OPERATING EXPENSES

Amounts in NOK thousand 2013 2012

Payroll 226 343 231 500

Pensions 21 604 30 291

Social security costs 61 921 60 045

Total payroll, fees and other staff costs 309 868 321 836

Administrative expenses 102 223 91 672

Rent and other operating expenses on leased property 26 912 27 155

Other operating expenses 22 767 27 937

Intergroup services 43 883 51 940

Ordinary depreciation 9 528 10 182

Total other operating expenses 205 312 208 887

Total operating expenses 515 180 530 723

Employee share ownership program

Employees were in 2013 offered to participate in the global employee share ownership program of Société Générale SA. SG Finans contributed to the purchase, limited to 1.000 Euro for each employee. Expenditure for this contribution has been classified as payroll, fees and other staff costs.

Fees paid to Ernst & Young AS and cooperating companies are made up as follows (excl VAT)

Amounts in NOK thousand 2013 2012

Statutory audit 805 799

Other attestation services 259 0

Tax advice 0 43

Other non-audit services 0 0

Total 1064 842

SG Finans is obligated to follow the Act on Mandatory company pensions. The company’s pension scheme follows the requirement as included in the Act.

SG Finans AS have defined contribution plans for employees in Norway, Sweden and Denmark. The contributions comprise between 4,5 % and 11 % of salaries. As at 31 December 2013, 347 members were covered by the plans.

Employees in Norway can also apply for an early retirement pension (AFP) at 62 years of age. The agreement also covers invalidity pension, spouse’s pension and children’s pension. There are also pension obligations to individual employees over and

above the ordinary collective agreement. This applies to employees with a lower retirement age and employees with salary in excess of 12 G (G = National Insurance basic amount), which are unfunded. The economic assumptions used in the collective scheme are specified below. Contributions to the AFP plan are included in the column “unfunded”.

The former multi-employer plan called AFP was terminated in February 2010 and the last chance of an early retirement in accordance with the old plan was December 31st, 2010 The profit from the termination has been accounted for in 2010 and is presented as a reduction of salary and personnel costs. A remaining accrual exists and is related to deductibles for employees that have performed an 7. PENSIONS

FINANCIAL STATEMENT

33

Economic assumptions

Percentage 2013 2012

Discount rate: 2,80 % 2,00 %

Expected return on assets 0,00 % 0,00 %

Growth in salary 4,00 % 4,00 %

Inflation 2,50 % 2,50 %

G - regulation 3,75 % 3,75 %

Growth in current pensions 3,75 % 3,75 %

Withdrawal tendency AFP 0 % 0 %

early retirement according to the old plan. When terminating the old AFP-plan it became apparent that there was a significant deficit in the plan.

The deficit must be carried by the participating companies through continuous payments of contribution in the next coming 5 years. The company’s share of this deficit has been estimated and accrued for in the financial statement.

As a replacement of the old plan a new AFP-plan has been established. The new AFP-AFP-plan is in the contrary to the old, not an early retirement plan, but a plan that gives a lifelong contribution to the ordinary pension. The employees can choose to exercise the new AFP plan starting at the age of 62 years, in addition to working, and it will continue accruing if working until the age of 67 years. The new AFP-plan is a defined benefit multi-company

plan which is financed through contributions that are determined by a percentage of the employee’s earnings. There is currently no reliable measure and allocation of liabilities and assets in the plan. The plan is accounted for as a defined contribution plan where no accruals are made and the contributions are accounted for as they occur. Contributions are paid first in 2011. For 2013 the contribution is has been set to 1,75 % of the total payments between 1 G and 7,1 G to the employees. The plan will be unfunded and it is expected that the level of contribution will increase in the following years.

The following assumptions were used calculating the future pension obligations for the defined benefit pension (AFP) scheme. Contributions to the pension scheme are included in column unsecured.

7. PENSIONS (CONTINUED)

Pensions costs

Amounts in NOK thousand Funded Unfunded Total 2013 Funded Unfunded Total 2012

Present value of pensions earned during the year 0 1 770 1 770 0 1 487 1 487

Interest cost of accrued pension liabilities 0 697 697 0 750 750

Expected return on plan assets 0 0 0 0 0 0

Plan change, curtailments 0 0 0 0 2 744 2 744

Difference between actual and estimated values 0 0 0 0 742 742

Net pension costs 0 2 466 2 466 0 5 723 5 723

FINANCIAL STATEMENT

34

Pension cost for 2013 amount to TNOK 2 466 from the defined benefit plans and TNOK 21 205 from the contribution plans. In addition TNOK 2.067 is derecognised related to the deficit in the old AFP plan.The total pension cost amounts to TNOK 21 604. Pension cost for 2012 amount to TNOK 5 723 from the defined benefit plans and TNOK 24 567 from the contribution plans. In total TNOK 30 291 is recorded for in 2012.

Pension liabilities in balance sheet

Amounts in NOK thousand Funded Unfunded Total 2013 Funded Unfunded Total 2012

Plan assets at market value 0 0 0 0 0 0

Estimated pension liabilities 0 31 081 31 081 0 33 396 33 396

Net pension liability 0 31 081 31 081 0 33 396 33 396

Actuarial gains (-)/losses 0 0 0 0 0 0

Plan change, curtailment 0 0 0 0 2 611 2 611

Recognised pension liability 0 31 081 31 081 0 36 007 36 007

The company’s share of the deficit related to the old AFP has been derecognised. The total pension liability is TNOK 31 081 at year end 2013. At year end 2012 the total pension liability was TNOK 38 074.

Pension liability

The elimination of the corridor method mean that actuarial gains and losses must be recognised in other comprehensive income (OCI) in the period incurred. The company has implemented the new standards as of January 1, 2013. Following the changes, an effect of TNOK 15 083 is estimated as shown by the tables below. The effect is recognised in other comprehensive income 1st of January 2013, and 31st of December as presented in the restated balance as of 31st of December 2013.

Amounts in NOK thousand 2013 2012 2011 2010 2009

Opening balance 36 007 28 319 23 570 47 642 260 735

Total service cost 1 770 1 487 990 1 260 25 359

Interest cost 697 750 811 1 047 12 554

Payments from internal book -1 145 -1 474 -1 850 -2 302 -4 241

Payments from plan assets 0 2 611 0 -28 906 0

Settlement, curtailment 0 0 -79 -808 -135 706

Actuarial gains/(loss) -6 247 4 314 4 876 5 637 -111 059

Ending balance 31 081 36 007 28 319 23 570 47 642

Actuarial gain/(loss) 0 0 -11 645 -8 252 -6 264

7. PENSIONS (CONTINUED)

35

FINANCIAL STATEMENT

Plan assets

Amounts in NOK thousand 2013 2012 2011 2010 2009

Opening balance 0 0 0 0 106 291

Expected return on plan assets 0 0 0 0 5 296

Employee contributions 0 0 0 0 24 118

Payment from plan assets 0 0 0 0 0

Settlement, curtailment 0 0 0 0 -135 706

Actuarial gain/(loss) 0 0 0 0 0

Ending balance 0 0 0 0 0

Historical disclosure information

Amounts in NOK thousand 2013 2012 2011 2010 2009

Gross pension liability 31.12 31 081 36 007 28 319 23 570 47 642

Plan assets, fair value 31.12 0 0 0 0 0

Net pension liability 31 081 36 007 28 319 23 570 47 642

Actuarial gain/(loss) 0 0 -11 645 -8 252 -6 264

Experience adjustment expressed as percentage of plan

liability 0,0 % 0,0 % 18,4 % 0,0 % -9,9 %

Experience adjustment expressed as percentage of plan

asset 0,0 % 0,0 % 0,0 % 0,0 % 0,0 %

Plan asset information

Percentage 2013 2012 2011 2010 2009

Cash 0 % 0 % 0 % 0 % 0 %

Equity 0 % 0 % 0 % 0 % 0 %

Bond 0 % 0 % 0 % 0 % 0 %

Real estate 0 % 0 % 0 % 0 % 0 %

Other 0 % 0 % 0 % 0 % 0 %

Total 0 % 0 % 0 % 0 % 0 %

Return on asset

Percentage 2013 2012 2011 2010 2009

Booked 0,00 % 0,00 % 0,00 % 0,00 % 4,80 %

Value adjusted 0,00 % 0,00 % 0,00 % 0,00 % 5,50 %

7. PENSIONS (CONTINUED)

FINANCIAL STATEMENT

36