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Catella
Earnings Release • Feb 25, 2022
3024_10-k_2022-02-25_be162eb9-b65a-4048-9a9c-5fc34b563f86.pdf
Earnings Release
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"In 2021, Catella continued its strategic shift towards becoming a property-focused company and delivered one of the strongest years on record for remaining operations. Demand for our services is evident from the underlying performance, with a very strong fourth quarter in terms of growth and profitability. Our strengthened position on the European market provides us with opportunities to increase mandates, expand property funds and take on larger advisory assignments going forward. By year-end assets under management amounted to SEK I 23 bn, an increase of 2 I percent. Full-year operating profit before items affecting comparability was SEK 294 M, corresponding to an increase of close to 90 percent (adjusted for Principal Investments' sale of Grand Central of SEK 229 M). The corresponding figure for the fourth quarter was an increase of around SEK I 00 M to SEK I 40 M."
| Oct-Dec Oct-Dec lan-Dec lan-Dec 633 542 l otal income, SEK M 806 23 2 771 633 472 848 Total income before items affecting comparability, SEK M * 23 393 Operating profit/loss, SEK M 145 143 |
|---|
| 140 বা 294 386 Operating profit/loss before items affecting comparability, SEK M * |
| 1.08 1.97 0.74 -0.09 Earnings per share, SEK ** |
| 1.48 1.13 3.45 -0.27 Earnings per share before items affecting comparability, SEK * |
| 0.90 1.00 Proposed cash dividend per share for the fiscal year, SEK |
Christoffer Abramson, CEO and President
TOTAL INCOME* ASSETS UNDER OPERATING EQUITY MANAGEMENT* PROFIT/LOSS ** SEK | , / / | SEK 1,82 2 Bn M M SEK SEK 294 M Last 12 months End of period End of period Last 12 months
* tems offecting camparability evaludins (Catello Asset Management France), operations in the process of being wound down and disposd goup held for sale (IPM, Catella Mutual Funds and Catella Bank). ** Atributable to shareholders of the Parent Company. Includes disposal group held for sde.
For further information, contact:
October-December 2021
Michel Fischier, Head of Investor Relations and Communications, tel. +46 (0)8 463 33 86
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 25 February 2022 at 07:00 a.m. CET.
Invitation to presentation of the Year-end Report
Catella will be presenting the Year-end Report and answering questions in a teleconference today 25 February 2022 at 10 a.m. CET. The presentation will be in English and will be made by Catella's CEO and President Christoffer Abramson and Catella's CFO Mattias Brodin. To participate in the teleconference, go to www.catella.com or call +46 (0)8 566 426 93.
CEO COMMENT
"Strong close to a successful year"
The fourth quarter was a strong end to an exciting 2021, during which we have largely implemented our strategic shift towards a property-focused company and demand for our services and products remains solid. Growth in assets under management in the final quarter amounted to SEK I I Bn, largely driven by strong inflows to property funds. We closed the year with assets under management of SEK I 23 Bn, corresponding to an increase of 21 percent year to date, adjusted for the divestment of CAM France.
Total income in Q4, adjusted for divested or terminated operations, improved by 34 percent to SEK 633 M. Adjusted operating profit (EBIT) also showed a strong improvement by around SEK 100 M to SEK 140 M.
At times it has been a challenging journey, but we finally returned the banking license, divested the remaining part of the mutual funds operations and liquidated IPM. Today, Catella has the robust platform for growth we have strived for and we can fully focus on further developing our three business areas and taking advantage of the significant synergies between Property Investment Management (PIM), Principal Investments (PI) and Corporate Finance (CF). Our entire management team has been too involved in the restructuring and I personally look forward to a 2022 where we can focus entirely on growing and refining Catella's business
Strong demand for Property Investment Management's offering
For the full year, assets under management increased by SEK 21 Bn adjusted for the sale of CAM France (SEK 14 Bn). In addition to this sale, we terminated other low margin mandates, which means that PIM is now in a strong position for continued profitable growth. The considerable interest shown in our property funds with a clear sustainability profile was particularly pleasing. These include Catella European Residential III, Catella's first "dark green" mutual fund, which reached a milestone of EUR 750 M in assets under management at the end of the year.
Asset management mandates also delivered solid growth, strongly supported by Catella APAM's (UK) mandate to manage a larger part of Greater Manchester Pension Fund's property portfolio in the UK. This is a prestigious assignment worth close to SEK 2 Bn, positioning Catella well toward major European institutions.
Full year EBIT was SEK 249 M, an increase of close to 40 percent (adjusted for SEK 53 M from Principal Investments' sale of Grand Central).
Committed capital amounted to SEK I I.9 Bn at the end of the year, which will be activated as property funds invest in new development projects and properties.
Solid progress in Principal Investments' development portfolio, with many projects to be divested in 2022
In the fourth quarter, Catella's investments increased to SEK 1.1 Bn, with all 16 projects in six European countries continued to progress according to plan and within budget. New investments included a SEK 72 M direct investment in the UK property, The Maltings, located in Salisbury. The property has considerable potential, both in terms of new and improved commercial premises and residential properties. The investment was made together with Catella APAM and we are pleased to see this first step towards starting larger mandates and funds aimed at the British market with Catella's equity as the driving force. Seed in vestments and co-investments from our own balance sheet are an important strategy for how we can use capital to strengthen existing and build new European platforms, which we aim to increase in 2022.
During the first quarter of 2022, the sale of the logistics property in Norrköping is expected to be completed. The property has been developed together with Catella's partly owned company Infrahubs.
The interest for the modern and sustainable asset with the largest solar power facility in the Nordic's has been considerable and shows strong demand from investors for modern and automated facilities with long leases. An additional three logistics properties in Infrahubs' portfolio are expected to be divested in 2022.
An active transaction market and growing demand for capital raising services benefit Corporate Finance
The year ended on a strong note for Corporate Finance, largely due to the dynamic transaction market and a broader Catella product offering, which generated the business area's strongest quarterly profit to date. We advanced our positions in our main markets and acted as financial advisor in more capital raisings, which was particularly pleasing. For example, Catella was sole financial advisor in connection with eQ Community Properties Fund's structuring of a new EUR 700 M loan facility, and also acted as financial advisor in connection with Titania's IPO.
The European market for capital raising is fragmented, and to meet customer demands for high-quality advisory ser vices we now offer our services and expertise through the pan-European business line Debt Advisory.
Operating profit for the full year increased by SEK 48 M to SEK 7 I M. The corresponding quarterly figures were SEK 24 M to SEK 57 M, mainly driven by the operations in Sweden and France.
Continued progress towards a clear position in sustainability
Like numerous other companies, we have in many ways just started our journey with sustainability, but it is something that I and the entire management team are passionately focused on. These issues will have profound effects on the real estate industry and the investment landscape, with both major challenges but also opportunities to take a leading position. We completed Catella's ESG materiality analysis in the quarter, which will lead to a sustainability strategy and sustainability goals across the group in the first half of 2022.
We have several good examples of Catella's work with sustainability in existing properties and development projects. Logistic- and residential properties are developed on the basis of a clear sustainability agenda from the planning stage. We have recently entered into an agreement relating to the installation of geothermic heating in a Finnish residential property, a measure that is expected to reduce CO2 emissions by over 60 percent.
We also plan to develop our sustainable property fund offering further. We already offer investors the dark green fund, under SFRD Article 9, CER III, and Elithis Towers is in the start-up phase, a fund that develops energy-positive residential properties. In 2022, we will also focus on in depth analysis of our existing property funds and mandates, with the objective of continuing to strengthen the portfolio and to drive the shift towards increased sustainability in the property holdings.
Outlook
Given the uncertainties surrounding the escalating conflict in our immediate European area, it is hard to provide a clear outlook. My wish and that of my colleagues across Europe is that the conflict is transient and that we can quickly return to the stability we deserve and have become accustomed to in Europe.
Together with all our employees and customers, we have a stable foundation to start from and our renewed focus means that we can fully concentrate on growing and developing our three business areas while utilizing the important synergies that exist. The return of the banking license also releases capital for additional principal investments.
We will continue to evaluate interesting acquisition opportunities with the aim of strengthening our position and our geographical presence, and will increase our focus on supporting new funds, mandates and investments through capital investments from our own Balance Sheet. Continuously creating new and developing exitsting investment and development platforms is in our entrepreneurial DNA and is a large part of how we as a company will continue to create value.
The hard work that now lies behind us has yielded good results for our customers, regardless of whether they invest in our funds, if we manage and develop their properties or act as transaction advisor. We will would like to continue this exciting work with the aim of generating more customer, societal and shareholder value in 2022 and beyond.
Christoffer Abramson, CEO and President Stockholm, Sweden, 25 February 2022
Our operating segments
At the beginning of 2021, Catella continued its new strategic focus on properties and expansion on new geographical markets, property types and risk categories. Catella is also broadening its operations further through investments and co-investments alongside partners. The operations in Equity, Hedge and Fixed Income Funds is being wound down (see Note 8). The changes to the operational structure has elicited a review of the Group' operating segments (according to IFRS 8). From the second quarter 2021, Catella's remaining operations comprise the operating segments Corporate Finance, Property Investment and Principal Investments.
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 on ten markets and offer local expertise about the property markets in combination with European reach.
For more information about the business area, see page 6.
Property Investment Management
Catella is a market leader in property investments with a presence on ten markets around Europe. Professional investors are offered attractive, risk-adjusted returns through regulated property funds, asset management services and project management in the early phase of property development projects.
For more information about the business area, see page 7-8.
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 on five geographical markets. Investments are made through subsidiaries and associated companies with the aim of generating an on average IRR of 20% as well as strategic advantages for Catella and other operating segments.
For more information about the business area, see page 9-10.
Comments on the Group's progress
Amounts are in SEK M unless otherwise indicated. Figures in tables and comments may be rounded.
New operating segments
From the second quarter 2021, Catella's remaining operations comprise the operating segments Corporate Finance, Property Investment Management and Principal Investments. The former business area Equity, Hedge and Fixed Income Funds is recognized alongside the Parent Company and other holding companies under the 'Other' category. The 'Other' category also includes Catella Luxembourg (formerly Catella Bank), which is recognized as a disposal group held for sale in accordance with IFRS 5. This means that in the Group's Income Statement, Catella Luxembourg's net profit (after tax) is reported on a separate line under period profit from disposal group held for sale. See Note 9 for more information.
Comparative figures from previous years have been reported in a corresponding manner.
Net sales and results of operations Fourth quarter 2021
The Group's total income for remaining operations increased by SEK 91 M, and amounted to SEK 633 M (542). The Group's total income, adjusted for divested operations and operations in the process of being wound down, increased by SEK 160 M or 34 percent year-on-year. The Group's net sales from remaining operations were SEK 604 M (534), of which SEK 292 M (259) related to Corporate Finance and SEK 311 M (234) to Property Investment Management. A majority of the Group's units reported increased sales in the period. Principal Investments recognized income of SEK 8 M (-2) in the period, of which SEK 3 m relates to additional profit recognized from the sale
of the French property development project Moussey Logistique II.
The Group's operating profit for remaining operations was SEK 145 M (23). The strong profit improvement was due to factors including strong profit in the German mutual funds operations and in the French and Swedish Corporate Finance business. Another reason for the profit improvement was that last year's profit was negatively affected by significant losses from operations in the process of being wound down. Comments on the progress of each operating segment can be found on pages 6-10.
The Group's net financial income/expense totalled SEK -6 M (-49), of which interest and arrangement fees for bond loans amounted to SEK 21 M (13). Profit from the divestment of short-term investments amounted to SEK 6 M (3), and unrealized value changes in the Group's securities holdings and investments totalled SEK 3 M (-16). Exchange rate differences for the period totalled SEK I M (-28)
The Group's profit/loss before tax for remaining operations was SEK 139 M (-25).
Profit/loss for the period (after tax) from disposal group held for sale was SEK -6 M (21) and related to Catella Luxembourg.
Profit/loss in the period for the Group's total operations was SEK 98 M (-7), of which SEK 95 M (-8) was attributable to Parent Company shareholders. This corresponded to Earnings per share of SEK 1.08 (-0.09).
Full Year 2021
Total income in the full year 2021 was SEK I ,806 M (2,3 I 2), and the Group's net sales were SEK 1,735 M (2,047). The Group's decreased income was attributable to items affecting comparability such as divested operations (SEK -218 M) and operations being wound down (SEK -211 M).
Last year's profit included income of SEK 262 M from the divestment of the German property development project Grand Central. Operating profit for remaining operations was SEK 143 M (393).
The Group's net financial income/expense was SEK 78 M (-105), and includes profit from the divestment of the subsidiary Catella Asset Management SAS of SEK 130 M. Interest income amounted to SEK 19 M (6), and interest expenses and loan arrangement fees were SEK 82 M (51) of which SEK 8 M related to non-recurring expenses for the repurchase and early redemption of an existing bond. Profit from the divestment of securities holdings and investments amounted to SEK -9 M (2), and unrealized value changes in the Group's securities holdings totalled SEK 8 M (-37). Net financial income/expense also includes positive exchange rate differences of SEK 12 M (-20).
Profit (after tax) from disposal group held for sale was SEK -14 M (-64) for the fullyear 2021.
Profit for the period for the Group's total operations was SEK 128 M (74), of which SEK 174 M (65) was attributable to Parent Company shareholders. This corresponds to Earnings per share of SEK 1.97 (0.74).
Significant events in the quarter
· ECB approved Catella Bank's application to return the banking license and cease to act as a credit institute. In connection with this, Catella Bank changed its name to Catella Luxembourg.
Significant events after the end of the quarter
· Catella used the right to sell the remaining 30 percent of the shares in Catella Fondförvaltning AB for SEK 60 million to Athanase. The transaction was completed on 10 January 2022 and did not effect the Group's results of operations for 2021.
Corporate Finance
Fourth quarter 2021
The total transaction market for commercial property in Europe, excluding the UK, totalled SEK 1,052 Bn (784) in the quarter, which is an increase of 34% year-on-year.
Property transactions where Catella acted as advisor totalled SEK 27.0 Bn (18.4) in the quarter. Of the total transaction volumes in the quarter, Sweden provided SEK 10.7 Bn (10.3), France 10.3 Bn (4.4), Finland 2.4 Bn (2.1), Germany 1.7 Bn (0.1) and Denmark 1.2 Bn (0.0).
Total income was SEK 295 M (261), and total income, adjusted for assignment costs, increased by SEK 46 M attributable
to Nordic and continental Europe. Group operating profit/loss totalled SEK 57 M (38), an increase of SEK 19 M (+49%) year-on-year.
Operating costs increased by SEK 27 M, mainly due to higher performance based personnel costs.
In the Nordics, income after assignment costs and operating profit/loss were higher year-on-year, mainly driven by Sweden, which saw more transactions and capital markets related services.
In continental Europe, operating profit/loss increased in France mainly driven by an increased number of completed transactions compared to the previous year.
Full Year 2021
Transaction volumes in Europe, excluding the UK, totalled SEK 2,667 Bn (2,338) in the period, an increase of 14% year-onyear. Catella's transaction volumes totalled SEK 57.3 Bn (45.1) in the period.
Total income was SEK 678 M (623), and operating profit/loss was SEK 71 M (29) in the period.
| SEK M | 3 Months | 12 Months | ||||
|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | |||
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | lan-Dec | lan-Dec | ||
| Nordic * | 120 | 96 | 287 | 222 | ||
| Continental Europe * | 175 | 66 | 392 | 400 | ||
| Total income | 295 | 261 | 678 | 623 | ||
| Assignment expenses and commission | -21 | -33 | -57 | -75 | ||
| Operating expenses | -216 | -189 | -551 | -520 | ||
| Operating profit/loss | 57 | 38 | 71 | 29 | ||
| KEY FIGURES | ||||||
| Operating margin, % | । ਰੇ | 15 | 10 | 5 |
| Operating margin, % | l a | ל | 0 | ) |
|---|---|---|---|---|
| Equity, SEK M ** | 50 | ರಿಕೆ | ||
| Property transaction volume for the period, SEK Bn | 27.0 | 18.4 | 57.3 | 45.1 |
| of which Nordic | 14.5 | 12,5 | 35.1 | 29.4 |
| of which Continental Europe | 12,5 | 5.9 | 22.1 | 15.7 |
| No. of employees, at end of period | 196 | 208 |
* holydes internal revenue between business areas has been eliminated in the service area for the current period and for the carrestonding period in 2020 ** Attributable to shareholders of the Parent Company.
| 2021 | 2021 2021 2021 2021 2020 2020 2020 2020 2020 | ||||
|---|---|---|---|---|---|
| INCOME AND RESULT PER QUARTER | ാct-Dec ul-Sep Apr-Jun an-Mar Jct-Dec ul-Sep Apr-Jun an-Mar | ||||
| Total income. SEK M | 295 107 188 88 88 261 148 148 105 - 16 | ||||
| Operating profit/loss, SEK M | 57 | -3 -3 - 43 - - 26 - 38 | 6 -3 -3 -3 - 40 |
..............................................................................................................................................................................
Property Investment Management
Fourth quarter 2021
Total income was SEK 314 M (240), and income after assignment costs amounted to SEK 280 M (210) in the quarter.
Property Funds' income after assignment costs increased by SEK 82 M yearon-year. Fixed income increased by 19% and variable income by 149%. The increase in variable income was mainly driven by income from acquisitions in property funds.
Property Asset Management's
income increased by SEK 6 M, adjusted for sale of the French operations, year-onyear. The higher income was mainly due to increased income in Property Asset Management UK and Property Asset Management Denmark.
Operating costs increased mainly due to higher variable personnel expenses. Operating profit/loss was SEK 81 M (29), of which Property Funds increased by SEK 42 M mainly driven by growth in assets under management while
Property Asset Management's decreased by SEK 5 M year-on-year.
Full Year 2021
Catella's assets under management in the business area increased by SEK 2 I .3 Bn in the period, totalling SEK 122.7 Bn at the end of the period, adjusted for France.
Total income was SEK 1,069 M (1,126), and operating profit/loss was SEK 249 M (239).
| SEK M | 3 Months | 12 Months | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 202 | 2020 | ||
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | Jan-Dec | lan-Dec | |
| Property Funds * | 253 | 167 | 859 | 749 | |
| Property Asset Management * | 88 | 102 | 297 | 493 | |
| Total income | 314 | 240 | 1 069 | 126 | |
| Assignment expenses and commission | -34 | -30 | -153 | -164 | |
| Operating expenses | -200 | -18 | -667 | -723 | |
| Operating profit/loss | 81 | 29 | 249 | 239 | |
| KEY FIGURES | |||||
| Operating margin, % | 26 | 12 | 23 | 21 | |
| Equity, SEK M ** | 1049,2 | 616,8 | |||
| Assets under management at end of period, SEK Bn | 122,7 | 115,6 | |||
| net in-(+) and outflow(-) during the period, SEK Bn | 8.4 | 4,3 | 0,7 | 20,2 | |
| of which Property Funds | 90,4 | 69,1 | |||
| net in-(+) and outflow(-) during the period, SEK Bn | 7,5 | 2,0 | 16,8 | 8,2 | |
| of which Property Asset Management | 32,3 | 46,5 | |||
| net in-(+) and outflow(-) during the period, SEK Bn | 0,9 | 2,3 | -16,1 | 12,0 | |
| No. of employees, at end of period | 279 | 273 |
* hadvdes internal revenue between business areas has been eliminated in the service ares for the carrest period and for the carresporting period in 2020. ** Attributable to shareholders of the Parent Company.
| 2021 | 2021 | 2021 | 2021 | 2020 | 2020 2020 2020 | ||
|---|---|---|---|---|---|---|---|
| INCOME AND RESULT PER QUARTER | ാct-Dec Jul-Sep Apr-Jun Jan-Mar Jct-Dec Jul-Sep Apr-Jun Jan-Mar | ||||||
| Total income, SEK M | 3 4 | 260 297 199 240 349 349 308 2 -2 | |||||
| Operating profit/loss, SEK M | 81 | 57 84 84 28 29 92 92 76 52 |
..............................................................................................................................................................................
Property Investment Management
Assets under management by service area and country
Catella is a leading specialist in property in vestments in Europe that offers institutional and other professional investors attractive, risk-adjusted returns through two service areas: Property Funds and Property 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.
Catella's Property Asset Management business area provides asset management services to property funds, other institutions and family offices. Project Management, which is reported under the Property Asset Management service area, offers early-stage
investment opportunities in development projects. Catella identifies development potential for land parcels and properties, arranges project financing, participates in cofinancing and completes the sale once planning permission has been granted.
Assets under management amounted to SEK 90.4 Bn in Property Funds and SEK 32.3 Bn in Property Asset Management at the end of the period, of which some 74 percent are invested in Catella's property funds.
ASSETS UNDER MANAGEMENT BY COUNTRY
Change in assets under management Assets under management increased from SEK 101.4 Bn to SEK 122.7 Bn in the last 12month period, adjusted for the divestment of the French subsidiary Catella Asset Management SAS. The increase of SEK 21.3 Bn was mainly driven by an inflow to residential funds Catella
Wohnen Europa, Catella Modernes Wohnen and Catella European Residential III, KVBW Immobilienspezialfonds and broad-based growth in a majority of property funds.
Assets under management increased by SEK 10.8 Bn to SEK 122.7 Bn in the quarter. Inflows of SEK I I.0 Bn were mainly driven
by acquisitions of residential properties in Wien, Linz, Nijmegen, Voorburg and Copenhagen in residential funds operated by Property Funds.
Outflows of SEK 2.2 Bn were mainly due to concluded mandates in Catella Property Asset Management UK.
Assets under management, last 12 months, SEK Bn SFK Bn
Assets under management, in the quarter, SEK Bn
Principal Investments
In Principal Investments, Catella makes real estate investments alongside with partners and external investors. Investments are made with the aim of generating an average IRR of 20% as well as strategic advantages for Catella and other business areas.
Fourth quarter 2021
Total income was SEK 8 M (-2) in the fourth quarter, of which SEK 3 M
relates to profit from the sale of the French property development project Moussey Logistique II and SEK 5 M in interest income from associated companies. Last year's profit included income of SEK 176 M from the divestment of the property development project Grand Central. In the fourth quarter, Principal Investments made direct investments in a mandate managed by Property Asset Management UK totalling SEK 72 M. Joint investments
totalling SEK II I M were also made alongside Property Asset Management Finland and Catella Hospitality.
Full Year 2021
As of 31 December, Principal Investments had invested a total of SEK I, I I 2 M in residential projects, logistics projects, office projects and retail projects in Europe.
| 3 Months | 12 Months | ||||
|---|---|---|---|---|---|
| SEK M | 2021 | 2020 | 2021 | 2020 | |
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| Total income | 8 | -2 | 18 | 190 | |
| Assignment expenses and commission | -3 | - | -3 | - | |
| Operating expenses | -9 | 0 | - | - | |
| Operating profit/loss | -4 | -3 | 4 | 188 | |
| FINANCIAL POSITION - CONDENSED | 202 | 2020 | |||
| Non-current assets | 31 Dec | 31 Dec | |||
| Holdings in associated companies | 106 | 84 | |||
| Other non-current assets | 203 | 3 | |||
| Total non-current assets | 309 | 88 | |||
| Current assets | |||||
| Development and project properties | 2 105 | 634 | |||
| Receivables from associated companies | 141 | 26 | |||
| Accounts receivable and other receivables | 97 | 8 | |||
| Cash and cash equivalents | 44 | -15 | |||
| Total current assets | 2 388 | 653 | |||
| Total assets | 2 697 | 741 | |||
| Equity | |||||
| Equity attributable to shareholders of the Parent Company | 175 | 156 | |||
| Non-controlling interests | 12 | 5 | |||
| Total equity | 187 | । ୧। | |||
| Liabilities | |||||
| Non-current liabilities | 1 360 | 454 | |||
| Current liabilities | । ।ऽ। | 125 | |||
| Total liabilities | 2511 | 580 | |||
| Total equity and liabilities | 2 697 | 74 |
______________________________________________________________________________________________________________________________________________________________________________
* The figures indicate the share of Principal Investments' total investment
Principal Investments
The following table shows ongoing property development projects and investment status as of 31 December 2021. Other property development projects relate to securing land etc. ahead of the start-up of future projects.
| Project company's | Fotal Catella | ||||||
|---|---|---|---|---|---|---|---|
| Property Development | Estimated | Catella capital | total investment. | Equity Invested, | |||
| Projects | Country | Investment type | Project start | completion | share, % | SEK M | SEK M *** |
| Seestadt MG+ * | Germany | Residential | Q1 2019 | 2030+ | 45 | 459 | 50 |
| Düssel-Terrassen * | Germany | Residential | Q4 2018 | 2030+ | 45 | 116 | 20 |
| Königsallee 106 * | Germany | Office | Q2 2021 | Q1 2025 | 23 | 847 | 186 |
| Total Catella Project Capital | 422 | 256 | |||||
| Roye Logistique * | France | Logistics | Q2 2019 | Q2 2022 | ર્સ | 202 | 8 |
| Mer Logistique * | France | Logistics | Ql 2020 | Q3 2022 | ર્સ | 234 | 25 |
| Barcelona Logistics ** | Spain | Logistics | Q4 2020 | QI 2023 | 100 | 53 | 53 |
| Total Catella Logistic Europé | 489 | 85 | |||||
| Norrköping ** | Sweden | Logistics | Q4 2020 | Q1 2022 | 50 | 522 | 222 |
| Ljungby * | Sweden | Logistics | Q2 2021 | Q3 2022 | 40 | 87 | 62 |
| Orebro ** | Sweden | Logistics | Q2 2021 | Q2 2022 | 50 | 151 | 143 |
| Vaggeryd ** | Sweden | Logistics | Q3 2021 | Q3 2022 | 50 | 137 | 106 |
| Other * | Sweden | Logistics | 37 | 22 | |||
| Total Infrahubs | 934 | 555 | |||||
| Kaktus ** | Denmark | Residential | Q2 2017 | Q3 2022 | ರಿತ | 1 056 | 144 |
| Salisbury *** | UK | Retail | Q4 2021 | Q4 2025 | 88 | 208 | 72 |
| Total | 4 110 | 112 |
Total
* The project is consolidated as an associated company according to the equity method
** The project is consolidated as a subsidiary with full consolidation
*** Refers to both capital injections and loans provided
selection of Catella's ongoing development projects
* Uppskattad to tal utveckling sko sinad
Other financial information
The Group's financial position
In the fourth quarter, the Group's total assets increased by SEK 598 M and amounted to SEK 5,441 M as of 31 December 2021. The increase is mainly due to increased amount of investments in property development projects in Principal Investments.
Catella carried out impairment tests on assets with indefinite useful lives. Catella's assets with indefinite useful lives comprise goodwill and trademarks and brands. The impairment test is calculated on estimated future cash flows based on budgets approved by Group management and the Board of Directors. The test indicated no need for impairment.
In the fourth quarter, the Group's consolidated equity increased by SEK 132 M, amounting to SEK 1,821 M as of 31 December 2021. Profit for the period attributable to the parent company's shareholders amounted to SEK 95 million. Profit attributable to holdings without a controlling influence amounted to SEK 24 million. Of the latter, SEK 3 million is reported as profit for the year attributable to holdings without a controlling influence and SEK 21 million is reported as personnel costs and tax in the consolidated Income Statement. According to the Group's accounting principles, profit shares attributable to shareholders who are active in subsidiaries are reported as personnel costs in the consolidated income statement. Furthermore, equity attributable to non-controlling holdings increased by SEK 5 M as a result of additional acquisitions of shares in an associated company, which led holding to be reclassified to shares in subsidiaries with full consolidation. Translation differences were SEK 9 M in the period. As of 31 December 2021, the Group's equity/assets ratio was 33% (35% as of 30 September 2021 ).
Group cash flow Fourth quarter 2021
Consolidated cash flow from operating activities before changes in working capital amounted to SEK 102 M (84). Tax paid totalled SEK 37 M (8) in the period.
Consolidated cash flow from operating activities was SEK 9 M (87), of which changes in working capital comprised SEK -93 M (3) in the period. Of the changes in working capital, SEK -47 M (19) was attributable to remaining operations and SEK -46 M (-16) to Catella Luxembourg.
Cash flow from investing activities totalled SEK -655 M (-182) and primarily relate to additional investments in the property development projects Kaktus and Infrahubs in Norrköping, Örebro, Vaggeryd and Ljungby totalling SEK 401 M, and new investments in property development project The Maltings in the UK and SFB Parque Logistico in Spain of SEK 254 M.
Cash flow from financing activities amounted to SEK 373 M (123), of which SEK 345 M related to increased bank financing for Kaktus and Infrahubs Norrköping, and new bank financing for The Maltings relating to ongoing property development projects.
Cash flow for the period amounted to SEK -273 M (28), of which cash flow from remaining operations was SEK -55 M (36) and cash flow from disposal group held for sale was SEK -218 M (-8). The latter was due to a write-down and partial repayment of Catella Luxembourg's share premium reserve to the Swedish holding company Catella Holding amounting to SEK 214 M. The corresponding amount is reported as payment for continuing operations during the same period and thus has no net effect for the Group's total operations.
Cash and cash equivalents at the end of the period was SEK 1,442 M (1,856), of which cash and cash equivalents relating to remaining operations totalled SEK 1,242 M (1,482), cash and cash equivalents attributable to the Group's Swedish holding company amounted to SEK 300 M (486). Cash and cash equivalents recognized in Assets in disposal group held for sale totalled SEK 199 M (374).
Full Year 2021
Group cash flow from operating activities before changes in working capital
amounted to SEK 98 M (154), of which SEK I I 2 M (237) was attributable to remaining operations and SEK -14 M (-83) to Catella Luxembourg. Tax paid totalled SEK I 10 M (84) in the period.
Consolidated cash flow from operating activities was SEK -31 M (165), of which changes in working capital comprised SEK -128 M ( I I ) in the period. Of the changes in working capital, SEK -95 M (140) was attributable to remaining operations and SEK -33 M (-129) to Catella Luxembourg.
Cash flow from investing activities totalled SEK -1,519 M (44) and includes investments in property development projects, through subsidiaries and associated companies, totalling SEK 1,776 M. In addition, Catella acquired shares in noncontrolling holdings in Catella Residential in France of SEK 54 M. The divestment of the subsidiary Catella Asset Management SAS generated cash flow, after deductions for divested cash and cash equivalents, of SEK 109 M. Sales of all the shares in IPM Systematic Macro Fund and IPM Systematic Commodities Fund generated net inflows of SEK 80 M and Visa Class A shares were divested for a total of SEK 87 M.
Cash flow from financing operations amounted to SEK 1,113 M (315), of which SEK 480 M related to Catella AB's issue of a new senior unsecured bond after repurchase/early redemption of an older bond net of expenses. In addition, the Group raised loans from credit institutions totalling SEK 784 M related to the financing of ongoing property development projects. Amortization of Covid-19 loans and the Group's leasing liabilities amounted to SEK 34 M and SEK 59 M respectively. Dividends paid to Parent Company shareholders and to non-controlling holdings amounted to SEK 80 M and SEK 26 M respectively.
Cash flow for the period amounted to SEK -436 M (524), of which cash flow from remaining operations was SEK -26 I M (608) and cash flow from disposal group held for sale was SEK -175 M (-84).
Parent Company Fourth quarter 2021
The Parent Company recognised income of SEK 10.3 M (7.5) and operating profit/loss was SEK -10.6 M (-14.7). The improved operating profit was mainly due to increased invoicing of management fees and significantly lower consultancy costs. The number of employees at the end of the period was 20 ( I I )
The Parent Company's net financial income/expense totalled SEK - 15.5 M (14.0), of which interest and arrangement fees for bond loans amounted to SEK 15.7 M (8.6). The previous year's net financial income/expense also included profit from derivatives of SEK 21.3 M.
Profit before tax was SEK -26.1 M (-0.7), and profit/loss for the period was SEK -26.1 M (-0.5).
Cash and cash equivalents in Catella'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 521.9 M (89.4).
Full Year 2021
Total income was SEK 20.7 M (30.5), and operating profit/loss was SEK -49.2 M (-49.6) in the period.
Financial items amounted to SEK -56.4 M (-1.5), of which interest and arrangement fees for bond loans totalled SEK 65.0 M (35.1). The amount includes non-recurring costs totalling SEK 8 M as a result of the repurchase and early redemption of an existing older bond loan at 101.3 percent of the nominal amount. Net financial income/expense also includes profit from derivatives of SEK 8.1 M (32.3). In May 2018, the Parent Company started currency hedging using derivatives. The purpose of the hedging of EUR 60 M was to reduce the exchange rate risk in Catella's net assets in EUR. The derivative matured in February 2021 when the position was closed. Group management evaluates the need for hedging of the Group's translation risk on an ongoing basis.
Profit before tax was SEK -105.6 M (-51.2), and profit/loss for the period was SEK - 105.6 M (-51.0).
Employees
At the end of the period, there were 50 l (566) employees in remaining operations, expressed as full-time equivalents.
Shareholders
Catella had 8,808 (8,972) shareholders registered at the end of the period. The principal shareholders on 31 December 2021 was the Claesson & Anderzén Group with 49.4% (49.4) of the capital and 48.8% (48.8) of the votes, followed by Alcur Fonder with 6.9% (4.2) of the capital and 6.2% (3.8) of the votes.
Dividend
Catella's target is to distribute 50 percent of the Group's profit after tax adjusted for unrealized value growth to shareholders each year. In addition to this, the terms of Catella's bond must be taken into account, which state that a maximum of 60 percent of the profit for the year attributable to the parent company's shareholders or alternatively SEK 80 million can be distributed.
Risks and uncertainties
A few companies in the Catella Group conduct some operations that are under the supervision of regulatory financial authorities. In November 2021, ECB approved Catella Bank's application to return the banking license and to cease acting as a credit institute. In connection with this, the regulatory supervision of Catella's consolidated financial situation also ceased.
The preparation of financial statements requires the Board of Directors and Group management to make estimates and judgements of the value of loan portfolios, goodwill, trademarks and brands, as well as assumptions concerning revenue recognition. Actual outcomes may differ from these estimates and judgements, due to other circumstances or changed conditions. See Note 4 in the Annual Report 2020 for significant estimates and judgements.
Catella invests large amounts in property development projects, mainly through associated companies but also through subsidiaries. Catella's primary intention is to invest in the early phase of projects and divest the holding as soon as it is commercially advantageous. The investments include the risk that Catella companies are
forced to choose between continuing to invest in late stages of projects, run the projects to completion or leaving the project and losing the invested capital.
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.
Catella applies gradual revenue recognition for property development projects where sales agreements have been entered into with an external party in accordance with IFRS 15 Revenue from contracts with customers. Property projects where no sales agreement has been signed with an external party are recognized according to IAS 2 at the lower of cost and net sales value. Cost comprises acquisition costs, development expenses and cost of borrowing.
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 2020. Figures in tables and comments may be rounded.
Related party transactions
In November 2020, Catella acquired shares in the subsidiary Infrahubs Fastighet 2 AB, which is constructing a logistics property in Norrköping which has been fully let to Postnord TPL AB. As of 3 | December 2021. Catella invested SEK 222 M in the company. Catella guarantees the fulfilment
of the rental agreement in relation to Postnord. Catella's main owner CA Fastigheter AB has presented an unconditional commitment, without compensation, to invest the requisite capital in Infrahubs Fastighet 2 AB in exchange for shares in the company corresponding to the investment. The guarantee can be utilized to the extent other financing cannot be obtained for the project. In the third quarter 2021, Catella obtained external bank financing and the guarantee is currently not expected to be utilized.
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. For more information, see Principal Investments of this report and Notes 20 and 38 in the Annual Report 2020.
Catella's German subsidiary Catella Project Management GmbH (CPM) operates
the property development projects within associated company Catella Project Capital GmbH. Furthermore, Catella's French subsidiary Catella Logistic Europe SAS (CLE) operates property development projects through a number of associated companies. No part of the fees levied for services rendered that CPM and CLE invoice associated companies have been eliminated in Catella's Consolidated Income Statement as associated companies fall outside Catella's associated enterprises.
Forecast
Catella does not publish forecasts.
Financial calendar
Annual Report 2021 II April 2022 Interim Report January-March 2022 6 May 2022 Annual General Meeting 2022 24 May 2022
Interim Report April-June 2022 19 August 2022 Interim Report July-September 2022 28 October 2022
For further information, contact
Mattias Brodin, CFO Tel. +46 (0) 8-463 33 10 More information on Catella and all financial reports are available at catella.com. The undersigned certify that this Interim Report provides a fair overview 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 the Parent Company and the companies included in the Group.
This Report has been subject to review by the Company's Auditors.
Johan Claesson Chairman of the Board Stockholm, Sweden, 25 February 2022 Tobias Alsborger Board member
Jan Roxendal Board member
Johan Damne Board member Anneli Jansson Board member
Joachim Gahm Board member
Christoffer Abramson CEO and President
Catella AB (publ)
Report of review of interim financial information
Auditor's review report for interim financial in summary (Interim Report) prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act.
Introduction
We have reviewed the condensed interim financial information (Interim Report) of Catella AB (corporate ID no. 556079-1419) as of 31 December 2021 and the twelve-month period then ended. The Board of Directors and CEO are responsible for the preparation and presentation of this Interim Report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on the Interim Report based on our review.
Scope of review
We have conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Financial Information Performed by the Intependent Auditor of the Entity. A review consists of making inquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review has a different focus and is significantly limited in scope compared to the focus and scope of an accordance with the International Standards on Auditing and generally accepted auditing standards generally. The procedures performed in a review do not allow us to obtain a level of assurance that would make us aware of all significant matters that might have been identified in an audit. Therefore, the conclusion expressed based on a review does not provide the same level of assurance as a conclusion expressed on the basis of an audit.
Conclusion
Based on our review, nothing has come to our attention that the Interim Report has not been prepared, in all material respects, for the Group in accordance with IAS 34 and the Swedish Annual Accounts Act and for the parent company in accordance with the Annual Accounts Act.
Stockholm, Sweden, 25 February 2022
PricewaterhouseCoopers AB
Daniel Algotsson Authorized Public Accountant
Consolidated Income Statement
| 2021 | 2020 | 202 I | 2020 | |
|---|---|---|---|---|
| SEK M Note |
Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 604 | 534 | 1 735 | 2 047 |
| Other operating income | 29 | 7 | 71 | 265 |
| Total income | 633 | 542 | 1 806 | 2 312 |
| Assignment expenses and commission | -28 | -65 | -205 | -300 |
| Other external expenses | -79 | -97 | -345 | -385 |
| Personnel costs | -330 | -304 | -984 | -1 079 |
| Depreciation | -21 | -37 | -121 | -110 |
| Other operating expenses | 0 | -16 | -8 | -34 |
| Operating profit/loss | 145 | 23 | 143 | 393 |
| Interest income | 5 | 19 | 6 | |
| Interest expenses | -20 | -12 | -74 | -47 |
| Other financial items | 9 | -38 | 134 | -64 |
| Financial items-net | -6 | -49 | 78 | -105 |
| Profit/loss before tax | 139 | -25 | 221 | 289 |
| Tax | -35 | -3 | -79 | -121 |
| Profit for the period from continuing operations | 104 | -28 | 143 | 138 |
| Operations held for sale: | ||||
| 9 Profit for the period from divestment group held for sale |
-6 | 21 | -14 | -64 |
| Net profit/loss for the period | 98 | -7 | 128 | 74 |
| Profit/loss attributable to: | ||||
| Shareholders of the Parent Company | તેન્દ | రం | 174 | ୧୮ |
| Non-controlling interests | 3 | -46 | 9 | |
| Earnings per share attributable to shareholders of the Parent Company, SEK | ರಿಕ | -7 | 128 | 74 |
| Continuing operations | ||||
| - before dilution | 1,15 | -0,32 | 2,13 | 1,46 |
| - after dilution | 1,11 | -0,32 | 2,08 | 1,46 |
| Divestment groups held for sale - before dilution |
||||
| - after dilution | -0,07 -0,07 |
0,24 0,24 |
-0,16 | -0,72 -0,72 |
| Total operations | -0,16 | |||
| - before dilution | 1,97 | 0,74 | ||
| - after dilution | 1,08 | -0,09 -0,09 |
1,92 | 0,74 |
| 1,04 | ||||
| No. of shares at end of the period | 88 348 572 | 88 348 572 | 88 348 572 | 88 348 572 |
| Average weighted number of shares after dilution | 91 098 572 | 88 348 572 | 90 617 837 | 88 348 572 |
Information on Income Statement by operating segment is in Note I.
Consolidated Statement of Comprehensive Income
| 202 | 2020 | 202 | 2020 | |
|---|---|---|---|---|
| SEK M | Oct-Dec | Oct-Dec | Jan-Dec | lan-Dec |
| Net profit/loss for the period | 98 | -7 | 128 | 74 |
| 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 | 83 | 10 | 47 | |
| ltems that will be reclassified subsequently to profit or loss: | ||||
| Hedging of net investment | 0 | 32 | -2 | 28 |
| Translation differences | 9 | -59 | 17 | -65 |
| Other comprehensive income for the period, net after tax | 8 | 56 | 25 | - |
| Total comprehensive income/loss for the period | 106 | 49 | 153 | 85 |
| Profit/loss attributable to: | ||||
| Shareholders of the Parent Company | 102 | 51 | 198 | 79 |
| Non-controlling interests | 3 | -2 | -45 | 6 |
| 06 | 49 | 153 | 85 |
| SEK M Note |
202 31 Dec |
2020 31 Dec |
|---|---|---|
| ASSETS | ||
| Non-current assets | 7 | |
| Intangible assets | 404 | 443 |
| Contract assets | 126 25 |
157 |
| Property, plant and equipment | 30 | |
| Holdings in associated companies | 187 | 167 35 |
| Non-current receivables from associated companies Other non-current securities |
201 114 |
|
| 3, 4, 5 Deferred tax receivables |
23 | 248 21 |
| Other non-current receivables | 15 | 6 |
| 1 096 | 1 106 | |
| Current assets | ||
| Development and project properties | 2 105 | 634 |
| Receivables from associated companies | 141 | 26 |
| Accounts receivable and other receivables | 536 | 415 |
| 3, 4, 5 Current investments |
59 | 31 |
| Cash and cash equivalents * | 242 | 1 482 |
| 4 083 | 2 588 | |
| Assets in divestment groups held for sale | 9 262 |
539 |
| 4 345 | 3 127 | |
| Total assets | 5 441 | 4 233 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Share capital | 177 | 177 |
| Other contributed capital | 295 | 289 |
| Reserves | 12 | 75 |
| Profit brought forward including net profit for the period | 1 205 | 1 072 |
| Equity attributable to shareholders of the Parent Company | । ୧୫୫ | 1 612 |
| Non-controlling interests | 132 1 821 |
ા 85 1 797 |
| Total equity | ||
| Liabilities | ||
| Non-current liabilities | ||
| Borrowings from credit institutions | 1 300 | 553 |
| Bond issue | 1 241 | 751 |
| Contract liabilities | dd | । । |
| Other non-current liabilities | 103 | 0 |
| Deferred tax liabilities | 19 | 20 |
| Other provisions | 74 | 63 |
| 2 837 | 1 503 | |
| Current liabilities | ||
| 2 | 0 | |
| Borrowings from credit institutions Contract liabilities |
34 | 48 |
| 662 | 731 | |
| Accounts payable and other liabilities Tax liabilities |
42 | 48 |
| 741 | 827 | |
| Liabilities in disposal groups held for sale | 9 43 |
106 |
| 784 | 933 | |
| Total liabilities | 3 621 | 2 435 |
| Total equity and liabilities | 5 441 | 4 233 |
| * Of which pledged and blocked liquid fur | 49 |
| 2021 | 2020 | 2021 | 2020 | 2020 | |
|---|---|---|---|---|---|
| SEK M | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | lan-Dec |
| Cash flow from operating activities | |||||
| Profit/loss before tax | 134 | -3 | 210 | 216 | 216 |
| Reclassification and adjustments for non-cash items: | |||||
| Wind down expenses | 9 | --- | 13 | 27 | 27 |
| Other financial items | - | 33 | -132 | 29 | 29 |
| Depreciation | 21 | 39 | 121 | 113 | 113 |
| Impairment / reversal of impairment of current receivables | -4 | 6 | - | 10 | I O |
| Change in provisions | 3 | 7 | - I | 6 | 6 |
| Reported interest income from loan portfolios | 5 | - | -17 | -4 | -4 |
| Profit/loss from participations in associated companies | -19 | - I | -42 | -196 | -196 |
| Personnel costs not affecting cash flow | 27 | 23 | 55 | 37 | 37 |
| Paid income tax | -37 | -8 | -110 | -84 | -84 |
| Cash flow from operating activities before changes in working capital | 102 | 84 | ರಿಕ | 154 | 154 |
| Cash flow from changes in working capital | |||||
| Increase (-)/decrease (+) of operating receivables | -181 | -242 | -21 | 189 | 189 |
| Increase (+) / decrease (-) in operating liabilities | 88 | 245 | -77 | -178 | -178 |
| Cash flow from operating activities | 9 | 87 | -31 | 165 | 165 |
| Cash flow from investing activities | |||||
| Purchase of property, plant and equipment | -2 | -7 | -10 | -। ୧ | -। ୧ |
| Purchase of intangible assets | 2 | - | -4 | -7 | -7 |
| Purchase of subsidiaries, after deductions for acquired cash and cash equivalents | 7 | -0 | -47 | -0 | -0 |
| Sale of subsidiaries, net of cash disposed | 0 | -8 | 109 | 76 | 76 |
| Business transfers net of advisory costs | 0 | -3 | 128 | 128 | |
| Purchase of and additional investments in associated companies | -61 | -28 | -310 | -37 | -37 |
| Divestment of associated companies | 0 | 0 | 24 | ||
| Dividend and other disbursements from associated companies | 0 | 6 | 5 | 179 | 179 |
| Investments in development and project properties | -605 | -121 | -1 466 | -320 | -320 |
| Purchase of financial assets | -12 | -4 | -104 | -38 | -38 |
| Sale of financial assets | 15 | 11 | 269 | 77 | 77 |
| Cash flow from loan portfolios | 4 | 0 | 15 | 0 | 0 |
| Cash flow from investing activities | -655 | -182 | -1 519 | 44 | 44 |
| Cash flow from financing activities | |||||
| Re-purchase of share warrants | - | - | - I | - I | |
| Proceeds from share warrants issued | 0 | - | 6 | ||
| New share issue | - | - | - | । ટ | l 2 |
| Borrowings | 390 | 44 | 2 069 | 422 | 422 |
| Amortisation of loans | -4 | 0 | -798 | -0 | -0 |
| Amortisation of leasing debt | -11 | -18 | -29 | -28 | -28 |
| Dividend | 0 | 0 | 80 | 0 | 0 |
| Transactions with, and payments to, non-controlling interests | - I | -3 | -26 | -63 | -63 |
| Cash flow from financing activities | 373 | 123 | 1113 | 315 | 315 |
| Cash flow for the period | -273 | 28 | -436 | 524 | 524 |
| Cash and cash equivalents at beginning of period | 1712 | 1 880 | 856 | 1 378 | 1 378 |
| Exchange rate differences in cash and cash equivalents | 3 | -52 | 21 | -46 | -46 |
| Cash and cash equivalents at end of the period * | 1 442 | 1 856 | 442 | 1 856 | 856 |
| Of which cash flow from divestment groups held for sale: | |||||
| Cash flow from operating activities | -4 | -6 | 48 | -212 | -212 |
| Cash flow from investing activities | -0 | -2 | 87 | 128 | 128 |
| Cash flow from financing activities ** | -214 | 0 | -214 | 0 | 0 |
| Cash flow for the period from divestment groups held for sale | -218 | -8 | -175 | -84 | -84 |
| * Of which cash and cash equivalents recognised in Assets in disposal groups held for sale | l dd | 374 | l dd | 374 | 374 |
| ** Reduction and partial repayment of Catella Luxembourg's share premium reserve to the Swedish holding company | |||||
Consolidated Statement of Changes in Equity
lders of the Parent Company
| SEK M Opening balance at 1 January 2021 |
Share capital 177 |
Other contributed capital * 289 |
Fair value reserve 95 |
-20 | Profit brought forward incl. Translation net profit/loss reserve for the period 072 |
Total 162 |
Non- controlling interests ** 185 |
Total equity 1 797 |
|---|---|---|---|---|---|---|---|---|
| Comprehensive income for January - December 2020: | ||||||||
| Net profit/loss for the period | 174 | 174 | -46 | 128 | ||||
| Other comprehensive income, net of tax | -77 | 14 | 87 | 24 | 25 | |||
| Comprehensive income/loss for the period | -77 | 14 | 261 | 198 | -45 | 153 | ||
| Transactions with shareholders: | ||||||||
| Transactions with non-controlling interests | -49 | -49 | -8 | -57 | ||||
| Warrants issued | 6 | 6 | 6 | |||||
| Dividend | -80 | -80 | -80 | |||||
| Closing balance at 30 December 2021 | 177 | 295 | 18 | -1 | 1 205 | 688 | 132 | 1 821 |
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling holdings are attributable to mines in the subsidiary IPM, and several subsidiaries in Property Investment. Management and Corporate Finance.
The Edractinary General Meeting in December 2020 decided to introduce a new incentive program through the issued over two series 20202024 And 2020/02/3. Ac of | Jure 2021, 27:50:00 varants were transities of Group management, and the renaining 250,000 warants were held in Treauy as of 31 December 2021. The exerc
| 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 I January 2020 | 173 | 280 | 48 | 13 | 1 0009 | 1 522 | 214 | 1 736 | |||
| Comprehensive income for January - December 2020: | |||||||||||
| Net profit/loss for the period | ર્સ્ટ | 65 | ರಿ | 74 | |||||||
| Other comprehensive income, net of tax | 47 | -33 | 4 | -3 | |||||||
| Comprehensive income/loss for the period | 47 | -33 | 65 | 79 | 6 | 85 | |||||
| Transactions with shareholders: | |||||||||||
| Transactions with non-controlling interests | -2 | -2 | -35 | -37 | |||||||
| Re-purchase of warrants issued | - | - | |||||||||
| New share issue | র্ব | = | 15 | 15 | |||||||
| Closing balance at 30 December 2020 | 177 | 289 | ರಿ5 | -20 | 072 | 1612 | 185 | 1 797 | |||
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling holdings are attributable to mines in the subsidiaries in Property Investment Management and Corporate Finance.
The Edractinary General Meeting in December 2020 decided to increative program through the issue of a maximum of 3,000,000 warrants distributed over two series. 2020.02.2 And 2020/02/58, As of 3 December 2012, all 3,000,000 outsants were not the first courser of the 2011 hourselver of materies on one ofices to an extrime in treasur excessed in tre utlies. There were no outstanting from previous year's ssues after these transctions. In the Consolidated Accounts the repurchase of warants in eportedunder other ontributed
| Property | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Corporate Finance | Investment Management |
Principal Investments | Other | Group | ||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 202 | 2020 | |
| SEK M | Note Oct-Dec Oct-Dec | Oct-Dec Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec Oct-Dec | Oct-Dec Oct-Dec | ||||
| Net sales | 292 | 259 | 311 | 234 | 2 | - | -2 | 40 | 604 | 534 |
| Other operating income | 3 | 2 | 3 | 6 | 6 | 3 | 17 | 3 | 29 | 7 |
| l otal income | 295 | 26 | 314 | 240 | 8 | -2 | 16 | 43 | 633 | 542 |
| Assignment expenses and commission | -21 | -33 | -34 | -30 | 3 | - | 0 | - | -28 | -65 |
| Other external expenses | -30 | -26 | -28 | -21 | 4 | 0 | 13 | -19 | -79 | -97 |
| Personnel costs | -177 | -153 | -130 | -107 | 4 | 0 | -19 | -44 | -330 | -304 |
| Depreciation | 6 | -7 | 9 | -19 | - I | 0 | 5 | -11 | -21 | -37 |
| Other operating expenses | -3 | -3 | 2 | 3 | -0 | 0 | 6 | - d | 0 | -। ୧ |
| Operating profit/loss | 57 | 38 | 81 | 29 | -4 | -3 | = | -41 | 145 | 0 |
| Interest income | 0 | - | 0 | 0 | 0 | 0 | 5 | 0 | 5 | - |
| Interest expenses | 2 | -2 | 2 | -2 | 0 | -0 | -।୧ | -8 | -20 | -12 |
| Other financial items | -0 | -0 | 0 | -18 | 2 | - | 10 | 9 | 9 | -38 |
| Financial items-net | 2 | -2 | - I | -20 | 2 | - | - I | -। ୧ | -6 | -49 |
| Profit/loss before tax | રેડ | 37 | 80 | 10 | -6 | - 4 | 10 | -57 | । ਤੇਰੇ | -49 |
| Tax | -19 | -14 | -16 | 10 | - | 0 | -0 | 2 | -35 | -3 |
| Profit for the period from continuing operations | 36 | 23 | 64 | 9 | 5 | - 4 | 10 | -56 | 104 | -21 |
| Profit for the period from divestment group held for sale 9 |
0 | 0 | 0 | 0 | 0 | 0 | -6 | 21 | -6 | 21 |
| Net profit/loss for the period | 36 | 23 | 64 | 19 | 5 | - 4 | 3 | -35 | ರಿಕ | -30 |
| Profit/loss attributable to shareholders of the Parent Company | 36 | 23 | 62 | l e | -2 | -14 | 2 | -32 | તેને | -8 |
| Property | ||||||||||
| Investment | ||||||||||
| Corporate Finance | Management | Principal Investments | Other | Group | ||||||
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 202 | 2020 | |
| SEK M | Note Jan-Dec Jan-Dec | an-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec Jan-Dec | an-Dec | Jan-Dec | ||
| Net sales | 670 | ୧। 8 | 1 042 | 1 074 | 2 | - | 20 | 355 | 1 735 | 2 047 |
| Other operating income | 8 | 5 | 27 | 52 | । ୧ | 189 | 20 | 18 | 71 | 265 |
| l otal income | 678 | 623 | 1 069 | 1 126 | 18 | 190 | 40 | 373 | 1 806 | 2 312 |
| Assignment expenses and commission | -57 | -75 | -153 | -164 | 3 | - | 8 | -61 | -205 | -300 |
| Other external expenses | -114 | -117 | -174 | -171 | -7 | - | -21 | -106 | -345 | -395 |
| Personnel costs | -405 | -375 | -452 | -480 | 4 | 0 | -123 | -225 | -984 | -1 079 |
| Depreciation | -23 | -25 | -35 | -23 | - I | 0 | -63 | -32 | -121 | -110 |
| Other operating expenses | -9 | 3 | -6 | - d | -0 | 0 | 8 | -11 | 8 | -34 |
| Operating profit/loss | 71 | 29 | 249 | 239 | 4 | 1888 | -181 | -62 | 143 | 393 |
| Interest income | - | 2 | 0 | 0 | 0 | -0 | 17 | র্ব | l 9 | 6 |
| Interest expenses | -8 | -10 | -5 | -6 | -0 | -0 | -୧। | -31 | -74 | -47 |
| Other financial items | - | 0 | । 36 | - 4 | -0 | -12 | -2 | -38 | 134 | -64 |
| Financial items-net | -7 | -7 | 131 | -20 | 0 | -12 | -46 | -65 | 78 | -105 |
| Profit/loss before tax | 64 | 21 | 381 | 218 | 4 | 176 | -227 | - 27 | 221 | 289 |
| Tax | -29 | -21 | -21 | -60 | - | 0 | -0 | -70 | -79 | -151 |
| Profit for the period from continuing operations | 35 | 0 | 330 | । ਟੇਰੇ | 5 | 176 | -227 | -197 | 143 | 1388 |
| Profit for the period from divestment group held for sale 9 |
0 | 0 | 0 | 0 | 0 | 0 | - 4 | -64 | - 4 | -64 |
| Net profit/loss for the period | 35 | 0 | 330 | । ਟੈਰੇ | 5 | 176 | -241 | -261 | 1 28 | 74 |
| Profit/loss attributable to shareholders of the Parent Company | 35 | 276 | 113 | 177 | 197 | 174 | 65 |
| Corporate Finance | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2021 | 202 | 2021 | 2020 | 2020 | 2020 | 2020 | |||
| SEK M | Oct-Dec | Jul-Sep | Apr-Jun | an-Mar | Oct-Dec | Jul-Sep | Apr-Jun | lan-Mar | ||
| Net sales | 292 | 105 | 187 | 86 | 259 | 148 | 104 | 107 | ||
| Other operating income | 3 | 2 | 2 | 2 | 2 | 2 | ||||
| Total income | 295 | 107 | 188 | 88 | 261 | 148 | 105 | 109 | ||
| Assignment expenses and commission | -21 | -8 | - 4 | -13 | -33 | -22 | - | -9 | ||
| Other external expenses | -30 | -32 | -26 | -26 | -26 | -30 | -26 | -35 | ||
| Personnel costs | -177 | -63 | -99 | -66 | -153 | -85 | -67 | -70 | ||
| Depreciation | -6 | -5 | -6 | -6 | -7 | -6 | -6 | -6 | ||
| Other operating expenses | -3 | -2 | -0 | -4 | -3 | -0 | 2 | -2 | ||
| Operating profit/loss | 57 | -3 | 43 | -26 | 38 | 6 | -3 | -13 | ||
| Interest income | 0 | 0 | 0 | 0 | 0 | 0 | ||||
| Interest expenses | -2 | -2 | -2 | -2 | -2 | -2 | -3 | -3 | ||
| Other financial items | -0 | -0 | - | -0 | 0 | - | ||||
| Financial items-net | -2 | -2 | - | -3 | -2 | -2 | -3 | - | ||
| Profit/loss before tax | 55 | -5 | 42 | -28 | 37 | 4 | -6 | - 4 | ||
| Tax | -19 | - | -9 | -14 | -4 | - | -2 | |||
| Net profit/loss for the period | 36 | -7 | 33 | -27 | 23 | 0 | -7 | -16 | ||
| Profit/loss attributable to shareholders of the Parent Company | 36 | -7 | 33 | -27 | 23 | -8 | -16 |
| Property Investment Management | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | |||
| SEK M | Oct-Dec | Jul-Sep | Apr-Jun | lan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | lan-Mar | ||
| Net sales | 311 | 256 | 278 | 97 | 234 | 349 | 301 | 89 | ||
| Other operating income | 3 | 3 | 19 | 2 | 6 | -0 | 7 | 40 | ||
| Total income | 314 | 260 | 297 | । ਰੇਰੇ | 240 | 349 | 308 | 229 | ||
| Assignment expenses and commission | -34 | -47 | -42 | -30 | -30 | -30 | -68 | -35 | ||
| Other external expenses | -58 | -38 | -41 | -37 | -51 | -47 | -33 | -39 | ||
| Personnel costs | -130 | -108 | -121 | -94 | -107 | -167 | -105 | -100 | ||
| Depreciation | -9 | - d | - d | -9 | -19 | -10 | -13 | -- I | ||
| Other operating expenses | -2 | - | - | - | -3 | -2 | -12 | -2 | ||
| Operating profit/loss | 81 | 57 | 84 | 28 | 29 | 92 | 76 | 4 | ||
| Interest income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Interest expenses | -2 | -2 | - | - | -2 | - | -2 | - | ||
| Other financial items | 0 | 8 | -15 | 143 | -18 | -2 | 4 | |||
| Financial items-net | - | 6 | -16 | 42 | -20 | 0 | -4 | 3 | ||
| Profit/loss before tax | 80 | ಲ್ಲೆ 3 | 68 | 170 | 10 | 92 | 72 | 45 | ||
| Tax | -16 | -12 | -15 | -8 | 10 | -28 | -24 | -16 | ||
| Net profit/loss for the period | 64 | 51 | 53 | 162 | । 9 | 64 | 48 | 28 | ||
| Profit/loss attributable to shareholders of the Parent Company | 62 | 50 | 52 | 61 | 16 | 63 | 46 | 27 |
| Principal Investments | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2021 | 2021 | 2021 | 2020 | 2020 | 2020 | 2020 | |||
| SEK M | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | lan-Mar | ||
| Net sales | 2 | 0 | 0 | 0 | 0 | 0 | 0 | |||
| Other operating income | 6 | 8 | 0 | 2 | -3 | 176 | 9 | 7 | ||
| Total income | 8 | 8 | 0 | 2 | -2 | 176 | 9 | 7 | ||
| Assignment expenses and commission | -3 | 0 | 0 | 0 | - I | 0 | 0 | 0 | ||
| Other external expenses | -4 | -2 | - | -0 | 0 | -0 | - | -0 | ||
| Personnel costs | -4 | 0 | 0 | 0 | 0 | -0 | 0 | 0 | ||
| Depreciation | - | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||
| Other operating expenses | -0 | 0 | 0 | 0 | -0 | 0 | -0 | 0 | ||
| Operating profit/loss | -4 | 7 | -0 | 2 | -3 | 176 | 9 | 7 | ||
| Interest income | 0 | 0 | 0 | 0 | 0 | 0 | -0 | -0 | ||
| Interest expenses | -0 | -0 | 0 | -0 | -0 | 0 | 0 | 0 | ||
| Other financial items | -2 | - | 2 | - | -0 | 4 | -4 | |||
| Financial items-net | -2 | - | 2 | - | -0 | 4 | -4 | |||
| Profit/loss before tax | -6 | 7 | - | 3 | - 14 | 175 | 13 | 2 | ||
| Tax | - | 0 | 0 | 0 | 0 | 0 | 0 | -0 | ||
| Net profit/loss for the period | -5 | 8 | - | 3 | -14 | 176 | 13 | 2 | ||
| Profit/loss attributable to shareholders of the Parent Company | -5 | 8 | - | 3 | -14 | 176 | 13 | 2 |
| Property Investment | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Corporate Finance | Management | Principal Investments | Other | Group | |||||||||||
| SEK M | 2021 31 Dec |
2020 31 Dec 31 Dec |
2020 | 2021 31 Dec |
2020 31 Dec 31 Dec |
2020 | 2021 | 2020 31 Dec 31 Dec 31 Dec |
2020 | 2021 31 Dec |
2020 31 Dec |
2020 31 Dec |
2021 31 Dec |
2020 31 Dec |
2020 31 Dec |
| ASSETS | |||||||||||||||
| Non-current assets | |||||||||||||||
| Intangible assets | ર્ણ રહ્યું હતું. જ | 64 | 64 | 288 | 280 | 280 | 0 | 0 | 0 | 51 | ರಿಕಿ | ಶಿಕ | 404 | 443 | 443 |
| Contract assets | 47 | 62 | 62 | ୧୮ | ୧୧ | ୧୧ | 0 | 0 | 0 | 15 | 29 | 29 | 126 | 157 | 157 |
| Property, plant and equipment | 5 | 7 | 7 | 20 | 22 | 22 | 0 | 0 | 0 | 0 | - | - | 25 | 30 | 30 |
| Holdings in associated companies | 0 | 0 | 0 | 0 | 11 | 11 | 106 | 84 | 84 | 81 | 71 | 71 | 187 | 167 | 167 |
| Non-current receivables from associated companies | 0 | 0 | 0 | 0 | 32 | 35 | 201 | 0 | 0 | 0 | 0 | 0 | 201 | રેટ | રેટ |
| Other non-current securities | 0 | 0 | 0 | 19 | 17 | 17 | 1 | 3 | 3 | 94 | 228 | 228 | 114 | 248 | 248 |
| Deferred tax receivables | 0 | 0 | 0 | 22 | 20 | 20 | 2 | 0 | 0 | 0 | 0 | 0 | 23 | 21 | 21 |
| Other non-current receivables | 13 | 18 | । 8 | 13 | 2 | 2 | 0 | 0 | 0 | -10 | - 4 | -14 | 15 | 6 | 6 |
| 130 | 152 | 152 | 426 | 453 | 453 | 309 | 88 | 88 | 231 | 413 | 413 | 1 096 | 1 106 | 1 106 | |
| Current assets | |||||||||||||||
| Development and project properties | 0 | 0 | 0 | 0 | 0 | 0 | 2 105 | 634 | 634 | 0 | 0 | 0 | 2 105 | 634 | 634 |
| Receivables from associated companies | 0 | 0 | 0 | 0 | 0 | 0 | 141 | 26 | 26 | 0 | 0 | 0 | 141 | 26 | 26 |
| Accounts receivable and other receivables | 342 | 206 | 206 | 568 | 144 | 144 | 97 | 8 | 8 | 471 | 56 | ટર્સ | 536 | 415 | 415 |
| Current investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 59 | 31 | 31 | ટેને | 31 | 31 |
| Cash and cash equivalents | 111 | 190 | 190 | 513 | ટેકેટ | ટેત્રેર | 44 | -15 | -15 | 574 | 712 | 712 | 1 242 | 1 482 | 1 482 |
| 453 | 3ae | 396 | 1 081 | 739 | 739 | 2 388 | 653 | 653 | 161 | 800 | 800 | 4 083 | 2 588 | 2 588 | |
| Assets in divestment groups held for sale | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 262 | 539 | 539 | 262 | 539 | 539 |
| 453 | 396 | 396 | 1 081 | 739 | 739 | 2 388 | 653 | 653 | 423 | 1 338 | 1 338 | 4 345 | 3 127 | 3 127 | |
| Total assets | 583 | 548 | 548 | 1 507 | 1 192 | 1 192 | 2 697 | 741 | 741 | 654 | 1 752 | 1 752 | 5 441 | 4 233 | 4 233 |
| EQUITY AND LIABILITIES | |||||||||||||||
| Equity | |||||||||||||||
| 50 | ರಿಕೆ | ರಿಕಿ | 1 049 | 617 | 617 | 175 | । 26 | । ટેર્ણ | 415 | 741 | 741 | 1 ୧88 | 1 612 | 1612 | |
| Equity attributable to shareholders of the Parent Company | |||||||||||||||
| Non-controlling interests | 46 | 36 | 36 | 20 | 40 | 40 | 12 | ಲ್ಲಿ | 5 | ટર | 104 | 1 04 | 132 | ા 85 | ા 85 |
| Total equity | વે 5 | 134 | 134 | 1 070 | 657 | 657 | 187 | । ୧। | ારા | 469 | 845 | 845 | 1 821 | 1 797 | 1 797 |
| Liabilities | |||||||||||||||
| Non-current liabilities | |||||||||||||||
| Borrowings from credit institutions | 41 | 77 | 77 | 5 | 21 | 21 | 1 255 | 454 | 454 | 0 | 0 | 0 | 1 300 | 553 | 553 |
| Bond issue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 241 | 751 | 751 | 1 241 | 751 | 751 |
| Contract liabilities | રેટ | 48 | 48 | 57 | 54 | 54 | 0 | 0 | 0 | 7 | । 3 | 13 | 99 | 115 | 115 |
| Other non-current liabilities | 24 | 20 | 20 | 8 | 14 | 14 | 105 | 0 | 0 | -34 | -34 | -34 | 103 | 0 | 0 |
| Deferred tax liabilities | 0 | 0 | 0 | 8 | 9 | 9 | 0 | 0 | 0 | 10 | - | - | l 9 | 20 | 20 |
| Other provisions | - | - | - | 74 | 54 | 54 | 0 | 0 | 0 | 0 | 8 | 8 | 74 | ર્સ્ડ | 63 |
| 100 | 147 | 147 | 152 | 153 | 153 | 1 360 | 454 | 454 | 1 225 | 748 | 748 | 2 837 | 1 503 | 1 503 | |
| Current liabilities | 0 | ||||||||||||||
| Borrowings from credit institutions | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 0 | 0 | |
| Contract liabilities | 16 | 17 | 17 | = | । ୧ | । ୧ | 0 | 0 | 0 | 7 | ા ટ | 15 | 34 | 48 | 48 |
| Accounts payable and other liabilities | 340 | 235 | 235 | 263 | 335 | 335 | 1 151 | 125 | 125 | -1 092 | 36 | 36 | 662 | 731 | 731 |
| Tax liabilities | 29 | 15 | । 5 | 12 | 31 | 31 | 0 | 0 | 0 | 2 | 2 | 42 | 48 | 48 | |
| 388 | 267 | 267 | 285 | 382 | 382 | । 151 | 1 25 | 1 25 | -1 084 | 23 | 23 | 741 | 827 | 827 | |
| Liabilities in disposal groups held for sale | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 43 | । ୦୧ | । 06 | 43 | । ୦୧ | । 06 |
| 388 | 267 | 267 | 285 | 382 | 382 | 1 151 | 125 | 1 25 | -1 040 | 158 | 158 | 784 | 933 | 933 | |
| Total liabilities | 488 | 414 | 414 | 437 | 535 | 235 | 2510 | 580 | 580 | 185 | ಕಿರೀ | ಕಿರೀ | 3 621 | 2 435 | 2 435 |
| Into gouty and ishilit | 502 | - 45 | 500 | 1507 | ರೆ. | 197 | 7 697 | 14 | / এ | 654 | 5 AA | A 12. | 4 722 |
Note 3 Summary of Catella's loan portfolios
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.
Forecasts are conducted by the French investment advisor Cartesia S.A.S. The book value in Catella's Consolidated Accounts is determined based on the projected discounted cash flows mainly comprising interest payments but also amortisation.
A summary of Catella's loan portfolio as well as actual and forecast cash flows are presented in the Note.
| Forecast | Share of | Forecast | Share of | ||||
|---|---|---|---|---|---|---|---|
| SEK M | undiscounted | undiscounted | discounted | discounted | Discount | ||
| Loan portfolio | Country | cash flow * | cash flow | cash flow | cash flow | rate | Duration, years |
| Pastor 2 | Spain | 51.1 | 29.9% | 48.6 | 48.4% | 5.2% | 1.3 |
| Lusitano 5 | Portugal | 119.7 | 70.1% | 51.8 | 51.6% | 30.0% | 4.0 |
| Total cash flow ** | 170.8 | 100.0% | 100.4 | 100,0% | 18.0% | 3,2 | |
| Accrued interest | 0.1 | ||||||
| Carrying amount in consolidated balance sheet *** | 100.5 |
* The forecast was produced by investment advisor Cartesia S.A.S.
** 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 Lusiano 4 whose book value of SEK 0.
Method and assumptions for cash flow projections and discount rates
The cash flow for each loan portfolio is presented in the table on the next page and the discount rates by portfolio are stated above. More information about the loan portfolio can be found on the following page and in Catella's annual report 2020.
Cash flow projections
The portfolio is measured according to the fair-value method, according to the definition in IFRS. In the absence of a functioning and sufficiently liquid market for essentially all investments, as well as for comparable subordinated investments, the measurement is performed by using the 'mark-tomodel' approach. This approach is based on forecasting cash flow until maturity for each investment on the basis of marketbased credit assumptions. Projected cash flows have been produced by external investment advisor Cartesia. The credit assumptions produced by Cartesia are based on historical performance of the individual investments and a broad selection of comparable transactions. In the projected cash flows, an assumption is made of the potential weakening of the credit variables. These do not include the full effect of a scenario, with low probability and high potential negative impact, such as the dissolution of the Eurozone, where one of the countries in which EETI has its underlying investments, leaves the European monetary union or similar scenarios. Adjustments of cash flows impact the value and are presented in a sensitivity analysis on Catella's website.
Discount rates
The discount rates applied are set internally and are based on a rolling 24-month index of non-investment grade European corporate bonds as underlying assets (iTraxx). The discount rates per portfolio were also determined relative to other assets in the absence of market prices for the assets held by EETI. Each quarter, the Board of EETI evaluates forecast cash flows and assumptions in combination with market pricing of other assets, in order to make potential adjustments to discount rates in addition to index variations. Adjustments to discount rates affect this value and are stated in a sensitivity analysis on Catella's website.
Risks and uncertainties relating to loan portfolios
Most of the investments consist of holdings in and/or financial exposure to securities that are subordinate in terms of payment and are ranked lower than securities that
are secured or represent ownership of the same asset class. Some investments also include structural features by which more highly ranked securities that are secured or represented by ownership of the same asset class are prioritized in instances of default or if the loss exceeds predetermined levels. This could lead to interruptions in Catella's expected revenue flow from its investment portfolio. For more information, see Note 22 in the Annual Report for 2020.
Clean-up call
A clean-up call affects all sub-portfolios and constitutes an option held by the issuer that enables the repurchase of the sub-portfolio when the outstanding loans have been repaid and are less than 10% of the issued amount. The administration of the portfolio is frequently unprofitable when it falls below 10% of the issued amount, and this structure allows the issuer to avoid additional costs.
Time call
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.
Actual and forecast cash flows from the loan portfolio*
| SEK M | Spain Portugal | Other | |||||
|---|---|---|---|---|---|---|---|
| Loan portfolio | Pastor 2 | Lusitano 5 | Outcome Forecast | Diff | |||
| Outcome | |||||||
| Full year 2009-2018 | 27,2 | 0.8 | 240,3 | 268.3 | 242,3 | 26.0 | |
| Full year 2019 | 0.0 | 0.0 | 26.2 | 26,2 | 23,0 | 3,2 | |
| QI | 2020 | 0.0 | - | 0,3 | 0.3 | 0.0 | 0,3 |
| Q2 | 2020 | - | 0.0 | 0.0 | 0.0 | -0,0 | |
| Q3 | 2020 | - | 0,3 | 0.3 | 0.0 | 0,3 | |
| Q4 | 2020 | - | 0.0 | 0.0 | 0.0 | 0,0 | |
| QI | 2021 | 2,5 | 0.0 | 2,5 | 0,0 | 2,5 | |
| Q2 | 2021 | 3.6 | 0.0 | 3.6 | 3.0 | 0,7 | |
| Q3 | 2021 | 5,0 | 0.0 | 5,0 | 3,2 | 1,8 | |
| Q4 | 2021 | 3,8 | 0.0 | 3.8 | 3,0 | 0.9 | |
| Total | 27,2 | 15,8 | 267.0 | 310.1 | 274.5 | 35,6 |
| Forecast | ||||
|---|---|---|---|---|
| Forecast | Quarter/Y ear |
Acc. | ||
| QI | 2022 | 2,3 | 2,3 | 2,3 |
| Q2 | 2022 | 2,9 | 2,9 | 5,3 |
| 03 | 2022 | 2,7 | 2,7 | 8,0 |
| Q4 | 51,1 2022 |
3,0 | 54.2 | 62.1 |
| Full year 2023 | 13.7 | 13,7 | 75,9 | |
| Full year 2024 | 16.4 | 16.4 | 92,2 | |
| Full year 2025 | 19.4 | 19.4 | 111,6 | |
| Full year 2026 | 22,4 | 22.4 | 134,0 | |
| Full year 2027 | 36,7 | 36,7 | 170,8 | |
| Total | 51,1 | 119,7 | 170,8 |
* The forecast was produced by investment advisor Cartesia S.A.S.
Pastor 2
The value of the underlying loans falls below 10 percent implying that Catella judges that a repurchase will take place in the fourth quarter 2022. Catella considers the credit risk to be low, although the precise timing of the exercise of the option is difficult to forecast as it is determined by several unknown factors relating to the issuer.
Lusitano 5
The forecast cash flows for the sub-portfolio Lusitano 5, assume that the issuer will not utilise its time call. Accordingly, the valuation of the portfolio is based on forecast cash flow until the due date, discounted at an interest rate of 30 percent reflecting the uncertainty associated with the issuer's option to repurchase Lusitano 5 at an
amount of approximately EUR 3.1 M. This probability is expected to increase over time, and in the event that the issuer exercises the option, this would imply impairment of the value of some EUR 2 M.
Catella continuously monitors the issuing bank in order to evaluate the probability of the option being exercised.
Note 4 Short and long-term investments
| SEK M | 31 December 2021 |
|---|---|
| Loan portfolios | 100 |
| Operation-related investments | 72 |
| Other securities | 0 |
| Total * | 73 |
* of which short-term investments SEK 59 M and long-term investments SEK I I 4 M.
Note 5 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. Ob-
servable market data for the asset or liability 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 2020.
The Group's assets and liabilities measured at fair value as of 31 December 2021 stated in the following table.
| SEK M | Tier | Tier 2 | Tier 3 | Total |
|---|---|---|---|---|
| ASSETS | ||||
| Financial assets measured at fair value through profit or loss |
0 | 171 | 173 | |
| Total assets | 0 | - | 171 | 173 |
| I IABII ITIES | ||||
| Total liabilities | 0 | 0 | 0 | 0 |
No changes between levels occurred the previous year.
CHANGE ANALYSIS, FINANCIAL ASSETS, LEVEL 3 FOR THE FULL-YEAR PERIOD 2021.
2021
| as of I January | 52 |
|---|---|
| Purchases | 54 |
| Disposals | -47 |
| Gains and losses recognised through profit or loss | 9 |
| Exchange rate differences | 3 |
| As of 31 December | 7 |
Note 6 Pledged assets and contingent liabilities
Pledged assets
| 2021 | 2020 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Cash and cash equivalents | 54 | 49 |
| Other pledged assets | 0 | 18 |
| 54 | 67 | |
| Of which pledged assets related to divestment groups held for sale: | ||
| Cash and cash equivalents | 0 | 0 |
| Other pledged assets | 0 | 18 |
| 0 | 18 |
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. Other assets pledged related to security Catella Bank had issued to Mastercard and Visa.
Contingent liabilities
| 2021 | 2 020 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Other contingent liabilities | 881 | 783 |
| 881 | 783 | |
| Of which contingent liabilities related to divestment groups held for sale: | ||
| Other contingent liabilities | 3 | |
| 0 | 3 |
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 AB and Catella Holding AB have entered a guarantee commitment with the relevant
tenant relating to Infrahubs Fastighet 2 AB, Infrahubs Fastighet 4 AB and Infrahubs Fastighet 5 AB's completion under the applicable rental agreement.
Other contingent liabilities also relate to guarantees which were provided for rental contracts with landlords.
Commitments
| 2021 | 2 020 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| lnvestment commitments | 9 | 15 |
| Other commitments | 0 | 0 |
| ு | 15 | |
| Of which commitments related to divestment groups held for sale: | ||
| lnvestment commitments | O | 0 |
| Other commitments | 0 | 0 |
Investment commitments mainly relate to the unlisted holding in Pamica 2 AB.
Note 7 Changes in intangible assets
| Contractual | Software | ||||
|---|---|---|---|---|---|
| Trademarks and | customer | licenses and IT | |||
| Financial year 2020 | Goodwill | brands | relations | systems | Total |
| Opening balance | 464 | 50 | 79 | 34 | 627 |
| Purchases | 7 | 7 | |||
| Cost in acquired companies | 0 | ||||
| Disposals | -118 | -4 | -122 | ||
| Depreciation | -17 | -18 | -36 | ||
| lmpairment of intangible assets | -8 | -8 | |||
| Exchange rate differences | -20 | -6 | -0 | -26 | |
| Closing balance | 318 | 50 | 52 | 23 | 443 |
| At 31 December 2020 | |||||
| Cost | 348 | 50 | 123 | 133 | 653 |
| Accumulated depreciation and impairment | -30 | 0 | -71 | -110 | -210 |
| Book value | 318 | 50 | 52 | 23 | 443 |
| Financial year 2021 | |||||
| Opening balance | 318 | 50 | 52 | 23 | 443 |
| Purchases | 3 | 3 | |||
| Disposals | - | - I | |||
| Depreciation | - | -13 | -23 | ||
| lmpairment of intangible assets | -39 | -2 | -41 | ||
| Exchange rate differences | 18 | 5 | 0 | 23 | |
| Closing balance | 298 | 50 | 45 | - | 404 |
| At 31 December 2021 | |||||
| Cost | 366 | 50 | 127 | । 35 | 679 |
| Accumulated depreciation and impairment | -69 | 0 | -82 | -124 | -275 |
| Book value | 298 | 50 | 45 | - | 404 |
Note 8 Operations in the process of being wound down
In April, Catella in consultation with the Board of IPM, decided to recommend that IPM terminate its investment operations and return all capital to investors. The operations in IPM are therefore being wound down. IPM is recognized alongside the Parent Company and other holding companies under the category Other.
The following Income Statement and Statement of Financial Position in summary for IPM excludes eliminations between IPM and other
operating segments, the Parent Company or other holding companies.
Fourth quarter 2021
Profit for the period was positive, amounting to SEK 4 M (-7) due to reversals of some provisions based on a revised assessment of remaining termination costs.
Full Year 2021
Total income was SEK -126 M (6), and includes liquidation costs of SEK 95 M. In addition, the Group has impaired goodwill
attributable to IPM and which affected Group profit by SEK -39 M. Profit for the period including goodwill impairment amounted to a total of SEK -165 M. Of this amount, SEK -1 15 M was attributable to Parent Company shareholders and SEK -50 M was attributable to non-controlling interests. Impairment of goodwill is reported as Depreciation and amortisation in the Consolidated Income Statement.
| SEK M | 3 Months | 12 Months | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| Total income | 0 | 39 | 34 | 245 | |
| Assignment expenses and commission | 0 | -2 | - | -10 | |
| Operating expenses | 4 | -ટેટ | -145 | -230 | |
| Operating profit/loss | 4 | -17 | -112 | 6 | |
| Financial items—net | 0 | 9 | -14 | 0 | |
| Profit/loss before tax | 4 | -8 | -126 | 6 | |
| Tax | 0 | 0 | 0 | ||
| Net profit/loss for the period | 4 | -7 | -126 | 6 | |
| FINANCIAL POSITION - CONDENSED | 2021 | 2020 | |||
| Assets | 31 Dec | 31 Dec | |||
| Non-current assets | 119 | ||||
| Current assets | 156 | 254 | |||
| Total assets | 156 | 373 | |||
| Equity | |||||
| Equity attributable to shareholders of the Parent Company | 84 | 158 | |||
| Non-controlling interests | ટર | 104 | |||
| Total equity | 139 | 262 | |||
| Liabilities | |||||
| Non-current liabilities | - | ||||
| Current liabilities | 16 | 109 | |||
| Total liabilities | 17 | 109 | |||
| Total equity and liabilities | 156 | 373 | |||
| No. of employees, at end of period | 4 | 66 |
Note 9 Disposal group held for sale
In November 2021, ECB approved Catella Bank's application to return the banking license and to cease acting as a credit institute. In connection with this, the regulatory supervision of to the Catella Bank Catella's consolidated financial situation ceased. Catella Bank also changed its name to Catella Luxembourg.
Catella Luxembourg is reported as a disposal group held for sale in the Consolidated Income Statement. Comparative figures from previous years have been reported in a corre-
sponding manner. The following Income Statement and Statement of Financial Position in summary for Catella Luxembourg do not include eliminations between Catella Luxembourg and Other operating segments, the Parent Company or other holding companies.
Fourth quarter 2021
The shareholder decided to write down and immediately repay Catella Luxembourg's full share premium reserve of SEK 239 M.
Full Year 202 I
Operating profit/loss for the full-year was SEK -14 M (-60).
In 2021, Catella Luxembourg divested its holding of Visa Class A shares. Recognized profit from Visa Class A shares and the unrealized value adjustment of the remaining Visa Class C preference shares totalled SEK 8 M and was recognized under Other comprehensive income.
| SEK M | 3 Months | 12 Months | |||
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | ||
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
| Total income | 0 | 18 | 26 | ||
| Other expenses | -5 | -3 | -14 | -137 | |
| Operating profit/loss | -4 | 15 | -13 | - | |
| Financial items—net | - I | 10 | 41 | ||
| Profit/loss before tax | -5 | 25 | -12 | -70 | |
| Tax | -2 | 0 | -3 | 10 | |
| Net profit/loss for the period | -6 | 25 | -14 | -60 | |
| FINANCIAL POSITION - CONDENSED | 2021 | 2020 | |||
| Assets | 31 Dec | 31 Dec | |||
| Cash and cash equivalents | 199 | 374 | |||
| Other assets | 121 | 244 | |||
| Assets in divestment groups held for sale | 321 | 618 | |||
| Equity | |||||
| Equity attributable to shareholders of the Parent Company | 278 | 551 | |||
| Non-controlling interests | 0 | 0 | |||
| Total equity | 278 | રેરા | |||
| Liabilities | |||||
| Borrowings and loan liabilities | 0 | 2 | |||
| Other liabilities | 43 | ୧୮ | |||
| Liabilities in disposal groups held for sale | 43 | ୧୫ | |||
| Total equity and liabilities | 321 | ୧18 |
Parent Company Income Statement
| SEK M | 202 Oct-Dec |
2020 Oct-Dec |
2021 Jan-Dec |
2020 Jan-Dec |
|---|---|---|---|---|
| Net sales | 9.5 | -0,3 | 18,7 | 14,3 |
| Other operating income | 0.8 | 7,8 | 2,0 | 16,2 |
| Total income | 10.3 | 7,5 | 20,7 | 30,5 |
| Other external expenses | -4.8 | -12,3 | -24.7 | -46,8 |
| Personnel costs * | -14.9 | -9,7 | -43.5 | -32.4 |
| Depreciation | -0.1 | -0,2 | -0.7 | -0,9 |
| Other operating expenses | -1,1 | 0.0 | -1,0 | -0,0 |
| Operating profit/loss | -10.6 | -14,7 | -49,2 | -49,6 |
| Profit/loss from participations in group companies | 0,0 | 0,0 | 0,0 | 0,0 |
| Interest income and similar profit/loss items | 0.2 | 9.4 | 8,7 | 33,6 |
| Interest expenses and similar profit/loss items | -15.7 | 4.6 | -65.0 | -35,1 |
| Financial items | -15.5 | 14.0 | -56.4 | -1,5 |
| Profit/loss before tax | -26,1 | -0,7 | -105,6 | -51,2 |
| Appropriations | 0.0 | 0,0 | 0,0 | 0,0 |
| Tax on net profit for the year | 0.0 | 0,2 | 0,0 | 0,2 |
| Net profit/loss for the period | -26,1 | -0,5 | -105,6 | -51,0 |
* Personnel costs include directors' fees
Parent Company Statement of Comprehensive Income
| SEK M | 2021 Oct-Dec |
2020 Oct-Dec |
2021 lan-Dec |
2020 lan-Dec |
|---|---|---|---|---|
| Net profit/loss for the period | -26.1 | -0.5 | -105.6 | -51.0 |
| Other comprehensive income | ||||
| Other comprehensive income for the period, net after tax | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income/loss for the period | -26.1 | -0,5 | -105,6 | -51.0 |
Parent Company Balance Sheet-condensed
| 2021 | 2020 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Intangible assets | 0,7 | 3,0 |
| Property, plant and equipment | 0, I | 0,0 |
| Participations in Group companies | 1 058,2 | 1 052,6 |
| Current receivables from Group companies | 531,5 | 226,6 |
| Other current receivables | 8,9 | 10,3 |
| Cash and cash equivalents | 0, I | 0,2 |
| Total assets | 1 599,5 | 1 292,7 |
| Equity | 335,0 | 520.1 |
| Bond issue | 1 241,0 | 750,6 |
| Currant lisbilities to Croup companiac | 05 | 00 |
Catella AB has issued a guarantee to a credit institute of SEK 330.1 M as security for approved credit lines to subsidiary Kaktus | HoldCo ApS. In addition, the Parent Company is party to a guarantee commitment with PostNord (tenant ) relating to the subsidiary Infrahubs Fastighet 2 AB's (landlord) fulfilment of its commitments under the rental agreement between the landlord and tenant totalling SEK 45.5 M, see also Transactions with related parties.
23,0
1 599.5
20, I
1 292.7
Other current liabilities
Total equity and liabilities
Application of key performance indicators not defined by IFRS
The Consolidated Accounts of Catella are prepared in accordance with IFRS. See above for more information regarding accounting principles. IFRS defines only 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 Balance Sheet.
Definitions
| Non-IFRS performance measure | Description | Reason for using the measure |
|---|---|---|
| Equity per share attributable to | Equity attributable to parent company shareholders di- | Provides investors with a view of equity as represented by a |
| parent company shareholders | vided by the number of shares at the end of the period. | single share. |
| Return on equity | Total profit in the period attributable to parent company | The company considers that the performance measure pro- |
| shareholders for the most recent four quarters divided | vides investors with a better understanding of return on eq- | |
| by average equity attributable to parent company share- | uity. | |
| holders in the most recent five quarters. | ||
| Adjusted return on equity | Total profit in the period attributable to the parent com- | The company considers that the performance measure pro- |
| pany shareholders adjusted for items affecting compara- | vides investors with a better understanding of return on eq- | |
| bility for the most recent four quarters divided by | uity when making comparisons with earlier periods. | |
| average equity attributable to parent company share- | ||
| holders in the most recent five quarters. | ||
| 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. | ||
| Dividend per share | Dividend divided by the number of shares. | Provides investors with a view of the company's dividend |
| over time. | ||
| Profit margin | Profit for the period divided by total income for the pe- | The measure illustrates profitability regardless of the rate of |
| riod. | corporation tax. | |
| Adjusted profit margin | Profit for the period adjusted for items affecting compa- | The measure illustrates profitability regardless of the rate of |
| rability divided by total income for the period. | corporation tax when making comparisons with earlier peri- | |
| ods. | ||
| Property transaction volumes in | Property transaction volumes in the period constitute | An element of Catella's income in Corporate Finance is |
| the period | the value of underlying properties at the transaction | agreed with customers on the basis of the underlying prop- |
| dates. | erty value of the relevant assignment. Provides investors with | |
| a view of what drives an element of Catella's income. | ||
| Assets under management at year | Assets under management constitutes the value of Ca- | An element of Catella's income in Property Investment Man- |
| end | tella's customers' deposited/invested capital. | agement and Banking is agreed with customers on the basis |
| of the value of the underlying invested capital. Provides inves- | ||
| tors with a view of what drives an element of Catella's in- | ||
| come. | ||
| Earnings per share | Profit for the period attributable to parent company | Provides investors with a view of the company's Earnings per |
| shareholders divided by the number of shares. | share when making comparisons with earlier periods. |
Catella AB (publ) P.O. Box 5894, 102 40 Stockholm, Sweden | Visitors: Birger Jarlsgatan 6 Corp. ID no. 556079- 1419 | Registered office: Stockholm, Sweden Tel. +46 (0)8 463 33 10 | [email protected]
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