Catella

Earnings Release • May 5, 2023

A calm quarter with continued investments for the future

"A cautious transaction market affected all Catella's business areas during the quarter. We continued to work on the next generation of funds, investments, and mandates aimed at supporting growth in assets under management and profitability going forward. With a strong flnancial position we are well-equipped to continue growing the company through investment in digitalisation and capital raising, exploration of M&A opportunistic investments together with partners, and the launch of new sustainability-profiled products in a new market environment."

Christoffer Abramson, CEO and President

Progress during the quarter

Financial results

• · Total income in the quarter amounted to SEK 462 M (581).
• · Operating profit was SEK 7 M (215).
• Operating profit attributable to Catella's shareholders was SEK -2.
• · Profit attributable to Catella's shareholders was SEK -8 M (79).
• · Earnings per share was SEK -0.09 (0.90).

Assets under management

• · Assets under management amounted to SEK 141 Bn at the end of the period, an increase of SEK 15 Bn compared to the first quarter of 2022.
• · The sale of Catella's shares in the French company Catella Hospitality Europe SAS affected AUM by SEK -2 Bn.

Principal investments

• Total investments amounted to SEK 1,211 M (1,319) at the end of the period, divided between property, logistics, offices, and retail projects across Europe.

CFO COMMENTS

"A calm quarter with continued investments for the future"

The transaction market was still cautious at the start of the year, which affected all three of Catella's business areas. Transaction volumes fell 67 percent year-on-year, the biggest decrease since the financial crisis in the late 2000s. Before buyers' and sellers' expectations align, we must work with these market conditions and continue to focus on long-term value creation.

With a strong 2022 behind us and a solid financial position, we are well-positioned to continue growing the company through investments in digitalisation and capital raising, evaluation of M&A opportunities, opportunistic investments, and the launch of new products.

In April, we welcomed Gianluca Romano, who will help to strengthen our capacity to raise capital. With Gianluca on our team, we can further utilise our unique local expertise, long experience and European investment strategy to promote future growth. With an extensive background as an advisor to institutional investors and asset managers, he will sharpen Catella's strategy and work with global institutional investors.

Stable assets under management in an inactive investment market

Assets under management totalled SEK 141 Bn at the end of the quarter, an increase of 12 percent year-on-year, but unchanged since the start of the year. Our shares in Catella Hospitality Europe were divested during the quarter, resulting in an outflow of SEK 2 Bn in assets under management. The decision to sell the platform to partners was based on profitability not meeting our targets. The transaction generated a profit of SEK 5 M and will contribute to a stronger underlying operating margin going forward.

The sluggish transaction market also resulted in lower variable income in the business area. However, due to the growth in previous years, the underlying income base from fixed management fees is strong. Operating profit of more than SEK 30 M proves the resilience of our underlying business model, with solid profitability despite the slow transaction market. Despite a limited inflow of new capital, we view 2023 with a certain optimism as we continue to have a large pipeline of transactions to complete, and capital commitments of approximately SEK 10 Bn at the end of the quarter

Stronger focus on liquidity and completion of existing investments

During the quarter, Catella signed an agreement relating to the sale of a logistics facility in Vaggeryd. The sale will generate a singledigit profit in SEK M, which will be recognised in the second quarter and further materially strengthen our liquidity.

In today's market characterised by uncertainty, low activity, and re-

pricing, we expect divestments of completed projects to be limited during 2023. However, thanks to our financial position, we can afford to delay the divestment of completed and cash flow positive properties. At the same time, we are flexible and ready to utilize liquidity for other investment opportunities that we are actively working with currently.

We have not invested in any new projects since the start of the year and are instead continuing to develop existing projects, albeit at a slower pace. At the end of the quarter, Principal Investments' investments in six countries totalled approximately SEK 1.2 Bn in 10 projects.

A weak quarter for the advisory services market

The first quarter is seasonally the least active from a historical perspective. This quarter was exceptionally weak, with transaction volumes plummeting by 67 percent in Europe and by a hefty 75 percent in Sweden. The lack of activity in the market also caused Corporate Finance's income to fall to SEK 66 M (88). However, the loss was slightly reduced by decisions taken in the first quarter 2022 to focus our operations to five countries.

Well-positioned for long-term value creation

Although profit in the quarter was hampered by a slow transaction market, we have further strengthened our liquidity at Group level and still have plenty of capital to increase our fund investments. In a continued turbulent market, we benefit from our strong financial position and strong local asset management expertise, which is more important now than ever. This enables us to continue building on the value potential of our pan-European platform and opportunities to scale our offering, broaden our customer relationships, and build long-term value.

Christoffer Abramson, CEO and President Stockholm, Sweden, 05 May 2023

Comments on the Group's progress

Profit and comments on page 3-8 relate to Operating profit attributable to Catella AB's shareholders, which is consistent with the internal reporting delivered to Group Management and the Board. The difference to the Group's formal Income Statement is that deductions have been made in the Income Statement for profit attributable to shareholders with non-controlling interests. A full reconciliation can be found in Note 1.

	nvestment
	Management		Principal Investments		Corporate Finance		Other		Group
	2023	2022	2023	2022	2023	2022	2023	2022	2023	2022
SEK M	lan-Mar	lan-Mar	lan-Mar	lan-Mar	lan-Mar	lan-Mar	lan-Mar	lan-Mar	lan-Mar	lan-Mar
Net sales	241	225	46	24	80	ત્ત્વે જેવ	0	-12	367	333
Other operating income	9	6	84	238		2		2	વે છ	248
Total income	250	231	131	262	81	ರಿಕ		- d	462	581
Provisions, direct assigment and production costs	-43	-35	-82	-34	-15	-10	-0	l 2	-139	-67
Other external expenses	-51	-42	- 4	-12	-28	-37	-2	-3	-95	-94
Personnel costs	-113	-97	- ୧	-	-52	-68	-20	-	-201	-187
Depreciation	-9	-9	-2	-3	-5	-5	-2	-2	- 19	-18
Other operating expenses	-		-3		-0	-0	2	2	-2	0
Less profit attributable to non-controlling interests	-2	-0	-5	-104	0	0	- -	-0	-8	-104
Operating profit/loss	31	47	ರಿ	97	-20	-22	-22	- 2	-2
Interest income									16	8
Interest expenses									-40	-18
Other financial items									25	-9
Financial items-net										-19
Profit/loss before tax									-	92
Tax									-7	-12
Net profit/loss for the period *									-8	79

* Profitillos for the period is reconciled in Note I. Income Statement by business area - Profitilloss attributable to the Pareholders

Group net sales and profit/loss First quarter 2023

The Group's net sales totalled SEK 367 M (333) and the Group's total income amounted to SEK 462 M (581), of which SEK 250 M (23 I ) relates to Investment Management, SEK 131 M (262) to Principal Investments and SEK 81 M (98) to Corporate Finance. The increase in net sales during the period is mainly attributable to higher fixed management fees in Investment Management and rental income from the Kaktus residential project in Principal Investments. Corporate Finance's net sales decreased partly due to discontinued or divested operations in Germany and the Baltics, and partly due to lower fees in a sluggish transaction market. Moreover, Principal Investments recognised revenue for the project Barcelona Logistics during the period, which generated income of SEK 73 M. The previous year included the divestment of the logistics project Infrahubs Norrköping, which generated income of SEK 233 M during the period.

The Group's operating profit was SEK -2 M ( I I I ), with the year-on-year decrease

primarily attributable to an absence of sales in Principal Investments. Moreover, the Group's fixed payroll expenses rose due to a higher number of employees.

Comments on the progress of each operating segment can be found on pages 6-I O.

The Group's net financial income/expense was SEK I M (-19) and included interest income of SEK 16 M (8) and loan arrangement fees of SEK 40 M (18). Increased interest expenses are attributable partly to Catella AB's bond loan, which accrues floating-rate interest at 3-month Stibor plus 475 b.p, and partly to the Kaktus project, for which interest expenses attributable to the completed residential properties are recognised in the Income Statement as of I January 2023. Net financial income/expense also includes profit of SEK 5 M from the sale of Catella's shares in the French company Catella Hospitality Europe SAS to the company's local management, which is also the minority shareholder. The valuation of securities holdings and investments at fair value resulted in a value adjustment of SEK 6 M (-

19), attributable to Pamica. Net financial income/expense also includes positive exchange rate differences of SEK 13 M (10) due to revaluations of receivables and cash equivalents in foreign currencies.

The Group's profit/loss before tax amounted to SEK - I M (92) and profit/loss for the period was SEK -8 M (79) which corresponded to earnings per share of SEK -0.09 (0.90) to the Parent Company shareholders.

Significant events in the quarter

On 24 February, Mattias Brodin stepped down as CFO and a member of Group management. Michel Fischier, Head of Investor Relations and Group Communications, was appointed Interim CFO pending recruitment of a new CFO.

In March, 25,500 Class A shares were converted into the same number of Class B shares at the request of shareholders.

Significant events after the end of the quarter

There were no significant events after the end of the quarter.

* Profitilloss for the period is reconciled in Note I. Income Statement by business area - Profitillos attributable to the Parent Company Catella AB's shareholders

Investment Management

Catella is a leading specialist in property investment with a presence on ten geographical markets in Europe. Catella offers institutional and other professional investors attractive, risk-adjusted return through regulated and often sustainability focused property funds and asset management services through two service areas: Property Funds and Asset Management. Property Funds offers specialised funds with various investment strategies in terms of risk and return, type of property and location. Through over 20 open specialised property funds, investors gain access to fund management and efficient allocation between different European markets. Catella's Asset Management business area provides asset management services to property funds, other institutions and family offices.

First quarter 2023

Total income was SEK 250 M (23 I ), and income after assignment costs amounted to SEK 207 M (196) in the quarter.

Property Funds' income increased by SEK 16 M year-on-year. Fixed income increased by SEK 27 M due to increased management fees driven by growth in assets under management (+15 Bn) over the last 12 months.

Variable income (including performance fee¨s) in Property Funds decreased by SEK -18 M. This decrease is primarily related to lower acquisition fees resulting from a cautious transaction market with fewer transactions. Income in Asset Management

remained steady year-on-year.

Operating profit/loss was SEK 3 I M, with the decease in profit primarily attributable to higher personnel expenses due to a larger number of employees than the previous year.

SEK M	3 Months		12 Months
	2023	2022	Rolling	2022
INCOME STATEMENT-CONDENSED	lan-Mar	lan-Mar	12 Months	Jan-Dec
Property Funds *	208	192	1 199	1 183
Asset Management *	62	64	345	347
Other operating income *	0	0	4	4
Total income	250	231	428	408
Assignment expenses and commission	-43	-35	-173	-166
Operating expenses	-174	- 49	-811	-785
Less profit attributable to non-controlling interests	-2	0	-8	-6
Operating profit/loss	31	47	435	451
KEY FIGURES
Operating margin, %	12	20	30	32
Assets under management at end of period, SEK Bn	140.6	125,5		140,6
net in-(+) and outflow(-) during the period, SEK Bn	-1,8	0,7	2,3	4,8
of which Property Funds	106,8	94,0		106,0
net in-(+) and outflow(-) during the period, SEK Bn	0,2	1,2	2,0	3,1
of which Property Asset Management	33,7	31,5		34,6
net in-(+) and outflow(-) during the period, SEK Bn	-2,0	-0,5	0,2	1,8
No. of employees, at end of period	298	246		287

* Includes internal revenue between business areas has been eliminated in the service area for the current period and for the corresporting period in 2021.

ASSETS UNDER MANAGEMENT SEK Bn

Investment Management

Assets under management by service area and country

Total assets under management (AUM) was SEK 140.6 Bn, of which SEK 106.8 Bn related to Property Funds and SEK 33.7 Bn to Asset Management. At the end of the period, 76 percent was invested in Catella's property funds. Germany is Property

Funds' largest market with the highest proportion of invested capital, primarily through Catella Residential Investment Management and Catella Real Estate.

ASSETS UNDER MANAGEMENT BY SERVICE AREA

Change in assets under management

Assets under management increased from SEK 125.5 Bn to SEK 140.6 Bn in the last I 2-month period, which represents an increase of SEK 15.1 Bn. The increase was driven by inflows of SEK 18.6 Bn, primarily to residential funds, with the property funds Catella Wohnen Europa, Catella European Residential and Catella Dutch Residential II accounting for the largest inflows.

ASSETS UNDER MANAGEMENT, LAST 12 MONTHS, SEK BN

Outflows of SEK -16.3 Bn were primarily due to the divestment of 34 rental properties in Germany and the Netherlands during the fourth quarter 2022. The increase in the assets' value added SEK 2.7 Bn. In addition, positive exchange rate effects of SEK 10.1 Bn, mainly related to exchange rate differences in EUR/SEK, had a positive effect on AUM. Assets under management for the first quarter are in line with the

previous quarter at SEK 140.6 Bn. The quarter saw inflows of SEK I Bn, primarily driven by residential funds. During the quarter, the sale of Catella Hospitality Europe SAS resulted in an outflow of SEK -2 Bn in AUM. Exchange rate differences, mainly in EUR/SEK, had a positive impact of SEK 1.9 Bn on AUM.

ASSETS UNDER MANAGEMENT, IN THE QUARTER, SEK BN

Principal Investments

Through Principal Investments, Catella carries out principal property investments together with partners and external investors. Catella currently invests in offices, residential units and logistics properties in seven geographical markets. Investments are made through subsidiaries and associated companies with the aim of generating an average IRR of 20 percent as well as strategic advantages for Catella's other business areas.

First quarter 2023

Total income was SEK 131 M (262) in the first quarter and relates mainly to income from the Spanish project Barcelona Logistics, for which revenue was recognised during the period following a sale of land. This recognised revenue was offset by production costs equivalent to the revenue generated, which produced a profit of

zero. Moreover, the total income relates to the logistics project Infrahubs Norrköping, which generated income from the supply of solar panels, management fees in Catella Project Management, and rental income from Kaktus. Development companies and their project companies have operating costs that are not capitalised. Operating profit/loss for the segment was

SEK 9 M in the quarter, and was primarily attributable to rental income from Kaktus and Infrahubs' sale of solar panels.

As of 31 March, Principal Investments had invested a total of SEK 1,211 M in residential projects, logistics projects, office projects and retail projects in Europe.

		3 Months	12 Months
SEK M	2023	2022	Rolling	2022
INCOME STATEMENT-CONDENSED	lan-Mar	lan-Mar	12 Months	lan-Dec
Total income	131	267	529	660
Provisions, direct assigment and production costs	-82	-34	-223	-175
Operating expenses	-35	-27	-120	-
Less profit attributable to non-controlling interests	-5	-104	-90	-189
Operating profit/loss	9	97	95	184
KEY FIGURES
Operating margin, %		37	18	28
Catella invested capital	1211	1319		183
No. of employees, at end of period	39	37	39	38

INVESTED CAPITAL BY COUNTRY *

OPERATING PROFIT

* The figures indicate the share of Principal Investments' total investment and what proportion consists of capital contributions and loans issued, respectively.

Principal Investments

The following table shows ongoing property development projects and investment status as of 3 I March 2023. Other property development projects relate to securing land etc. and project development costs ahead of the start-up of future projects. The project company's total investment includes invested capital financing. Catella's total investment includes total investment includes total capital invested from Principal Investments. Seestadt and Düssel-Terrassen include a number of phases in each project, which will be completed at different times.

In the first quarter 2023, Catella's total investment volume increased by SEK 1,21 M. Additional investments in the first quarter primarily related to the ongoing construction of Infrahubs Jörköping and new investments in the French project Polaxis. Barcelona Logistics made a partial loan repayment which reduced Catella's investment in the project.

				Estimated	Catella capital	Project company's total investment.	Total Catella Equity Invested,
Property Development Projects	Country	Investment type	Project start	completion	share, %	SEK M	SEK M ****
Seestadt MG+ *	Germany	Residential	Q1 2019	2030+	45	791	55
Düssel-Terrassen *	Germany	Residential	Q4 2018	2030+	45	176	30
Königsallee 106 *	Germany	Office	Q2 2021	2026	23	930	92
Total Catella Project Capital						897	176
Barcelona Logistics **	Spain	Logistics	Q4 2020	2024	100	12	12
Metz-Eurolog **	France	Logistics	Q3 2020	2024	100	7	7
Polaxis **	France	Logistics	Q4 2022	2025	100	12	12
Other Catella Logistic Europe **	France	Logistics				49	49
Total Catella Logistic Europe ***						79	79
Vaggeryd **	Sweden	Logistics	Q3 2021	Completed	50	323	303
Jönköping*	Sweden	Logistics	Q2 2022	Q2 2023	40	254	44
Other *	Sweden	Logistics			40	78	77
Total Infrahubs						654	524
Kaktus **	Denmark	Residential	Q2 2017	Q2 2023*	ਰੇਤੇ	1 679	226
Salisbury **	UK	Retail	Q4 2021	2025+	88	240	75
Mander Centre **	UK	Retail	QI 2022	Not applicable	100	102	102
Total Direct Investments						2 021	403
Total Co-Investments							29
Total						A KEI	1711

* The project is consolidated as an associated company according to the equity method

** The project is consolidated as a subsidiary with full consolidation

** Project within Catella Logsic Europé forward-funding arrangements with investors. Catella profit is eamed upon project completion completion *** Refers to both capital injections and loans provided

**** The residential part of the building is completed and residents moved in in September 2022. The commercial part is expected to be finished during 2023

Catella's commitments in Principal Investments that have not been included the Statement of Financial Position are specified in Note 5. Pledged assets and contingent liabilities.

Corporate Finance

Catella provides quality capital markets services to property owners and advisory services for all types of property-related transactions to various categories of property owners and investors. Operations are carried out in five markets and offer local expertise about the property markets in combination with European reach.

First quarter 2023

During the first quarter, the transaction market remained cautious, with delayed transactions.

Property transactions where Catella acted as advisor totalled SEK 5.8 Bn (5.4) in the quarter. Of total transaction vol-

umes in the quarter, France provided SEK 4.0 Bn (2.0), Sweden 1.1 Bn (0.7), Denmark 0.5 Bn (0.2), Finland 0.2 Bn (2.0) and Spain 0.1 Bn (0.1).

Corporate Finance's total income was SEK 81 M (98) and total income adjusted for assignment costs was SEK 66 M (88), a decrease of SEK - 22 M during the period.

Operating costs decreased by SEK -24 M, primarily due to lower personnel expenses related to the divestment of the German operations in the first quarter of 2022. Operating profit was SEK -20 M (-22), an improvement of SEK 2 M.

SEK M		3 Months
INCOME STATEMENT-CONDENSED	2023 lan-Mar	2022 lan-Mar	Rolling 12 Months	2022 lan-Dec
Nordic *	19	38	137	156
Continental Europe *	୧।	60	388	386
Total income	81	98	525	542
Assignment expenses and commission	- 5	-10	-83	-78
Operating expenses	-85	-110	-418	-442
Less profit attributable to non-controlling interests	0	0	0	0
Operating profit/loss	-20	-22	24	22
KEY FIGURES
Operating margin, %	-74	-22	5	4
Property transaction volume for the period, SEK Bn	5,8	5.4	45.3	44.9
of which Nordic	1,7	3,1	24,6	26.0
of which Continental Europe	4.1	2,3	20,6	18,9
No. of employees, at end of period	159	188		64

* Includes internal revenue between business areas has been eliminated in the service area for the current period and for the corresponding period in 2021.

70

୧୦

50

40

30

20

10

OPERATING PROFIT

Other financial information

The Group's profit and financial position first quarter 2023

The Group's total income amounted to SEK 462 M (58 I ) and is commented on in the section 'Group Progress'. The Group's operating profit was SEK 7 M (215) and was impacted by lower transaction costs in Corporate Finance, lower transactionbased fees in Investment Management, an absence of sales in Principal Investments and higher fixed personnel expenses. The previous year included the divestment of the logistics project Infrahubs Norrköping, which generated profit of SEK 219 M during the period.

The Group's total assets decreased by SEK 210 M in the first quarter, amounting to SEK 6,111 M as of 31 March 2023. This change is mainly due to adjustment of working capital items such as accounts receivable, accounts payable, accrued expenses, etc.

The Group's equity increased by SEK 6 M in the first quarter, amounting to SEK 2,436 M as of 31 March 2023. In addition to positive exchange rate differences of SEK 18 M, consolidated equity was impacted by fair value changes in Visa shares for SEK 2 M, which are recognised under Other comprehensive income. Profit/loss for the period totalled SEK 0 M. Consolidated equity was also impacted by transactions with non-controlling interests of SEK -14 M net, which included the acquisition of further shares in Catella Residential Partners SAS and Catella Asset Management Iberia. As of 31 March 2023, the Group's equity/assets ratio was 40 percent (38 percent as of 31 December 2022).

Group cash flow First quarter 2023

Consolidated cash flow from operating activities before changes in working capital and cash flow from property projects amounted to SEK -46 M (-30). Tax paid totalled SEK 30 M (34) during the period.

Cash flow from property projects totalled SEK 39 M (-136) and includes continued investments in Infrahubs projects of SEK 56 M, Catella Project Capital GmbH of SEK 37 M and Kaktus of SEK 16 M. In addition, incoming cash flow included payments/funding of SEK 101 M from investors in the French logistics projects, final

settlement of the purchase consideration for Infrahubs Norrköping of SEK 52 M and dividend of SEK 20 M from the Danish Nordkranen project.

Consolidated cash flow from operating activities was SEK -61 M (-369), of which changes in working capital comprised SEK -53 M (-203) in the period.

Cash flow from investing activities totalled SEK -18 M (-57) and comprised the acquisition of shares in Catella Residential Partners SAS and Catella Asset Management Iberia for a total of SEK 12 M from non-controlling interests.

Cash flow from financing activities amounted to SEK -20 M (90), of which SEK -15 M related to loans and leasing liabilities and SEK -6 M related to dividends to non-controlling interests.

Cash flow in the period was SEK -99 M (-335) and cash and cash equivalents at the end of the period was SEK 1,710 M (1,117), of which cash and cash equivalents relating to the Group's Swedish holding company amounted to SEK 629 M (89).

Parent Company First quarter 2023

The Parent Company recognised income of SEK II.I M (10.8), and operating profit/loss amounted to SEK -20.8 M (l 3.4). Profit/loss for the period includes non-recurring costs for redundancies. The number of employees at the end of the period was 23 (21).

The Parent Company's net financial income/expense was SEK -23.9 M (-14.6), most of which relates to interest and arrangement fees for a bond loan that accrues floating-rate interest at 3-month Stibor plus 475 b.p

Profit/loss before tax and profit/loss for the period was SEK -44.6 M (-28.0).

Employees

At the end of the period, there were 520 (497) employees, expressed as full-time equivalents.

Risks and uncertainties

The current macroeconomic situation with rising inflation and increased interest rates could impact future return and transaction levels, and hence also impact assets under management as well as profit in Catella In-

vestment Management and Catella Corporate Finance. In Principal Investments, opportunity to sell projects at acceptable prices can be affected by the current market conditions and reduced transaction volumes. Rising material costs and supply shortages have affected projects in Principal Investments to some degree in 2022. However, management has noted that cost increases have slowed in recent months and supply chains have opened up again, which means that the risks are assessed to be lower going forward.

See Note 4 in the Annual Report 2022 for further significant estimates and judgements.

Seasonal variations

Seasonal variations are significant in the Corporate Finance operating segment. Transaction volumes and income have historically been highest in the fourth quarter.

Accounting principles

This Interim Report has been prepared in compliance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Consolidated Financial Statements were prepared in compliance with International Financial Reporting Standards (IFRS) as endorsed by the EU, the Annual Accounts Act and RFR | Complementary Accounting Rules for Groups issued by RFR, the Swedish- Reporting Board.

The Parent Company's financial statements were prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Accounting for legal entities, issued by RFR, the Swedish Financial Reporting Board.

The Group's and Parent Company's key accounting principles are presented in Catella's Annual Report for 2022. Figures in tables and comments may be rounded.

Related party transactions

Catella holds shares in the associated company Catella Project Capital GmbH, whose other owners are the Claesson & Anderzén group and the management of Catella Project Management GmbH.

Catella's German subsidiary Catella Project Management GmbH operates the property development projects in Catella

AB to publish in accordance with EU's

Market Abuse Regulation. The information

was submitted, through the agency of the

below contact, for publication on 05 May

This Report has not been subject to re-

view by the Company's Auditors.

2023 at 07:00 a.m. CEST.

Project Capital GmbH. In addition, Catella's subsidiary Infrahubs AB runs property development projects in several associated companies. No part of the fees levied for services rendered that Catella Project Management GmbH and Infrahus AB invoice to associated companies have been eliminated in Catella's Consolidated Income Statement, as associated companies fall outside Catella's associated enterprises. For more information, see Principal Investments in this report and Notes 20 and 38 in the Annual Report 2022.

Forecast

Catella does not publish forecasts.

This information is mandatory for Catella

Stockholm, Sweden, 05 May 2023 Catella AB (publ)

Christoffer Abramson CEO and President

Consolidated Income Statement

	2023	2022	2022
SEK M Note	Jan-Mar	Jan-Mar	Jan-Dec
Net sales	367	333	1 996
Other operating income	ેન્ડ	248	597
Total income	462	581	2 593
Provisions, direct assigment and production costs	-139	-67	-402
Other external expenses	-95	-94	-374
Personnel costs	-201	-187	-919
Depreciation	-19	-18	-75
Other operating expenses	-2	0	- 4
Operating profit/loss	7	215	810
Interest income	16	8	45
Interest expenses	-40	-18	-80
Other financial items	25	- d	56
Financial items-net	-	-19	20
Profit/loss before tax	7	196	830
Tax	-7	-12	-147
Net profit/loss for the period	0	183	683
Profit/loss attributable to:
Shareholders of the Parent Company	8	79	491
Non-controlling interests	8	104	192
	0	183	683
Earnings per share attributable to shareholders of the Parent Company, SEK
- before dilution	-0,09	0.90	5,55
- after dilution	-0,09	0,87	5,41
No. of shares at end of the period	88 348 572	88 348 572	88 348 572
Average weighted number of shares after dilution	90 929 822	91 098 572	90 662 237

Information on the Income Statement by operating segment can be found in Note I .

Consolidated Statement of Comprehensive Income

	2023	2022	2022
SEK M	Jan-Mar	Jan-Mar	Jan-Dec
Net profit/loss for the period	0	183	683
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Value change in defined benefit pension plans	0	-0	2
Fair value changes in financial assets through other comprehensive income	2	3	4
ltems that will be reclassified subsequently to profit or loss:
Hedging of net investment	0	0	0
Translation differences	8	10	101
Other comprehensive income for the period, net after tax	20	13	117
Total comprehensive income/loss for the period	21	196	800
Profit/loss attributable to:
Shareholders of the Parent Company	2	92	596
Non-controlling interests	9	1 05	204
	21	197	800

SEK M	Note	31 Mar	31 Mar	31 Dec
ASSETS
Non-current assets
Intangible assets		461	401	452
Contract assets leasing agreements		101	121	109
Property, plant and equipment		25	603	27
Holdings in associated companies		172	1 25	182
Non-current receivables from associated companies		173	91	127
Other non-current securities	2, 3, 4	322	285	308
Deferred tax receivables		9	25	7
Other non-current receivables		47	35	41
		I 311	୧୫୧	1 254
Current assets
Development and project properties		2 239	1 807	2 244
Contract assets		37	260	63
Receivables from associated companies		201	। ୧3	। 51
Accounts receivable and other receivables		572	୧। ।	775
Current investments	2, 3, 4	41	35	39
Cash and cash equivalents *		1 710	117	1 794
		4 800	3 993	5 066
Total assets		6111	5 679	6 320
EQUITY AND LIABILITIES
Equity
Share capital		177	177	177
Other contributed capital		296	295	296
Reserves		92	24	72
Profit brought forward including net profit for the period		1 604	270	1 624
Equity attributable to shareholders of the Parent Company		2 168	1 766	2168
Non-controlling interests		268	234	262
Total equity		2 436	2 000	2 430
Liabilities
Non-current liabilities
Borrowings from credit institutions		। । 65	1 418	1 519
Bond issue		244	1 242	1 244
Contract liabilities leasing agreements		78	ਰੇਤੇ	82
Other non-current liabilities		34	102	34
Deferred tax liabilities		19	20	17
Other provisions		તે રેણ	75	ਰੇਤੇ
		2 636	2 950	2 989
Current liabilities
Borrowings from credit institutions		377	-	3
Contract liabilities leasing agreements		33	35	36
Contract liabilities		5	0	5
Accounts payable and other liabilities		589	657	812
Tax liabilities		34	36	46
		1 038	729	901
Total liabilities		3 674	3 680	3 890
Total equity and liabilities		6111	5 679	6 320
* Of which pledged and blocked liquid funds		71	ટર્ટ	70

	2023	2022	2022
SEK M	Jan-Mar	Jan-Mar	Jan-Dec
Cash flow from operating activities
Profit/loss before tax	7	। તેર	830
Reclassification and adjustments for non-cash items:
Wind down expenses	- I	21	-23
Other financial items	-18	9	-56
Depreciation	19	ા જ	75
lmpairment / reversal of impairment of current receivables	0	-2	-
Change in provisions	2	0	l 5
Reported interest income from loan portfolios	6	3	-17
Acquisition expenses	-		2
Profit/loss from participations in associated companies	- I	-	-63
Personnel costs not affecting cash flow	-7	-2	5
Other reclassifications and non-cash items	-12	-233	-266
Paid income tax	-30	-34	-136
Cash flow from operating activities before changes in working capital	-46	-30	368
lnvestments in property projects	-135	-359	-1 569
Divestment of property projects	173	223	4 4
Cash flow from property projects	39	-136	-155
Cash flow from changes in working capital
Increase (-)/decrease (+) of operating receivables	197	-35	-118
Increase (+) / decrease (-) in operating liabilities	-250	-168	45
Cash flow from operating activities	-61	-369	140
Cash flow from investing activities
Purchase of property, plant and equipment	- I	5	-
Purchase of intangible assets	-6	-	-13
Purchase of subsidiaries, after deductions for acquired cash and cash equivalents	-12	-14	-74
Divestment of associated companies		୧୦	୧୦
Dividend and other disbursements from associated companies			21
Purchase of financial assets	5	-101	54
Sale of financial assets			44
Cash flow from loan portfolios	6	3	17
Cash flow from investing activities	-18	-57	-
Cash flow from financing activities
Re-purchase of share warrants	-0
Proceeds from share warrants issued			-
Borrowings	-	112	376
Amortisation of loans	-3	-5	-13
Amortisation of leasing debt	-12	-	-38
Dividend	-	-6	-88
Transactions with, and payments to, non-controlling interests	-6		-88
Cash flow from financing activities	-20	90	। 20
Cash flow for the period	-99	-335	279
Cash and cash equivalents at beginning of period	1 794	1 442	442
Exchange rate differences in cash and cash equivalents	15	11	73
Cash and cash equivalents at end of the period	1 710	117	1 794

Consolidated Statement of Changes in Equity

		Equity attributable to Shareholders of the Farent Company
SEK M	Share capital	Other contributed capital *	Fair value reserve		Profit brought forward incl. Translation net profit/loss reserve for the period	Total	Non- controlling interests **	Total equity
Opening balance at I January 2023	177	296	-	83	624	2 168	262	2 430
Comprehensive income for January - March 2023: Net profit/loss for the period					-8	-8	8	0
Other comprehensive income, net of tax			2	18	0	20	0	20
Comprehensive income/loss for the period			2	18	-8	12	ਰੇ	21
Transactions with shareholders:
Transactions with non-controlling interests					-12	-12	-3	- 4
Re-purchase of warrants issued		0				0		0
Closing balance at 31 March 2023	177	296	-9	100	604	2168	268	2 436

* Other capital contributed pertains to reserve funds in the Parent Company.

** Non-controlling interests are attributable to minority shares in the subsidiaries in all Group business areas.

In the first garter of 2023,5000 warant were enployee de to a charge in the employee cicinners and to Constitutions the expirist. And I Mro- 2021, the raret Conayn'n at atala 3,000,000 warrants outstanding, of which 200,000 in treasury. The exercise price is SEK 35.20 per share.

	Equity attributable to shareholders of the Parent Company
SEK M	Share capital	Other contributed capital *	Fair value reserve		Profit brought forward incl. Translation net profit/loss reserve for the period	Total	Non- controlling interests **	Total equity
Opening balance at January 2022	177	295	18	-7	1 205	688	132	1 821
Comprehensive income for January - March 2022:
Net profit/loss for the period					79	79	105	184
Other comprehensive income, net of tax			3	10	0	12		13
Comprehensive income/loss for the period			3	10	79	92	105	197
Transactions with shareholders:
Transactions with non-controlling interests					- 4	- 4	-4	-18
Closing balance at 31 March 2022	177	295	21	3	270	766	234	2 000

* Other capital contributed pertains to reserve funds in the Parent Company.

** Non-controlling interests are attributable to minority shares in the subsidiaries in Investment Management and Corporate Finance.

The Extracting General President on the new incentive program through the subsed 3,0000 waris shied the ton to we series 200,002.A. A d202022.A. Ad 2020,204.A. of 2020,204.A. share.

Note I Income Statement by operating segment

		Investment Management			Principal Investments			Corporate Finance		Other			Eliminations			Group
	2023	2022	2022	2023	2022	2022	2023	2022	2022	2023	2022	2022	2023	2022	2022	2023	2022	2022
SEK M	lan-Mar	Jan-Mar	lan-Dec	lan-Mar	Jan-Mar	Jan-Dec	lan-Mar	lan-Mar	lan-Dec	lan-Mar	Jan-Mar	Jan-Dec	lan-Mar		Jan-Mar Jan-Dec	lan-Mar	Jan-Mar	lan-Dec
Net sales	241	225	1 359	46	24	121	80	તેર	533	9	9	51	-9	-21	-67	367	333	996
Other operating income	9	6	49	84	238	539		2	10	3	3	14	-2	-	-16	જેટ	248	597
Total income	250	231	1 408	131	262	660	81	ರಿಕ	542	12	12	ર્દ	-	-22	-82	462	581	2 593
Provisions, direct assigment and production costs	-43	-35	-166	-82	-34	-175	-15	-10	-78	-0	-0	-	0	12	17	-139	-67	-402
Other external expenses	-51	-42	-217	-14	-12	-37	-28	-37	-124	-9	-	-40	8	8	45	- વેરે	-94	-374
Personnel costs	-113	-97	-522	-16	-	-47	-52	-୧୫	-299	-21	-13	-56			ട	-201	-187	-919
Depreciation	- d	- d	-39	-2	-3	-8	-5	-5	-20	-2	-2	-8	0	0	0	-19	-18	-75
Other operating expenses	- I	-	-8	-3	-	-19	-0	-0		- I	2	-4	2		15	-2	0	-14
Less profit attributable to non- controlling interests *	-2	-0	-6	-5	-104	-189	0	0	0	- I	-0	3	8	104	192	0	0	0
Operating profit/loss	31	47	451	ರಿ	97	184	-20	-22	22	-22	-12	-40	8	104	192	7	215	810
Interest income																ા ર	8	45
Interest expenses																40	-18	-80
Other financial items																25	- 9	56
Financial items-net																	-19	20
Profit/loss before tax																7	96	830
Tax																-7	-12	-147
Net profit/loss for the period																0	83	683
Profit/loss attributable to shareholders of the Parent Company																-8	79	491

* Profit Concentry interests for ach business ares has not been induded, in order to darify the operating of the Parent Company by business area. This iconstent with the internal reportsprovied to national of the Crupt in the couple in the counn for Group elminations of that the Group Chriminations of that the Group Ce

The scares corecin in teacher in con include in coronal concern in termines in termines in the leporties to margenerine the contres concerner concerner concerner concerner co the varios persing segments. Tharsactions segments are linted and relate maily to francial transations and certain onward invoicing of experses. Such transaction are con-

Note 2 Summary of Catella's loan portfolios

The loan portfolios comprise securitised European loans with primary exposure in housing. The performance of the loan portfolios is closely monitored and remeasurements are continuously performed

		Forecast	Share of	Forecast	Share of
SEK M		undiscounted cash	undiscounted	discounted	discounted	Discount
Loan portfolio	Country	fow	cash flow	cash flow	cash flow	rate	Duration, years
Pastor 2	Spain	56.4	57.8%	50.3	55.0%	4.3%	2.75
Lusitano 5	Portugal	41.1	42.2%	41.1	45.0%	0.0%	0,25
Total cash flow *		97.5	100.0%	91.4	100.0%	2.4%	1.6
Carrying amount in consolidated halance sheet **				9 4

* The discount rate recognised in the "Total cash flow" is the weighted average interest of the total discounted cash flow.

** Catella's loan portfolio also includes the portfolios Pastor 3, 4 and 5 as well as Lusitano 4 whose book value of SEK 0.

Pastor 2

In the sub-portfolio Pastor 2, the underlying loans are below ten percent of the issued amount and Catella expects the issuer to utilise its clean-up call. The administration of the portfolio is frequently unprofitable when it falls below ten percent of the issued amount, and this structure allows the issuer to avoid these additional costs. Catella considers the credit risk in the portfolio to be low, although the precise timing of the exercise of the option is difficult to forecast due to various unknown factors relating to the issuer. Catella has made the assumption that a repurchase will take place in the fourth quarter of 2025. The portfolio is valued at the full repayable amount of EUR 5.0 M, discounted to the present value with application of a discount rate for similar assets. This corresponds to a value of EUR 4.5 M.

Lusitano 5

The time call affects sub-portfolio Lusitano 5 and constitutes an option held by the issuer that enables the sub-portfolio to be repurchased at a specific point in time, and subsequently from time to time. The option has been available since 2015 Catella has assumed that the time call will be exercised in the second quarter of 2023. This assumption is conservative as it means that no further cash flows than the position's current capital amount of EUR 3.1 M plus the following quarter's cash flow will be received when exercising the time call. The portfolio is hence valued at EUR 3.6 M.

Further information regarding the loan portfolio can be found in the Annual Report 2022.

Actual cash flows from the loan portfolio

SEK M		Spain Portugal	Other
Loan portfolio		Pastor 2 Lusitano 5		Tota
Outcome
Full year 2009-2021	27,2	15.8	267.0	310.1
Full year 2022	0.0	16.9	0.0	16.9
QI 2023	0.0	5,8	0.0	5.8
Total	27.2	38.5	267.0	332.7

Note 3 Short- and long-term investments

	2023	2022	2022
SEK M	31-mar	31-mar	31-dec
Visa preferred stock C series	39	65	36
Loan portfolios	ਰੇ।	83	88
Operation-related investments *	233	173	223
Total *	363	320	347

* of which short-term investments SEK 41 M and long-term investments SEK 322 M.

** includes investments in shares and funds, co-investments and assets within segments being classified as financial assets.

Note 4 The Group's assets and liabilities measured at fair value

In accordance with IFRS 7, financial instruments are recognised on the basis of fair value hierarchically with three different levels. Classification is based on the input data used for measuring the instruments. Quoted prices on an active market on the reporting date are applied for level 1. Observable market data for the asset or liability other than quoted prices are used for level 2. Fair value is determined with the aid of valuation techniques. For level 3, fair value is determined on the basis of valuation techniques based on non-observable market data. Specific valuation techniques used for level 3 are the measurement of discounted cash flows to determine the

fair value of the financial instruments. For more information, see Note 3 in the Annual Report 2022.

The Group's assets and liabilities measured at fair value as of 31 March 2023 are indicated in the following table.

lier		Tier 3	l ota
	39		39
			324
25	4	297	363
			96
0	0	96	96
	25	Tier 2 2	297 96

No changes between levels occurred the previous year.

Change analysis, financial assets, level 3 for the first quarter 2023

as of I January	379
Purchases
Disposals	-44
Gains and losses recognised through profit or loss	8
Translation differences	3
As of 31 December	297
Change analysis, financial liabilities, level 3 for the first quarter 2023
as of I January	93
Additional items	4
Deductions	-6
Revaluation through profit & loss	3
Translation differences	2
As of 31 December	96

Note 5 Pledged assets and contingent liabilities

Pledged assets

	2023	2022	2022
SEK M	31 Mar	31 Mar	31 Dec
Cash and cash equivalents	71	રેટ	70
Other pledged assets			0
	71	55	70

Cash and cash equivalents include cash funds in accordance with minimum retention requirements, funds that are to be made available at all times for regulatory reasons and frozen funds for other purposes.

Contingent liabilities

	2 023	2 022	2022
SEK M	31 Mar	31 Mar	31 Dec
Other contingent liabilities	1 925	890	1 625
	1925	890	625

Other contingent liabilities mainly relate to guarantees to credit institutes as collateral for approved credit lines to the subsidiary Kaktus I HoldCo ApS. In addition, Catella Holding AB is party to guarantee commitments relating to sold properties, as well as to a tenant guarantee commitment relating to the project company's completion of their commitment under the relevant rental agreement. Other contingent liabilities also relates to ongoing disputes in discontinued operations and guarantees

provided by operating subsidiaries for rental contracts with landlords.

Of the Group's total contingent liabilities, SEK 1,901 M relates to Principal Investments.

Commitments

	2 023	2 022	2022
SEK M	31 Mar	31 Mar	31 Dec
Investment commitments			0
Other commitments

No investment commitments remain in the unlisted holding in Pamica 2 AB.

Parent Company Income Statement

	2023	2022	2022
SEK M	lan-Mar	lan-Mar	an-Dec
Net sales	8.7	9,1	47,8
Other operating income	2.3	1.7	12,6
Total income	11,1	10,8	60,4
Other external expenses	-10.2	-11,0	-42,8
Personnel costs	-21,0	-13,0	-54.3
Depreciation	-0, I	-0, I	-0,3
Other operating expenses	-0,6	-0.0	0,6
Operating profit/loss	-20,8	-13,4	-36,4
Profit/loss from participations in group companies	0.0	0.0	257,4
Interest income and similar profit/loss items	0.1	0,7	3,3
Interest expenses and similar profit/loss items	-23,9	-15,3	-71,4
Financial items	-23,9	-14,6	189,4
Profit/loss before tax	-44.6	-28,0	153,0
Tax on net profit for the year	0.0	0,0	0.0
Net profit/loss for the period	-44,6	-28,0	153,0

Parent Company Statement of Comprehensive Income

SEK M	2023 lan-Mar	2022 lan-Mar	2022 an-Dec
Net profit/loss for the period	-44,6	-28.0	153.0
Other comprehensive income
Other comprehensive income for the period, net after tax	0.0	0.0	0.0
Total comprehensive income/loss for the period	-44.6	-28.0	153.0

Parent Company Balance Sheet - condensed

	2023	2022	2022
SEK M	31 Mar	31 Mar	31 Dec
Intangible assets	0.3	0,6	0,4
Property, plant and equipment	0.1	0.1	0.1
Participations in Group companies	358,2	1 058,2	358,2
Current receivables from Group companies	259,7	498,5	106,6
Other current receivables	16,5	12,0	211,9
Cash and cash equivalents	0.1	0.9	0. I
Total assets	634,9	1 570,5	677,4
Equity	354.9	307.1	399.6
Bond issue	244,5	1 241,7	243,8
Current liabilities to Group companies	0,8	0,0	5,4
Other current liabilities	34,7	21,7	28,7
Total equity and liabilities	634.9	570,5	677,4

Catella AB has issued guarantees to credit institutes of SEK 1,577 M as security for approved credit lines to the subsidiary Kaktus 1 HoldCo ApS. For the comparative period 31 March Company's total contingent liabilities amounted to SEK 379 M.

Application of key performance indicators not defined by IFRS

The Consolidated Accounts of Catella are prepared in accordance with IFRS, which only defines a limited number of performance measures. Catella, applies the European Securities and Markets Authority's (ESMA) guidelines for alternative performance measures. In summary, an alternative performance measure is a financial measure of historical or future profit progress, financial position or cash flow not

defined by or specified in IFRS. In order to assist corporate management and other stakeholders in their analysis of Group progress, Catella presents certain performance measures not defined under IFRS. Corporate management considers that this information facilitates analysis of the Group's performance. This additional information is complementary to the information provided by IFRS and does not

replace performance measures defined in IFRS. Catella's definitions of measures not defined under IFRS may differ from other companies' definitions. All of Catella's definitions are presented below. The calculation of all performance measures corresponds to items in the Income Statement and Balance Sheet.

Definitions

Non-IFRS performance
measures	Description	Reason for using the measure
Operating profit attributable to Parent Company shareholders	Group's operating profit for the period, less profit at- tributable to non-controlling interests	The measure illustrates the proportion of the Group's oper- ating profit attributable to shareholders of the Parent Com- pany.
Operating margin	Operating Profit/loss attributable to the Parent Com- pany shareholders divided by total income for the pe- riod.	The measure illustrates profitability in underlying operations attributable to shareholders of the Parent Company.
IRR	Internal Rate of Return, a measure of the average annual return generated by an investment.	The measure is calculated for the purpose of comparing the actual return on projects Catella invests in with the average expected return of 20 percent.
Assets under management at year end	Assets under management constitutes the value of Ca- tella's customers' deposited/invested capital.	An element of Catella's income in Investment Management is agreed with customers on the basis of the value of the un- derlying invested capital. Provides investors with insight into the drivers behind elements of Catella's income.
Property transaction volumes in the period	Property transaction volumes in the period constitute the value of underlying properties at the transaction dates.	An element of Catella's income in Corporate Finance is agreed with customers on the basis of the underlying prop- erty value of the relevant assignment. Provides investors with a view of what drives an element of Catella's income.
Equity/Asset ratio	Equity divided by total assets	Catella considers the measure to be relevant to investors and other stakeholders wishing to assess Catella's financial stability and long-term viability.
Earnings per share	Profit for the period attributable to the Parent Com- pany shareholders divided by the number of shares.	Provides investors with a view of the company's Earnings per share when making comparisons with earlier periods.
Dividend per share	Dividend divided by the number of shares.	Provides investors with a view of the company's dividend over time.

Financial calendar

Annual General Meeting 2023 I 0 May 2023 Interim Report April-June 2023 18 August 2023 Interim Report July-September 2023 27 October 2023 Year-end Report October-December 2023 9 February 2024

For further information, please contact

Michel Fischier, CFO Tel. +46 (0)8-463 33 10

More information on Catella and all financial reports are available at catella.com.

CATELLA AB (PUBL) P.O. BOX 5894, SE-102 40 STOCKHOLM, SWEDEN | VISITORS: BIRGER JARLSGATAN 6 CORP. ID NO.556079-1419 | REGISTERED OFFICE: STOCKHOLM, SWEDEN TELEPHONE +46 (0)8-463 33 10| INFO@CATELLA.SE CATELLA.COM