Arise AB (publ)

Arise AB (publ) (“Arise”) is a Swedish renewable energy company, the business concept is to develop, build and manage onshore wind farms on behalf of investors and its own account.

Arise is Creopretiumʼs first investment project since launch. Creopretium including related parties controls approximately one percent of the capital and votes.¹ Creopretium has no board representation but has an active dialogue with the board of directors, other key shareholders and the management team.

Exhibit I1.

Key Summary Arise Investment Project


Asset class	Public equity
Style	Value
Strategy	Opportunistic with value add to active ownership
Theme	Change management; strategic recalibration, turnaround
Size	Micro cap
Risk (Low/Moderate/High)	High
IRR target	> 20%
Realised IRR	–2.4%
Holding period	3 years
Realised total return	–7.0%
Industry trading conditions (2015–2017)	Challenging with distress
Industrial advisor in Creopretiumʼs network	Yes
Sourcing, research and underwriting	In-house Creopretium
Instrument	Equity, common stock
Quota value per share	SEK 0.08
Voting right (common stock)	One vote per share
Interest	Approximately one per cent of the capital and votes¹
Board representation	No
Stock exchange	NASDAQ Stockholm, Small Cap
ISIN	SE0002095604
Currency	Swedish Krona
Industry group (GICS)	5510 Utilities
Sub-industry	55105020 Renewable electricity
Bloomberg	ARISE:SS
Reuters	ARISE.ST
Fact sheet	Arise AB (publ)²
Articles of association	Arise AB (publ)
Auditor	Magnus Willfors, PricewaterhouseCoopers
Corporate website	https://arise.se/en

Our view

Average return on equity over three and six years amounts to –6.6% and –3.9% respectively. The most important task for the CEO Daniel Johansson is to address an unsatisfactory profitability with the goal of making Arise best-in-class in terms of return on equity.

Exhibit I2.

Arise Historical Profitability ››

Against the backdrop of poor historical shareholder return, Creopretium as a local operating partner has proposed strategic initiatives including a number of measures for implementation, with the ultimate goal of raising risk-adjusted return on equity and enhance shareholder value.³

Exhibit I3.

Cumulative total shareholder return to 9 November 2017

	since 24 March 2010	since 9 October 2014	since 18 January 2016
Arise AB (publ)	–74.6%	–23.7%	–25.8%
Eolus Vind AB (publ)	–1.9%	60.4%	–4.2%
SIX Return Index	136.4%	53.3%	37.7%

Source: Creopretium, Infront.

Note:

24 March 2010; first day of trading in Arise common stock on the NASDAQ Stockholm Exchange following IPO.

9 October 2014; refined strategy declaration, please refer to press release from Arise AB (publ), “Revised target”.

18 January 2016; Daniel Johansson took office as CEO of Arise AB (publ).

9 November 2017; Arise share price (close) SEK 13.35.

¹ Including related parties. Source: Arise AB (publ) voting list from the 2016 AGM.

²Fact sheet Arise AB (publ). Source: NASDAQ, Morningstar.

³ “Open Letter to the Board of Directors of Arise AB (publ)”, 29 March 2016, Creopretium AB.