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Catella

Earnings Release Feb 22, 2019

3024_10-k_2019-02-22_071c8854-0e59-4988-8e63-8a2ff8e404bd.pdf

Earnings Release

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"Since the third quarter of 2018, the Banking business area has been reported as a disposal group held for sale. Total income from remaining operations in the quarter was in line with the previous year, despite significantly lower variable earnings in Equity, Hedge and Fixed Income Funds and Property Investment Management, which emphasises Catella's stable earnings platform. Assets under management increased by SEK 21.9 Bn in the year, with the acquisition of APAM contributing SEK 15.9 Bn, which increases Catella's fixed earnings, although the main benefit is derived from increased opportunities to generate performance-based fees by creating value for our customers. Compared to the previous year, external and personnel expenses increased in the quarter, due to initiatives in Property Investment Management and Equity, Hedge and Fixed Income Funds. These proactive initiatives, in combination with significantly lower performance-based income, affected operating profit, which was down by 60% year-on-year.

22 February 2019 KNUT PEDERSEN. CEO and President

Group

Wind down and disposal of Banking operations proceeding as planned

Since the third quarter of 2018, the Banking business area has been reported as a disposal group held for sale. Total income from remaining operations in the quarter was in line with the previous year, despite significantly lower variable earnings in Equity, Hedge and Fixed Income Funds and Property Investment Management, which emphasises Catella's stable earnings platform. Assets under management increased by SEK 21.9 Bn in the year, with the acquisition of APAM contributing SEK 15.9 Bn, which increases Catella's fixed earnings, although the main benefit is derived from increased opportunities to generate performancebased fees by creating value for our customers

Compared to the previous year, external and personnel expenses increased in the quarter, due to initiatives in Property Investment Management and Equity, Hedge and Fixed Income Funds. These proactive initiatives, in combination with significantly lower performance-based income, affected operating profit, which was down by 60% year-on-year.

Banking

In the quarter, we concluded the strategic review by signing agreements relating to the divestment of the Wealth Management operations in Luxembourg to VP Bank, the sale of 51% of the Wealth Management operations in Sweden to Söderberg & Partners, and the divestment of the card issuing operations in Luxembourg to Advanzia Bank S.A.

In connection with the Interim Report for the third quarter 2018, we communicated that equity in the Banking business area totalled SEK 437 M as of 30 September 2018. Catella judge that equity in the Banking operations as of 30 September 2018 will be protected. Equity is expected to be transferred to the parent company when the wind down process is complete.

Equity, Hedge, and Fixed Income Funds

Total assets under management decreased slightly in the year, although inflows, mainly in

Systematic Macro, implied an improved product mix and higher fixed earnings. This increased the potential for performancebased income. Operating profit decreased year-on-year, mainly due to the absence of variable earnings. Increased distribution resources in Systematic Funds generated higher personnel expenses. Our products are highly relevant in the current market climate. which is characterized by high volatility. In the quarter, we established an office in New York to increase our distribution capacity to the US market, in line with our primary focus of focusing on distribution on existing and new markets while simultaneously analysing the potential for developing new products.

Annualised profit from fixed earnings/fixed expenses in the business area was SEK 327 M at the end of the quarter, representing an increase of SEK 44 M on the fourth quarter $2017.$

Property Investment Management

Growth in assets under management in the business area adjusted for APAM increased in 2018. Total income decreased in the quarter driven by lower variable earnings. Fixed earnings increased year-on-year, which improves stability and future earnings ability. The lower operating profit was mainly driven by absent variable earnings, and operating profit was charged with start-up costs for Catella's logistics property initiatives in France. During the year, we also established operations in Sweden and Benelux, which had already started to generate new business in 2018. In 2018, the number of employees in the business area increased by 88 persons and amounted to 220 employees at the end of the period.

The acquisition of UK property and asset management advisor APAM has created a pan-European platform where Catella now has a presence in ten countries. This geographical breadth, now including UK, has created a product offering that is highly relevant to international investors. We're already seeing synergies with APAM in our structure, where the presence in London is generating investor interest in our operations in continental Europe and vice versa.

Corporate Finance

France returned its strongest year to date. Full year profit was burdened by some SEK 20 M from the German operations. where we're reviewing the structure and staff composition. We have a very strong market position in the countries where we operate, and we remain active in major and more complex transactions. In the Nordics, we're focusing more on capital marketsrelated transactions, and our business focus makes us less vulnerable to changes in transaction volumes.

The "new" Catella

I'm convinced that the strategic focus we're now implementing generates significant opportunities for future value creation. The wind down of Catella Bank has taken considerable time, energy and focus. We have retained the ambition of securing the optimum conditions for our customers and employees, while also protecting shareholder value and ensuring a more efficient capital structure within the Group.

Our growth strategy in alternative investment products stands, where we will be an active, alternative asset manager. We now have the competences and structure in place to create new and relevant products for a broad investor base. Increased distribution initiatives and coordination imply opportunities for continued growth in assets under management, and thereby increased fixed earnings. Our property advisory services ensure market presence and create synergies with large parts of the organization.

Our business areas are positioned for growth, and we'll now have the opportunity to focus even more sharply on our remaining operations and continue to develop the potential that exists in Catella's platform.

KNUT PEDERSEN

CEO and President

Comments on the Group's progress

Catella is a leading specialist in property advisory services, property investments and mutual funds with operations in 14 countries. Our vision is to be the leading partner in Europe for investors in property and finance. Catella is listed in the Mid Cap segment on Nasdag Stockholm.

Amounts are in SEK M unless otherwise indicated. Figures in tables and comments may be rounded.

Disposal group held for sale

As a result of the strategic review of the Banking business area, in October-December 2018 Catella Bank signed agreements regarding the transfer of all its operations through asset sales to VP Bank SA, Advanzia Bank SA and Söderberg & Partners. The entire Banking business area has been reported as a Disposal group held for sale in accordance with IFRS 5 from 30 September 2018. This means that Banking's net profit (after tax) has been reported on a separate line under Profit for the period from disposal group held for sale in the Consolidated Income Statement. See Note 9 for more information about the disposal group held for sale.

Comparative figures for previous years for the Banking business area have been reported in a corresponding manner in the Consolidated Income Statement.

Net sales and results of operations Fourth quarter 2018

The Group's total income for remaining operations was SEK 698 M (689) and net sales for remaining operations totalled SEK 686 M (679), of which SEK 299 M (262) related to Corporate Finance and SEK 390 M (424) to Asset Management. Comments on the progress of each business area can be found on pages 9-11.

The Group's operating profit for remaining operations was SEK 60 M (156). The lower operating profit is mainly due to decreased variable earnings in Asset Management, increased fixed personnel expenses and consultancy fees.

The Group's net financial income and expense was SEK 1 M (20). Net financial income/expense also included interest income of SEK 5 M (6), mainly relating to loan portfolios, and interest expenses of SEK 8 M (5), mainly relating to Catella's

bond issue. Other financial items were SEK 4 M (20), of which SEK 7 M relates to positive value adjustments on derivatives (SEK 3 M), loan portfolios (SEK 1 M) and APAM (SEK 2 M), which invests alongside its clients. Terminated currency forwards, aimed at reducing exchange rate exposure, realised a loss of SEK -2 M.

The Group's operating profit for remaining operations was SEK 62 M (176).

Profit for the period (after tax) from disposal group held for sale totalled SEK -142 M (-48) and related to the Banking business area. Profit was affected by wind down expenses of SEK 164 M and deferred tax income of SEK 51 M for Banking, while earnings from assets sales judged to be due to Catella of SEK 384 M have not been included in profit. Income of SEK 258 M is judged to be recognised in 2019 and SEK 126 M at the end of 2019 or alternatively at the beginning of 2020.

Profit for the period for the Group's total operations was SEK-119 M (87), of which attributable to parent company shareholders SEK -133 M (67) This corresponds to Earnings per share of SEK $-1.58(0.81)$ .

Full year 2018

The Group's total income for remaining operations was SEK 2,216 M (2,013) for the full year, and consolidated net sales for remaining operations were SEK 2,159 M $(1,998)$ .

The Group's operating profit for remaining operations was SEK 352 M $(412)$ .

The Group's net financial income and expense was SEK -15 M (34), of which interest income was SEK 18 M (23) and interest expenses SEK 27 M (17). Other financial items totalled SEK-6 M (28) of which closed currency forwards intended to reduce exchange rate exposure amounted to SEK -14 M (5), and positive exchange rate differences were SEK 5 M (2). Net financial income and expense also includes positive fair value adjustments of

SEK 7 M (17), mainly attributable to loan portfolios and APAM's client investments, plus loan arrangement expenses of SEK 2 M (3).

The Group's operating profit for remaining operations was SEK 337 M $(446)$ .

Profit for the period (after tax) from disposal group held for sale totalled SEK -238 M (-53) and related to the Banking business area.

Profit for the period for the Group's total operations was SEK-28 M (284), of which attributable to parent company shareholders SEK -112 M (192) This corresponds to Earnings per share of SEK $-1.33(2.35)$ .

Significant events in the quarter Catella divests Wealth Management operations in Luxembourg

In October 2018, Catella Bank S.A., a wholly-owned subsidiary of Catella AB (publ), signed an agreement regarding the transfer of the assets in the Wealth Management operations in Luxembourg to VP Bank (Luxembourg) S.A. As a result of the strategic review of Catella's banking operations. The transaction was concluded in February 2019 and the final purchase consideration amounts to SEK 95 M, against the previously communicated SEK IIO M. The difference is mainly due to assets under management declining as a result of weak market progress. As part of the asset sale, assets and liabilities will be transferred to VP Bank, which is expected to reduce Catella's total assets by some SEK 2 Bn.

Catella and Söderberg & Partners enter into strategic partnership

In December 2018, Catella Bank S.A. signed an agreement regarding the sale of 51% of its Wealth Management operations in Sweden to Söderberg & Partners for some SEK 36 M. At the same time, the parties entered into a strategic partnership whereby Catella will continue to create

alternative investment products aimed at this customer segment across the entire wealth management sector. Catella's total assets are expected to decrease by some SEK I Bn in connection with the transaction as both assets and liabilities will be transferred to a joint venture company. Catella will consolidate its 49% stake in the joint venture as an associated company in accordance with the equity method once the transaction has been completed, which is expected to take place during the first half of 2019.

Catella divests card issuing operations in Luxembourg to Advanzia Bank and concludes its strategic review

In December 2018, Catella Bank S.A. entered into an agreement regarding the divestment of its card issuing operations in Luxembourg to Advanzia Bank S.A. The fixed purchase consideration amounts to some SEK 120 M and will be paid in the first quarter of 2019. The additional purchase consideration amounts to a maximum of some SEK 240 M and will be paid at the end of 2019, or alternatively at the beginning of 2020.

Catella's total assets can be expected to decrease by some SEK 350 M in connection with the transaction as both assets and liabilities will be transferred to Advanzia Bank.

Catella completes acquisition of 75% in APAM

In December 2018, following approval by the Luxembourg supervisory authority,

Catella completed the previously announced acquisition of 75% in leading UK property and asset management advisor APAM Ltd for a purchase consideration of GBP 18 M on a debt and cash free basis. For more information, see Note 8.

Significant events after the end of the quarter

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

INCOME STATEMENT FOR REMAINING OPERATIONS BY OPERATING SEGMENT IN SUMMARY

3 Months 12 Months
2018 2017 2018 2017
SEK M Oct-Dec Oct-Dec Jan-Dec Jan-Dec
CORPORATE FINANCE
Total income 299 262 715 659
Operating profit/loss 30 43 49 71
Operating margin, % 10 ° 17 7 $\frac{1}{2}$
ASSET MANAGEMENT
Total income 401 435 1,510 1,371
Operating profit/loss 4 1 134 391 410
Operating margin, % 10 ° 31 26 30
Equity-, Hedge and Fixed Income Funds
Total income * 227 218 875 851
Operating profit/loss 37 76 323 337
Operating margin, % 16 35 37 40
Property Investment Management
Total income * 174 217 634 521
Operating profit/loss $\overline{4}$ 58 68 73
Operating margin, % 3 27 11 14
OTHER **
Total income $-2$ -8 $-9$ $-17$
Operating profit/loss $-10$ $-22$ $-87$ $-69$
GROUP
Total income 698 689 2,216 2,013
Operating profit/loss 60 156 352 412
Operating margin, % 9 23 16 20

* Includes internal income.
** Includes eliminations.

See Note 9 for more information about the disposal group held for sale.

SELECTED KEY FIGURES FOR REMAINING OPERATIONS BY OPERATING SEGMENT

3 Months 12 Months
2018 2017 2018 2017
GROUP Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Profit margin, % 3 20 9 17
Return on equity, % * $\vert \ \vert$ 22
Equity/Asset ratio, % $\sim$ $\overline{a}$ 4 1 55
Equity, SEK M * $\sim$ $\overline{a}$ 940 1,236
No. of employees, at end of period $\sim$ ×, 552 446
Earnings per share, SEK * 0.11 .40 1.50 2.99
Equity per share, SEK * 11.17 15.10
CORPORATE FINANCE
Profit margin, % $\overline{4}$ $\mathbf{L}$ $\overline{2}$ $\overline{7}$
Return on equity, % * $\overline{\phantom{a}}$ 21 30
Equity/Asset ratio, % $\sim$ ÷, 15 32
Equity, SEK M * $\sim$ ٠ 35 120
No. of employees, at end of period $\sim$ ×, 221 210
Property transaction volume for the period, SEK Bn 23.3 22.6 68.6 56.2
ASSET MANAGEMENT
Profit margin, % 20 23 8 23
Return on equity, % * $\sim$ 47 51
Equity/Asset ratio, % $\sim$ 61 46
Equity, SEK M * $\sim$ ×, 887 438
No. of employees, at end of period $\sim$ ×, 310 221
Asset under management at end of period, SEK Bn ٠ 186.2 164.3
net in-(+) and outflow(-) during the period, mdkr $-2.6$ 14.3 $-0.5$ 22.7

* Attributable to shareholders of the Parent Company.

For more information about selected Key Performance Indicators that include disposal group held for sale, see Application of key performance indicators not defined by IFRS at the end of this document.

6

Corporate Finance

TOTAL INCOME

OPERATING INCOME

Asset Management*

OPERATING INCOME

OPERATING INCOME

CATELLA'S PROPERTY TRANSACTION VOLUMES

SEK Bn $25 20o$ $\overline{15}$ $\bar{10}$ $\overline{5}$ $\circ$ 2016 $2018$ $2017$ $\blacksquare Q \vdash \blacksquare Q2 \blacksquare Q3 \blacksquare Q4$

CATELLA'S ASSETS UNDER MANAGEMENT

*Remaining operations

7

Corporate Finance

Fourth quarter 2018

The total commercial property transaction market in Europe, excluding the UK, totalled EUR 76.8 Bn ((93.3)) in the quarter, a reduction of 18% year-on-year.

Property transactions where Catella served as advisor totalled SEK 23.3 Bn (22.6) in the quarter. Of total transaction volumes in the quarter, France provided SEK 10.3 Bn (6.7), Sweden 10.2 Bn (9.6),

Germany 1.0 Bn (1.8) and Denmark 0.5 Bn $(0.1)$ .

Total income was SEK 299 M (262) and operating profit SEK 30 M (43) in the quarter. The decrease in operating profit was mainly due to increased assignment expenses, and external marketing and organisational expenses in Germany. There were also fewer capital markets-related transactions in the quarter, which contributed to the lower operating profit.

Full year 2018

Transaction volumes in Europe, excluding the UK, totalled EUR 214.5 Bn (249.2) in the period, a reduction of 14% year-onyear. Catella's transaction volume in the period was SEK 68.6 Bn (56.2).

Total income was SEK 715 M (659) and operating profit SEK 49 M (71) in the period.

SEK M 3 Months 12 Months
2018 2017 2018 2017
INCOME STATEMENT-CONDENSED Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Nordic * 89 113 246 312
Continental Europe * 210 150 468 346
Total income 299 262 715 659
Assignment expenses and commission $-50$ $-29$ $-88$ $-74$
Operating expenses $-219$ $-190$ $-578$ $-514$
Operating profit/loss 30 43 49 71
KEY FIGURES
Operating margin, % 0 17 $\overline{7}$ $\mathbf{1}$
Property transaction volume for the period, SEK Bn 23.3 22.6 68.6 56.2
of which Nordic 11.8 13.8 30.1 37.3
of which Continental Europe 11.5 8.7 38.5 18.9
No. of employees, at end of period $\overline{\phantom{a}}$ 221 210

* Includes internal revenue between business areas. Internal revenue has been eliminated in the service area for the current period and for the corresponding period in 2017.

CATELLA'S PROPERTY TRANSACTION VOLUMES

TOTAL INCOME

OPERATING INCOME

Property Investment Management

Fourth quarter 2018

In December 2018, Catella acquired 75% of the shares in APAM Ltd. The UK is an important strategic market for Catella, and the acquisition strengthens the pan-European platform. APAM is an independent property investment and asset management advisor active on the UK market. APAM Has assets under management totalling SEK 15.9 Bn and 41 employees.

Assets under management, adjusted for APAM, decreased by SEK 0.3 Bn (6.9) and net flows were SEK -1.0 Bn (7.2) in the quarter. Property Funds increased its assets under management by SEK 2.4 Bn while Property Asset Management, adjusted for APAM, decreased assets

under management by SEK-2.8 Bn, due to terminated client mandates in Finland and France.

Total income was SEK 174 M (217). The decrease in total income was mainly driven by lower variable earnings in Project Management, where no partial project invoicing took place, and because fewer transactions were completed in Residential Funds year-on-year.

Operating profit was SEK 4 M (58). In addition, operating profit decreased due to increased personnel expenses, mainly related to aggressive initiatives in Property Funds. The logistics property start-up in France burdened operating profit by SEK 10 M.

Full year 2018

Assets under management, adjusted for APAM, increased by SEK 11.4 Bn (14.7) and net flows were SEK 5.7 Bn (13.7) in the period, amounting to SEK 66.3 Bn (55.0) at the end of the period. Assets under management including APAM totalled SEK 82.2 Bn at the end of the period.

Total income was SEK 634 M (521) and operating profit SEK 68 M (73) in the period, which was charged with start-up expenses for future growth.

.
SEK M
3 Months 12 Months
2018 2017 2018 2017
INCOME STATEMENT-CONDENSED Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Property Funds * 104 117 406 369
Property Asset Management * 84 106 260 164
Total income 174 217 634 521
Assignment expenses and commission $-$ $-36$ $-142$ $-146$
Operating expenses $-158$ $-123$ $-423$ $-302$
Operating profit/loss $\overline{4}$ 58 68 73
KEY FIGURES
Operating margin, % 3 27 $\perp$ 4
Asset under management at end of period, SEK Bn 82.2 55.0
net in-(+) and outflow(-) during the period, mdkr $-1.0$ 7.2 5.7 13.7
of which Property Funds 47.6 36.9
net in-(+) and outflow(-) during the period, mdkr 1.8 2.8 6.6 8.7
of which Property Asset Management 34.6 18.0
net in-(+) and outflow(-) during the period, mdkr $-2.7$ 4.4 $-0.9$ 5.1
No. of employees, at end of period 220 132

* Includes internal revenue between business areas. Internal revenue has been eliminated in the service area for the current period and for the corresponding period in 2017.

ASSETS UNDER MANAGEMENT

TOTAL INCOME

OPERATING INCOME

9

Equity, Hedge and Fixed Income Funds

Fourth quarter 2018

New savings in mutual funds in Sweden totalled SEK 15.4 Bn in the quarter. The fund categories with the largest inflows were Short Fixed Income and Mixed funds. At the end of the quarter, Mutual Funds' share of Swedish fund volumes was $0.7\%$ (0.8)

Catella's assets under management increased by SEK 8.3 Bn (7.0) in the quarter, of which net flows were SEK -2.1 Bn (0.8) in Mutual Funds and SEK 0.4 Bn (6.3) in Systematic Funds. Systematic Macro experienced net inflows in the quarter. Income is mainly generated by Systematic Macro.

Total income was SEK 227 M (218) in the quarter, down on the previous year mainly due to lower variable earnings in Mutual Funds at the same time as fixed earnings increased during the period, mainly in Systematic Funds. Operating profit was SEK 37 M (76).

From I January 2018, Systematic Funds moved to annual settlement of all products, meaning that variable earnings are only settled and recognised for profit at year end.

Full year 2018

Total assets under management in Sweden decreased by SEK 40.0 Bn in the period, of which new savings SEK 54.4 Bn, totalling SEK 3,978 Bn at the end of the period.

Catella's assets under management decreased by SEK 5.4 Bn (10.4) in the period, amounting to SEK 103.9 Bn (109.3) at the end of the period.

Total income was SEK 875 M (851) and operating profit SEK 323 M (337) in the period.

Variable earnings*** charged at year end in Systematic Funds totalled SEK 0 M at the end of the period.

SEK M 3 Months l Z Months
2018 2017 2018 2017
INCOME STATEMENT-CONDENSED Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Mutual Funds * 64 98 311 396
Systematic Funds * 163 2 564 455
Total income 227 218 875 851
Assignment expenses and commission $-40$ $-38$ $-161$ $-151$
Operating expenses $-151$ $-103$ $-391$ $-363$
Operating profit/loss 37 76 323 337
KEY FIGURES
Operating margin, % 16 35 37 40
Asset under management at end of period, SEK Bn ۰ 103.9 109.3
net in-(+) and outflow(-) during the period, mdkr $-1.7$ $-6.2$ 8.9
of which Mutual Funds 29.3 32.0
net in-(+) and outflow(-) during the period, mdkr $-2.1$ 0.8 $-1.1$ 0.0
of which Systematic Funds 74.7 77.3
net in-(+) and outflow(-) during the period, mdkr 0.4 6.3 $-5.1$ 8.9
of which Systematic Macro $\sim$ 49.8 48.6
net in-(+) and outflow(-) during the period, mdkr $^{1.2}$ 6.5 $-2.1$ 14.5
of which Systematic Equity 24.9 28.7
net in-(+) and outflow(-) during the period, mdkr -0.8 $-0.2$ $-3.0$ $-5.7$
No. of employees, at end of period 91 89 91 89

прюу

* Includes internal revenue between business areas. Internal revenue has been eliminated in the service area for the current period and for the corresponding period in 2017. ***Variable earnings are calculated on the basis of Systematic Macros' performance based management fees. In order for the performance based management fee to be settled at year end, and recognized for profit/loss, returns must be higher than comparative indices and the most recent level settled (High watermark). Accordingly, actual settlement at year end may be higher, lower or entirely absent relative to the indicated amount. Amounts can never fall below zero.

ASSETS UNDER MANAGEMENT

■QI ■ Q2 ■ Q3 ■ Q4

OPERATING INCOME

Other financial information

The Group's financial position

From 30 September 2018, the Banking business area has been reported in accordance with IFRS 5, which means that Banking's assets and liabilities are reported on separate lines as Assets in disposal group held for sale and Liabilities in disposal group held for sale respectively. Previous years' comparative figures relating to Banking's assets and liabilities have not been reclassified in the corresponding manner. The Balance Sheet items most affected by this change are loan receivables, loan liabilities and cash and cash equivalents.

In the fourth quarter, the Group's total assets decreased marginally, totalling SEK 7,009 M as of 31 December 2018.

In accordance with IAS 12 Income Tax. deferred tax assets attributable to loss carry-forwards are recognized to the extent that it is probable that future taxable profit will be available. In accordance with this standard, Catella recognized a deferred tax asset of SEK 81 M (SEK 99 M as of 31 December 2017), of which the majority consists of tax loss carry-forwards, which is based on an assessment of the Group's future earnings. The Group's total loss carry-forwards amount to some SEK 880 M.

In June 2018, Catella issued subsequent unsecured bonds of SEK 250 M under the framework of SEK 750 M at a price of 102.50% of the nominal amount. Catella has previously issued bonds totalling SEK 500 M, implying that the total framework has now been utilised. The bond accrues variable interest at 3-month STIBOR plus 400 b.p. with final maturity in lune 2022.

The Group also has approved overdraft facilities totalling SEK 30 M, of which the unutilized part was SEK 30 M as of 31 December 2018.

The Group's equity decreased by SEK 100 M in the fourth quarter, amounting to SEK 1.647 M as of 31 December 2018. In addition to loss of for the period of SEK -119 M, Group equity was affected by negative fair value changes in financial assets reported under Other comprehensive income of SEK 6 M and positive translation differences of SEK 2 M.

Equity was also affected by transactions with non-controlling holdings totalling SEK 24 M. The Group's equity/assets ratio as of 31 December 2018 was 24% (30% as of 31 December 2017).

Consolidated cash flow

The comments below relate to total Group operations, remaining operations and disposal group held for sale, unless otherwise indicated.

Fourth auarter 2018

Consolidated cash flow from operating activities before changes in working capital amounted to SEK 24 M (176), of which SEK 71 M was attributable to remaining operations and SEK -47 M to the Banking operations. Of the bank's wind down expenses totalling SEK 164 M, SEK 155 M did not affect cash flow in 2018. Tax paid totalled SEK 28 M (25) in the period.

Consolidated cash flow from operating activities was SEK-200 M (-305), of which changes in working capital for the period totalled SEK -224 M (-482). Of the changes in working capital, SEK-252 M is attributable to the banking operations and SEK 28 M to other operations. The bank's negative change in working capital is due to decreased deposits.

Cash flow from investing activities was SEK - 199 M (-23), of which SEK - 220 M related to changes in Group cash and cash equivalents in connection with the acquisition of APAM, see Note 8. Furthermore, additional investments of SEK 3 M were made in the Private Equity product Pamica 2 in the period. Cash flow from loan portfolios totalled SEK 4 M, and cash flow from terminated currency forwards amounted to SEK-4 M.

Financing operations did not generate any cash flow in the period. For the disposal group held for sale, cash flow from financing operations was SEK 170 M relating to shareholder contributions of SEK 220 M and internal loan amortisation of SFK 50 M.

Cash flow for the period was SEK-400 M (-328), of which cash flow from remaining operations was SEK-269 M

(179) and cash flow from disposal group held for sale was SEK -131 M (-507).

Cash and cash equivalents at the end of the period were SEK 3,234 M (3,177), of which cash and cash equivalents relating to remaining operations were SEK 687 M (1,066) and cash and cash equivalents reported under Assets in disposal group held for sale were SEK 2,547 M (2,111).

Full year 2018

Consolidated cash flow from operating activities before changes in working capital amounted to SEK 140 M (426). Tax paid totalled SEK 154 M (86) for the full year.

Consolidated cash flow from operating activities was SEK 344 M (297), of which changes in working capital for the period totalled SEK 204 M (-129). Of the changes in working capital, SEK 315 M is attributable to the banking operations and SEK-III M to other operations.

Cash flow from investing activities was SEK -479 M (-74), of which SEK -220 M related to changes in Group cash and cash equivalents in connection with the acquisition of APAM, and SEK-207 M relates to the additional purchase of shares in IPM. Furthermore, Catella invested SEK 165 M in associated company Grand Central Beteiligungs GmbH, while also receiving dividends and repaid capital contributions totalling SEK 157 M from associated company Nordic Seeding GmbH. In the year, Catella also acquired shares in associated company Kaktus 1 TopCo ApS for SEK 66 M In addition, Catella completed investments in Biblioteksparken A/S and a number of unlisted Swedish limited companies totalling SEK 37 M. Cash flow from loan portfolios totalled SEK 97 M, of which SEK 85 M relates to the divestment of Minotaure and Ludgate. Furthermore, SEK 16 M was raised from Nordic Light Fund's buy-back of fund units. This means that the fund has repaid all its realized revenues and is being liquidated. Cashflow from terminated currency forwards totalled SEK -7 M in the period.

Cash flow from financing operations was SEK 89 M (139), of which SEK 253 M relates to the issue of a new bond loan, SEK 184 M relates to dividends to parent company shareholders and non-controlling holdings, and SEK 21 M relates to payments from warrant holders for subscription in new shares in Catella AB.

Cash flow for the period was SEK-45 M (362), of which cash flow from remaining operations was SEK-389 M (361) and cash flow from disposal group held for sale was SEK 344 M (1).

Parent company Fourth quarter 2018

Catella AB (publ) is the Parent Company of the Group. Group management and other central Group functions are integrated in the Parent Company.

The Parent Company reported income of SEK 17.6 M (2.0) and operating profit of SEK-12.0 M (-16.7) in the period. The profit increase on the previous year is mainly due to expenses associated with the strategic review of the bank being invoiced to the bank in December 2018.

The Parent Company also reported financial items totalling SEK-8.1 M (94.8), of which interest and expenses for arranging bond loans were SEK 7.6 M and realized profit on derivatives totalled SEK $-0.4$ M.

In May 2018, the parent company initiated currency hedging using derivatives. The hedging of EUR 60 M was carried out to reduce the exchange rate risk in Catella's net exposure in EUR.

Profit/loss before tax was SEK-20.1 M (78.1) and profit/loss for the period was SEK 181.2 M (78.1). Profit/loss for the period includes Group contributions received from subsidiaries totalling SEK 236.2 M, which means that a majority of the parent company's total loss carryforwards have now been utilised. The deferred tax asset of SEK 35.0 M reported on 30 September 2018 has been reversed and reported as tax in profit/loss for the period in the fourth quarter.

In June, Catella AB issued subsequent unsecured bonds of SEK 250 M under the framework of SEK 750 M at a price of 102.50% of the nominal amount. The parent company previously issued bonds totalling SEK 500 M, implying that the total framework has now been utilized. The bond accrues variable interest at 3-month

STIBOR plus 400 b.p. with final maturity in lune 2022.

Cash and cash equivalents on the reporting date were SEK 17.8 M. 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 108.6 M.

In connection with the acquisition of APAM Ltd., Catella AB paid an unconditional shareholder contribution of SEK 200 M to the subsidiary Catella Holding in the fourth quarter 2018. The contribution increased the book value of the shares in the subsidiary.

The number of employees in the Parent Company expressed as full -time equivalents was 13 (10).

Employees

The number of employees in remaining operations, expressed as full-time equivalents was 552 (446) at the end of the period, of which 221 (210) in the Corporate Finance operating segment, 310 (221) in the Asset Management operating segment and 21 (15) in other functions.

The number of employees in disposal group held for sale (Banking) was 153 (180) at the end of the period.

The total number of employees, expressed as full-time equivalents, was 705 (626) at the end of the period.

Share capital

As of 31 December 2018 Catella's registered share capital was SEK 168 M (164), divided between 84, 115, 238 shares (81,848,572). The quotient value per share is 2. Share capital is divided between two share classes with different voting rights. 2,530,555 Class A shares with 5 votes per share, and 81,584,683 Class B shares with I vote per share.

In March 2018, 2,266,666 warrants were utilised to subscribe for an equal number of new shares at a price of SEK 9.40 per share. The issue of the new Class B shares was effective on 3 May 2018 through registration with the Swedish Companies Registration Office and inclusion in EuroClear's share register. In March, 66,667 warrants held in treasury expired.

As of 31 December 2018, the parent company has a total of 4,666,667 outstanding warrants, of which 133,333 held in treasury. Upon full utilisation of the 4,666,667 warrants, dilution of the capital and votes in the company would be 5.3% and 4.7% respectively.

Shares

Catella is listed on Mid Cap on Nasdaq Stockholm, trading under the ticker symbols CAT A and CAT B. The price of Catella's Class B share was SEK 23.20 (19.80) as of 31 December 2018. Total market capitalization at the end of the period was SEK 1,952 M (1,621).

Shareholders

Catella had 7.138 (7.135) shareholders registered at the end of the period. As of 31 December 2018, the single largest shareholders were the Claesson & Anderzén group, with a holding of 49.2% (49.8) of the capital and 48.5% (49.1) of the votes, followed by Swedbank Robur fonder with a holding of 6.0% (6.1) of the capital and 6.2% (6.3) of the votes.

Dividend

Catella's target is to transfer the Group's profit after tax to shareholders to the extent it is not considered necessary for developing the Group's operating activities and considering the company's strategy and financial position. Adjusted for profit-related unrealized value in-creases, at least 50% of the Group's profit after tax will be transferred to shareholders over time

The Board intends to propose a dividend of SEK 1.20 per Class A and B shares to be paid to shareholders for the financial year 2018. For the financial year 2017, the Parent Company paid dividend of SEK 1.00 per Class A and B share respectively to shareholders.

Risks and uncertainties

Catella is affected by progress on the financial markets.

The Corporate Finance operation is affected by the market's willingness to execute transactions, which in turn, is determined by the macroeconomic environment and the availability of debt finance.

Asset Management is affected by market progress on Nordic stock exchanges and progress on the property market. The banking operations are exposed to particularly significant operating risks. The bank's real time system contains substantial volumes/transactions that require 24-hour availability. At a pace with the termination of the banking operations in 2019, Catella's operating risk is expected to decrease.

Several companies in the Catella Group conduct licensable operations, regulated by the supervisory authorities of the relevant countries of fiscal domicile. Existing regulatory structures and the rapid evolution of these structures are generally complex, and particularly for Catella's banking operations. These regulations set stringent, and in the future, still more stringent standards on licensable operations, as well as on liquidity and capital reserves. Compliance with these regulatory structures is a pre-requisite for licensable operations. Catella works continuously to ensure compliance with current regulatory structures and prepares for compliance with forthcoming regulatory changes. At a pace with the termination of the banking activities in 2019, Catella's regulatory risk is expected to decrease.

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. The estimates and judgements affect the Consolidated Income Statement and financial position, and disclosures on contingent liabilities, for example. See Note 4 in the Annual Report 2017 for significant estimates and judgements. Actual outcomes may differ from these estimates and judgements due to other circumstances or other conditions.

Through associated companies Nordic Seeding GmbH and Grand Central Beteiligungs GmbH, Catella has investments in property development projects in Germany. These projects are run by Catella's German subsidiary Catella Project Management GmbH. Through Nordic Seeding GmbH and Grand Central Beteiligungs GmbH Catella intends to

invest in the early phases of projects, when concept and frameworks are determined, subsequently divesting projects and realizing capital gains before construction begins and projects are completed. These investments include the risk that Nordic Seeding GmbH or Grand Central Beteiligungs GmbH may encounter situations where the company is obliged to continue to invest in later stages of projects, pursue projects to completion or abandon projects and lose the associated invested capital. The aforementioned risks apply to all property development projects that Catella invests in (see Note 3).

Seasonal variations

Within the Corporate Finance operating segment, seasonal variations are significant. This means that sales and results of operations vary during the year. In Corporate Finance, transaction volumes are usually highest in the fourth quarter, followed by the second quarter, the third quarter and finally the first quarter.

Accounting principles

This Interim Report has been prepared in compliance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act.

The Consolidated Financial Statements have been prepared in compliance with International Financial Reporting Standards (IFRS) as endorsed by the EU, the Annual Accounts Act and RFR I Complementary Accounting Rules for Groups issued by RFR, the Swedish Financial Reporting Board.

The Parent Company's financial statements are prepared in compliance with the Swedish Annual Accounts Act and RFR 2 Accounting for Legal Entities issued by RFR.

In October - December 2018, Catella Bank signed agreements regarding the sale of all its operations through the transfer of assets and liabilities to three different market operators. From 30 September 2018, the Banking business area's operations are therefore presented in accordance with IFRS 5, Non-current assets held for sale and discontinued operations. This implies that the bank's operations are reported net on a separate line in the Consolidated Income Statement, under the item Profit from disposal group held for sale in the period. Comparative figures in the Income Statement for the current and previous year have been adjusted as if the bank's operations had never been part of Group operations. In the Consolidated Statement of Financial Position, the bank's assets and liabilities are reported separately from other assets and liabilities on dedicated lines under the items Assets in disposal group held for sale and Liabilities in disposal group held for sale respectively. Previous years' comparative figures relating to Banking's assets and liabilities have not been reclassified in the corresponding manner.

Furthermore, in 2018 Catella initiated currency hedging using derivatives. The hedging is intended to reduce the exchange rate risk (translation risk) in Catella's net investments in foreign operations denominated in EUR. At Group level, Catella applies hedge accounting in accordance with IFRS 9 from the date hedging of net exposure was entered into. According to IFRS 9, the effective portion of the value change of the hedging instrument, plus realized gains, is reported in Other comprehensive income and accumulated in the translation reserve under Equity. The ineffective portion is reported under Net financial items in the Income Statement.

In the parent company financial reports, with consideration given to the correlation between reporting and tax, hedging is reported at the lower of cost or market.

From 1 January 2018, Catella has applied two new accounting standards: IFRS 9 Financial instruments and IFRS 15 Revenue from contracts with customers. The effect of the transition to these standards has been described in summary below. For more information, see Note 2 of Catella's Annual Report 2017.

With regard to IFRS 9 Financial instruments, Catella's transition to IFRS 9 has not implied any restating of comparative figures. The application of the anticipated loss model for impairment testing of financial assets had a SEK-2 M effect on financial reporting and equity as of I January 2018.

The information provided in Note 10 regarding the consolidated financial situation, relating to parts of Catella's

operations, has been prepared in accordance with the Group's accounting policies and the Annual Accounts for Credit Institutions and Securities Companies Act.

IFRS 16 "Leases" was published in January 2016 and is effective from 1 lanuary 2019. The implementation of the standard will imply that essentially all lease contracts are reported in the Balance Sheet. The standard does not distinguish between operating and financial leases. Assets (the right to utilize a leased asset) and financial liabilities corresponding to the company's commitment to pay leasing charges must be reported for essentially all lease commitments. There is one exemption for short contracts and contracts of minor value. Catella mainly has leasing contracts for office premises and cars. Catella has not yet collated and evaluated the final effects of the introduction of the standard. Right of use corresponds closely to lease liabilities in the consolidated financial statements, and is estimated at SEK 298 M, of which SEK 8 M relates to Banking. Lease expenses for 2019 are estimated at SEK 51 M, of which SEK 3.5 M relates to Banking.

Furthermore, Catella intends to apply the simplified standard, and will not be restating comparative figures. Accounting principles critical to the Group and Parent Company are stated in Catella's Annual Report for 2017. Figures in tables and comments may be rounded.

Related party transactions

Catella holds shares in associated companies Nordic Seeding GmbH and Grand Central Beteiligungs GmbH, whose other owners are the Claesson & Anderzén group and the management of Catella Project Management GmbH. Catella's total net investment in both companies amounted to SEK 70 M as of 31 December 2018. The remaining investment commitment in Nordic Seeding GmbH and Grand Central Beteiligungs GmbH amount to SEK 19 M. For more information, see Note 3 in this report and Notes 20 and 39 of the Annual Report 2017.

Catella's German subsidiary Catella Project Management GmbH operates the property development projects within associated company Nordic Seeding GmbH and Grand Central Beteiligungs GmbH. In the fourth quarter 2018. Catella Project Management GmbH invoiced Nordic Seeding GmbH and Grand Central Beteiligungs GmbH a total of SEK I M relating to services provided under applicable agreements. No proportion of this income was eliminated in Catella's Consolidated Income Statement as the associated companies fall outside of Catella's associated enterprises.

Catella made investments totalling SEK 66 M in associated company Kaktus 1 TopCo ApS, which acquired land including building rights for student housing in Copenhagen. Catella's total investment commitment amounts to some SEK 137 M, which implies a remaining outstanding investment commitment of some SEK 71 $M_{\cdot}$

Catella's Danish subsidiary Catella Investment Management A/S operates the property development project in associated company Kaktus | TopCo ApS. In the fourth quarter of 2018, Catella Investment Management A/S invoiced Kaktus | TopCo ApS just under SEK 1.6 M for services rendered under agreement. No proportion of this income was eliminated in Catella's Consolidated Income Statement as the associated company falls outside of Catella's associated enterprises.

Forecast

Catella does not publish forecasts.

Financial calendar

Annual Report 2018 26 April 2019 Interim Report January-March 2019 9 May 2019

Annual General Meeting 2019

The Annual General Meeting in Catella AB (publ) will be held on 27 May 2019 in Stockholm, Sweden. Shareholders wishing to submit proposals to the Nomination Committee should do so in writing by no later than 22 February 2019. Interim Report January-June 2019

23 August 2019

Interim Report January-September 2019 14 November 2019

Year-end Report 2019 21 February 2020

For further information, contact
Knut Pedersen, CEO and President
Stockholm, Sweden, 22 February 2019
Catella AB (publ)
Tel. +46 (0)8 463 33 10
More information on Catella and all
financial reports are available at
catella.com.
Johan Claesson, Chairman
The information in this Report is
mandatory for Catella AB to publish in
accordance with the EU's Market Abuse
Regulation and the Swedish Securities
Markets Act. This information was
submitted to the market, through the
agency of the above contact, for
publication on 22 February 2019 at 07:00
a.m. CET.
Johan Damne, Board member
The undersigned certify that this Interim
report gives a true and fair view of the
Parent Company's and the Group 's
operations, financial position and results of
operations, and describes the material risks
and uncertainties facing the Parent
Joachim Gahm, Board member
Company and companies included in the
Group.
Anna Ramel, Board member

Audit Review

Auditor's review report for interim financial information 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 2018 and the twelve-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on the Interim Report based on our review.

Scope and focus of the review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express and audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report has not been prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, Sweden, 22 February 2019

PricewaterhouseCoopers AB

Daniel Algotsson Authorized Public Accountant

2018 2017 2018 2017
SEK M
Note
Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net sales 686 679 2,159 1,998
Other operating income 12 $\overline{10}$ 57 15
Total income 698 689 2,216 2,013
Assignment expenses and commission $-101$ $-100$ $-389$ $-359$
Other external expenses $-152$ $-107$ $-471$ $-354$
Personnel costs $-387$ $-315$ $-960$ $-845$
Depreciation $-9$ $-5$ $-26$ $-17$
Other operating expenses $\vert \ \vert$ $-7$ $-18$ $-26$
Operating profit/loss 60 156 352 4 2
Interest income 5 6 8 23
Interest expenses $-8$ $-5$ $-27$ $-17$
Other financial items $\overline{4}$ 20 $-6$ 28
Financial items-net $\overline{\phantom{a}}$ 20 $-15$ 34
Profit/loss before tax 62 176 337 446
Tax $-39$ $-42$ $-127$ $-108$
Profit for the period from continuing operations 23 134 210 337
Operations held for sale:
1, 9
Profit for the period from divestment groups held for sale
$-142$ $-48$ $-238$ $-53$
Net profit/loss for the period $-119$ 87 $-28$ 284
Profit/loss attributable to:
Shareholders of the Parent Company $-133$ 67 $-112$ 192
Non-controlling interests 4 20 84 92
$-119$ 87 $-28$ 284
Earnings per share attributable to shareholders of the Parent Company, SEK
Continuing operations
- before dilution 0.11 1.40 1.50 2.99
- after dilution 0.10 1.29 1.43 2.76
Divestment groups held for sale
- before dilution $-1.69$ $-0.59$ $-2.83$ $-0.64$
- after dilution $-1.60$ $-0.54$ $-2.69$ $-0.60$
Total operations
- before dilution $-1.58$ 0.81 $-1.33$ 2.35
- after dilution $-1.50$ 0.75 $-1.26$ 2.17
No. of shares at end of the period 84, I 15, 238 81,848,572 84, I 15, 238 81,848,572
Average weighted number of shares after dilution 88,648,572 88,648,572 88,663,683 88,648,572
2018 2017 2018 2017
SEK M Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net profit/loss for the period $-119$ 87 $-28$ 284
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Value change in defined benefit pension plans $\theta$ $\theta$ $-()$ $\theta$
Items that will be reclassified subsequently to profit or loss:
Fair value changes in financial assets available for sale $-6$ 3 9 9
Hedging of net investment $\Omega$ 12 0
Translation differences $-3$ 32 49 31
Other comprehensive income for the period, net after tax $-5$ 35 70 40
Total comprehensive income/loss for the period $-124$ 122 42 325
Profit/loss attributable to:
Shareholders of the Parent Company $-137$ 101 $-43$ 231
Non-controlling interests 13 86 93
$-124$ 122 42 325

Information on Income Statement by operating segment is in Note 1.

SEK M
Note
7018
31 Dec
ZU I 7
31 Dec
ASSETS
Non-current assets
Intangible assets 646 390
Property, plant and equipment 29 27
3
Holdings in associated companies
116 45
Other non-current securities
3, 4, 5
337 438
Deferred tax receivables 8 1 99
Other non-current receivables $\epsilon$
1,215
607
1,606
Current assets
Current loan receivables
$\mathbf 0$ 779
Accounts receivable and other receivables 737 725
3, 4, 5
Current investments
123 108
Cash and cash equivalents * 687 3,177
1,547 4,790
Assets in divestment groups held for sale 4,247 $\theta$
5,794 4,790
Total assets 7,009 6,396
EQUITY AND LIABILITIES
Equity
Share capital 168 164
Other contributed capital 253 253
Reserves $-18$ $-77$
Profit brought forward including net profit for the period 1,038 1,389
Equity attributable to shareholders of the Parent Company 1,442 1,729
Non-controlling interests 205 214
Total equity 1,647 1,943
Liabilities
Non-current liabilities
Long-term Ioan liabilities 748 494
Deferred tax liabilities 29 38
Other provisions 53 $\overline{4}$
831 537
Current liabilities
Borrowings $\boldsymbol{0}$ 122
Current Ioan liabilities $\,0\,$ 2,784
Accounts payable and other liabilities 713 894
Tax liabilities 77
790
116
3,917
Liabilities in disposal groups held for sale 3,741 $\circ$
4,531 3,917
Total liabilities 5,362 4,453
Total equity and liabilities 7,009 6,396
* Of which pledged and blocked liquid funds 38 205
SEK M 2018
Oct-Dec
2017
Oct-Dec
2018
Jan-Dec
2017
Jan-Dec
Cash flow from operating activities
Profit/loss before tax $-131$ 126 44 395
Adjustments for non-cash items:
Wind down expenses 155 $\theta$ 155 $\circ$
Other financial items $-7$ $-20$ 5 $-28$
Depreciation $\overline{10}$ 8 32 28
Items affecting comparability - Impairment of intangible assets $\circ$ 53 $\circ$ 53
Impairment / reversal of impairment of current receivables $\ddot{6}$ $\overline{\phantom{a}}$ 3 $\epsilon$
Change in provisions $\sim$ [ $\overline{0}$ $-2$ $\overline{2}$
Reported interest income from loan portfolios $-4$ $-6$ $-16$ $-22$
Acquisition expenses 5 - I 5 $\overline{2}$
Profit/loss from participations in associated companies $-12$ 6 8 20
Personnel costs not affecting cash flow 32 32 49 55
Other non-cash items $\overline{0}$ $\theta$ $\mathbf{I}$ $\sim$
Paid income tax $-28$ $-25$ $-154$ $-86$
Cash flow from operating activities before changes in working capital 24 176 40 426
Cash flow from changes in working capital
Increase (-)/decrease (+) of operating receivables $-87$ $-102$ $-66$ $-234$
Increase $(+)$ / decrease $(-)$ in operating liabilities $-138$
$-200$
$-380$
$-305$
271
344
106
297
Cash flow from operating activities
Cash flow from investing activities
Purchase of property, plant and equipment $-3$ $-5$ $-16$ $-12$
Purchase of intangible assets $-9$ $-15$ $-19$ $-40$
Purchase of subsidiaries, after deductions for acquired cash and cash equivalents $-221$ $-4$ $-428$ $-5$
Sale of subsidiaries, net of cash disposed $\overline{0}$ $\theta$ $-$ $\circ$
Purchase of associated companies $-$ 0 $\overline{4}$ $-246$ $-12$
Dividend and other disbursements from associated companies $\overline{0}$ $\theta$ 157 $\circ$
Purchase of financial assets $-23$ $-2$ $-85$ $-50$
Reclassification from Purchase of financial assets to Acquisition of subsidiaries 31 $\theta$ $\overline{0}$ $\circ$
Sale of financial assets 22 $-7$ 62 21
Cash flow from loan portfolios $\overline{4}$ 7 97 23
Dividends from investments $\overline{0}$ $\overline{0}$ $\overline{0}$ $\overline{\phantom{a}}$
Cash flow from investing activities $-199$ $-23$ $-479$ $-74$
Cash flow from financing activities
New share issue $\circ$ $\theta$ 21 $\sim$
Borrowings $-0$ $-0$ 252 493
Repayment of loans $-()$ $\theta$ $-()$ $-202$
Dividend $\overline{0}$ $\overline{0}$ $-84$ $-65$
Transactions with, and payments to, non-controlling interests $-()$ $\theta$ $-100$ $-87$
Cash flow from financing activities $-0$ $\mathbf 0$ 89 139
Cash flow for the period $-400$ $-328$ $-45$ 362
Cash and cash equivalents at beginning of period 3,641 3,438 3,177 2,750
Exchange rate differences in cash and cash equivalents $-7$ 67 102 66
Cash and cash equivalents at end of the period * 3,234 3,177 3,234 3,177
Of which cash flow from divestment groups held for sale:
Cash flow from operating activities $-301$ $-497$ 174 7
Cash flow from investing activities $\circ$ $\sim$ $\circ$ $-16$
Cash flow from financing activities 170 $\theta$ 170 $\mathbb O$
Cash flow for the period from divestment groups held for sale $-131$ $-507$ 344 $\mathbf{I}$
* Of which cash and cash equivalents recognised in Assets in disposal groups held for sale 2,547 2, 111 2,547 2, 111

SEK 2,545 M of the Group's cash and cash equivalents relates to Catella Bank and in compliance with the instructions and regulations that Catella Bank is subject to, the rest of the Group does not have access to Catella Bank's liquidity.

SEK M Share capital Other
contributed
capital *
Translation
reserve
Profit brought
forward incl.
net profit/loss
for the period
Total Non-
controlling
interests ** Total equity
Opening balance at 1 January 2018 164 253 $-77$ 1,389 1,729 214 1,943
Adjustment for retroactive application of IFRS 9
Increased provision for anticipated credit losses in accordance with IFRS 9 $-2$ $-2$ $-2$
Adjusted opening balance at 1 January 2018 164 253 $-77$ 1,387 1,727 214 1.941
Comprehensive income for January - December 2018:
Net profit/loss for the period $-112$ $-112$ 84 $-28$
Other comprehensive income, net of tax 59 9 68 $\mathcal{P}$ 70
Comprehensive income/loss for the period 59 $-102$ $-43$ 86 42
Transactions with shareholders:
Transactions with non-controlling interests $-179$ $-179$ $-94$ $-273$
New share issue 5 17 21 21
Dividend $-84$ $-84$ $-84$
Closing balance at 30 December 2018 168 253 $-18$ 1,038 1,442 205 1,647

** Non-controlling holdings are attributable to minority holdings in subsidiaries in Systematic Funds and Property Funds, and a number of subsidiaries in Property Asset Management and Corporate Finance.

There were no transactions involving warrants in the fourth quarter 2018. In the first half-year 2018, 2,266,666 warrants were used to subscribe for an equal number of new shares at SEK 9.40 per share, and 66,667 warrants held in treasury expired without being utilised. As of 31 December 2018, the parent company has a total of 4,666,667 out-standing warrants, of which 133,333 held in treasury.

SEK M
Opening balance as of 1 January 2017
Share capital
164
Other
contributed
capital *
253
Translation
reserve
$-107$
Profit brought
forward incl.
net profit/loss
for the period
1,253
Total
1,563
Non-
controlling
167
interests ** Total equity
1,730
Comprehensive income for January - December 2017:
Net profit/loss for the period 192 192 92 284
Other comprehensive income, net of tax 30 9 39 40
Comprehensive income/loss for the period 30 201 231 93 325
Transactions with shareholders:
Transactions with non-controlling interests $\circ$ $\circ$ $-46$ $-46$
Warrants issued $\mathbf{0}$ $\mathbf{0}$
Re-purchase of warrants issued $\circ$ $\mathbf{0}$
New share issue $\mathbf 0$ $\circ$
Dividend $-65$ $-65$ $-65$
Closing balance as of 31 December 2017 164 253 $-77$ 1,389 1,729 214 1,943

** Non-controlling holdings are attributable to minority holdings in subsidiaries in Systematic Funds and Property Funds, and a number of subsidiaries in Property Asset Management and Corporate Finance.

In 2017, there were no transactions involving warrants. As of 31 December 2017, the parent company has a total of 7,000,000 out-standing warrants, of which 200,000 held in treasury. Repurchases of warrants are reported in the consolidated accounts as Other additional capital where classified as non-restricted equity, and as Retained earnings were classified as residual amounts.

Corporate Finance Asset Management Other Group
2018 2017 2018 2017 2018 2017 2018 2017
SEK M
Note
Oct-Dec Oct-Dec Oct-Dec Oct-Dec Oct-Dec Oct-Dec Oct-Dec Oct-Dec
Net sales 299 262 390 424 $-2$ $-8$ 686 679
Other operating income $\Omega$ 12 10 $\overline{0}$ $-0$ $\vert 2 \rangle$ $\overline{10}$
Total income 299 262 401 435 $-2$ -8 698 689
Assignment expenses and commission $-50$ $-29$ $-5$ $-74$ $\circ$ 3 $-101$ $-100$
Other external expenses $-58$ $-33$ $-89$ $-73$ $-5$ $\sim$ [ $-152$ $-107$
Personnel costs $-163$ $-155$ $-209$ $-149$ $-15$ $-$ $-387$ $-315$
Depreciation $-$ $-$ $-8$ $-4$ $-0$ $-0$ $-9$ $-5$
Other operating expenses 3 $-1$ $-4$ $-1$ 13 $-5$ $\vert \vert$ $-7$
Operating profit/loss 30 43 4 1 134 $-10$ $-22$ 60 156
Interest income $\Omega$ $\overline{0}$ $\circ$ $\theta$ $\overline{4}$ 6 5 6
Interest expenses $-$ $-$ $\sim$ [ $-0$ $-7$ $-4$ $-8$ $-5$
Other financial items $\circ$ $\overline{4}$ $-$ $\mathsf{L}$ 20 $\overline{4}$ 20
Financial items-net $-()$ $\overline{0}$ 3 $-1$ $-2$ 21 20
Profit/loss before tax 29 44 44 133 $-12$ $-0$ 62 176
Tax $-18$ $-15$ $-18$ $-34$ $-3$ 6 $-39$ $-42$
Profit for the period from continuing operations $\vert \vert$ 29 26 99 $-15$ 6 23 134
Operations held for sale:
Profit for the period from divestment groups held for sale
9
$\Omega$ $\overline{0}$ $-150$ $-49$ 8 $-142$ $-48$
Net profit/loss for the period $\vert \vert$ 29 $-123$ 50 $-7$ $\overline{7}$ $-119$ 87
Profit/loss attributable to shareholders of the Parent Company 2 29 $-137$ 30 $-7$ 7 $-133$ 67
Corporate Finance Asset Management Other Group
2018 2017 2018 2017 2018 2017 2018 2017
SEK M
Note
Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec Jan-Dec
Net sales 710 656 1.457 1,358 $-9$ $-15$ 2,159 1,998
Other operating income 5 3 53 4 $-0$ $-2$ 57 15
Total income 715 659 1,510 1,371 -9 $-17$ 2,216 2,013
Assignment expenses and commission $-88$ $-74$ $-301$ $-295$ $\mathbf 0$ 10 $-389$ $-359$
Other external expenses $-175$ $-137$ $-268$ $-204$ $-27$ $-13$ $-471$ $-354$
Personnel costs $-405$ $-372$ $-521$ $-443$ $-33$ $-30$ $-960$ $-845$
Depreciation $-5$ $-4$ $-20$ $-13$ $\overline{a}$ $-0$ $-26$ $-17$
Other operating expenses 7 $-2$ $-8$ $-6$ $-16$ $-18$ $-18$ $-26$
Operating profit/loss 49 71 391 410 $-87$ $-69$ 352 412
Interest income 2 15 22 8 23
Interest expenses $-3$ $-3$ $-3$ $\frac{1}{2}$ $-20$ $-13$ $-27$ $-17$
Other financial items $\overline{2}$ $-13$ 8 6 19 $-6$ 28
Financial items-net $-()$ $-()$ $-16$ 7 27 $-15$ 34
Profit/loss before tax 48 70 375 417 $-86$ $-42$ 337 446
Tax $-33$ $-27$ $-104$ $-108$ $\perp$ 27 $-127$ $-108$
Profit for the period from continuing operations 15 43 271 309 $-76$ $-15$ 210 337
Operations held for sale:
Profit for the period from divestment groups held for sale
9
$\mathbf{0}$ $\mathbf 0$ $-242$ $-48$ $\overline{4}$ $-5$ $-238$ $-53$
Net profit/loss for the period 15 43 29 262 $-72$ $-20$ $-28$ 284
Profit/loss attributable to shareholders of the Parent Company
15 43 $-55$ 169 $-72$ $-20$ $-112$ 192

The operating segments reported above, Corporate Finance and Asset Management and Banking, are consistent with internal reporting submitted to management and the Board of Directors and thus represent the Group's operating segments in accordance with IFRS 8, Operating Segments. The Parent Company, other holding companies and Principal Investments are recognized in the "Other " category. Acquisition and financing expenses and Catella' s brand are also recognized in this category. "Other" also includes the elimination of intra-group transactions between the various operating segments. Transactions between the operating segments are limited and are mainly financial transactions and certain reinvoicing of expenses. Any transactions are conducted on arm's length basis.

Historical earnings trend by quarter and operating segment

Corporate Finance
2018 2018 2018 2018 2017 2017 2017 2017
SEK M Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar
Net sales 299 145 157 110 262 43 130 2
Other operating income 2 $\bigcirc$
Total income 299 146 159 $\vert \vert \vert$ 262 44 3 2
Assignment expenses and commission $-50$ $-22$ $-10$ $-6$ $-29$ $-13$ $-19$ $-13$
Other external expenses $-58$ $-38$ $-44$ $-36$ $-33$ $-33$ $-33$ $-38$
Personnel costs $-163$ $-82$ $-90$ $-70$ $-155$ $-75$ $-74$ $-68$
Depreciation $-$ $\overline{a}$ $-1$ $-1$ $-$ $-1$ $\overline{\phantom{a}}$ $-1$
Other operating expenses 3 $\overline{2}$ $\overline{2}$ $-1$ $-2$ $-()$
Operating profit/loss 30 5 16 $-2$ 43 23 $\overline{2}$ $\overline{2}$
Interest income $\theta$ $\circ$ $\Omega$ $\Omega$ $\theta$ $\circ$ $\mathbf 0$
Interest expenses $-$ $=$ $\vert$ $-1$ $\overline{a}$ $\overline{a}$ $\overline{a}$ $-1$ $-1$
Other financial items $\circ$ $-()$ $-1$ $\overline{2}$ $\Omega$ $\circ$ $\mathbf{0}$
Financial items-net $-()$ $\theta$ $-$ $\Omega$ $-()$ $-()$ $-0$
Profit/loss before tax 29 5 4 $-0$ 44 23 $\overline{2}$ $\overline{2}$
Tax $-18$ $-4$ $-7$ $-5$ $-15$ $-8$ $-2$ $-3$
Periodens resultat $\vert \vert$ 7 -5 29 15 $\mathbf{0}$ $-1$
Profit/loss attributable to shareholders of the Parent Company 2 $\overline{7}$ $-5$ 29 15 0 $\overline{\phantom{a}}$
Asset Management
2018 2018 2018 2018 2017 2017 2017 2017
SEK M Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar
Net sales 390 323 343 402 424 314 355 264
Other operating income 12 5 5 31 10 $\overline{\phantom{a}}$ $\Omega$
Total income 401 328 348 433 435 316 356 265
Assignment expenses and commission $-51$ $-66$ $-85$ $-100$ $-74$ $-62$ $-100$ $-58$
Other external expenses $-89$ $-61$ $-14$ $-104$ $-73$ $-44$ $-4$ $-45$
Personnel costs $-209$ $-100$ $-74$ $-139$ $-149$ $-98$ $-111$ $-85$
Depreciation $-8$ $-4$ $-3$ $-5$ $-4$ $-5$ $-2$ $-2$
Other operating expenses $-4$ $-2$ $-4$ $\overline{a}$ $-3$ $-2$ $-()$
Operating profit/loss 4 1 95 173 8 1 134 102 99 74
Interest income $\circ$ $\Omega$ $\circ$ 0 $\Omega$ $\Omega$ $-0$ $\circ$
Interest expenses $-$ $\overline{a}$ $\circ$ $-2$ $-0$ $-0$ $-0$ $-0$
Other financial items $\overline{4}$ $-8$ $-8$ $-1$ $\overline{a}$ $\overline{4}$ $\overline{4}$
Financial items-net 3 $-8$ $-8$ $-3$ $\overline{a}$ $\overline{4}$ $\overline{4}$
Profit/loss before tax 44 87 166 78 133 103 103 78
Tax $-18$ $-22$ $-39$ $-25$ $-34$ $-27$ $-26$ $-21$
Profit for the period from continuing operations 26 65 126 53 99 77 77 57
Operations held for sale:
Profit for the period from divestment groups held for sale $-150$ $-34$ $-58$ $\theta$ $-49$ $-$ $-0$ $\overline{2}$
Net profit/loss for the period $-123$ 31 69 53 50 76 76 59
Profit/loss attributable to shareholders of the Parent Company $-137$ 6 43 33 30 51 49 39
Corporate Finance Asset Management Other Group
SEK M 2018
31 Dec
2017
31 Dec
2018
31 Dec
2017
31 Dec
2018
31 Dec
2017
31 Dec
2018
31 Dec
2017
31 Dec
ASSETS
Non-current assets
Intangible assets 65 63 525 271 56 56 646 390
Property, plant and equipment $\vert \vert$ $\vert \vert$ 8 16 29 27
Holdings in associated companies $\mathbf 0$ $\mathbf 0$ 16 $\theta$ 100 44 116 45
Other non-current securities $\Large{0}$
$\mathbf 0$
$\overline{0}$ 142 173
31
194 265 337 438
99
Deferred tax receivables 17 $\boldsymbol{0}$
$\, 8$
$\perp$
$\overline{2}$
603 70
$-13$
68
$-4$
8 1
$\epsilon$
607
Other non-current receivables 94 83 714 1,093 408 431 1,215 1,606
Current assets
Current loan receivables $\mathbf 0$ $\,0\,$ $\mathbf 0$ 779 $\mathbf 0$ $\,0\,$ $\,0\,$ 779
Accounts receivable and other receivables 186 173 482 547 69 5 737 725
Current investments $\mathbf 0$ $\boldsymbol{0}$ 52 62 71 46 123 108
Cash and cash equivalents 185 255 486 2,625 17 298 687 3,177
370 428 1,020 4,013 156 349 1,547 4,790
Assets in divestment groups held for sale $\mathbf 0$ $\theta$ 4,249 $\circ$ $-2$ $\theta$ 4,247 $\theta$
370 428 5,269 4,013 155 349 5,794 4,790
Total assets 464 511 5,983 5,106 562 779 7,009 6,396
EQUITY AND LIABILITIES
Equity
Equity attributable to shareholders of the Parent Company 35 120 1,389 931 17 678 1,442 1,729
Non-controlling interests 34 45 171 169 $-()$ $-()$ 205 214
Total equity 69 165 1,561 1,100 7 678 1,647 1,943
Liabilities
Non-current liabilities
Long-term loan liabilities $\mathbf{0}$ $\overline{0}$ $\theta$ $\mathbf{0}$ 748 494 748 494
Other non-current liabilities 0 0 12 $\overline{4}$ $-$ 4 $-4$ $\circ$ $\circ$
Deferred tax liabilities $\mathbf 0$ $\,0\,$ 8 26 $\vert \vert$ 12 29 38
Other provisions $\overline{0}$ 3 53 $\overline{2}$ $\overline{0}$ $\theta$ 53 $\overline{4}$
102 3 84 31 646 502 831 537
Current liabilities
Borrowings $\circ$ $\,0\,$ $\mathbf 0$ 122 $\,0\,$ $\,0\,$ $\mathbf 0$ 122
Current Ioan liabilities $\,0\,$ $\mathbf 0$ $\,0\,$ 2,784 $\,0\,$ $\mathbf 0$ $\,0\,$ 2,784
Accounts payable and other liabilities 260 314 548 980 $-95$ $-400$ 713 894
Tax liabilities 33 29 44 88 $\circlearrowright$ $\circ$ 77 116
293 343 591 3,974 $-94$ $-400$ 790 3,917
Liabilities in disposal groups held for sale $\circ$ $\circ$ 3,747 $\circ$ $-6$ $\theta$ 3,741 $\overline{0}$
293 343 4,338 3,974 $-101$ $-400$ 4,531 3,917
Total liabilities 395 346 4,422 4,006 545 102 5,362 4,453
Total equity and liabilities 464 $\overline{511}$ 5,983 5,106 562 779 7,009 6,396

Note 3. Catella's principal investments

From an international perspective, it is important that, in specific circumstances, Catella is able to carry out investments alongside its customers in order to at-tract capital for the projects and products Catella is working with. Over the coming years, Catella intends to set aside capital for these investments, which are primarily in the property sphere.

The capital to be invested mainly relates to anticipated cash flows from or divestments of loan portfolios. Catella perceives significant potential in various projects and dedicated property products where Catella's active participation will

contribute to growth and credibility in addition to generating positive returns. The goal is for investments to generate minimum returns (IRR) of 20% over time.

Through associated companies, Catella has investments in property development projects in Germany and Denmark (For a description of the projects, see below). The projects are run by Catella's German and Danish subsidiaries. Through its associated companies, Catella intends to invest in the early phases of projects where the concept and framework is determined subsequently divesting projects and realizing capital gains before

construction begins and projects are completed.

In order to structure its principal investment and support new property products. Catella has established an investment committee whose task is to evaluate the respective investments or divestments of assets.

For more information about Catella's principal investments under the 'Other' category divided by Holdings in associated companies, Other non-current securities and Current investments, see below.

Holdings in associated Other non-current
OTHER, SEK M companies securities Current investments Total
Property Development Projects * 100 $\sim$ 100
Loan portfolios 154 213
Other holdings 40 52
Total 100 194 365
Investment commitments ' 13

Investment commitments

Investments include the risk that Catella encounters a situation where it is forced to choose between continuing to invest in later phases of projects, run the projects to completion or abandon projects and the associated invested capital

Comments on Catella's principal investments in the fourth quarter 2018

Catella's principal investments are reported under the 'Other' category in the Consolidated Income Statement and Statement of Financial Position, see Notes 1 and 2. As of 31 December 2018. Catella's principal investments totalled SEK 365 M, an increase of SEK 21 M on the previous quarter. The increase is due to factors including profit recognition of the property development project Living Lyon totalling SEK 6 M, capitalised interest expenses relating to property development project Living Central of SEK 5 M and additional investments in Private Equity product Pamica 2 of SEK 3 M.

Property development projects

Living Central

Residential property development project located in Düsseldorf consisting of 1,000 apartments over a total of 38,075 m2.

Living Lyon

Residential property development project located in Frankfurt consisting of 125 apartments and premises over a total of $4.258$ m2.

Kaktus

Residential property development project located in central Copenhagen consisting of 495 apartments and premises over a total of 21,000 m2.

Loan portfolios

The loan portfolios consist of securitized European loans mainly exposed to residential property. The progress of the loan portfolios is closely monitored, and revaluations are made on a continuous basis. Forecasting is performed by French investment advisor Cartesia S.A.S. Book value in Catella's consolidated accounts is determined on the basis of forecast discounted cash flows mainly comprising interest payments, but also amortization.

A summary of Catella's loan portfolio as well as actual and forecast cash flows are presented in the relevant Note below.

Other holdings

Other holdings mainly consist of listed and unlisted shares in Swedish limited companies.

Summary of Catella's loan portfolios

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 51.4 18.1% 49.2 23.5% 6.0% 0.7
Pastor 3 ** Spain $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ $\overline{\phantom{a}}$
Pastor 4 Spain 30.2 10.7% 14.2 6.8% 11.0% 7.3
Pastor 5 ** Spain $\sim$ $\sim$ $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ $\sim$ $\sim$
Lusitano 3 Portugal 78.4 27.6% 65.8 31.5% 6.0% 3.1
Lusitano 4 ** Portugal ٠ $\sim$ $\overline{\phantom{a}}$ $\sim$ $\sim$ $\sim$
Lusitano 5 Portugal 123.7 43.6% 79.8 38.2% 11.0% 4.4
Sestante 2 ** Italy $\sim$ $\sim$ $\overline{\phantom{a}}$ $\sim$ $\sim$ $\overline{\phantom{a}}$
Sestante 3 ** Italy $\sim$ $\sim$ $\sim$ $\sim$ $\sim$ $\overline{\phantom{a}}$
Sestante 4 ** Italy ٠ $\sim$ $\overline{\phantom{a}}$ ٠ $\sim$
Total cash flow *** 283.7 100.0% 209.0 100% 8.3% 3.7
Accrued interest 3.5
Carrying amount in consolidated balance sheet 212.5

* The forecast was produced by investment advisor Cartesia S.A.S.

** These investments were assigned a value of SEK 0

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

Method and assumption 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 on Catella's loan portfolio can be found on Catella's website.

Cash flow projections

The portfolio is valued according to the fair value method, as defined in IFRS. In the absence of a functional and sufficiently liquid market for essentially all investments and comparable subordinated investments, valuation is per-formed using the mark-to-model method. This method is based on projecting cash flow until maturity for each investment using market-based credit assumption. Projected cash flows have been produced by the external investment advisor Cartesia. The credit assumption used by Cartesia is based on the historical performance of each investment and a

broad selection of comparable transactions. Projected cash flows include assumptions of potential deterioration of credit variables. They do not include the full effect of a scenario of low probability and high potential negative impact, such as a dissolution of the Euro zone, where one of the countries in which EETI has underlying investments leaves the European Monetary Union, or similar scenarios. Adjustments of cash flows affect this value and are stated in a sensitivity analysis on Catella's website.

Discount rates

The discount rates applied are set internally and are based on a rolling 24month index of non-investment grade European corporate bonds as underlying assets (iTraxx). The discount rates per portfolio are also set relative to other assets in the absence of market prices for the assets held by EETI. Each quarter, the Board of EETI evaluates the projected cash flows and related assumptions, combined

with the market pricing of other assets for possible adjustment of the discount rates in addition to variations in the index. 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 owner ship of the same asset class are prioritized in instances of default or if the loss exceeds predetermined levels. This could result in interruptions in the income flow that Catella has assumed from its investment portfolio. For more information, see Note 23 in the Annual Report for 2017.

DEN ITI эран nor tugai italy i vetrierianus асынды у гтансе UN
Loan portfolio Pastor 2 Pastor 3 Pastor 4 Pastor 5 Lusitano 3 Lusitano 5 Sestante 4 Memphis ** Shield** Gems ** Semper ** Minotaure
$\pm\pi$
Ludgate ** Outcome Forecast Diff
Outcome
Full year 2009 4.6 0.4 0.8 $\overline{\phantom{a}}$ 0.9 1.7 0.2 1.6 2.2 0.0 12.4 7.7 4.7
Full year 2010 7.8 $\sim$ i. $\sim$ 2.7 0.0 $\sim$ 3.3 6.1 0.7 5.8 8.8 0.5 35.6 35.7 $-0.1$
Full year 2011 9.8 J. ä, ä, $\vert \ \vert$ . 0.0 0.6 3.3 4.4 0.9 5.7 6.9 0.4 43.1 28.4 14.7
Full year 2012 4.5 10.2 0.0 0.5 0.8 $\overline{\phantom{a}}$ 0.7 5.2 3.7 0.1 25.8 30.1 $-4.3$
Full year 2013 0.2 i. i. ÷. 2.7 0.0 0.4 ×, ×, 0.4 1.2 i, 0.2 5.0 7.5 $-2.5$
Full year 2014 0.3 i. ÷. ×. 6.7 0.0 0.4 ÷, ×. 0.4 i. 13.1 20.9 12.8 8.1
Full year 2015 0.1 i. ÷, ÷, 3.7 0.0 0.5 ÷, $\sim$ 0.3 ä, i, 16.9 21.5 23.2 $-1.6$
$\mathsf{Q}$ 2016 $\sim$ ×. ä, ÷, 1.7 $\bar{a}$ 0.1 ä, ×, 46.7 ä, ä, 3.9 52.4 51.3 $\pm 1$
Q2 2016 0.1 i. i. i. 2.0 $\overline{\phantom{a}}$ 0.1 $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ i. i. $\overline{\phantom{a}}$ 4.0 6.2 5.4 0.9
Q3 2016 $\bar{z}$ ×. $\overline{\phantom{a}}$ ÷. 0.9 $\overline{\phantom{a}}$ 0.1 ÷, ×, ×. ä, $\overline{\phantom{a}}$ 3.4 4.5 5.0 $-0.5$
Q 4 2016 $\sim$ $\sim$ $\sim$ $\overline{\phantom{a}}$ 3.7 $\overline{\phantom{a}}$ 0.1 ÷, $\sim$ $\sim$ $\sim$ ÷, 3.4 7.2 5.2 2.1
$\mathop{\mathrm{Q}}$ 2017 $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ ÷ $\frac{1}{2}$ 1.5 $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ ÷ $\overline{\phantom{a}}$ $\overline{a}$ ÷, ÷, 2.6 4.1 5.0 $-0.9$
Q2 2017 ×, ÷, ä, ä, 1.9 $\overline{\phantom{a}}$ $\overline{\phantom{a}}$ ä, ×, i. ×, ä, 3.5 5.5 5.6 $-0.1$
Q 3 2017 ÷, i, i. ÷, 1.8 ÷, $\overline{\phantom{a}}$ i, $\sim$ i. ä, i, 4.6 6.4 5.0 .4
Q4 2017 0.0 ÷. i. ÷. 3.8 ä, $\overline{\phantom{a}}$ i. $\sim$ ÷. ÷. i. 2.7 6.5 4.8 1.7
$Q \mid$ 2018 0.0 ×, $\overline{\phantom{a}}$ ×, 3.1 ÷, $\sim$ $\overline{\phantom{a}}$ $\sim$ $\sim$ $\overline{\phantom{a}}$ ×, 3.1 2.6 0.5
Q2 2018 0.0 i, ÷, 2.4 ł, $\overline{\phantom{a}}$ ÷, ÷, ÷, ÷, 2.4 2.7 $-0.3$
Q 3 2018 0.0 J. ÷, ÷, 2.1 $\overline{\phantom{a}}$ $\bar{a}$ i, ÷, ÷, i, ł, 2.2 2.2 $-0.1$
Q4 2018 $\overline{\phantom{a}}$ i. i. ×, 3.6 $\overline{\phantom{a}}$ ×, i. ×, i. ä, ä, i. 3.6 2.3 1.3
Total 27.2 0.0 0.0 0.0 66.0 0.8 2.9 8.4 12.2 50.4 19.4 21.7 59.3 268.3 242.3 26.0
Forecast
Quarter/
Forecast Year Acc.
2019 0.0 ä, 2.2 $\overline{\phantom{a}}$ 2.2 2.2
Q2 2019 0.0 ä, 2.3 ä, 2.3 4,4
Q 3 2019 51.4 ä, 2.8 ä, 54.2 58.6
Q4 2019 ÷. 3.1 3.1 61.7
Full year 2020 ÷. 15.1 15.1 76.9
Full year 2021 ä, 17.2 39.0 56.2 133.1
Full year 2022 ÷, 17.9 30.6 48.5 181.5
Full year 2023 ä, 2.5 30.9 33.3 214.9
Full year 2024 $\overline{\phantom{a}}$ 15.3 2.3 17.6 232.5
Full year 2025 ÷, 1.9 1.9 234.4
Full year 2026 30.2 1.5 31.8 266.1
Full year 2027 17.6 17.6 283.7
Total 51.4 0.0 30.2 0.0 78.4 123.7 0.0 0.0 0.0 0.0 0.0 0.0 0.0 283.7

Note 4. Short and long-term investments

SEK M 31 December 2018
Loan portfolios 213
Operation-related investments 199
Other securities 48
Total * 459

* of which short-term investments SEK 123 M and long-term investments SEK 337 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. Observable 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 nonobservable 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 2017.

The Group's assets and liabilities measured at fair value as of 31 December 2018 are stated in the following table.

SEK M Tier I Tier 2 Tier 3 Total
ASSETS
Derivative instruments 9 9
Financial assets measured at fair value through profit or
loss
56 120 275 451
Total assets 56 129 275 459
LIABILITIES
Derivative instruments Ω
Total liabilities $\Omega$ 0 0 $\mathbf 0$

No changes between levels occurred the previous year.

CHANGE ANALYSIS, FINANCIAL ASSETS, LEVEL 3 IN THE FULL YEAR

2018
as of I January 309
Purchases 77
Disposals $-102$
Amortisation $-7$
Gains and losses recognised through profit or loss 8
Reclassification to Assets in divestment groups held for sale $-1$
Reclassification to holding in group company $-31$
Exchange rate differences 12
As of 31 December 275

Pledged assets

217
Other pledged assets 49
Cash and cash equivalents 167
Of which pledged assets related to divestment groups held for sale:
255 253
Other pledged assets 49 48
Cash and cash equivalents 205 205
SFK M 31 Dec 31 Dec
2018 2017

Contingent liabilities

2.018 2017
SFK M 31 Dec 31 Dec
Client funds managed on behalf of clients 9 56.
Other contingent liabilities 6 -6
97 63
Of which contingent liabilities related to divestment groups held for sale:
Client funds managed on behalf of clients 9
Other contingent liabilities
96

Commitments

2.018 2017
SFK M 31 Dec 31 Dec
Unutilised credit facilities, granted by Catella Bank 2.760 2.668
Investment commitments 113 $\overline{2}$
Other commitments 3
Of which commitments related to divestment groups held for sale: 2.876 2.697
Unutilised credit facilities, granted by Catella Bank 2,760
Investment commitments
Other commitments ς
2.763
Trademarks Contractual Software
customer licenses and IT
Financial year 2017 Goodwill and brands relations systems Total
Opening balance 292 50 28 42 412
Purchases 40 40
Cost in acquired companies $\overline{2}$ $\overline{4}$ 6
Disposals $\mathbf 0$
Reclassification from tangible assets
Depreciation $-9$ $-10$ $-18$
Items affecting comparability - Impairment of intangible assets $-20$ $-33$ $-53$
Exchange rate differences $\overline{2}$ $\circ$ $\circ$ $\overline{3}$
Closing balance 276 50 24 40 390
As of 31 December 2017
Cost 296 50 39 98 483
Accumulated depreciation and impairment $-20$ $-15$ $-58$ $-93$
Book value 276 50 24 40 390
Financial year 2018
Opening balance 276 50 24 40 390
Purchases 15 4 29
Cost in acquired companies 170 74 245
Disposals $-0$ $-0$
Reclassification to operating expenses $-1$ $-1$
Depreciation $-11$ -9 $-20$
Exchange rate differences $\overline{2}$ п $\mathbf{I}$ $\overline{3}$
Closing balance 448 50 104 44 646
At 31 December 2018
Cost 468 50 130 112 761
Accumulated depreciation and impairment $-20$ $-26$ $-69$ $-115$
Book value 448 50 104 44 646

Note 8. Information regarding acquisition of APAM Ltd

On 13 December 2018, following approval by Luxembourg Supervisory Authority CSSF, Catella acquired 75% of the shares in APAM Ltd. The UK is an important strategic market for Catella, and the acquisition strengthens the pan-European platform in the Property Investment Management business area.

APAM is an independent property investment and asset management advisor active on the UK market. APAM has assets under management totalling GBP 1.4 Bn and 41 employees. The company's two founders and CEOs, Simon Cooke and William Powell, will remain as shareholders and retain active roles in the company for a minimum of five years.

Catella and the two minority shareholders in APAM have signed an agreement relating to put and call options, where Catella holds a call option to acquire shares from the minority shareholders, and the minority shareholders have a put option to sell their

shareholding to Catella in autumn 2023 at a price dependent on future profit. The acquisition analysis is based on all shares in APAM being acquired.

The acquired operations, which are included in the Asset Management operating segment, were consolidated as a subsidiary from 13 December 2018. As of this date, fair value of the acquired net assets in APAM amounted to SEK 114 M. Had full consolidation of APAM occurred on I January 2018, consolidated income would have amounted to SEK 2,270 M, while profit after tax for the period from remaining operations and comprehensive income for the period would have amounted to SEK 218 M and SEK 49 M respectively. These amounts have been calculated on the basis of the Group's accounting principles and adjusting for APAM's profit. The figure includes additional depreciation and amortisation that would have applied if fair value adjustments of intangible assets had been

effected as of 1 Ianuary 2018 alongside the ensuing tax consequences.

The present value of the total purchase consideration for 100% of the shares in APAM is estimated at SEK 285 M, of which SEK 242 M was financed by Catella's proprietary funds in cash payments in the first and fourth quarters 2018. In addition. Catella has had acquisition-related expenses of SEK 5 M which burdened operating profit in 2018.

Goodwill of SEK 170 M arising from the acquisition relates to operational expansion from the increased presence on the UK market and human capital. No proportion of the goodwill reported is expected to be deductible against income tax

Fair value of acquired identifiable intangible assets of SEK 74 M (SEK 61 M after consideration of latent tax) is attributable to the existing customer contact portfolio.

Acquisition-related intangible assets 74
Property, plant and equipment $\Omega$
Financial assets measured at fair value through profit or loss 20
Other receivables 16
Cash and cash equivalents 26
Deferred tax liabilities $-14$
Other liabilities $-8$
Fair value, net assets $ $ 4
Non-controlling interests $\Omega$
Goodwill 170
Total purchase price 285
Unsettled purchase price $-43$
Cash-settled purchase consideration 242
Cash and cash equivalents in acquired subsidiary $-26$
Acquisition expenses 5
Change in the Group's cash and cash equivalents on acquisition 220

Change in the Group's cash and cash equivalents on acquisition

This valuation is preliminary while awaiting final valuation of the assets, which is expected to occur within 12 months from the acquisition date.

Note 9. Disposal group held for sale

The Banking business area is reported as a disposal group held for sale in the Consolidated Income Statement. Comparative figures from previous years have been reported in a corresponding manner. The following Income Statement and condensed Statement of Financial Position for the Banking business area does not include eliminations between the Corporate Finance

and Asset Management (and Banking) operating segments.

Progress full year 2018

Total income in the period was SEK 340 M (475) and profit/loss in the period totalled SEK-242 M (-48). Profit/loss in the period was affected by

wind down expenses totalling SEK 164 M

and deferred tax income of SEK 51 M. while income of SEK 384 M from agreed assets/liabilities transfers, judged to be due to Catella, were not included in profit. Income of SEK 258 M is expected to be recognised in 2019, and SEK 126 M at the end of 2019 or alternatively at the beginning of 2020.

SEK M 3 Months 12 Months
2018 2017 2018 2017
INCOME STATEMENT-CONDENSED Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Total income 77 138 340 475
Total expenses $-278$ $-187$ $-637$ $-520$
Profit/loss before tax $-201$ $-50$ $-297$ $-45$
Tax 51 3 55 $-3$
Net profit/loss for the period $-150$ $-47$ $-242$ $-48$
FINANCIAL POSITION - CONDENSED 2018 2017
Assets 31 Dec 31 Dec
Non-current assets 644 671
Current assets 3.605 3,104
Total assets 4,249 3,775
Equity
Equity attributable to shareholders of the Parent Company 502 408
Total equity 502 408
Liabilities
Non-current liabilities 26 22
Current liabilities 3.721 3,345
Total liabilities 3.747 3,367
Total equity and liabilities 4,249 3,775

Note 10. Capital adequacy-consolidated financial situation

Catella AB and those subsidiaries that conduct operations regulated by Swedish or foreign financial supervisory authorities constitute a financial corporate group, known as a consolidated financial situation. The consolidated financial situation is governed by CSSF in Luxembourg. Catella Bank S.A is the reporting entity and responsible institute. Group companies currently included in / excluded from the consolidated financial situation are shown in Note 20 of Catella's Annual Report $2017.$

Discussions are underway with CSSF regarding the divestment of the bank's operations, reporting and other matters that apply to the consolidated financial situation.

The consolidated financial situation is subject to the EU 's and the Council's statute (EU) no .575/32013 (CRR).

The Annual Account s for Credit Institutions and Investment Firms Act. (1995: 1559), ÅRKL, stipulates that consolidated accounts shall be prepared for a consolidated financial situation.

Catella complies with this requirement by supplying the information contained in this Note on the consolidated financial situation's accounts in accordance with ÅRKL. The accounting principles indicated in Other financial information have been applied when preparing these financial statements and are consistent with ÅRKL. Otherwise, please refer to Catella AB's consolidated accounts.

The following tables state extracts from the accounts for the consolidated financial situation.

Income Statement-condensed, consolidated financial situation

2018 2017
SEK M Jan-Dec Jan-Dec
Net sales 1,271 1,232
Other operating income 25 13
Total income 1,296 1,245
Assignment expenses & commission $-386$ $-333$
Income excl. direct assignment costs and commission 910 912
Operating expenses $-629$ $-597$
Operating profit/loss 281 316
Financial items-net $-49$ 407
Profit/loss before tax 232 723
Tax $-73$ $-69$
Profit for the period from continuing operations 159 653
Operations held for sale:
Profit for the period from divestment groups held for sale $-238$ $-41$
Net profit/loss for the period $-79$ 612
Profit/loss attributable to:
Shareholders of the Parent Company $-163$ 520
Non-controlling interests 84 92
$-79$ 612
Employees at end of period 339 343

Financial position—condensed, consolidated financial situation

2018 2017
SEK M 31 Dec 31 Dec
Non-current assets 1,245 1,921
Current assets 1,145 4,264
Assets in divestment groups held for sale 4,247 $\sim$
Total assets 6,637 6,185
Equity 1,661 2,011
Liabilities 1,235 4,174
Liabilities in disposal groups held for sale 3,741 $\sim$
Total equity and liabilities 6,637 6.185

Capital adequacy—consolidated financial situation

2018 2017
SEK M 31 Dec 31 Dec
Common Equity Tier I capital 896 1,111
Additional Tier I capital $\Omega$ $\,0\,$
Tier 2 capital $\theta$ $\mathbf 0$
Own funds 896 1,111
Total risk exposure amount 4,920 5,708
OWN FUNDS AND BUFFERS
Own funds requirements Pillar I 394 457
of which own funds requirements for credit risk 216 259
of which own funds requirements for market risk 21 71
of which own funds requirements for operational risk 156 126
of which own funds requirements for credit valuation adjustment risk $\mathcal{O}$ $\cal O$
Own funds requirements Pillar 2 148 184
Institution-specific buffer requirements 175 200
Internal buffer 49 57
Total own funds and buffer requirements 766 898
Capital surplus after own funds and buffer requirements 130 212
Capital surplus after regulatory required own funds and buffer requirements 180 269
CAPITAL RATIOS, % OF TOTAL RISK EXPOSURE AMOUNT
Common Equity Tier capital ratio 18.2 19.5
Tier capital ratio 18.2 19.5
Total capital ratio 18.2 19.5
OWB FUNDS AND BUFFERS, % OF TOTAL RISK EXPOSURE AMOUNT
Own funds requirements Pillar I 8.0 8.0
Own funds requirements Pillar 2 3.0 3.2
Institution-specific buffer requirements 3.6 3.5
of which requirement for capital conservation buffer 2.5 2.5
of which requirement for countercyclical capital buffer 1.1 1.0
Internal buffer 1.0 1.0
Total own funds and buffer requirements 15.6 15.7
Capital surplus after own funds and buffer requirements 2.6 3.7
Capital surplus after regulatory required own funds and buffer requirements 3.6 4.7
2018 2017
Own funds, SEK M 31 Dec 31 Dec
Common Equity Tier 1 capital
Share capital and share premium reserve 404 399
Retained earnings and other reserves 1,258 1,612
Less:
Intangible assets $-285$ $-298$
Price adjustments $-24$ $-31$
Deferred tax receivables $-121$ $-68$
Qualifying holdings outside the financial sector $-185$ $-51$
Positive results not yet verified by the Annual General Meeting $\overline{\phantom{a}}$ $-329$
Other deductions $-150$ $-123$
Total Common Equity Tier I capital 896 1,111
Additional Tier capital
Tier 2 capital
Own funds 896 1,111
2018 2017
31 Dec 31 Dec
Specification of risk-weighted exposure amounts and own funds requirements Pillar 1, SEK M Risk-weighted
exp.amount
OWN TUNNE
requirements
Pillar I
Risk-weighted
exp.amount
U WILLIUMU
requirements
Pillar
Credit risk according to Standardised Approach
Exposures to institutions 446 36 584 47
Exposures to corporates 630 50 850 68
Exposures to retail 13 3 $\mathbf{0}$
Exposures secured by mortgages on immovable property 125 10 244 20
Exposures in default 9 15 295 24
Items associated with particular high risk 180 4 169 3
Exposures in the form of covered bonds $\overline{4}$ $\Omega$ 3 $\mathbf{0}$
Exposures to collective investment undertakings (funds) $\Omega$ 15
Equity exposures 483 39 340 27
Other items 628 50 741 59
2.701 216 3,242 259
Market risk
Interest risk $\theta$ $\Omega$ $\Omega$ $\overline{0}$
Foreign exchange risk 268 21 893 71
268 21 893 71
Operational risk according to the Basic Indicator Approach 1,948 156 1,570 126
Credit valuation adjustment risk $\overline{4}$ $\mathbf 0$ 3 0
Total 4,920 394 5,708 457

Parent Company Income Statement

2018 2017 2018 2017
SEK M Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net sales 17.5 2.0 31.2 . .
Other operating income 0.2 0.0 1.2 0.0
Total income 17.6 2.0 32.5 11.2
Other external expenses $-14.4$ $-6.1$ $-49.4$ $-26.8$
Personnel costs * $-15.2$ $-12.6$ $-38.4$ $-36.2$
Depreciation $-0.0$ $-0.0$ $-0.1$ $-0.0$
Other operating expenses $-0.0$ $-0.0$ $-0.0$ 0.0
Operating profit/loss $-12.0$ $-16.7$ $-55.5$ $-51.9$
Profit/loss from participations in group companies 0.0 100.0 0.0 190.0
Interest income and similar profit/loss items $-1.4$ 0.0 7.5 $-0.0$
Interest expenses and similar profit/loss items $-6.7$ $-5.2$ $-25.1$ $-18.6$
Financial items $-8.1$ 94.8 $-17.6$ 171.4
Profit/loss before tax $-20.1$ 78.1 $-73.1$ 119.5
Appropriations 236.2 0.0 236.2 0.0
Tax on net profit for the year $-35.0$ 0.0 $-19.8$ 0.9
Net profit/loss for the period 181.2 78.1 143.4 120.4

* Personnel costs include directors' fees

Parent Company Statement of Comprehensive Income

SEK M 2018
Oct-Dec
2017
Oct-Dec
2018
lan-Dec
2017
Jan-Dec
Net profit/loss for the period 181.2 78. 143.4 20.4
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 181.2 78. 143.4 120.4

Parent Company Balance Sheet-condensed

2018 2017
SEK M 31 Dec 31 Dec
Property, plant and equipment 0.2 0.0
Participations in Group companies 1,052.6 654.1
Deferred tax receivables 0.0 19.8
Current receivables from Group companies 350.4 46.8
Other current receivables 5.6 103.9
Cash and cash equivalents 17.8 263.9
Total assets 1,426.5 1,088.6
Equity 654.6 574.0
Non-current liabilities 748.4 494.0
Current liabilities to Group companies 1.5 0.5
Other current liabilities 22.2 20.1
Total equity and liabilities 1,426.5 ,088.6

There were no assets pledged or contingent liabilities as of 31 December 2018.

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. From the second quarter 2016, Catella applies the European Securities and Markets Authority's (ESMA) new guidelines for alternative performance measures. In summary, an alternative performance measure is a financial Definitions

measure of historical or future profit progress, financial position or cash flow not defined by or specified under 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.

Non-IFRS performance measure Description Reason for using the measure
Equity per share attributable to Equity attributable to parent company shareholders Provides investors with a view of equity as represented by a
parent company shareholders* divided 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
shareholders for the most recent four quarters divided
by average equity attributable to parent company
shareholders in the most recent five quarters.
The company considers that the performance measure
provides investors with a better understanding of return on
equity.
Adjusted return on equity* Total profit in the period attributable to the parent
company share adjusted for items affecting comparability
for the most recent four quarters divided by average
equity attributable to parent company share-holders in
the most recent five quarters.
The company considers that the performance measure
provides investors with a better understanding of return on
equity when making comparisons with earlier periods.
Equity/assets 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
period.
The measure illustrates profitability regardless of the rate of
corporation tax.
Adjusted profit margin* Profit for the period adjusted for items affecting
comparability divided by total income for the period.
The measure illustrates profitability regardless of the rate of
corporation tax when making comparisons with earlier
periods.
Property transaction volumes in Property transaction volumes in the period constitutes An element of Catella's income in Corporate Finance is
the period the value of underlying properties at the transaction
dates.
agreed with customers on the basis of the underlying
property value of the relevant assignments. Provides
investors with a view of what drives parts of the income.
Assets under management at year- Assets under management constitutes the value of An element of Catella's income in Asset Management and
end Catella's customers' deposited/invested capital. Banking is agreed with customers on the basis of the value of
the underlying invested capital. Provides investors with a view
of what drives parts of the income.
Card and payment volumes Card and payment volumes are the value of the
underlying card transactions processed by Catella.
Card and payment volumes are value drivers for Catella's
income in Card & Payment Solutions. Provides investors with
a view of what drives parts of the income.
Adjusted Earnings per share Profit for the period attributable to parent company
shareholders divided by the number of shares.
Provides investors with a view of the company's Earnings per
share when making comparisons with earlier periods.

* See next page for basis of calculation

KPI, remaining operations (excl. Banking business area)

3 Months 12 Months
2018 2017 2018 2017
GROUP Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net profit/loss for the period, SEK M 23 134 210 337
Total income, SEK M 698 689 2,216 2,013
Profit margin, % 3 20 9 17
Equity, SEK M ٠ 1,145 1,450
Total assets, SEK M 2.760 2,621
Equity/Asset ratio, % 4 1 55
Net profit/loss for the period, SEK M * 9 14 127 245
No. of shares at end of the period 84, I 15, 238 81, 848, 572 84, I 15, 238 81.848.572
Earnings per share, SEK *
Equity, SEK M * 940 1.236
No. of shares at end of the period 84, I 15, 238 81, 848, 572 84, I 15, 238 81,848,572
Equity per share, SEK * $\overline{\phantom{a}}$ ٠ 11.17 15.10
2018 2018 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016 2015 2015 2015
GROUP Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun
Net profit/loss for the period, SEK M * 9 25 71 22 114 60 37 34 32 33 44 32 116 46 59
Equity, SEK M * 940 .142 1.119 1,133 1,236 1.105 1,050 1,092 1,063 1,029 1,038 1.048 1,024 949 894
D 0/ $\pm$ $\pm$ $\sim$ $\bigcap$ $\bigcap$ $\sim$ 1 $\cap$ $\blacksquare$ $\sqrt{2}$ $\overline{1}$ $\blacksquare$ $\sim$ $\sim$ $\lambda$
3 Months 12 Months
2018 2017 2018 2017
CORPORATE FINANCE Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net profit/loss for the period, SEK M 29 15 43
Total income, SEK M 299 262 715 659
Profit margin, % 4 $\mathsf{L}$ $\overline{7}$
Equity, SEK M $\sim$ 69 165
Total assets. SEK M $\overline{\phantom{a}}$ 464 511
Equity/Asset ratio, % $\overline{\phantom{a}}$ 15 32
2018 2018 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016 2015 2015 2015
CORPORATE FINANCE Oct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun
Net profit/loss for the period, SEK M * 12 $-5$ 29 15 $\Omega$ $-1$ 36 -8 32 13 16
Equity, SEK M * 35 44 42 15 120 90 78 177 254 237 222 206 213 184 7
Return on equity, % 21 40 52 34 30 15 $\vert \vert$ 26 22 33 37
3 Months 12 Months
2018 2017 2018 2017
ASSET MANAGEMENT Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net profit/loss for the period, SEK M 65 99 271 309
Total income, SEK M 328 435 .510 .371
Profit margin, % 20 23 18 23
Equity, SEK M $\sim$ 0.058 607
Total assets, SEK M $\overline{\phantom{a}}$ 1.733 .330
Equity/Asset ratio, % $\blacksquare$ 61 46
2018 2018 2018. 2017 2017 2017 2017 2016 2016 2016 2016 -2015 2015 2015
ASSET MANAGEMENT Oct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun
Net profit/loss for the period, SEK M * 101 79. 49 14 40
Equity, SEK M * 530 438 -445 4 4 - 393 418 349 343 364 325 403 377
Return on equity, % 30 48 51 43 36 28 30 36

KPI, all operations (incl. Banking business area)

3 Months
2018 2017 2018 2017
GROUP Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Profit margin, % $-15$ $ 0\rangle$ $-$ $\vert \vert$
Return on equity, % * $\sim$ $\sim$ $-7$ 12
Equity/Asset ratio, % $\sim$ 74 30
Equity, SEK M * $\sim$ 1,442 1,729
No. of employees, at end of period $\sim$ 705 626
Earnings per share, SEK * $-1.58$ 0.81 $-1.33$ 2.35
Equity per share, SEK * 17.14 21.12
CORPORATE FINANCE
Profit margin, % $\overline{4}$ $\perp$ $\overline{2}$ $\tau$
Return on equity, % * $\sim$ 21 30
Equity/Asset ratio, % $\sim$ 15 32
Equity, SEK M * $\sim$ 35 120
No. of employees, at end of period $\sim$ 221 210
Property transaction volume for the period, SEK Bn 23.3 22.6 68.6 56.2
ASSET MANAGEMENT AND BANKING
Profit margin, % 8 9 $\overline{2}$ 4
Return on equity, % * $\sim$ 8
Equity/Asset ratio, % $\overline{\phantom{a}}$ $\sim$ 26 22
Equity, SEK M * $\overline{\phantom{a}}$ 1,389 931
No. of employees, at end of period $\sim$ 470 401
Asset under management at end of period, SEK Bn $\overline{a}$ 207.0 184.3
net in-(+) and outflow(-) during the period, mdkr $-3.0$ 14.4 $-0.1$ 24.5
Card and payment volumes, SEK Bn 4.5 5.9 16.2 17.9
3 Months 12 Months
2018 2017 2018 2017
GROUP Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net profit/loss for the period, SEK M $-119$ 87 $-28$ 284
Total income, SEK M 775 824 2,553 2,477
Profit margin, % $-15$ $\overline{0}$ $-1$ $\vert \vert$
Equity, SEK M ×. 1,647 1,943
Total assets, SEK M $\sim$ 7,009 6,396
Equity/Asset ratio, % 24 30
Net profit/loss for the period, SEK M * $-133$ 67 $-112$ 192
No. of shares at end of the period 84, I I 5, 238 81, 848, 572 84, I 15, 238 81, 848, 572
Earnings per share, SEK *
Equity, SEK M * 1,442 1,729
No. of shares at end of the period 84, I I 5, 238 8 1, 848, 572 84, I I 5, 238 81, 848, 572
Equity per share, SEK * 17.14 21.12
2018 2018 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016 2015 2015 2015
GROUP Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun
Net profit/loss for the period, SEK M * $-133$ $-13$ 13 22 67 59 33 33 37 35 182 17 123 37 48
Equity, SEK M * 1,442 ,579 1,588 1,626 1,729 ,628 1,577 1,597 1,563 1,534 1,484 1,333 1,319 1,232 1,177
Return on equity, % $-7$ 5 10 $\perp$ 12 10 9 9 9 26 27
3 Months 12 Months
2018 2017 2018 2017
CORPORATE FINANCE Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net profit/loss for the period, SEK M 29 15 43
Total income, SEK M 299 262 715 659
Profit margin, % 4 $\mathsf{I}$ $\overline{7}$
Equity, SEK M $\sim$ 69 165
Total assets, SEK M ٠ 464 511
Equity/Asset ratio, % ۰ 15 32
2010 2010 2010 2010 $2017$ $2017$ $2017$ 2017 פורים פורים פורים ורוב אורים ולורים אורים ו
- 2018 - - 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016 2015 2015 2015
CORPORATE FINANCE Oct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun
Net profit/loss for the period, SEK $M^*$ -5. , 29 15 0 - 11 11 36 - 8 $ 3 $ 16
Equity, SEK M * $42$ $115$ $120 -$ - 90 - - 78 1/7 - 254 237 222 206 $\sim$ 213 $\sim$ -184
Return on equity, % 34 30 15 26 22
3 Months 12 Months
2018 2017 2018 2017
ASSET MANAGEMENT AND BANKING Oct-Dec Oct-Dec Jan-Dec Jan-Dec
Net profit/loss for the period, SEK M 31 50 29 262
Total income, SEK M 401 572 1.847 844,
Profit margin, % 8 9 4
Equity, SEK M $\sim$ 1,561 1,100
Total assets, SEK M $\overline{\phantom{a}}$ 5,982 5,106
Equity/Asset ratio, % 26 22
2018 2018. 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016 2015 2015 2015
ASSET MANAGEMENT Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun
Net profit/loss for the period, SEK M * $-137$ 6. 43 33 30 51 49 39 43 27 158 24 68 12 8
Equity, SEK M * .389 .093 1.097 .022 931 967 941 898 918 855 789 649 620 686 660
Return on equity, % $-5$ Н 16 7 8 20 8 33 33 39 39

P.O. Box 5894, SE-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]

catella.com

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