Share were positive NOK 0.11 in the fourth quarter and positive NOK 0.68 for the full year. Stockbroking revenues in the fourth quarter were NOK 117 million vs. NOK 228 million in the same period last year (-49%). For 2008 Stockbroking revenues were NOK 662 million vs. NOK 884 million last year (-25%). Corporate Finance revenues were NOK 122 million in the fourth quarter vs. NOK 424 million in the same period last year (-71%). For the full year Corporate Finance revenues were NOK 551 million vs. NOK 1,224 million in 2007 (-55%). Our overall Nordic market share of traded volumes continued to increase. In the fourth quarter our market share was 3.96% vs. 3.49% in the same period last year. For the whole of 2008 our market share was 3.81% vs. 3.31% for the same period last year. The Board proposes to make a payment to shareholders of NOK 0.50 per share for the year Nordic Companies/Global Money 2

3 Summary Financial Data Operating data and key ratios 4. quarter 4. quarter Year Year Year Average number of shares in 1,000 (1) 409, , , , ,689 Shares outstanding end of period 361, , , , ,556 Forward contracts for shares outstanding end of pe 48,696 36,665 48,696 36,665 39,288 Earnings per share (in NOK) (2) (0.81) 0.58 (0.18) Pre-tax income (in NOK 1,000) (319,535) 278,730 19, , ,577 Book value per share (in NOK) (3) Operating cost / Income ratio (4) 64.7 % 22.4 % 49.7 % 24.9 % 25.5 % Total cost / Income ratio (5) 80.2 % 63.3 % 75.3 % 64.1 % 64.3 % Compensation / Income ratio (6) 44.2 % 52.0 % 49.4 % 51.7 % 51.4 % Pre-tax pre bonus profit margin (7) % 82.7 % 27.1 % 79.6 % 78.0 % Return on Equity (12 months) (8) -7.0 % 49.1 % -7.0 % 49.1 % 69.1% Number of employees at period end (1) Adjusted for treasury shares and shares on forward contracts (2) Net result for the period + interest element in forward contracts divided by the average number of shares (3) Book equity at end of period divided by the total number of shares (adjusted for treasury shares) (4) Operating expenses as a percentage of operating revenues (5) Total expenses including bonus expense and profit to partners as a percentage of operating revenues (6) Personnel expenses plus bonus expense and profit to partners as a percentage of operating revenues (7) Earnings before tax adjusted for bonus expense and profit to partners as a percentage of operating revenues (8) Net result for the last 12 month period as a percentage of average shareholders' equity. Nordic Companies/Global Money 3

4 Nordic Equity Markets Review Nordic equity markets suffered substantial losses over the fourth quarter following the near collapse in market sentiment in the first part of the quarter and despite a robust recovery in the second half of the period. In the fourth quarter the FTSE Norex 30 index fell 22% for an accumulated loss of nearly 44% over the course of Within the Nordic region the developments differed widely. Denmark and Norway led the downfall, both with a fourth quarter performance of minus 29% for a yearly loss of 47% for the Danish market and 55% for the heavy cyclical and commodity based Norwegian market. The Finish market fell by 23% over the quarter and 50% for the full year. The best performing Nordic market in the fourth quarter was Sweden (-14%) which brought the yearly loss to 39%. The Nordic markets as a whole underperformed most major international indices, both in the fourth quarter and for the full year. With volatility reaching historically high levels in the beginning of the quarter, it was no surprise to see investors flee to high quality, defensive and large cap stocks. In relative terms, leading the performance table was the Pharmaceutical sector with Lundbeck (+11%), Novo Nordisk (+1%) and AstraZeneca (-9%). Another sector holding up relatively well was the Telecom Services sector with both Elisa and TeliaSonera falling -10% in the quarter. Other names performing relatively well, from a variety of sectors, but all fitting the above mentioned investment criteria were Hennes & Mauritz (-1%), Novozymes (-9%) and Securitas (-9%). Finally, on the back of the continued strength of the dollar vis-à-vis the Nordic currencies, both the Pulp & Paper sector and Telecom Equipment sector also fared relatively well. Within Pulp & Paper SCA fell 16% and UPM Kymmene recorded a loss of 17%. Within the Telecom Equipment sector Nokia was down 13% having recovered strongly towards the end of the quarter and Ericsson was down 17%. Even though a strong rebound towards the end of the fourth quarter helped pare the losses recorded in the big sell-off during the first six weeks of the quarter, the negative performance of the worst performing stocks among the 100 largest Nordic companies was considerable. In a repeat of the previous quarter, the average performance in the worst quartile in this universe of stocks was minus 52%. Having peaked during the summer of 2008, commodity prices fell throughout the autumn, dragging down with them those companies with direct or indirect exposure to them. In the former category Norsk Hydro continued its slide and fell another 39% in the quarter. Also with direct exposure to commodity prices both SSAB (-43%) and Boliden (- 44%) fell sharply. In the category of companies with indirect exposure to commodity prices, Volvo and Metso retracted strongly, recording losses of minus 37% and minus 50% respectively after both companies reported a near standstill in order intake from the Construction and Mining industries during the quarter. Another sector with indirect exposure to commodity prices, or more specifically the oil price, is the Oil Service sector. On the back of continued cut backs in capex budgets among oil producers and, in many cases, stretched balance sheets, several companies in the Oil Service sector fell sharply in the fourth quarter. Subsea 7 and Seadrill were both down 56% and PGS fell nearly 70%. Continuing on the issue of balance sheet risk, and following the collapse of some high profile international financial institutions, there was nowhere to hide for the Nordic banks. The two best performing banks, Svenska Handelsbanken and Nordea, still fell 25% and 40%, respectively. Other banks with higher risk profiles and having specific lending exposure to areas such as the Baltic countries, commodity industries or, as in the case of Den Danske Bank, the Irish property bubble, all recorded considerable losses. SEB was down 48%, DnBNor fell 49%, Swedbank recorded a loss of 54% and Den Danske Bank was down 58%. Nordic Companies/Global Money 4

5 Equities Division On the back of the turbulent markets and sharply falling share prices, measured in Norwegian kroner (NOK) traded volumes on the Nordic stock exchanges continued to fall in the fourth quarter both sequentially and on a year-over-year comparison. Having fallen 18%, 23% and 28% in the first three quarters of the year respectively, the year-over-year losses in traded volumes accelerated and volumes fell as much as 44% in the fourth quarter, bringing the drop in volumes for the whole of 2008 to minus 28% compared to Although we are not content with the development of revenues in absolute terms, our traded volumes continued to outperform the overall market. In the fourth quarter, measured in NOK our traded volumes were down by 37%, bringing the yearly slide to minus 18%. This development implied a continued positive trend in the development of our market share. In the fourth quarter our market share of traded volumes on the Nordic stock exchanges was 3.96% compared to 3.49% during the same period the year before. For the full year 2008 our market share was 3.81% compared to 3.35% in The increase in the full year market share represents approximately fourteen percentage points. Over the last three quarters we have described a number of initiatives which have been taken during the course of the year aimed at improving our product offering and expanding our distribution platform, particularly in Sweden. These measures have mostly been proactive in nature in terms of new hires and replacing personnel to speed up the generational shift within the division. Given the market development over the last year and uncertainty regarding the future development of the market, and as a consequence of the group-wide cost-cutting programme described in the first page of this report, the Equities division carried out an extensive personnel analysis during the fourth quarter. Although this exercise has been more defensive in nature, aimed at aligning our production and distribution capacity to the present market environment, we are still comfortable with and committed to be able to offer our clients a first class Nordic equity product. A testimony to the fact that the measures taken during the year are yielding results was the recent round of Prospera rankings in the Nordic region carried out during the fourth quarter. Recognising that there is ample room for improvements in all the local markets we take comfort from a number of positive developments. In Norway our research standing remained strong among all client segments in the market and we are now ranked top two by both institutional and high net worth individual clients. In Sweden our case writing or ability to generate business ideas was again highly recognised with a top two ranking in the market. Also our effort to put more resources into Corporate Access has started to be better appreciated by our clients with the ranking improving from the year before. All in all in Sweden our Prospera ranking was the best since 2004 and showed a slight improvement in most research service components and sales and distribution service elements. Nordic Companies/Global Money 5

6 Market share in the Nordic NOKm ABGSC Nordic traded volume 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q , , , , ,000 50,000 0 Q204 Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Stockbroking Revenues Revenues (NOKm) :1 2005:2 2005:3 2005:4 2006:1 2006:2 2006:3 2006:4 2007:1 2007:2 2007:3 2007:4 2008:1 2008:2 2008:3 2008:4 Corporate Finance Division The improved trend in the year-over-year comparison in revenues that we reported in the third quarter was short-lived and came to an abrupt end in the fourth quarter. Revenues in the Corporate Finance division fell by 71% in the fourth quarter to NOK 122 million vs. NOK 424 million in the same period the year before. For the full year revenues were NOK 551 million vs. NOK 1,224 million in 2007, representing a drop of 55%. During the year we have reported a more difficult market environment and a shift away from ECM and capital raising mandates to more focus on M&A and corporate restructuring activities. This trend continued in the fourth quarter. However, with the severe drop in confidence in the financial system after the collapse of several high profile international financial institutions in the beginning of the fourth quarter, the market environment in the Nordic region had nowhere to escape to and took a turn for the worse in the reported period. The number of potential deals remains promising, but with access to credit markets becoming more and more difficult and complicated, most of the potential larger deals were put on hold. Nordic Companies/Global Money 6

7 Of the few projects completed during the quarter we would like to highlight the following deals - all related to M&A transactions. During the summer ABGSC acted as advisor to the Norwegian investment company Canica in its sale of the Norwegian property company Steen & Strøm to the Dutch pension fund ABP and the French stock listed real estate company Klépierre. The transaction was one of the largest in ABGSC s history, representing NOK 21.9 billion in total enterprise value, and was completed during the fourth quarter. In another M&A deal we acted as advisors to the Norwegian communications company Intelcom in its takeover by Norvestor Equity. During 2007 we established a relationship with the South Korean shipping company STX and acted as advisor in its initial purchase of up to 30% of Aker Yards. During the fourth quarter of 2008 we continued to assist STX in its acquisition of shares exceeding 90% control of STX Europe (formerly Aker Yards). Finally, during the fourth quarter we have acted as advisor to Norfund, a Norwegian state-owned investment fund investing in emerging markets, in relation to its ownership the emerging market hydropower generator SN Power, previously owned 50/50 by Norfund and Statkraft. In the fourth quarter, Norfund and Statkraft agreed to a restructuring of the ownership in SN Power, and Statkraft acquired 10% of the shares in SN Power from Norfund for approx. NOK 1.1 billion.. Corporate Finance Revenues Revenues (NOKm) :1 2005:2 2005:3 2005:4 2006:1 2006:2 2006:3 2006:4 2007:1 2007:2 2007:3 2007:4 2008:1 2008:2 2008:3 2008:4 Nordic Companies/Global Money 7

8 Financial Review After a reduced fall in the year-over-year comparison in the third quarter, the fall in revenues compared to last year fell by 62% in the fourth quarter which was higher compared to the full year fall of 42%. Operating costs increased by 13% in the fourth quarter which was less than in the third quarter (25%) and lower than the 18% increase in operating costs for the full year. With lower revenues and higher costs, operating profit before bonuses and profit to partners fell by 84% in the fourth quarter, which was a continued decline in the year-over-year comparison from the third quarter (-51%) and a fall of 61% for the full year. The movements of revenues and costs have resulted in a cost/income ratio of 67% in the fourth quarter and 50% for 2008 as a whole. The development in operating costs has been affected by a number of factors in the fourth quarter. The announced cost-cutting programme has incurred a one-off charge of around NOK 10 million. A deteriorating environment for of our client financing activities has led to an additional provision for possible loan losses of NOK 11 million. The net effect of currency moves with respect to our foreign operation has had a somewhat mitigating effect on cost developments. Taken together the underlying trend in our efforts to curtail costs is positive and something we are committed to continuing in Our goal in the current market environment is to bring our ordinary yearly operating expenses down to an annual level of NOK 550 million with our current business model and set up. Net financial income was minus NOK 370 million in the fourth quarter compared to a positive NOK 34 million in the same period last year. The large negative development is due to the realised losses of NOK 382 million in 4Q on our long term investment in Carnegie and some other minor available-for-sale investments. With the low operating profit and the large negative financial net income, pre-tax profit was minus NOK 320 million in the fourth quarter and positive NOK 19 million for 2008 as a whole. Adjusting for the capital losses and dividends received on our long-term investments included in the net financial income, pre-tax profit was NOK 62 million in the fourth quarter (-78%) and NOK 388 million for the full year (-56%). Net profit and EPS were also affected by the losses on our long-term investments. Reported net profit was minus NOK 336 million in the quarter and minus NOK 96 million for the full year. Adjusted net profit, exclusive of investment losses was NOK 46 million in the fourth quarter and NOK 273 million for the full year. Reported EPS was minus NOK 0.81 per share in the fourth quarter and minus NOK 0.18 per share for the full year. On an adjusted basis EPS was NOK 0.11 per share in the fourth quarter and NOK 0.68 per share for the full year. In the fourth quarter the return on equity was minus 7% compared to 49% in Q The lower return on equity is attributable to both our lower underlying earnings and the high realised capital losses on our long-term investments. Adjusting for the latter items the return on equity was 21%. Despite the losses incurred from our investment in Carnegie, we remain in a comfortable and strong capital position with a Group capital adequacy ratio of 20% (ex-payment to shareholders), compared with the 8.0% requirement of the Financial Supervisory Authority of Norway, and a liquid balance sheet. Nordic Companies/Global Money 8

9 Poor liquidity in interbank markets during the fourth quarter drove short term interest rates to levels not seen for many years. The situation has now normalised somewhat and interest rate levels have come down, although volatility continues to be significantly higher than in previous years. As a consequence of these developments in the interbank market steps have been taken to reduce our need for short term borrowings and by the end of the year we held a net deposit position. At the same time we continue to maintain our significant bank overdraft lines in order to meet possible short term financing needs resulting from our day to day trade on behalf of clients. 100% 80% 60% 40% 20% 0% 79% 80% 68% 69% 70% 73% 63% 63% 63% 65% 62% 63% 63% 12% 13% 12% 16% 11% 12% 13% 16% 11% 29% 26% 20% 22% 2005:4 2006:2 2006:4 2007:2 2007:4 2008:2 2008:4 100% 80% 60% 40% 20% 0% 75% 76% 75% 76% 77% 75% 69% 68.10%78% 54% 61% 71% 70% 70% 68% 64% 58% 49% 60% 55% 45% 39% 33% 30% 20% 21% 2005:4 2006:2 2006:4 2007:2 2007:4 2008:2 2008:4 Cost/Income ratio Salary & Benefits/Income Ratio Operating Profit M argin Return on Equity ABGSC has during 2008 been involved in arbitration in relation to a dispute over payment of advisory fees. The dispute arose following the completion of ABGSC's engagement as advisor in a take-over situation in 2007, which resulted in ABGSC's client being acquired. After the take-over, the new owner refused to pay the contractual fee to ABGSC. Pursuant to the arbitration award given in 2009, ABGSC's fee was reduced somewhat based on a view that ABGSC in executing its engagement contributed to breach of market conduct provisions in the Norwegian Securities Trading Act, allegedly causing losses for the opposing party. ABGSC and its legal advisors strongly disagree with the arbitration panel s assessment of the facts presented and the legal basis for its conclusions regarding the conduct of ABGSC. Following the arbitration award, and with reference thereto, the new owner of the client has presented ABGSC with a claim for compensation of NOK 436 million. ABGSC, with the support of its legal advisors, reject the claim, which is regarded as being unfounded and without merit. The arbitration award is final and binding and ABGSC will enforce payment of the NOK 61 million awarded to ABGSC, which remains unpaid, with all available means. The claim has been recognized in the financial statements in the fourth quarter, however with limited effect as the majority of the original fee was booked as revenue in No provision has been made for the claim from the new owner of the former client. Nordic Companies/Global Money 9

10 ABG SUNDAL COLLIER GROUP Profit & Loss % % Amount in NOK 1, quarter 4. quarter change Year Year change Year Operating revenues Stockbroking revenues 117, , % 661, , % 779,194 Corporate Finance revenues 121, , % 550,823 1,224, % 952,334 Proprietary Trading revenues 18,561 13, % 73,217 81, % 102,659 Other revenues 1, % 1,337 1, % 419 Total operating revenues 259, , % 1,287,206 2,192, % 1,834,606 Operating expenses Salaries and NI expenses (74,072) (74,198) -0.2 % (306,568) (275,829) 11.1 % (231,533) Other operating expenses (88,678) (71,263) 24.4 % (312,900) (255,859) 22.3 % (225,335) Depreciation (4,774) (4,117) 15.9 % (20,422) (14,051) 45.3 % (11,544) Total operating expenses (167,523) (149,578) 12.0 % (639,890) (545,739) 17.3 % (468,412) EBIT Pre-bonus and profit to partners 91, , % 647,317 1,646, % 1,366,194 Bonus and profit to partners (40,404) (272,614) % (329,506) (858,498) % (711,819) EBIT Post-bonus and profit to partners 51, , % 317, , % 654,375 Net financial result (370,712) 34, % (298,419) 99, % 65,202 Pre-tax income (319,535) 278, % 19, , % 719,577 Taxes (16,656) (67,410) % (114,945) (262,134) % (175,355) Net result for the period (336,191) 211, % (95,554) 625, % 544,222 Balance Sheet 31. December 31. December 31. December Amount in NOK 1, Total intangible assets 99,872 81,336 81,804 Plant and equipment 62,746 38,417 23,640 Financial non-current assets 27,808 60,324 60,005 Total non-current assets 190, , ,449 Receivables 1,738,054 4,039,198 2,930,028 Investments 56, ,310 31,085 Cash and bank deposits 814, , ,694 Total current assets 2,609,147 5,371,536 3,576,806 Total assets 2,799,575 5,551,614 3,742,255 Paid-in capital 696, , ,347 Retained earnings 392,171 1,030, ,806 Total equity 1,088,266 1,647, ,153 Long-term liabilities 403, , ,685 Current liabilities 1,308,155 3,519,181 2,426,417 Total liabilities 1,711,309 3,904,018 2,762,102 Total equity and liabilities 2,799,575 5,551,614 3,742,255 Nordic Companies/Global Money 10

11 NOTES TO THE FINANCIAL STATEMENTS Note 1 - Accounting principles The quarterly report is prepared in accordance with the International Financial Reporting Standard (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 EU commission for adoption within the EU. The quarterly report is unaudited. Note 2 - Change in equity 4. quarter 4. quarter Year Year Year Shareholders equity - opening balance 1,117,894 1,496,478 1,647, , ,929 Net result for the period (336,191) 211,319 (95,554) 625, ,222 Dividend paid - - (577,847) (472,438) (389,514) New issuing of shares 18,901-82, ,710 82,089 Change in own shares Investments available for sale - valuation effect 266,772 (46,846) 9,753 (20,193) 6,544 FX-conversions/ other 20,890 (13,355) 21,649 (16,017) (2,162) Shareholders equity - ending balance 1,088,266 1,647,596 1,088,266 1,647, ,153 Note 3 - Information about Segments and Geographical Markets The Group's three business segments are Equities, Corporate Finance and Trading & Risk. The internal management system is matrix-based. Revenues and expenses are recorded both by business segment and geographical markets. Assets and liabilities except from directly allocatable items, and equity and cash flow are recorded by geographical markets. Operating profit reported by primary segment (business segment) Operating Revenues Operating expenses Operating profit before bonus and profit to partners 4. quarter 4. quarter 4. quarter 4. quarter 4. quarter 4. quarter Equities 122, ,544 99,015 93,647 23, ,897 Corporate Finance 117, ,617 52,945 42,226 65, ,391 Trading & Risk 18,518 13,582 15,563 13,705 2,955 (123) Total 259, , , ,578 91, ,165 Operating Revenues Operating expenses Operating profit before bonus and profit to partners Year Year Year Year Year Year Year Year Year Equities 690,407 1,047, , , , , , , ,752 Corporate Finance 523,625 1,062, , , , , , , ,851 Trading & Risk 73,174 81, ,659 54,598 49,742 40,068 18,576 32,213 62,591 1,287,206 2,192,344 1,834, , , , ,317 1,646,604 1,366,194 Operating profit reported by secondary segment (geographical segment) Operating Revenues Operating expenses Operating profit before bonus and profit to partners 4. quarter 4. quarter 4. quarter 4. quarter 4. quarter 4. quarter Norway 154, ,807 82,148 64,630 71, ,177 Sweden 35,113 86,312 45,726 28,022 (10,613) 58,290 Denmark 6,328 7,140 8,135 3,965 (1,807) 3,175 UK 36, ,951 10,667 32,462 25,444 70,489 US 27,462 70,533 20,846 20,500 6,615 50,034 Total 259, , , ,578 91, ,165 Operating Revenues Operating expenses Operating profit before bonus and profit to partners Year Year Year Year Year Year Year Year Year Norway 682,682 1,285,279 1,175, , , , ,224 1,053, ,570 Sweden 197, , , , ,069 98,249 54, ,845 98,152 Denmark 20,427 31,207 31,320 18,698 15,033 13,480 1,729 16,174 17,840 UK 233, , , , ,034 99, , , ,973 US 153, , ,232 81,143 69,476 57,573 72, ,114 91,659 Total 1,287,206 2,192,344 1,834, , , , ,317 1,646,604 1,366,194 Cash Flow Statement 4. quarter 4. quarter Year Year Year Net cash flow from operating activities 378, , ,012 1,029,807 (327,873) Net cash flow from investing activities 714,402 (23,032) 457,343 (524,373) (64,048) Net cash flow from financing activities (894,588) (896,365) (832,020) (315,099) 650,198 Net change in cash and cash equivalents 198,043 (433,134) 8, , ,277 Cash and cash equivalents - opening balance 616,320 1,239, , , ,417 Cash and cash equivalents - ending balance 814, , , , ,694 Nordic Companies/Global Money 11

12 Shareholder Information ABG Sundal Collier is listed on the Oslo Stock Exchange with the ticker symbol "ASC". 31 Dec Dec 2008 Share price NOK NOK 3.90 Dividend payment of NOK 1.70 per share paid to shareholders as of April 25 th High - Low 2008 (closing prices): NOK Ownership structure Shares In % Directors and Staff 137,967, Treasury shares 26, All Other 223,153, Total shares as of 31 Dec ,148, ABGSC has forward contracts with partners and former partners purchasing 48,696,250 shares with settlement in Due to the significant fluctuations in the ABGSC share price the Board has decided to offer an extension of up to two years to the settlement of some of these forward contracts due to expire in 2009 and The total number of shares on forward contracts that might be included in this extension program is 11,847,500. However, the final number of contracts to be extended will depend upon prospective individual agreements with the actual partners holding these contracts. ABGSC owns 26,750 treasury shares and have authorization to re-purchase its shares in the market or to issue new shares. NOK Share Price Development - Closing Prices million shares Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 0 Volume Share price OBX Swed-OMX Nordic Companies/Global Money 12