Catella

Earnings Release • Aug 19, 2022

Strong growth and profitability in a turbulent market

Continued strong growth and profitability driven by a transformed strategy with three property-focused business areas. In the second quarter, assets under management increased by SEK 10 Bn to SEK 135 Bn and operating profit totalled SEK 328 M (9), resulting in one of the best quarters ever for Catella.

Christoffer Abramson, CEO and President

Progress during the quarter

Financial results

• · Total income in the quarter amounted to SEK 861 M (483)
• · Operating profit was SEK 386 M (-3 I )
• Operating profit attributable to Catella's shareholders was SEK 328 M which is an improvement of SEK 319 M compared to Q2 202 I
• · Profit attributable to Catella's shareholder was SEK 247 M (-46).
• · Earnings per share was SEK 2.80 (SEK -0.52)

Assets under management

· Assets under management increased by approximately SEK 10 Bn during the quarter, primarily driven by growth in Catella's property funds operated by Property Funds and the acquisition of Warsaw Property Partners

Principal investments

• · The logistics properties Infrahubs Orebro and Ljungby were sold for SEK 580 M, generating a realised gain for the Parent Company shareholders of SEK 99 M with an IRR of 58 percent.
• · The investing activities invested a net of SEK 90 M in ongoing projects during the quarter

Progress during 2022

Financial results

• · Total income in the first six months of the year amounted to SEK 1,442 M (798)
• Operating profit was SEK 601 M (-59)
• Operating profit attributable to Catella's shareholders was SEK 439 M which is an improvement of SEK 447 M compared to the first sixt months of 2021.
• · Profit attributable to Catella's shareholder was SEK 326 M (45).
• · Earnings per share was SEK 3.69 (SEK 0.50)

Assets under management

• · Assets under management amounted to SEK 135 Bn which is an increase of SEK 13 Bn in the first six months of the year.
• · This increase was primarily driven by an inflow to residential funds and broad-based growth in the majority of property funds.

Principal investments

• · Total investments amounted to SEK 1,409 M at the end of the period, split between property, logistics, offices, and retail projects across Europe.
• · Infrahubs has sold three logistics properties for approximately SEK 1.5 Bn, generating a realised gain of SEK 201 M with an average IRR of 57 percent.

* Attributable to shareholders of the Parent Company.

Totalt income SEK SEK 2.45

Assets under management

SEK End of period

Invested capital

CFO COMMENTS

"Strong growth and profitability in a turbulent market"

Catella continues its strong growth and continues to deliver on our refined strategy with three property-focused business areas. Investment Management reported its best quarter to date, driven by both growth in assets under management (AUM) and performance-based fees. Principal Investments completed two sales from its property portfolio that significantly exceeded the business area's target return of 20 percent IRR. Corporate Finance noticed a slightly weaker transaction market due to a gap in the price expectations between sellers and buyers.

AUM increased by SEK 23 Bn over the past 12 months and SEK I 0 Bn since previous quarter, showing that interest in our product offering remains strong among investors. At Group level, operating profit attributable to Parent Company shareholders was SEK 328 M, delivering one of the best quarterly results ever.

The world continues to be impacted by Russia's invasion of Ukraine and a general macroeconomic uncertainty. In addition to increasing inflation and rising financing costs, energy costs are also increasing. For Catella, this leads to accelerated efforts for energy transition in our investments, fund and mandate offerings, and in transaction advisory. As always, challenges of this type also give rise to new opportunities, and Catella sees the accelerated development as a positive force in the property sector. We recently adopted a long-term ESG strategy at Group level, which harmonizes our long-term ambition and goals across subsidiaries and business areas.

We continue to enjoy a strong financial position where liquidity is further strengthened by Principal Investments' sales of development projects. Without near-term refinancing needs and a strong cash position, we are well positioned to explore long-term and opportunistic investments for continued profitable growth.

New milestone in Investment Management, exceeding SEK 130 Bn in assets under management

In the second quarter, Catella's AUM increased by SEK 10 Bn to SEK 135 Bn. This marks a new milestone in the business area's history. Inflows remain strong to funds with residential focus and Catella's first dark green, article 9 classified fund, CER III.

Asset Management mandates also contribute to the growth, and our acquisition of Catella WPP (Poland) increased AUM by nearly SEK 1.5 Bn. In an uncertain macro environment with lower property investments, our competencies and well-implemented projects for adapting and repositioning properties is meeting market demand.

We continue to review the current property holdings in our funds to further meet our own and our investors' sustainability ambitions. In 2022, we expect to sell certain portfolio assets to facilitate a transition to other investments as well as sustainability profiled investments

Investment Management's operating profit improved by over 40% year-on-year, driven by underlying strong growth in AUM and performance-based fees. We continue to see strong interest from investors, and committed capital for future fund investments exceeded SEK 10 Bn at the end of the quarter.

Two additional successful sales in the property portfolio reducing Catella's risk exposure in development projects

During the second quarter, two further sales of development projects were agreed in the partly owned Infrahubs. Interest in the logistics properties was strong and resulted in profit of nearly SEK 100 M, corresponding to an IRR of 58 percent.

We continue to see strong interest in the modern, sustainable logistic properties that we develop. Uncertainty regarding construction and financing costs has however increased for development projects. In light of this, stronger focus will be given to co-investments with partners in order to open up new revenue streams in Investment Management and Corporate Finance. Additionally, we expect good opportunities for opportunistic investments in the current market.

After the end of the quarter, Principal Investments' investments in six countries totalled approximately SEK I Bn in eleven projects, four of which are expected to be divested in 2022. All development projects have financing and expected development costs in line with our return requirements.

Slower transaction market during the quarter

Catella Corporate Finance continues to enjoy a strong market position in all five remaining markets. However, the current bid-ask spread between sellers and buyers slowed and post-poned transactions during the quarter. Before the gap is closed, we expect a continued tentative transaction market. Despite lower revenues, Corporate Finance delivered a solid operating profit of SEK 26 M (43) during the quarter.

In Sweden, Corporate Finance was the transaction advisor for the sale of the logistics properties in Orebro and Ljungby. At group level, we continue the work of facilitating synergies between our business areas. During the past year we have seen many good examples and these sales highlight additional ones.

We continue to see a stable transaction pipeline into the coming quarters, albeit at a slightly slower pace. However, tighter credit markets and future refinancing needs will likely benefit our newly established segment in Debt Advisory.

Outlook

We continue to operate within macroeconomic and geopolitical uncertainties, which significantly impact the decisions we make for the future. We are currently taking a slightly more cautious approach to own investments in development projects. We have a strong balance sheet, which we will continue to strengthen. In a turbulent market, we want to be able to act on opportunistic investment opportunities and invest long-term in our business for future revenue streams in all our business areas

We will also continue to develop our offering in sustainable investments and mandates to promote energy transition in the property sector, a market in which we have built a strong position that we aim to continue to grow.

In terms of results, we expect one of the best years in the company's history. This is supported by a refined strategy that focuses on growing assets under management in our property funds and an attractive total product and service offering targeted at the property sector.

Thank you for your confidence. We will continue the exciting work of creating customer, societal and shareholder value in 2022 and beyond.

Christoffer Abramson, CEO and President Stockholm, Sweden, 19 August 2022

Comments on the Group's progress

Profit and comments on page 4-10 relate to Operating profit attributable to Catella AB's shareholders, which are consistent with the internal reporting Group Management deliver to 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
	2022	2021	2022	202	2022	202	2022	202	2022	2021
SEK M	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun	Apr-Jun
Net sales	469	278	27	0	147	187	-2	-3	641	461
Other operating income	2	19	215	0	2	2	-		220	22
Total income	471	297	242	0	149	188	-	-2	861	483
Assignment expenses and commission	-37	-47	-4	0	-15	- 4		8	-54	-48
Other external expenses	-49	শ	-65		-27	-26	-2	-62	-142	-130
Personnel costs	- 61	-121	-	0	-77	-99	-10	-63	-258	-283
Depreciation	-10	- d	-2	0	-5	-6	-2	-48	-18	-62
Other operating expenses	-	-	-	0	0	-0	-0	10	-2	9
Less profit attributable to non-controlling interests	-2	-	-58	0	0	0	3	ব	-58	40
Operating profit/loss	211	83	102	-0	26	43	-	-117	328	9
Interest income									9	3
Interest expenses									-19	-18
Other financial items									8	-15
Financial items-net									-2	-30
Profit/loss before tax									326	-21
Tax									-79	-25
Net profit/loss for the period *									247	-46

* Profitloss for the period is reconciled in note 1. Income Statement per business area - Profitilloss attributable to the Pareholders

Group net sales and profit/loss Second quarter 2022

The Group's Net sales totalled SEK 641 M (461), of which SEK 469 M (278) relates to Investment Management, SEK 27 M (0) relates to Principal Investments and SEK 147 M (187) to Corporate Finance. The significantly higher income in Investment Management was mainly driven by performance-based fees from three managed funds. The Group's total income amounted to SEK 86 I M (483), and includes income of SEK 159 M related to the sale of the logistics properties Infrahubs Ljungby and Örebro to Genesta as well as SEK 50 M in accrued income from the French logistics projects Roye and MER.

The Group's operating profit was SEK 328 M (9), of which SEK 99 M (0) relates to logistics properties divested during the period. Last year's profit was negatively affected by divestment costs of SEK 101 M relating to the subsidiary IPM. As a result of this, operating profit/loss for the period increased by SEK 120 M year-on-year, without taking into account property divestments and IPM divestment costs.omments on the progress of each operating

segment can be found on pages 6-10.

The Group's net financial income/expense was SEK -2 M (-30) and included interest income of SEK 9 M (3) and interest expense and loan arrangement fees of SEK 19 M (18). Net financial income/expense also includes an impairment of fund holdings of SEK 7 M and positive exchange rate differences of SEK 16 M (-15). Exchange rate differences, mainly in EUR/SEK, have a positive impact on the value of loan receivables in the subsidiaries and associated companies in local currency, as do the Swedish holding companies' cash and cash equivalents denominated in EUR.

Profit/loss before tax amounted to SEK 326 M (-21) and profit/loss for the period was SEK 247 M (-46) which corresponded to earnings per share of SEK 2.80 (-0.52) to the Parent Company shareholders.

Significant events in the quarter

After a strategic review of the Corporate Finance business area, Catella decided to divest its operations in Germany and the Baltics. Expected divestment costs for the German operations totalled SEK 17 M which was recognised in the first quarter.

The divestment of the operations in the Baltics generated a marginal effect on the Group's results.

Catella's Annual General Meeting was held on 24 May. All existing Board members were re-elected at the AGM.

In May, 12,085 Class A shares were converted into the same number of Class B shares at the request of shareholders.

In June, Catella concluded the acquisition of 65 percent of the shares in Warsaw Property Partners for a purchase consideration of SEK 40 M, see also note 6.

Catella's partly owned company Infrahubs entered into an agreement on the sale of logistics properties in Ljungby and Örebro to a fund managed by Genesta. Possession of the properties are to be transferred on I July. The transaction was recognised as revenue with a total amount of SEK 99 M attributable to Catella AB's shareholders in the second quarter.

Significant events after the end of the quarter

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

Investment

		Management		Principal Investments		Corporate Finance		Other		Group
	2022	2021	2022	2021	2022	2021	2022	2021	2022	202 I
SEK M	lan-Jun	lan-Jun	an-Jun	Jan-Jun	an-Jun	an-Jun	lan-Jun	an-Jun	an-Jun	an-Jun
Net sales	694	475	51	0	243	273	- 4	22	974	770
	8	20	453	2	4	ব	3	2	468	28
Other operating income
Total income	702	495	504	7	247	276	-10	24	442	798
Assignment expenses and commission	-72	-72	-33	0	-25	-27	13	7	-117	-92
Other external expenses	-91	-78	-81		-63	-52	-5	-90	-240	-221
Personnel costs	-258	-214	-22	0	-144	-165	-21	- 0	-445	-480
Depreciation	-18	- 7	-5	0	-10	- -	-4	-53	-37	-81
Other operating expenses	-2	-2	-2	0	-0	-4	2	23	-2	17
Less profit attributable to non-controlling interests	-3	-2	-163	0	0	0	3	53	-163	51
Operating profit/loss	258	110	199		র্ব	7	-23	-136	439	-8
Interest income									18	7
Interest expenses									-37	-33
Other financial items									-2	=
Financial items-net									-21	85
Profit/loss before tax									418	77
Tax									-92	-33
Not profit/loca for the poriod *									276	人に

* Profitl/oss for the period is reconciled in note 1. Income Statement per business area - Profitiloss attributable to the Parenclers.

First half-year 2022

Total income in the first half-year was SEK 1,442 M (798), and the Group's net sales were SEK 974 M (770). The significantly higher income mainly relates to Principal Investments, which divested three properties and commenced revenue recognition for a further two properties during the period, and also to Investment Management, where increased volumes and strong management results are driving income. The Group's operating profit was SEK 439 M (-8), of which SEK 200 M (0) relates to logistics properties divested during the period.

The Interest income totalled SEK 18 M (7), and interest expense and loan arrangement fees amounted to SEK 38 M (39). The higher interest income is a result of increased loan financing for property development projects. Net financial income/expense also includes an impairment of loan portfolios and fund holdings of SEK 20 M and SEK 7 M respectively, and positive exchange rate differences of SEK 26 M (0).

Profit/loss before tax amounted to SEK 418 M (77) and profit/loss for the period was SEK 326 M (45) which corresponded to earnings per share of SEK 3.69 (0.50) to the Parent Company shareholders.

Investment Management

Catella is a leading specialist in property investment with a presence in ten geographical markets in Europe. Catella offers institutional and other professional investors attractive, risk-adjusted return through regulated property funds and asset management service areas: Property Funds and Asset Management. Property Funds offers specialized funds with different investment strategies in terms of risk and return, type of property and location. Through over 20 open specialized property funds investors gain access to fund management and efficient allocation between different European markets.

Second quarter 2022

Catella's Asset Management business area provides asset management services to property funds, other institutions and family offices.

Total income was SEK 471 M (297), and income after assignment costs amounted to SEK 434 M (255) in the quarter.

Property Funds' income increased by SEK 187 M year-on-year. Fixed income increased by SEK 40 M (31 percent) driven by increased management fees from asset management growth (+23 Bn) in the last I 2 months. Variable income including performance fees increased by SEK 149 M (+131 percent)

Asset Management's income after assignment costs rose by SEK 18 SEK M compared to the previous year. The higher income was mainly due to increased income in Asset Management UK, Benelux and Denmark.

Operating costs increased mainly due to higher variable personnel expenses.

Operating profit was SEK 211 M (83), primarily driven by Property Funds.

First half-year 2022

Total income was SEK 702 M (495), and operating profit/loss was SEK 258 M ( I IO) in the first half of the year.

The improved operating profit is primarily driven by higher performance fees in Property funds as well as higher management fees from growth in assets under management.

SEK M	3 Months		6 Months		I 2 Months
	2022	2021	2022	202	Rolling	2021
INCOME STATEMENT-CONDENSED	Apr-Jun	Apr-Jun	lan-Jun	Jan-Jun	12 Months	lan-Dec
Property Funds *	430	243	622	404	077	859
Asset Management *	73	୧୫	137	122	308	292
Total income	47	297	702	490	1 276	1 069
Assignment expenses and commission	-37	-42	-72	-72	-153	-153
Operating expenses	-220	- 7	-369	-312	-724	-667
Less profit attributable to non-controlling interests	-2	-	-3	-2	-5	-4
Operating profit/loss	211	83	258	110	394	245
KEY FIGURES
Operating margin, %	45	28	37	22	31	23
Assets under management at end of period, SEK Bn			135,2	112,3	-	122,7
net in-(+) and outflow(-) during the period, SEK Bn	4,0	3,8	4,7	-6,1	12,8	2,1
of which Property Funds			100,9	76,8		90,4
net in-(+) and outflow(-) during the period, SEK Bn	1,9	2,5	3,1	5,4	14,5	16,8
of which Property Asset Management			34,3	35,5		32,3
net in-(+) and outflow(-) during the period, SEK Bn	2,0	1,3	1,5	-11,5	-1,7	-14,8
No. of employees at and of neriod			259	OKK		779

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

Investment Management

Assets under management by service area and country

Total assets under management amounted to SEK 135.2 Bn, of which SEK 100.9 Bn

related to Property Funds and SEK 34.3 Bn related to Asset Management. At the end of the period, 75 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

ASSETS UNDER MANAGEMENT BY SERVICE AREA

Management and Catella Real Estate.

ASSETS UNDER MANAGEMENT BY COUNTRY

· Germany 35% ■UK 18% ■ Netherlands 13% ■ Denmark 10% ■ France 5% ■ Spain 5% ▪Finland 3% ■ Austria 3% ■ Other 7%

Change in assets under management

Assets under management increased from SEK I I 2.3 Bn to SEK 135.2 Bn in the last I 2-month period. The increase of SEK 22.9 Bn was primarily driven by the inflow to residential funds Catella Wohnen Europa, Catella Modernes Wohnen and Catella European Residential III, KVBW

ASSETS UNDER MANAGEMENT, LAST 12 MONTHS, SEK BN

mdkr

Immobilienspezialfonds and broad-based growth in the majority of other property funds.

Assets under management increased by SEK 9.7 Bn to SEK 135.2 Bn in the quarter. Inflows of SEK 8.1 Bn were mainly driven by the acquisition of residential properties in London and Durham in Catella's resi-

dential funds operated by Property Funds, as well as SEK 1.4 Bn relating to the acquisition of Warsaw Property Partners.

Outflow of SEK 4.1 Bn was primarily due to concluded mandates in Catella Asset Management UK and Catella Residential Investment Management.

assets under management, in the quarter, sek bn

Principal Investments

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

Second quarter 2022

Total income was SEK 242 M (0) in the second quarter, of which SEK 160 m relates to profit from the sale of the logistics property Infrahubs Fastighet 3 in Orebro and Infrahubs Fastighet 5 in Ljungby.

The property Infrahubs 3 in Örebro, with an area of 23,000 square meters, resulted in a preliminary IRR of 46 percent, and the property Infrahubs 5 in Ljungby, with an area of 26,000 square metres, resulted in an IRR of 68 percent.

Other income primarily relates to the development companies Catella Logistic Europe and Catella Project Management.

Both development companies and their project companies have operating costs that are not capitalised.

Operating profit for the business segment amounted to SEK 102 M, of which the sale of Infrahubs Fastighet 3 and 5 generated a profit of SEK 99 M.

As of 30 June, Principal Investments had invested a total of SEK 1,409 M in residential projects, logistics projects, office projects and retail projects in Europe.

First half-year 2022

Total income was SEK 504 M (2), and operating profit/loss was SEK 199 M (1) in the first half of the year.

The improved operating profit in 2022 is primarily attributable to the sale of Infrahubs' properties in Norrköping, Örebro and Ljungby.

	3 Months		6 Months		12 Months
SEK M	2022	2021	2022	202	Rolling	2021
INCOME STATEMENT-CONDENSED	Apr-Jun	Apr-Jun	an-Jun	an- un	12 Months	lan-Dec
Total income	242		504		520	8
Assignment expenses and commission	-4		-33		-36	-3
Operating expenses	-78		-109		-120
Less profit attributable to non-controlling interests	-58		-163		-162	0
Operating profit/loss	102	0	199		202	4
KFY FIGURES
Operating margin, %	42		40	70	39	23
Catella invested capital	90	390	409	688	1833	1112
No. of employees, at end of period	39	0	39	0	39	0

INVESTED CAPITAL PER COUNTRY*

INVESTED CAPITAL PER INVESTMENT TYPE*

OPERATING PROFIT/LOSS

* The figures indicate the share of Principal Investments' total investment and which consists of both capital injections and loans provided

Principal Investments

The following table shows ongoing property development projects and investment status as of 30 June 2022. Other property development projects relate to securing land etc. ahead of the start-up of future project company's total investment includes invested capital from Catella, partners and external financing. Catella's total investment invested from Principal Investments. Seestadt and Düssel-Terrassen consist of a number of phases within will be completed at different times. The first properties in the Seestadt development project are expected to be completed at the end of 2022.

The majority of the investments during the second quarter of 2022 were related to financing further construction on Infrahubs projects, of which a further three projects will be completed and sold during the year. The Königallee project was re-financed in March and SEK I 05 M of Catella's initial investment was repaid in the second quarter.

						Project company's
				Estimated	Catella capital	total investment	Equity Invested,
Property Development Projects	Country	Investment type	Project start	completion	share, %	SEK M	SEK M ****
Seestadt MG+ *	Germany	Residential	Q1 2019	2030+	45	670	50
Düssel-Terrassen *	Germany	Residential	Q4 2018	2030+	45	143	26
Königsallee 106 *	Germany	Office	Q2 2021	2025	23	839	93
Total Catella Project Capital						652	70
Roye Logistique **	France	Logistics	Q2 2019	Q2 2022	100	299	24
Mer Logistique **	France	Logistics	Q1 2020	Q3 2022	100	289	29
Metz-Eurolog **	France	Logistics	Q3 2020	2023	100	8	7
Barcelona Logistics **	Spain	Logistics	Q4 2020	2023	100	୧୯	୧୦
Total Catella Logistic Europe ***						657	20
Ljungby *	Sweden	Logistics	Q2 2021	Q2 2022	40	181	80
Orebro **	Sweden	Logistics	Q2 2021	Q2 2022	50	183	180
Vaggeryd **	Sweden	Logistics	Q3 2021	Q3 2022	50	289	273
Jönköping*	Sweden	Logistics	Q2 2022	Q2 2023	40	48	22
Other *	Sweden	Logistics				୧୫	46
Total Infrahubs						769	700
Kaktus **	Denmark	Residential	Q2 2017	Q3 2022	ਰੇਤੇ	280	248
Salisbury ***	UK	Retail	Q4 2021	Q4 2025	88	216	73
Mander Centre	UK	Retail	Q1 2022	Ej tillämpligt	100	98	98

Total

* 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 Logstic Europé forward-funding arrangements with investors. Catella profit is earned upon project completion completion *** Refers to both capital injections and loans provided

1 409

4 672

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 nine markets and offer local expertise about the property markets in combination with European reach.

Second quarter 2022

Property transactions where Catella served as advisor totalled SEK 15.4 Bn (16.9). Of the total transaction volumes in the quarter France represented 5.8 Bn (3.3), Sweden 5.0 Bn (10.5) and Finland 4. I Bn (0.6).

Total income was SEK 149 M (188), and total income, adjusted for assignment costs, decreased by SEK 40 M. Income after assignment costs and operating profit/loss was lower year-on-year, which was mainly due to lower transaction volumes

Operating profit was SEK 26 M (43) which was a reduction of SEK 17 M (-40 percent).

There was a tendency for greater caution and turbulence in the market during the second quarter, which resulted in transacttions being delayed or postponed.

First half-year 2022

Total income was SEK 247 M (276), and operating profit/loss was SEK 4 M (17) in the first half of the year.

Operating profit, adjusted for costs related to the divestment of the operations in Germany, was SEK 25 M (25).

• I TM

SEK M		3 Months		6 Months		12 Months
	2022	2021	2022	2021	Rolling	2021
INCOME STATEMENT-CONDENSED	Apr-Jun	Apr-Jun	Jan-Jun	an-Jun	l 2 Months	Jan-Dec
Total income	149	1888	247	276	649	678
Assignment expenses and commission	-15	- 4	-25	-27	-54	-57
Operating expenses	-108	-131	-218	-232	-536	-551
Less profit attributable to non-controlling interests	0	0		0	0	0
Operating profit/loss	26	43	4	17	58	71
KEY FIGURES
Operating margin, %	18	23		6	9	10
Property transaction volume for the period, SEK Bn	15.4	16.9	20.7	23.3	54.7	57,3
of which Nordic	9.1	12,3	12.2	16,7	30,7	35,1
of which Continental Europe	6,2	4.6	8.5	6.6	24,0	22, I
No. of employees, at end of period			161	209		196

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

Other financial information

Consolidated Profit and Financial Position second quarter 2022

The Group's total income amounted to SEK 861 M (483) and is commented on in the section "Group Progress". Operating profit rose to SEK 386 M (-31 M). This increase is primarily attributable to a rise in performance-based fees from managed funds and the sale of the Infrahubs properties in Örebro and Ljungby, which generated profit after selling expenses of SEK 158 M. Moreover, last year's profit was negatively affected by divestment costs and goodwill impairment relating to the subsidiary IPM, totalling SEK 142 M. The period's tax expense amounted to SEK 79m (25), which corresponds to an effective tax of 21 percent (40). The lower effective tax in comparison with the previous year is mainly due to low or no tax on results from divested property projects and to lower termination costs for discontinued operations where no deferred tax asset is reported attributable to tax loss carry-forwards.

In the second quarter, the Group's total assets decreased by SEK 60 M and amounted to SEK 5,619 M as of 30 June 2022. The sale of Infrahubs Norrköping significantly reduced the Group's total assets, while revenue recognition of Infrahubs Orebro and Ljungby and continued investments in ongoing projects increased the Group's total assets.

In the second quarter, the Group's equity increased by SEK 182 M, amounting to SEK 2,182 M as of 30 June 2022. Consolidated equity was also impacted by profit in the period of SEK 305 M and by negative exchange rate differences of SEK 50 M. Furthermore, equity was affected by transactions in non-controlling holdings totalling SEK -82 M, primarily consisting of dividends to non-controlling interests. Dividends to Parent Company shareholders amounted to SEK 88 M during the period. As of 30 June 2022, the Group's equity/assets ratio was 39 percent (33 percent as of 31 December 2021).

Group cash flow Second quarter 2022

Consolidated cash flow from operating activities before changes in working capital

amounted to SEK 191 M (63). The increase on the previous year is primarily due to increased operating profit in Investment Management. Tax paid totalled SEK 25 M (14) in the period.

Consolidated cash flow from operating activities was SEK 227 M (-16), of which changes in working capital comprised SEK 36 M (-79) in the period.

Cash flow from investing activities was SEK 62 M (-375) and includes payments of SEK 491 M deriving from the sale of Infrahubs Norrköping as well as dividends from associated companies of SEK 25 M. Furthermore, additional investments of SEK 368 M were made in ongoing property development projects, both through subsidiaries and associated companies, and SEK 25 M was invested in Catella Fastighetsfond Systematisk C. The Group's cash flow was also affected by the acquisition of WPP (Poland) in an amount of SEK -37 M and by the acquisition of shares in Catella Residential Partners SAS from a non-controlling interest of SEK -12 M.

Cash flow from financing operations was SEK -40 M (-9), of which SEK 88 M related to dividends to Parent Company shareholders and SEK 70 M related to dividends to non-controlling interests. Moreover, further financing totalling SEK I 20 M was obtained from the buyers of the French logistic projects Roye and MER.

Cash flow in the period was SEK 249 M (-399) and cash and cash equivalents at the end of the period was SEK 1,380 M (1,790) of which cash and cash equivalents relating to the Group's Swedish holding companies amounted to SEK 192 M (551).

First half-year 2022

Consolidated cash flow from operating activities was SEK -6 M (-118), of which changes in working capital comprised SEK -167 M (-108) in the period. Tax paid amounted to SEK 59 M (46).

Cash flow from investing activities amounted to SEK -249 M (-469) and includes payments from the sale of Infrahubs Norrköping totalling SEK 49 I M, SEK 60 M for the sale of the remaining 30 percent of shares in Catella Fondförvaltning AB and loan repayment from the property development project Köningsalle of SEK 105 M. Moreover, additional investments totalling

SEK 727 M were made in ongoing property development projects, both through subsidiaries and associated companies, and SEK 102 M was invested in the British Mander Centre with the aim of supporting APAM in a new investment mandate. Consolidated cash flow was also affected by the acquisition of WPP and by additional acquisitions of shares in subsidiaries totalling SEK -73 M.

Cash flow from financing operations was SEK 169 M (520), of which SEK 88 M related to dividends to Parent Company shareholders and SEK 76 M related to dividends to non-controlling interests. Raised loans amounted to SEK 125 M and related to financing of the Kaktus project. Forward funding totalled SEK 238 M and relates to financing from the buyers of the French logistics projects Roye and MER.

Cash flow in the period totalled SEK -86 M (-67).

Parent Company Second quarter 2022

The Parent Company recognised income of SEK 9.2 M (3.1) and operating profit/loss was SEK -12.0 M (-13.6). From 2022, Catella AB has taken over some of the service functions from another Group company and will therefore re-invoice other Group companies. The improved operating profit was mainly due to increased invoicing of management fees. The number of employees at the end of the period was 20 (13).

The Parent Company's Net financial income/expense totalled SEK 35.9 M (-16.4) and included dividend of SEK 50.0 M from the Catella Holding subsidiary. Net financial income/expense also includes interest and arrangement costs for bond loans totalling SEK 16.2 M (15.6)

Profit/loss before tax and profit/loss for the period was SEK 23.9 M (-29.9).

Cash and cash equivalents in the Parent Company's transaction account in the Group's cash pool with a Swedish credit institute are reported as Current receivables with Group companies. On the reporting date, this item totalled SEK 131.2 M (566.2). In June, the Parent Company paid an unconditional shareholder contribution of SEK 300 M to the wholly owned subsidiary Catella Holding. This contribution was paid as the result of a decision to aggregate all Group loans and similar financial services within Catella Holding.

First half-year 2022

Total income was SEK 20.0 M (6.1), and operating profit/loss was SEK -25.3 M (-28.8) in the period.

Financial items amounted to SEK 21.3 M (-25.6), of which dividend from subsidiary totalled SEK 50.0 M (-) and interest and arrangement fees for bond loans totalled SEK 31.5 M (33.6). The previous year's net financial income/expense also included profit from derivatives of SEK 8.1 M.

Profit/loss before tax and profit/loss for the period was SEK -4.0 M (-54.4).

Employees

At the end of the period, there were 480 (552) employees, expressed as full-time equivalents.

Risks and uncertainties

The current macro economic position with rising inflation and increased interest rates could impact future return and transaction levels, and hence also impact assets under management and profit in Catella Investment Management and Catella Corporate Finance. The Group management has also identified an increased risk of rising material costs and supply shortages which could impact the projects in Principal Investments.

See Note 4 in the Annual Report 2021 for further significant estimates and judgements.

Seasonal variations

Within the Corporate Finance operating segment, seasonal variations are significant. Transaction volumes and income have historically been the 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 have been prepared in compliance with International Financial Reporting Standards (IFRS) as endorsed by the EU, the Annual Accounts Act and RFR I Complementary

Accounting Rules for Groups issued by RFR, the Swedish Financial 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 2021. 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 Catella & Anderzén group and the management of Catella Project Management GmbH.

Catella's German subsidiary Catella Project Management GmbH operates the property development projects within Catella Project Capital GmbH. In addition, Catella's subsidiary Infrahubs AB runs property development projects within 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 2021.

Forecast

Catella does not publish forecasts.

The information in this report is mandatory for Catella AB to publish in accordance with EU's Market Abuse Regulation and the Swedish Securities Market Act. This information was submitted to the market, through the agency of the below contact, for publication on 19 August 2022 at 07:00 a.m. CEST.

This report has not been subject to review by the Company's auditors.

The undersigned certify that this Interim Report proview of the performance of the Parent Company's and the Group's operations, financial position and results of operations, and describe the material risks and uncertainties facing and the companies included in the Group.

Stockholm, Sweden, 19 August 2022 Catella AB (publ)

Johan Claesson Chairman of the Board

Johan Damne Board member

Christoffer Abramson CEO and President

Tobias Alsborger Board member

Anneli Jansson Board member Jan Roxendal Board member

Joachim Gahm Board member

Consolidated Income Statement

	2022	2021	2022	2021	2021
SEK M	Note Apr-Jun	Apr-Jun	lan-Jun	lan-Jun	lan-Dec
Net sales	641	46	974	770	1 734
Other operating income	220	22	468	28	73
Total income	861	483	442	798	1 807
Assignment expenses and commission	-54	-48	-117	-92	-206
Other external expenses	- 42	-130	-240	-221	-374
Personnel costs	-258	-283	-445	-480	-994
Depreciation	-18	-62	-37	-81	-121
Other operating expenses	-2	9	-2	17	18
Operating profit/loss	386	-31	601	- ਦੇ ਰੇ	130
Interest income		9 3	18	7	19
Interest expenses	-19	-18	-37	-33	-7 I
Other financial items		8 -15	-2		132
Financial items-net	-2	-30	-21	82	80
Profit/loss before tax	384	-61	580	26	210
Tax	-79	-25	-92	-33	-81
Net profit/loss for the period	305	-86	489	-6	128
Profit/loss attributable to:
Shareholders of the Parent Company	247	-46	326	45	174
Non-controlling interests	58	-40	163	-51	-46
	305	-86	489	-Q	128
Earnings per share attributable to shareholders of the Parent Company, SEK
- before dilution	2,80	-0,52	3,69	0,50	1,97
- after dilution	2.73	-0,52	3,59	0,50	1,92
No. of shares at end of the period	88 348 572	88 348 572	88 348 572	88 348 572	88 348 572
Average weighted number of shares after dilution	90 640 239	88 348 572	90 895 770	88 348 572	90 617 837

Information on Income Statement by operating segment is in Note I .

Consolidated Statement of Comprehensive Income

	2022	2021	2022	2021	2021
SEK M	Apr-Jun	Apr-Jun	lan-Jun	lan-Jun	Jan-Dec
Net profit/loss for the period	305	-86	489	-6	128
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Value change in defined benefit pension plans	0	0	-0
Fair value changes in financial assets through other comprehensive income	-3	5	0	=	10
Items that will be reclassified subsequently to profit or loss:
Hedging of net investment	0	0	0	-2	-2
Translation differences	50	-20	61	10	17
Other comprehensive income for the period, net after tax	48	-15	6	19	25
Total comprehensive income/loss for the period	353	-102	550	13	153
Profit/loss attributable to:
Shareholders of the Parent Company	290	-61	381	64	198
Non-controlling interests	63	-40	168	-51	-45
	353	-102	550	13	153

Consolidated Statement of Financial Position - condensed

SEK M Note	2022 30 Jun	2021 30 Jun	2021 31 Dec
ASSETS
Non-current assets
Intangible assets	444	405	404
Contract assets leasing agreements	117	126	127
Property, plant and equipment	28	23	25
Holdings in associated companies	142	। ટેવે	187
Non-current receivables from associated companies	વેર	0	201
2, 3, 4 Other non-current securities	302	218	176
Deferred tax receivables	6	23	23
Other non-current receivables	36	15	l 5
	1 171	968	1 158
Current assets
Development and project properties	2 036	1 097	2 105
Contract assets	136	0	0
Receivables from associated companies	253	285	141
Accounts receivable and other receivables	୧୦୧	386	537
2, 3, 4 Current investments	37	20	59
Cash and cash equivalents *	1 380	1 790	442
	4 448	3 577	4 283
Total assets	ર રાતે	4 545	5 442
EQUITY AND LIABILITIES
Equity
Share capital	177	177	177
Other contributed capital	295	295	295
Reserves	67	7	12
Profit brought forward including net profit for the period	1 415	1 075	1 205
Equity attributable to shareholders of the Parent Company	1 954	। 554	1 ୧୫୫
Non-controlling interests	228	112	132
Total equity	2 182	1 666	1 821
Liabilities
Non-current liabilities
Borrowings from credit institutions	1 217	655	1 300
Bond issue	1 242	1 240	1 241
Contract liabilities leasing agreements	89	90	1 00
Other non-current liabilities	42	୧୦	103
Deferred tax liabilities	l d	24	9
Other provisions	79 2 688	66 2 176	75 2 838
Current liabilities
Borrowings from credit institutions	-	0	2
Contract liabilities leasing agreements	37	39	34
Contract liabilities	14	0	0
Accounts payable and other liabilities	634	621	705
Tax liabilities	64	43	42
	749	704	783
Total liabilities	3 437	2 879	3 621
Total equity and liabilities	ર રાતે	4 545	5 441
* Of which pledged and blocked liquid funds	57	53	54

Consolidated Statement of Cash Flows

	2022	2021	2022	2021	2021
SEK M	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	lan-Dec
Cash flow from operating activities
Profit/loss before tax	384	-୧।	280	26	210
Reclassification and adjustments for non-cash items:
Wind down expenses	-22	54	2	40	13
Other financial items	8	। ୧	2	-108	-132
Depreciation	18	62	37	81	I 2 I
Impairment / reversal of impairment of current receivables	0	- I	- I	2	-
Change in provisions	4	3	3	-3	- I
Reported interest income from loan portfolios	-4	-3	6	-6	-17
Acquisition expenses	-	0	-
Profit/loss from participations in associated companies	-46	-। ୧	-46	-18	-42
Personnel costs not affecting cash flow	6	25	4	22	ട് ട
Other reclassifications and non-cash items	-120	0	-353
Paid income tax	-25	- 4	- 29	-46	-110
Cash flow from operating activities before changes in working capital	lal	63	161	-10	ಕಿ8
Cash flow from changes in working capital
Increase (-)/decrease (+) of operating receivables	-94	-45	-129	54	-51
Increase (+) / decrease (-) in operating liabilities	130	-34	-38	-162	-77
Cash flow from operating activities	227	- ୧	-6	-118	-31
Cash flow from investing activities
Purchase of property, plant and equipment	3	2	-7	-4	-10
Purchase of intangible assets	3	- I	-3	- I	-4
Purchase of subsidiaries, after deductions for acquired cash and cash equivalents	- 29	-54	-73	-54	-47
Sale of subsidiaries, net of cash disposed	0	7		109	109
Purchase of and additional investments in associated companies	-87	-260	-163	-260	-310
Divestment of associated companies	0	24	60	24	24
Dividend and other disbursements from associated companies	25	5	131	5	5
Investments in development and project properties	-281	-258	565	-457	-1 466
Disposal of development and project properties	491	0	491
Purchase of financial assets	-25	-87	-126	-93	-104
Sale of financial assets	0	246	0	254	269
Cash flow from loan portfolios	4	4	6	6	ા ટ
Cash flow from investing activities	62	-375	-249	-469	-1 519
Cash flow from financing activities
Proceeds from share warrants issued	0	6		6	6
	12	118	125	1 428	2 069
Borrowings	120
Forward funding from investors for projects within Principal Investments Amortisation of loans	2	-30	238 -7	-791	-798
			-23
Amortisation of leasing debt	-11	- 4		-35	- 29
Dividend	88	-80	88	-80	-80
Transactions with, and payments to, non-controlling interests Cash flow from financing activities	-70 -40	రం 9	-76 169	-8 520	-26 113
Cash flow for the period	249	-399	-86	-67	-436
Cash and cash equivalents at beginning of period	1117	2 211	442	। 856	। 856
Exchange rate differences in cash and cash equivalents	14	-22	24		21
Cash and cash equivalents at end of the period	1 380	1 790	1 380	1 790	442

Consolidated Statement of Changes in Equity

	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 1 January 2022	177	295	18	-1	1 205	୧88	132	1 821
Comprehensive income for January - June 2022: Net profit/loss for the period					326	326	163	489
Other comprehensive income, net of tax			0	55	0	55	6	6
Comprehensive income/loss for the period			0	55	326	381	168	550
Transactions with shareholders:
Transactions with non-controlling interests					-28	-28	-72	-100
Dividend					-88	-88		-88
Closing balance at 30 June 2022	177	295	18	48	1 415	954	228	2 182

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

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

The Extracting General Medical or incentive program through the sue of answinning 200000 warts todator on tweses: 2002022-8 and share.

Equity attributable to shareholders of the Parent Company
		Other contributed	Fair value		Profit brought forward incl. Translation net profit/loss		Non- controlling	Total
SEK M	Share capital	capital *	reserve		reserve for the period	Total	interests **	equity
Opening balance at I January 2021	177	289	95	-20	1 072	1612	185	797
Comprehensive income for January - June 2021:
Net profit/loss for the period					45	45	-51	-6
Other comprehensive income, net of tax			-75	1	87	l d	0	19
Comprehensive income/loss for the period			-75	7	132	64	-51	13
Transactions with shareholders:
Transactions with non-controlling interests					-49	-49	-22	-7
Warrants issued		6				6		6
Dividend					-80	-80		-80
Closing balance at 30 June 2021	177	295	20	- 3	1 075	554	112	666

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

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

The Extraction Coment of Checied to introduce a new incentive program through the experiod of 2000,000 warants toributed by the stress 20002024 and

Note | Income Statement by Operating Segment

	Investment			Principal
	Management			Investments			Corporate Finance			Övrigt				Koncerneliminering		Group
	2022	2021		2022	2021		2022	2021		2022	2021		2022	2021		2022	2021
SEK M		Apr-Jun Apr-Jun		Apr-Jun	Apr-Jun		Apr-Jun Apr-Jun				Apr-Jun Apr-Jun		Apr-Jun	Apr-Jun		Apr-Jun Apr-Jun
Net sales	469	278		27	0		147	187		ರಿ	10		-11	-13		641	461
Other operating income	2	l d		215	0		2	2		2	2		- I	-		220	22
Total income	471	297		242	0		149	188		10	12		-11	- 4		861	483
Assignment expenses and commission	-37	-42		-4	0		-15	- 4		-0	-0		2	8		-54	-48
Other external expenses	49	-41		-୧୧	-		-27	-26		-10	-66		8	3		-142	-130
Personnel costs	-161	-121		-	0		-77	-99		-11	-65		l	2		-258	-283
Depreciation	-10	-9		-2	0		ഹ	-6		-2	-48		0	0		-18	-62
Other operating expenses	-	- I		- I	0		0	-0		- I	9		l	------------------------------------------------------------------------------------------------------------------------------------------------------------------------------		-2	9
Less profit attributable to non-	2	-		-28	0		-0	-0		3	41		58	-40		0	0
controlling interests *	211	83		102	0		26	43		-	-117		28	-40		386	-31
Operating profit/loss
Interest income																9	3
Interest expenses																-19	-18
Other financial items																8	-। 2
Financial items-net																2	-30
Profit/loss before tax																384	-61
Tax																-79	-25
Net profit/loss for the period																305	-86
Profit/loss attributable to shareholders
of the Parent Company																247	-46
	2022	Investment Management 2021	2021	2022	Principal Investments 2021	2021	2022	Corporate Finance 2021	2021	2022	Other 2021	2021	2022	Eliminations 2021	2021	2022	Group 2021	2021
SEK M	an-Jun	an-Jun Jan-Dec		an-Jun	Jan-Jun Jan-Dec		an-Jun	an-Jun Jan-Dec		an-Jun	Jan-Jun Jan-Dec		an-Jun		an-Jun Jan-Dec	an-Jun	Jan-Jun Jan-Dec
Net sales	694	475	1 042	ટી	0	2	243	273	670	18	42	54	-32	-20	-35	974	770	1 734
Other operating income	8	20	27	453	2	। ୧	4	4	8	5	3	25	- I	-	-3	468	28	73
Total income	702	495	1 069	504	2	18	247	276	678	23	45	79	-33	-21	-37	1 442	798	1 807
Assignment expenses and commission	-72	-72	-153	-33	0	-3	-25	-27	-57	0	- I	-2	13	9	9	-117	-92	-206
Other external expenses	-91	-78	-174	-81	- I	-7	-63	-52	-114	-21	-97	-99	। ୧	7	l d	-240	-221	-374
Personnel costs	-258	-214	-452	22	0	-4	-144	-। ୧୧୧	-405	-24	-104	-140	2	3	7	445	480	-994
Depreciation	-18	-17	-35	5	0	- I	-10	-11	-23	-4	-23	-63	0	0	0	-37	-81	-121
Other operating expenses	2	-2	-6	2	0	-0	-0	-4	9	-	22	31	-	-	3	2	17	18
Less profit attributable to non-									0
controlling interests *	3	-2	-4	-163	-0	0	-0	-0		3	53	50	163	-21	-46	0	0	0
Operating profit/loss	258	110	245	l dd		4	4	17	7 I	-23	-136	-144	163	-21	-46	୧୦।	- રેતે	130
Interest income																	7	l d
																18
Interest expenses																-37	-33	-71
Other financial items																-2	III	132
Financial items-net																-21	82	80
Profit/loss before tax																280	26	210
Tax																-92	-33	81
Net profit/loss for the period																489	-6	128
Profit/loss attributable to shareholders

* Produces to tonconding interest for ach butest are an chicked To clair by and be on the Parent Compar baness rea an winess rea an winess rea an wind.
recordes to he increa

The promot reported both Prime and Copcar Finer, a coosted with the corne and the Bace Clector on more on more on more on more on more on more on mana marker on mana mana man length basis.

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	t ow	cash flow	cash flow	cash flow	rate	Duration, years
Pastor 2	Spain	53.4	58.9%	47.2	55.9%	3.6%	3.50
Lusitano 5	Portugal	37,2	41.1%	37,2	44.1%	0.0%	0,25
Total cash flow *		90.6	100.0%	84,5	100.0%	2.1%	2,8
	Carrying amount in consolidated halance sheet **			84 5

* The discount rate recognised in the line "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 less than ten percent of the issued amount and Catella expects the issuer to utilize 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 given several 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 re-

payable 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 4.4 M.

Lusitano 5

The time call affects sub-portfolio Lusitano 5 and constitutes an option held by the issuer that enables the repurchase of the sub-portfolio at a specific point in time, and from time to time subsequently. The option has been available since 2015. Catella evaluates that the time call will be exercised in the third quarter of 2022. The assumption is conservative meaning no further cash flows other than the position's current capital amount of

EUR 3.1 M plus the following quarter's cash flow when exercising the time call. The portfolio is hence valued to EUR 3.5 M. This assessment is different to assessments from the annual accounts for 202 l due to the assumption previously having been that the time call would not be exercised and that the position would instead continue maturing until the clean-up call in 2027. This resulted in the portfolio being impaired by SEK 17.3 M (EUR 1.6 M) in the first quarter of 2022.

Further information regarding the loan portfolio can be found in the Annual Report 2021.

Actual cash flows from the loan portfolio

SEK M		Spain Portugal	Other
Loan portfolio		Pastor 2 Lusitano 5		Outcome
Outcome
Full year 2009-2020	27,2	0.8	267.0	295. I
Full year 2021	0.0	15,0	0.0	15,0
QI 2022	0.0	2.7	0.0	2,7
Q2 2022	0.0	3.7	0.0	3.7
Total	27,2	22,2	267,0	316,5

Note 3 Short and long-term investments

	2022	2021	2021
SEK M	30-jun	30-jun	31-dec
Visa preferred stock C series	64	63	61
Loan portfolios	84	98	1 00
Operation-related investments	192	78	72
Other securities	0	0	0
otal *	340	239	234

* of which short-term investments SEK 37 M and long-term investments SEK 302 M.

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

In accordance with IFRS 7, financial instruments are recognized on the basis of fair value hierarchically with three different levels. Classification is based on the input data used for measuring instruments. Quoted prices on an active market on the reporting date are applied for level 1. Observable market data for the asset or liabil-

ity other than quoted prices are used in 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 financial instruments. For more information, see Note 3 in the Annual Report 2021.

The Group's assets and liabilities measured at fair value as of 30 June 2022 are stated in the following table.

SEK M	lier	lier 2	lier 3	lota
ASSETS
Financial assets measured at fair value through other comprehensive income		64		64
Financial assets measured at fair value through profit or loss	l 8	2	256	276
Total assets	18	65	256	340
I IABILITIES
Total liabilities	0	0	0	0

No changes between levels occurred the previous year.

Change analysis of financial assets, level 3 for the second quarter 2022.

	2022
as of I January	171
Purchases	IOI
Disposals	0
Gains and losses recognised through profit or loss	-20
Exchange rate differences	ഗ
At 30 June	256

Note 5 Pledged assets and contingent liabilities

Pledged assets

	2022	2021	2021
SEK M	30 Jun	30 Jun 20	31 Dec
Cash and cash equivalents	57	53	54
Other pledged assets			U
	57	54 -	54

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 as well as frozen funds for other purposes.

Contingent liabilities

	2 022	2021	2021
SEK M	30 Jun	30 Jun 2017	31 Dec
Other contingent liabilities	074	783 -	881
	1 074	783 -	881

Other contingent liabilities mainly relate to guarantees to credit institutes as collateral for approved credit lines to 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 relate to guarantees provided by operating subsidiaries for their rental contracts with landlords.

Commitments

	2 022	2021	2021
SEK M	30 Jun	30 Jun 2017	31 Dec
Investment commitments
Other commitments
		C	್

Investment commitments mainly relate to the unlisted holding in Pamica 2 AB.

Note 6 Information on the acquisition of Warsaw Property Partners

In June, Catella concluded the acquisition of 65 percent of the shares in Warsaw Property Partners (WPP) for a purchase consideration of SEK 40 M. Poland is a key strategic market for Catella, and the acquisition strengthens Catella's pan-European platform in the Investment Management business area.

WPP is an independent property, investment and asset management advisor and developer, operating on the Polish market. WPP had assets under management of SEK 2 Bn and 18 employees. The company's management team, Christian Fojtl, Jacek Wachowicz and Bartosz Bzoma, will remain as shareholders and remain active in the company for a minimum of five years.

The acquired operations, which form part of Catella's operating segment Investment Management, was consolidated as a subsidiary from 29 June 2022. As of this date, fair value of acquired net assets in WPP totalled SEK 5 M. Assuming full consolidation of WPP as of I January 2022, Group income would have amounted to SEK I,450 M, while profit/loss after tax for the period and comprehensive income for the period would have been SEK 490 M and SEK 551 M respectively. These amounts have been calculated on the basis of the Group's accounting principles and adjusted profit/loss in WPP. Profit/loss includes additional amortization which would have been affected if fair value adjustments of intangible assets had been made as of I January 2022, alongside the associated tax consequences.

The purchase consideration of SEK 40 M was financed using proprietary cash funds in the second quarter of 2022. In addition, Catella incurred acquisition-related

expenses of SEK 1.4 M which were charged to operating profit in 2022.

Goodwill of SEK 36 M arising from the acquisition relates to operational expansion in the Polish market, which offers significant synergies for the Group as a capital and investment advisor for existing and future property fund investments and development opportunities for Principal Investments. No portion of reported goodwill is expected to be tax deductible. Fair value of identifiable intangible assets of SEK 2 M is attributable to current customer contact portfolio.

The valuation is preliminary while awaiting the final valuation of these assets, which is expected to take place within 12 months of the acquisition date.

Acquisition-related intangible assets	2
Other receivables	2
Cash and cash equivalents	4
Other liabilities	-3
Fair value, net assets	5
Non-controlling interests	-
Goodwill	36
Total purchase price	40
Unsettled purchase price
Cash-settled purchase consideration	40
Cash and cash equivalents in acquired subsidiary	-4
Acquisition expenses
Change in the Group's cash and cash equivalents on acquisition	37

Parent Company Income Statement

	2022	202	2021
SEK M	Jan-Jun	Jan-Jun	Jan-Dec
Net sales	17.7	5,6	18,7
Other operating income	2,3	0,5	2,0
Total income	20,0	6,1	20,7
Other external expenses	-21,0	-16,1	-24,7
Personnel costs *	-24.1	-18,3	-43,5
Depreciation	-0.2	-0,4	-0.7
Other operating expenses	-0.1	0, I	-1.0
Operating profit/loss	-25,3	-28,8	-49,2
Interest income and similar profit/loss items	2,8	8.1	8,7
Interest expenses and similar profit/loss items	-31,5	-33,7	-65,0
Financial items	21,3	-25,6	-56,4
Profit/loss before tax	-4.0	-54.4	-105,6
Tax on net profit for the year	0.0	0,0	0,0
Net profit/loss for the period	-4,0	-54,4	-105,6

* Personnel costs include directors' fees

Parent Company Statement of Comprehensive Income

SEK M	2022 an- un	2021 Jan-Jun	2021 an-Dec
Net profit/loss for the period	-4.0	-54.4	-105.6
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	-4.0	-54.4	-105.6

Parent Company Balance Sheet-condensed

	2022	202	2021
SEK M	30 Jun	30 Jun	31 Dec
Intangible assets	0.6	2,5	0.7
Property, plant and equipment	0.1	0,0	0.1
Participations in Group companies	1 358,2	1 058,2	1 058,2
Current receivables from Group companies	132,5	566,8	531,5
Other current receivables	9.6	12,0	8.9
Cash and cash equivalents	0.1	0,2	0.1
Total assets	1 501,1	1 639,8	1 599,5
Equity	242,7	386,3	335.0
Provisions	0.0	1.0	0.0
Bond issue	242,4	240,0	1 241,0
Current liabilities to Group companies	0.0	0,2	0,5
Other current liabilities	16.0	12,2	23,0
Total equity and liabilities	501.1	639,8	1 599,5

Catella AB has issued a guarantee to a credit institute of SEK 338 M as security for approved credit lines to subsidiary Kaktus | HoldCo ApS. For the comparison period 30 June 2021, the Parent Company's total contingent liabilities amounted to SEK 782 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 the 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 Financial Position.

Definitions

Non-IFRS performance measure	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	Corresponds to the Swedish term 'internal rate of re- turn' which is 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 a view of what drives an element 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

Interim Report July-September 2022 28 October 2022 Year-end Report October-December 2022 10 February 2023

For further information, please contact

Mattias Brodin, CFO Tel. +46 (0) 8-463 33 10

Michel Fischier, Head of Investor Relations and Group Communications Tel. +46 (0)8–463 33 10

More information on Catella and all financial reports are available on 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