Oslo Børs VPS Holding ASA – 1st Quarter 2016

A more detailed presentation of the group accounts and business areas is provided in the quarterly report (enclosed).

The first quarter was characterised by a generally somewhat lower level of activity in the primary market than in previous quarters and the same quarter in 2015. However, the level of activity in the secondary market was higher than in the previous three quarters. Reported revenue for the first quarter was NOK 227 million, marginally higher than in the first quarter of 2015. Revenue related to listing and registration was in total in line with the first quarter of 2015, while revenue related to trading and settlement was NOK 1 million lower. Revenue related to market data was approximately NOK 1 million higher, and revenue from the mutual funds area was also approximately NOK 1 million higher.

Operating expenses before capitalisation of internal costs, depreciation and amortisation of excess value amounted to NOK 119 million in the first quarter of 2016, a decrease of NOK 1 million from the same period in 2015. A write-down of NOK 34 million has been made due to VPS ending its agreement with Percival CSD Partners.

Net financial income for the first quarter of 2016 was down NOK 2 million, principally due to lower holdings of cash and cash equivalents and lower interest rates.

Operating expenses for 2016 before capitalisation of internal costs, depreciation and amortisation are expected to be in the order of NOK 470 million. The increase between 2015 and 2016 is principally due to non-recurring costs in connection with a new release of Millennium as well as continuation of parts of the modernisation program at VPS.

The group’s operating revenue varies in line with the level of activity in the securities market. Oslo Børs VPS is committed to offering a range of products and a pricing structure that are competitive and that encourage active use of the group’s services. Oslo Børs VPS anticipates that its marketplace activities will continue to face intense competition, and it also expects increasing competition for the group’s post-trade activities. Oslo Børs VPS will also in the future consider adjusting certain of its fees and prices, as well as further measures to improve the efficiency of its organisation and services for the benefit of its customers.