Earnings Release • May 9, 2018
Earnings Release
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Total income increased by SEK 46 M to SEK 541 M, up 9%, mainly driven by Prop-erty Investment Management and Equity, Hedge and Fixed Income Funds. Profit was in line with the previous year despite reve-nue recognition of potential variable earn-ings in Systematic Macro being deferred to year end, in contrast with the previous quarterly and annual settlement. Accrued but not chargeable variable earnings in Systematic Macro totalled some SEK 125 M at the end of the quarter, which was not included in profit for the quarter. As previ-ously announced, the client portfolio in the card acquiring operations is being reduced from this quarter onwards, which impacts the Banking operations' profit negatively."
rupus teams are the main that all the basis of Systematic Macros' performance-based management fees. In order
for the performance-based management fee to be settled at year end, and recognised for profit/loss, returned mus than comparative indices and the most recent level settled (High watermark). Accordingly, actual settlement at year end may be higher. Jower or entirely absent relative to the indicated amount.
Total income increased by SEK 46 M to SEK 541 M, up 9%, mainly driven by Property Investment Management and Equity, Hedge and Fixed Income Funds. Profit was in line with the previous year despite revenue recognition of potential variable earnings in Systematic Macro being deferred to year end, in contrast with the previous quarterly and annual settlement. Accrued but not chargeable variable earnings in Systematic Macro totalled some SEK 125 M at the end of the quarter, which was not included in profit for the quarter. As previously announced, the client portfolio in the card acquiring operations is being reduced from this quarter onwards, which impacts the Banking operations' profit negatively.
Assets under management increased by SEK 4.6 Bn year-on-year, but decreased by SEK 3.5 Bn on the previous quarter driven by net outflows of SEK 5.8 Bn. Outflows in the quarter were attributable to Systematic Macro, due to the termination of one customer's external fund management program. This was a low risk mandate that will not affect income from future fixed earnings or potential variable earnings significantly. Excluding this item, the business area generated net inflows of some SEK 2.2 Bn.
Income and profit both increased yearon-year, despite accrued variable earnings in Systematic Funds not being reported in the quarter. Increased assets under management coupled with a more favourable product mix increased fixed earnings, mainly in Systematic Funds. Accrued variable earnings in Systematic Funds totalled some SEK 125 M at the end of the period.
The business area's annualised profit from fixed earnings/fixed expenses was SEK 282 M at the end of the quarter, in line with the previous quarter and up by SEK 90 M year-on-year.
We're focusing on improving the distribution of our products by applying for new permits on existing and new geographical markets to reach new customer
groups. It's important to broaden the operations of Mutual Funds and Systematic Funds through new actively managed products in order to strengthen our position and capitalize on the existing platform.
Assets under management increased by SEK 15.4 Bn year-on-year, of which net inflows totalled SEK 2.0 Bn in the quarter.
The business area returned strong income growth in year-on-year terms, and is progressing well. Profit in the quarter was affected by start-up costs for Property Asset Management in Sweden and the Netherlands.
Our broad geographical base makes us more relevant to investors, while our funds are also increasingly investing through our local Property Asset Management operations. We are currently represented on the markets we consider relevant to our Property Asset Management platform with the exception of the UK market. Catella intends to strengthen its UK presence through a conditional share purchase agreement for the acquisition of a majority holding in property investment and asset management advisor APAM Ltd, which is active on the UK market. APAM has grown sharply in recent years, and generated income of some GBP 7 M in 2017. APAM has a pronounced business focus which is a close fit with Catella, and parts of the organization have already initiated collaboration with APAM.
Although the first quarter is historically weak in Corporate Finance, activity was high in the Nordics and Continental Europe in line with last year. Investors continue to focus on the property asset class, which implies continued high transaction volumes. Apart from defending our strong position in transaction advice, it's important for Catella to ensure a broad-based product offering where capital markets advisory services retain a central role.
Income decreased on the previous year, mainly due to lower card and payment volumes, previously communicated in connection with the strategic review of Catella's card acquiring operations. This review will be completed in the coming quarter. Operating profit decreased by SEK 21 M year-on-year, mainly driven by lower card acquiring volumes, but also by increased personnel expenses in Wealth Management where we've recruited customer advisors in the Swedish operations.
In Wealth Management, fixed earnings were up driven by increased assets under management, while variable earnings decreased due to fewer completed capital raisings year-on-year. After the end of the quarter, Wealth Management closed a capital raising of SEK 450 M in connection with the creation of new private equity fund Pamica II. Like for Pamica I, there was considerable interest in this type of exposure from existing and new clients.
Catella continues to deliver a clear growth strategy as an active alternative asset manager. The quality of the composition of our assets under management continues to improve, while we've also increased our assets under management by 15% or SEK 25 Bn year-on-year.
For Catella, it's important to defend our strong market position in Corporate Finance. The business area is also a key part of generating alternative exposure for our customers, with clear synergies with Wealth Management and Property Investment Management.
Our initiatives in London and Hong Kong leverage an increasingly integrated European platform where we're working towards increasing our range of products and services in closely defined areas.
CEO and President
Catella is a leading specialist in property advisory services and investments, mutual funds and banking, 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 Nasdaq Stockholm.
Amounts are in SEKM unless otherwise indicated.Figuresintablesandcommentsmay be rounded.
The Group's total income was SEK 541 M (495) and net sales were SEK 510 M (493), of which SEK 110 M (121) relates to Corporate Finance and SEK 402 M (377) relates to Asset Management and Banking. Comments on the progress of each operating segment are on pages 7-10.
The Group's net financial income and expense was SEK 4 M (6). Net financial income/expense also includes interest income of SEK 4 M (6), which mainly relates to loan portfolios, and interest expenses of SEK 6 M (3) relating to Catella's bond issue. Fair value measurement of non-current securities and current investments resulted in value adjustment of SEK 2 M (-6). Fair value of loan portfolios and holdings in proprietary funds increased by SEK 3 M and SEK 6 M respectively in the period, while derivatives saw a negative value adjustment of SEK-8 M. Closed currency forwards intended to reduce exchange rate exposure, generated a profit of SEK 2 M. The Minotaure and Ludgate loan portfolios, which were divested for a total value (equivalent to book value) of SEK 83 M in February 2018, did not make a net contribution to Group profit in the period.
The Group's profit before tax was SEK 64 M (72) and profit after tax was SEK 42 M (53), of which SEK 22 M (33) was attributable to parent company shareholders. This corresponds to Earnings per share of SEK 0.26 (0.41).
January 2018 decided the following: ■ To authorize the acquisition of shares in IPM Informed Portfolio Management B.V.
■ To effect changes to the terms of warrants of series 2014/2018:A, 2014/2019:B and 2014/2020:C.
As of 5 February 2018, Catella completed an additional acquisition of some 13% of the shares in IPM B.V. The transaction was based on a company value of IPM AB (Systematic Funds) of some SEK 2 Bn, and the purchase price amounted to SEK 198.5 M. The additional purchase price corresponds to 50% of the transferred shares' proportion of IPM AB's net profit for the financial year 2017. The total purchase consideration is estimated at SEK 207.5 M, and is reported in equity in the first quarter 2018. After the transaction, Catella's indirect and direct holding in IPM AB amounts to 60.6%
Catella has decided to initiate a strategic review of its card acquiring operations. Accordingly, the client portfolio will be reduced and strategic alternatives reviewed for the remaining client portfolio. Income in the card acquiring operations is expected to decrease by some SEK 70 M annually from the end of the first quarter 2018. The strategic review resulted in impairment of goodwill of SEK 20 M, and impairment of other intangible assets of SEK 33 M, as of 31 December 2017 in the Banking business area
In February 2018, Catella divested the Ludgate and Minotaure loan portfolios for a total of SEK 83 M. Because Catella accepted the offer before the Year-end Report for 2017 was published, Catella posted a positive value adjustment of SEK 19 M as of 31 December 2017.
In March 2018, Catella signed a share purchase agreement for a majority holding in property investment and asset management advisor APAM Ltd. In connection with signing the agreement, Catella made a non-refundable down payment of SEK 31 M. The remainder will be paid on completion of the transaction, which is subject to regulatory approval and other conditions.
In the period up until 31 December 2017, a proportion of Systematic Funds' assets under management through agreements with specific clients was recognised for profit as variable earnings on a quarterly basis. From 1 January 2018, Systematic Funds has moved to annual settlement for all its products, which means that variable earnings are settled and recognised for profit at year end.
In May, Catella initiated currency hedging with derivative instruments. Currency hedging is utilised to reduce the exchange rate risk in Catella's net exposure in EUR. Catella intends to apply hedge accounting in accordance with IFRS 9 from the date of hedging net exposure.
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| 3 Months | 12 Months | ||||
|---|---|---|---|---|---|
| 2018 | 2017 | Rolling | 2017 | ||
| SEK M | Jan-Mar | Jan-Mar | 12 Months | Jan-Dec | |
| CORPORATE FINANCE | |||||
| Total income | $\Box$ | 2 | 648 | 659 | |
| Operating profit/loss | $-2$ | $\overline{2}$ | 67 | 71 | |
| Operating margin, % | $-1$ | $\overline{2}$ | 10 ° | $\left \right $ | |
| ASSET MANAGEMENT AND BANKING | |||||
| Total income | 433 | 378 | 1.899 | 1,844 | |
| Operating profit/loss before items affecting comparability | 8 1 | 76 | |||
| Operating profit/loss | 8 1 | 76 | 371 | 365 | |
| Operating margin, % | 19 | 20 | 20 | 20 | |
| Equity-, Hedge and Fixed Income Funds | |||||
| Total income * | 209 | 185 | 874 | 851 | |
| Operating profit/loss | 96 | 73 | 359 | 337 | |
| Operating margin, % | 46 | $40^{1}$ | 41 | 40 | |
| Banking | |||||
| Total income * | 99 | 116 | 99 | 475 | |
| Operating profit/loss before items affecting comparability | $-21$ | 3 | |||
| Operating profit/loss | $-21$ | 3 | $-21$ | $-45$ | |
| Operating margin, % | $-21$ | $\overline{2}$ | $-21$ | $-9$ | |
| Property Investment Management | |||||
| Total income * | 125 | 78 | 568 | 521 | |
| Operating profit/loss | $\overline{7}$ | $\mathbf{0}$ | 80 | 73 | |
| Operating margin, % | 5 | $\Omega$ | $\sqrt{4}$ | 14 | |
| OTHER ** | |||||
| Total income | $-3$ | $-5$ | $-24$ | $-26$ | |
| Operating profit/loss | $-20$ | $-12$ | $-82$ | $-75$ | |
| GROUP | |||||
| Total income | 541 | 495 | 2,523 | 2,477 | |
| Operating profit/loss before items affecting comparability | 60 | 66 | 409 | 414 | |
| Operating profit/loss | 60 | 66 | 355 | 361 | |
| Operating margin, % | $\frac{1}{2}$ | 13 | 14 | 15 |
* Includes internal income.
** Includes eliminations.
| 3 Months | 12 Months ** | |||
|---|---|---|---|---|
| 2018 | 2017 | Rolling | 2017 | |
| GROUP | lan-Mar | lan-Mar | 12 Months | Jan-Dec |
| Profit margin, % | 8 | $\perp$ | $\perp$ | $\perp$ |
| Adjusted profit margin, % ** | 8 | $\left \ \right $ | 13 | 4 |
| Return on equity, % * | $\vert \ \vert$ | 19 | 12 | |
| Adjusted return on equity, % * | 14 | 19 | $\sim$ | 15 |
| Equity/Asset ratio, % | 30 | 32 | $\sim$ | 30 |
| Equity, SEK M * | 1,626 | 1,597 | 1.729 | |
| No. of employees, at end of period | 646 | 587 | ÷. | 626 |
| Earnings per share, SEK * | 0.26 | 0.41 | 2.20 | 2.35 |
| Adjusted earnings per share, SEK * | 0.26 | 0.41 | 2.85 | 2.99 |
| Equity per share, SEK * | 19.86 | 19.51 | 21.12 | |
| CORPORATE FINANCE | ||||
| Profit margin, % | $-4$ | $\overline{\phantom{a}}$ | 6 | 7 |
| Return on equity, % * | 34 | 33 | 30 | |
| Equity/Asset ratio, % | 36 | 45 | $\sim$ | 32 |
| Equity, SEK M * | 115 | 177 | $\overline{a}$ | 120 |
| No. of employees, at end of period | 212 | 208 | 210 | |
| Property transaction volume for the period, SEK Bn | 12.5 | 7.1 | 61.6 | 56.2 |
| ASSET MANAGEMENT AND BANKING | ||||
| Profit margin, % | 12 | 15 | 4 | 4 |
| Adjusted profit margin, % ** | 12 | 15 | 16 | 17 |
| Return on equity, % * | 17 | 32 | $\sim$ | 8 |
| Adjusted return on equity, % * | 23 | 32 | 24 | |
| Equity/Asset ratio, % | 24 | 23 | 22 | |
| Equity, SEK M * | 1023 | 898 | $\sim$ | 931 |
| No. of employees, at end of period | 415 | 363 | $\sim$ | 401 |
| Asset under management at end of period, SEK Bn | 186.3 | 163.6 | 184.3 | |
| net in-(+) and outflow(-) during the period, mdkr | $-4.1$ | 4.9 | 15.5 | 24.5 |
| Card and payment volumes, SEK Bn | 4.3 | 4.0 | 18.3 | 17.9 |
und a man by mean the state of the Parent Company.
• Attributable to shareholders of the Parent Company.
• During the second quarter 2016, Asset Management and Banking received a non-recurring income of SEK 221 M resulting
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Key Figures
The total commercial property transaction market in Europe, excluding the UK, totalled EUR 35.2 Bn (52.8) in the quarter, a reduction of 33% year-on-year.
Property transactions where Catella served as advisor totalled SEK 12.5 Bn (7,1) in the quarter. Of total transaction volumes in the quarter, France provided SEK 9.6 Bn (2.1), Sweden SEK 1.6 Bn (2.1), Denmark SEK 0.8 Bn (1.5) and Germany SEK 0.0 Bn (0.3).
Total income was SEK III M (121) and operating profit was SEK-2 M (2) in the quarter.
The year-on-year profit decrease was mainly attributable to the Nordics, where fewer capital markets-related transactions were carried out in Sweden and Denmark in the quarter. In Continental Europe, profit increased in France, while it decreased in Germany and Spain year-onyear.
| 3 Months | 12 Months | |||
|---|---|---|---|---|
| 2018 | 2017 | Rolling | 2017 | |
| SEK M | Jan-Mar | Jan-Mar | 12 Months | Jan-Dec |
| Nordic * | 40 | 62 | 291 | 312 |
| Continental Europe * | 70 | 59 | 357 | 346 |
| Total income | $\vert \vert \vert$ | 2 | 648 | 659 |
| Assignment expenses and commission | -6 | $-13$ | $-67$ | $-74$ |
| Operating expenses | $-106$ | $-107$ | $-514$ | $-514$ |
| Operating profit/loss | $-2$ | 67 | 71 | |
| Operating margin, % | ||||
|---|---|---|---|---|
| Property transaction volume for the period, SEK Bn | 56.2 | |||
| of which Nordic | 2.8 | 36. | 37.3 | |
| of which Continental Europe | 9.6 | 25.4 | 18.9 | |
| No. of employees, at end of period | 212 | 208 | 210 |
* Includes internal income between business areas. Internal income have been eliminated within the service area regarding the current and corresponding period 2017.
New savings in mutual funds in Sweden was SEK 8.2 Bn in the quarter. The fund categories with the largest inflows were Mixed, Hedge and Fixed Income funds. At the end of the quarter, Mutual Funds' share of Swedish fund volumes was 0.8% $(0.8)$ .
Catella's assets under management decreased by SEK 3.5 Bn (2.4) in the quarter. of which net inflows were SEK 0.2 Bn (-0.6) in Mutual Funds and SEK-6.1 Bn (0.6) in Systematic Funds. Systematic Macro's and Systematic Equity's assets under management at the end of the period totalled
SEK 44.7 Bn (38.8) and SEK 26.2 Bn (29.9) respectively. Income is mainly generated by Systematic Macro in Systematic Funds.
Total income was SEK 209 M (185) in the quarter. Operating profit/loss was SEK 96 M (73).
Mutual Funds' income was in line with the previous year, while profit increased as a result of lower variable personnel expenses. In Systematic Funds, income and profit increased driven by higher fixed earnings and lower variable personnel expenses.
Up until 31 December 2017, Systematic Funds was able to recognise variable earnings on a quarterly basis for a proportion of assets under management through specific agreements with certain customers. From 1 January 2018, Systematic Funds will move to annual settlement of all products, meaning that variable earnings will only be recognised for profit at year end.
Accrued variable earnings** in Systematic Funds totalled SEK 125 M at the end of the period.
| 3 Months | 12 Months | |||
|---|---|---|---|---|
| 2018 | 2017 | Rolling | 2017 | |
| SEK M | Jan-Mar | Jan-Mar | 12 Months | Jan-Dec |
| Mutual Funds * | 94 | 89 | 401 | 396 |
| Systematic Funds * | $ $ 4 | 96 | 474 | 455 |
| Total income | 209 | 185 | 874 | 851 |
| Assignment expenses and commission | $-37$ | $-38$ | $-150$ | $-151$ |
| Operating expenses | $-76$ | $-74$ | $-365$ | $-363$ |
| Operating profit/loss | 96 | 73 | 359 | 337 |
| ney i igui es | ||||
|---|---|---|---|---|
| Operating margin, % | 46 | 40 | 40 | |
| Asset under management at end of period, SEK Bn | 105.9 | 101.3 | 109.3 | |
| net in-(+) and outflow(-) during the period, mdkr | $-5.8$ | $-0.1$ | 8.9 | |
| of which Mutual Funds | 32.3 | 30.8 | 32.0 | |
| net in-(+) and outflow(-) during the period, mdkr | 0.2 | -0.6 | 0.8 | 0.0 |
| of which Systematic Funds | 73.6 | 70.5 | 77.3 | |
| net in-(+) and outflow(-) during the period, mdkr | -6.1 | 0.6 | 8.9 | |
| No of employees at end of period | 89 | 81 | 89 |
Marc Figures
*Includes internal income between business areas. Internal income have been eliminated within the service area regarding the current and corresponding period 2017.
** Accrued variable earnings are calculated on the basis o
year end, and recognised for profit/loss, returned 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.
Volumes in the Cards and Payment Solutions operations were SEK 4.3 BN (4.0) in the quarter.
Assets under management in Wealth Management totalled SEK 20.2 Bn (17.5), up by SEK 0.2 Bn (1.0) and net flows were SEK-0.3 Bn (0.6) in the quarter.
The Ioan book decreased by SEK 33 M in the quarter, totalling SEK 1.3 Bn (1.3) at the end of the period.
Total income was SEK 99 M (116) and operating profit was SEK-21 M (1) in the quarter.
Fixed earnings decreased year-on-year, mainly due to change in the product mix within Cards and Payment Solutions, in connection with the strategic review of the card acquiring operations. In Wealth Management, fixed earnings were up driven by increased assets under management. Variable earnings decreased due to fewer capital raisings in Wealth Management compared to the previous year.
Operating profit was also affected by increased personnel expenses, systems expenses related to Wealth Management and higher consultancy costs for Banking as a whole.
| 3 Months | 12 Months | |||
|---|---|---|---|---|
| SEK M | 2018 Jan-Mar |
2017 Jan-Mar |
Rolling 12 Months |
2017 Jan-Dec |
| Cards and Payment Solutions * | 65 | 75 | 294 | 304 |
| Wealth Management * | 37 | 43 | 7 | 177 |
| Total income | 99 | 116 | 458 | 475 |
| Assignment expenses and commission | $-24$ | $-32$ | $-115$ | $-122$ |
| Operating expenses | $-96$ | $-82$ | $-359$ | $-344$ |
| Operating profit/loss before items affecting comparability | $-21$ | $-16$ | 8 | |
| Items affecting comparability | 0 | $-53$ | $-53$ | |
| Operating profit/loss | $-21$ | 3 | $-69$ | $-45$ |
| Key Figures | ||||
|---|---|---|---|---|
| Operating margin, % | $-2^{\circ}$ | |||
| Card and payment volumes, SEK Bn | 4.3 | -4.0 | 18. | 17.9 |
| Asset under management at end of period, SEK Bn | 20.2 | 20.0 | ||
| net in-(+) and outflow(-) during the period, mdkr | $-0.3$ | 0.6 | 0.9 | 1.8 |
| No. of employees, at end of period | 78 | 180 |
"Includes internal income between business areas. Internal income have been eliminated within the service area regarding the current and corresponding period 2017.
**Adjusted for items affecting comparability.
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Assets under management increased by SEK 5.3 Bn (4.5) to SEK 60.2** Bn (44.8), and net flows were SEK 2.0 Bn (4.3) in the quarter, mainly attributable to Property Funds and Property Asset Management in France.
Total income was SEK 125 M (78). Operating profit was SEK 7 M (0).
The increase in income and profit was mainly driven by Property Asset Management in Denmark, which divested a property development project, and increased assets under management in year-on-year terms for a majority of the business area's other operations.
Profit in the quarter was burdened by start-up costs attributable to Property Asset Management in Sweden and the Netherlands.
| 3 Months | 12 Months | |||
|---|---|---|---|---|
| 2018 | 2017 | Rolling | 2017 | |
| SEK M | lan-Mar | lan-Mar | 12 Months | Jan-Dec |
| Property Funds * | 82 | 63 | 387 | 369 |
| Property Asset Management * | 48 | 8 | 194 | 164 |
| Total income | 125 | 78 | 568 | 521 |
| Assignment expenses and commission | $-39$ | $-20$ | $-165$ | $-146$ |
| Operating expenses | $-79$ | $-58$ | $-323$ | $-302$ |
| Operating profit/loss | 0 | 80 | 73 | |
| Key Figures | ||||
| Operating margin, % | $\Omega$ | 4 | 4 | |
| Asset under management at end of period. SEK Bn | 60.2 | 44 8 | 55.0 |
| Asset under management at end of period, SEK Bn | 60.2 | 44.8 | 55.0 | |
|---|---|---|---|---|
| net in-(+) and outflow(-) during the period, mdkr | 2.0 | ⊿ ∙ | 13.7 | |
| of which Property Funds | 41.7 | 29.9 | 36.9 | |
| net in-(+) and outflow(-) during the period, mdkr | 2.0 | 4 | O.O | 8.7 |
| of which Property Asset Management | 19.0 | 14.9 | 18.0 | |
| net in-(+) and outflow(-) during the period, mdkr | 0.0 | 05 | 49 | |
| No. of employees, at end of period | 148 | 132 |
* Includes internal income between business areas. Internal income have been eliminated within the service area regarding the current and corresponding period 2017.
** In the fourth quarter 2017, parts of the German Proper
In the first quarter, the Group's total assets decreased by SEK 380 M, totalling SEK 6,016 M as of 31 March 2018. Accounts receivable and cash and cash equivalents decreased by SEK 105 M and SEK 291 M respectively, of which the latter is partly due to the additional acquisition in IPM.
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 is recognizing a deferred tax asset of SEK 99 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 590 M. Essentially, the loss carry-forwards relate to operations in Sweden and have indefinite useful lives.
In lune 2017. Catella issued a new 5-year unsecured bond loan of SEK 500 M, with a framework amount of SEK 750 M, with the purpose of refinancing the existing bond loan of SEK 200 M, raise additional liquidity for Catella's operating activities and to continue expansion and enable potential future acquisitions. In the Consolidated Statement of Financial Position as of 31 March 2018, the new bond loan was recognized in Long-term Ioan liabilities. The new bond accrues variable interest at 3month STIBOR plus 400 b.p.
The Group also has approved overdraft facilities totalling SEK 30 M, of which the unutilized part was SEK 30 M as of 31 March 2018.
The Group's equity decreased by SEK 108 M in the first quarter, reaching SEK 1,834 M as 31 March 2018. The additional acquisitions in IPM decreased Group equity by SEK 207.5 M, of which SEK 179 M is attributable to parent company shareholders, and SEK 29 M to non-controlling holdings. In addition, Group equity decreased through a retroactive adjustment for credit loss reserves of SEK 2 M in accordance with the new standard IFRS 9. Other items that influenced Group equity
include profit for the period of SEK 42 M, positive translation differences of SEK 52 M and the ongoing new issue totaling SEK 6 M. The Group's equity/assets ratio as of 31 March 2018 was 30% (31% as of 31 December 2017).
Consolidated cash flow from operating activities before changes in working capital amounted to SEK II M (52). Tax paid totalled SEK 57 M (26) in the period. Consolidated cash flow from operating activities was SEK-214 M (-302), of which changes in working capital for the period totalled SEK -225 M (-354). Of the changes in working capital, SEK-208 M is attributable to banking operations and SEK -17 M to other operations. The change in the bank's working capital was mainly due to reduced deposits.
Cash flow from investing activities was SEK - 184 M (-9), of which SEK - 199 M related to the acquisition in IPM, SEK-38 M related to the acquisition of shares in Danish associated company Kaktus | TopCo ApS and SEK -31 M to a downpayment for the shares in APAM Ltd. In addition, Catella received SEK 16 M as a result of Nordic Light Fund's repurchase of fund units. Cash flow from loan portfolios was SEK 86 M, of which SEK 83 M relates to the sale of Minotaure and Ludgate.
Cash flow from financing operations was SEK 5 M (2), of which SEK 6 M relates to payments from warrant holders for the subscription of new shares in Catella AB.
Cash flow for the period was SEK-393 M (-309), of which cash flow from banking operations was SEK -228 M (-253) and cash flow from other operations was SEK - $165 M (-56)$ .
Cash and cash equivalents at the end of the period were SEK 2,886 M (2,435), of which cash and cash equivalents relating to the banking operations were SEK 1,967 M (1,794) and cash and cash equivalents relating to other activities were SEK 919 M $(641)$ .
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 4.6 M (3.1), and operating profit/loss was SEK-12.3 M (-10.9). The profit decrease on the previous year is mainly due to increased legal and consultancy fees as a result of share acquisitions and the new General Data Protection Regulation (GDPR) provisions.
The Parent Company also reported financial items totalling SEK -4.9 M (-2.4), relating to interest and costs associated with arranging bond loans.
Profit/loss before tax was SEK -17.2 M (-13.3), and profit /loss for the period was SEK-17.2 M (-12.4).
The Parent Company reported total loss carry-forwards of SEK 187 M. Catella's Balance Sheet includes a deferred tax asset of SEK 19.8 M (SEK 19.8 M as of 31 December 2017) relating to these loss carryforwards. The amount is based on an estimate of the company's future utilization of loss carry-forwards.
Cash and cash equivalents on the reporting date were SEK 19.1 M, compared to SEK 263.9 M as of 31 December 2017. The decrease in cash and cash equivalents was mainly due to payment of the purchase consideration for the shares in IPM of SEK 198.5 M.
The number of employees of the Parent Company expressed as full -time equivalents was $12(10)$ .
Catella has principal investments of SEK 314 M, which are reported under the 'Other' category in Note 3.
The 'Other' category also includes information on the Parent Company, other holding companies, acquisition and financing costs, Catella's brand and eliminations of intra-group transactions between the various operations.
The number of employees expressed as full-time equivalents was 646 (587) at the end of the period, of which 212 (208) in the Corporate Finance operating segment, 415 (363) in the Asset Management and Banking operating segment and 19 (16) n other functions.
As of 31 March 2018, share capital was SEK 164 M (164), divided between 81,848,572 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 79,318,017 Class B shares with 1 vote per share.
In March 2018, 2,266,666 warrants were utilised to subscribe for an equal number of new shares, of which 600,000 warrants were settled in March and the remainder subsequently. The new class B shares were issued on 3 May 2018 through registration with the Swedish Companies Registration Office and inclusion in Euroclear's share register.
Accordingly, Catella has a total of 84, I I 5, 238 shares with total voting rights of 94,237,458, of which 2,530,555 are common class A shares (total voting rights 12,652,775) and 81,584,683 are common class B shares (total voting rights 81,584,683).
Catella is listed on Mid Cap on Nasdag Stockholm, trading under the ticker symbols CAT A and CAT B. The price of Catella's Class B share was SEK 21.10 (18.90) as of 31 March 2018. Total market capitalization at the end of the period was SEK 1,732 M (1,562).
Catella had 7,371 (7,140) shareholders registered at the end of the period. As of 31 March 2018, the single largest shareholders were the Claesson & Anderzén group, with a holding of 50.3% (49.8) of the capital and 49.5% (49.1) of the votes, followed by Swedbank Robur fonder with a holding of 6.1% (0.0) of the capital and 6.3% (0.0) of the votes.
Catella AB's AGM will be held on Monday 28 May 2018 at 2 p.m. at Summit/GT30, Grev Turegatan 30, Stockholm, Sweden. Information on Catella's AGM is available on the company's website, catella.com.
The Nomination Committee for the AGM 2018 has the following members: Thomas Andersson Borstam, appointed by TAB Holding AB and through private ownership. Chairman of the Nomination Committee, Johan Claesson, appointed by CA Plusinvest AB, Chairman of Catella AB and Kenneth Andersen, appointed by Strawberry Capital AS.
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.
Given the growth opportunities in existing and new operations that are expected to generate long-term shareholder value, the Board proposes a dividend of SEK 1.00 per Class A and B shares to be paid to shareholders for the financial year 2017. For the financial year 2016, the Parent Company paid dividend of SEK 0.80 per Class A and B share respectively to shareholders.
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.
Several companies in the Catella Group conduct licensable operations, regulated by the financial 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. Catellaworks continuously to ensure compliance with cur-rent regulatory structures and prepares for compliance with forthcoming regulatory changes.
The preparation of financial statements requires the Board of Directors and Group management to make estimates and judgments of the value of loan portfolios, goodwill, trademarks and brands, as well as assumptions concerning revenue recognition. The estimates and judgments 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 judgments. Actual outcomes may differ from these estimates and judgments due to other circumstances or other conditions.
Catella has investments in property development projects in Germany (see Note 3) through associated company Nordic Seeding GmbH. These projects are run by Catella's German subsidiary Catella Project Management GmbH. Through Nordic Seeding 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 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.
Within the Corporate Finance operating segment, seasonal variations are significant. This means that sales and results of operations vary during the year. In Corp orate Finance, transaction volumes are usually highest in the fourth quarter, followed by
the second quarter, the third quarter and finally the first quarter.
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 | 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. The information provided in Note 8 regarding the consolidated 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.
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.
Catella holds shares in associated company Nordic Seeding GmbH, whose other owners are the Claesson & Anderzén group and the management of Catella Project Management GmbH. As of 31 March 2018, Catella had invested a net amount of SEK 63 M of a total undertaking of SEK 93 M in Nordic Seeding GmbH. There were no additional investments in the first quarter 2018. 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. In 2018 Catella Project Management GmbH invoiced Nordic Seeding 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 company falls outside of Catella's associated enterprises.
In the first quarter of 2018, Catella invested a total of SEK 38 M in two new associated companies: Catella Kaktus Coinvestment ApS and Kaktus I TopCo ApS. The latter has acquired land with associated building rights for student housing in Copenhagen. The total investment commitment by Catella amounts to SEK 98 M.
Catella's Danish subsidiary Catella Investment Management A/S operates the property development project in associated company Kaktus | TopCo ApS. In the first quarter of 2018, Catella Investment Management A/S invoiced Kaktus | TopCo ApS, SEK 23 M for services rendered under agreement, and realized profit before tax of SEK 8 M. No proportion of income or profit was eliminated in Catella's consolidated Income Statement as the associated company is not an associated enterprise.
Catella does not publish forecasts.
The Annual General Meeting in Catella AB (publ) will be held at 2 p.m. CET on 28 May 2018 at Summit/GT30, Grey Turegatan 30 in Stockholm, Sweden. Information about the AGM can be found on Catella's website, catella.com.
Interim Report January-June 2018 24 August 2018 Interim Report January-September 2018 15 November 2018 Year-end Report 2018 22 February 2019
| For further information, contact Knut Pedersen, CEO and President Tel. +46 (0)8 463 33 10. |
Stockholm, Sweden, 9 May 2018 Catella AB (publ) |
|---|---|
| More information on Catella and all fi- nancial reports are available at ca- tella.com. |
|
| The information in this Report is manda- tory for Catella AB to publish in accord- ance with the EU's Market Abuse Regulation and the Swedish Securities Mar- kets Act. This information was submitted |
Johan Claesson, Chairman |
| to the market, through the agency of the above contact, for publication on 9 May 2018 at 07:00 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 oper- ations, financial position and results of op- erations, and describes the material risks and uncertainties facing the Parent Com- pany and companies included in the Group. |
Joachim Gahm, Board member |
| Anna Ramel. Board member |
Jan Roxendal, Board member
Knut Pedersen, CEO and President
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| SEK M | Jan-Mar | Jan-Mar | Jan-Dec |
| Net sales | 510 | 493 | 2,461 |
| Other operating income | 31 | $\overline{2}$ | 16 |
| Total income | 541 | 495 | 2,477 |
| Assignment expenses and commission | $-106$ | $-100$ | $-479$ |
| Other external expenses | $-147$ | $-117$ | $-496$ |
| Personnel costs | $-214$ | $-204$ | $-1,030$ |
| Depreciation | $-6$ | $-6$ | $-28$ |
| Other operating expenses | $-7$ | $\sim$ [ | $-29$ |
| Operating profit/loss before items affecting comparability | 60 | 66 | 414 |
| Items affecting comparability | $\,0\,$ | $\circ$ | $-53$ |
| Operating profit/loss | 60 | 66 | 361 |
| Interest income | $\overline{4}$ | 6 | 23 |
| Interest expenses | $-6$ | $-3$ | $-17$ |
| Other financial items | $\epsilon$ | 3 | 28 |
| Financial items-net | $\overline{4}$ | 6 | 34 |
| Profit/loss before tax | 64 | 72 | 395 |
| Tax | $-22$ | $-18$ | $-111$ |
| Net profit/loss for the period | 42 | 53 | 284 |
| Profit/loss attributable to: | |||
| Shareholders of the Parent Company | 22 | 33 | 192 |
| Non-controlling interests | 20 | 20 | 92 |
| 42 | 53 | 284 | |
| Earnings per share attributable to shareholders of the Parent Company, SEK | |||
| - before dilution | 0.26 | 0.41 | 2.35 |
| - after dilution | 0.24 | 0.38 | 2.17 |
| No. of shares at end of the period | 81,848,572 | 81,848,572 | 81.848.572 |
| Average weighted number of shares after dilution | 88,648,572 | 88,648,572 | 88,648,572 |
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| SEK M | lan-Mar | Jan-Mar | Jan-Dec |
| Net profit/loss for the period | 42 | 53 | 284 |
| Other comprehensive income | |||
| Items that will not be reclassified subsequently to profit or loss: | |||
| Value change in defined benefit pension plans | $-$ | $\Omega$ | $\Omega$ |
| Items that will be reclassified subsequently to profit or loss: | |||
| Fair value changes in financial assets available for sale | 4 | 9 | |
| Translation differences | 52 | $-3$ | 31 |
| Other comprehensive income for the period, net after tax | 53 | 40 | |
| Total comprehensive income/loss for the period | 95 | 54 | 325 |
| Profit/loss attributable to: | |||
| Shareholders of the Parent Company | 72 | 34 | 231 |
| Non-controlling interests | 22 | 20 | 93 |
| 95 | 54 | 325 |
Information on Income Statement by operating segment is in Note 1.
| Consolidated blaterright or i mancial i ositioni | COLIUCI ISCU | |||
|---|---|---|---|---|
| SEK M | Note | 2018 31 Mar |
2017 31 Mar |
2017 31 Dec |
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 393 | 412 | 390 | |
| Property, plant and equipment | 34 | 25 | 27 | |
| Holdings in associated companies | 3 | 80 | 67 | 45 |
| Other non-current securities | 3, 4, 5 | 433 | 383 | 438 |
| Deferred tax receivables | 99 | 96 | 99 | |
| Other non-current receivables | 550 | 823 | 607 | |
| 1,589 | 1,806 | 1,606 | ||
| Current assets | ||||
| Current loan receivables | 830 | 550 | 779 | |
| Accounts receivable and other receivables | 638 | 645 | 725 | |
| Current investments | 3, 4, 5 | 73 | 83 | 108 |
| Cash and cash equivalents * | 2,886 | 2,435 | 3,177 | |
| 4,427 | 3,713 | 4,790 | ||
| Total assets | 6,016 | 5,519 | 6,396 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 165 | 164 | 164 | |
| Other contributed capital | 253 | 253 | 253 | |
| Reserves | $-27$ | $-110$ | $-77$ | |
| Profit brought forward including net profit for the period | 1,235 | 1,290 | 1,389 | |
| Equity attributable to shareholders of the Parent Company | 1,626 | 1,597 | 1,729 | |
| Non-controlling interests | 209 | 194 | 214 | |
| Total equity | 1,834 | 1,791 | 1,943 | |
| Liabilities | ||||
| Non-current liabilities | ||||
| Borrowings | $\theta$ | $\theta$ | ||
| Long-term loan liabilities | 494 | $\circ$ | 494 | |
| Deferred tax liabilities | 36 | 35 | 38 | |
| Other provisions | 5 | 3 | $\overline{4}$ | |
| 536 | 39 | 537 | ||
| Current liabilities | ||||
| Borrowings | 137 | 164 | 122 | |
| Current Ioan liabilities | 2,634 | 2,733 | 2,784 | |
| Accounts payable and other liabilities | 779 | 717 | 894 | |
| Tax liabilities | 95 | 75 | 116 | |
| 3,646 | 3,689 | 3,917 | ||
| Total liabilities | 4,181 | 3,728 | 4,453 | |
| Total equity and liabilities | 6,016 | 5,519 | 6,396 | |
| * Of which pledged and blocked liquid funds | 213 | 180 | 205 |
Information regarding financial position by operating segment is in Note 2.
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| SEK M | Jan-Mar | Jan-Mar | Jan-Dec |
| Cash flow from operating activities | |||
| Profit/loss before tax | 64 | 72 | 395 |
| Adjustments for non-cash items: | |||
| Other financial items | -6 | $-3$ | $-28$ |
| Depreciation | 6 | 6 | 28 |
| Items affecting comparability - Impairment of intangible assets | $\overline{0}$ | $\mathbf{0}$ | 53 |
| Impairment current receivables | $-0$ | 1 | $\epsilon$ |
| Change in provisions | $\overline{\phantom{a}}$ | $\circ$ | $\overline{2}$ |
| Reported interest income from loan portfolios | $-3$ | $-5$ | $-22$ |
| Acquisition expenses | $\theta$ | J. | $\overline{2}$ |
| Profit/loss from participations in associated companies | 5 | $\theta$ | 20 |
| Personnel costs not affecting cash flow | $\overline{2}$ | 8 | 55 |
| Other non-cash items | $\overline{\phantom{a}}$ | i. | $\sim$ |
| Paid income tax | $-57$ | $-26$ | $-86$ |
| Cash flow from operating activities before changes in working capital | $\vert \vert$ | 52 | 426 |
| Cash flow from changes in working capital | |||
| Increase (-)/decrease (+) of operating receivables | 184 | $-175$ | $-234$ |
| Increase $(+)$ / decrease $(-)$ in operating liabilities | $-409$ | $-179$ | 106 |
| Cash flow from operating activities | $-214$ | $-302$ | 297 |
| Cash flow from investing activities | |||
| Purchase of property, plant and equipment | -8 | $-2$ | $-12$ |
| Purchase of intangible assets | $-3$ | $-5$ | $-40$ |
| Purchase of subsidiaries, after deductions for acquired cash and cash equivalents | $-199$ | $-0$ | $-5$ |
| Purchase of associated companies | $-38$ | $-16$ | $-12$ |
| Purchase of financial assets | $-42$ | $-9$ | $-50$ |
| Sale of financial assets | 8 | 8 | 21 |
| Cash flow from loan portfolios | 86 | $\overline{4}$ | 23 |
| Dividends from investments | $\theta$ | $\mathbf{0}$ | $\overline{\phantom{a}}$ |
| Cash flow from investing activities | $-184$ | $-9$ | $-74$ |
| Cash flow from financing activities New share issue |
6 | ||
| Borrowings | $-0$ | $\mathbf{0}$ | 493 |
| $-0$ | ÷ | $-202$ | |
| Repayment of loans | $\overline{a}$ | L, | |
| Dividend | L. | $\overline{1}$ | $-65$ $-87$ |
| Transactions with, and payments to, non-controlling interests Cash flow from financing activities |
5 | $\overline{2}$ | 139 |
| Cash flow for the period | $-393$ | $-309$ | 362 |
| Cash and cash equivalents at beginning of period | 3,177 | 2,750 | 2,750 |
| Exchange rate differences in cash and cash equivalents | 0 | $-5$ | 66 |
| Cash and cash equivalents at end of the period | 2,886 | 2,435 | 3,177 |
SEK 1,967 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 Ba
| 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 | 1,726 | 214 | 1,940 |
| Comprehensive income for January - March 2018: | |||||||
| Net profit/loss for the period | 22 | 22 | 20 | 42 | |||
| Other comprehensive income, net of tax | 50 | 51 | 53 | ||||
| Comprehensive income/loss for the period | 50 | 22 | 72 | 22 | 95 | ||
| Transactions with shareholders: | |||||||
| Transactions with non-controlling interests | $-179$ | $-179$ | $-27$ | $-206$ | |||
| New share issue during registration | 4 | 6 | 6 | ||||
| Closing balance at 31 March 2018 | 165 | 253 | $-27$ | 1,235 | 1.626 | 209 | 1,834 |
Equity attributable to shareholders of the Parent Company
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling interestsareattributableto minority holdingsinsubsidiaries in SystematicFundsand Property Funds,andanumber of subsidiaries in Property Asset Managementand Corporate Finance
In the first quarter 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 March 2018, settle
| Equity attributable to shareholders of the Parent Company | |||||||
|---|---|---|---|---|---|---|---|
| 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 as of 1 January 2017 | 164 | 253 | $-107$ | 1,253 | 1,563 | 167 | 1,730 |
| Comprehensive income for January - March 2017: | |||||||
| Net profit/loss for the period | 33 | 33 | 20 | 53 | |||
| Other comprehensive income, net of tax | $-3$ | 4 | $\Omega$ | ||||
| Comprehensive income/loss for the period | $-3$ | 37 | 34 | 20 | 54 | ||
| Transactions with shareholders: | |||||||
| Transactions with non-controlling interests | $\circ$ | $\circ$ | $\overline{7}$ | ||||
| Warrants issued | $\circ$ | $\circ$ | |||||
| Re-purchase of warrants issued | $\circ$ | $\Omega$ | |||||
| New share issue | $\circ$ | $\circ$ | |||||
| Dividend | $\circ$ | $\Omega$ | |||||
| Closing balance at 31 March 2017 | 164 | 253 | $-110$ | 1,290 | 1,597 | 194 | 1,791 |
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling holdings relate to minority holdings in subsidiaries in Systematic Funds and Property Funds, and a majority of subsidiaries in Property Asset Management and Corporate Finance.
As of 31 March 2017, the parent company had a total of 7,000,000 outstanding warrants, of which 200,000 held in treasury. There were no transactions involving warrants in the first quarter
2017. Repurchaes of warrants are amounts.
| Corporate Finance | Asset Management and Banking | Other | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | 2018 | 2017 | 2017 | |
| SEK M | lan-Mar | lan-Mar | lan-Dec | lan-Mar | lan-Mar | lan-Dec | Jan-Mar | Jan-Mar | lan-Dec | lan-Mar | lan-Mar | Jan-Dec |
| Net sales | 110 | 2 | 656 | 402 | 377 | 1.829 | $-2$ | $-5$ | $-24$ | 510 | 493 | 2,461 |
| Other operating income | 3 | 31 | $\overline{2}$ | 15 | $-()$ | $\sim$ | $-2$ | 31 | $\overline{\phantom{a}}$ | 16 | ||
| Total income | $ $ | 2 | 659 | 433 | 378 | 1.844 | $-3$ | $-5$ | $-26$ | 541 | 495 | 2,477 |
| Assignment expenses and commission | $-6$ | $-13$ | $-74$ | $-100$ | $-90$ | $-417$ | $\circ$ | 3 | 12 | $-106$ | $-100$ | $-479$ |
| Other external expenses | $-36$ | $-38$ | $-137$ | $-104$ | $-76$ | $-346$ | $-7$ | $-4$ | $-13$ | $-147$ | $-117$ | $-496$ |
| Personnel costs | $-70$ | $-68$ | $-372$ | $-139$ | $-130$ | $-629$ | $-5$ | $-6$ | $-29$ | $-214$ | $-204$ | $-1,030$ |
| Depreciation | $-$ | $-1$ | $-4$ | $-5$ | $-5$ | $-24$ | $-()$ | $-0$ | $-0$ | $-6$ | $-6$ | $-28$ |
| Other operating expenses | $-()$ | $-2$ | $-4$ | $-$ | $-9$ | $-4$ | $\Omega$ | $-18$ | $-7$ | $-$ | $-29$ | |
| Operating profit/loss before items affecting comparability |
$-2$ | $\overline{2}$ | 71 | 81 | 76 | 419 | $-20$ | $-12$ | $-75$ | 60 | 66 | 414 |
| Items affecting comparability | $\mathbf{0}$ | $\circ$ | $\circ$ | $\theta$ | $\theta$ | $-53$ | $\Omega$ | $\theta$ | $\theta$ | $\Omega$ | $\theta$ | $-53$ |
| Operating profit/loss | $-2$ | $\overline{2}$ | 71 | 81 | 76 | 365 | $-20$ | $-12$ | $-75$ | 60 | 66 | 361 |
| Interest income | $\circ$ | $\circ$ | $\overline{0}$ | $\circ$ | $\overline{4}$ | 5 | 22 | $\overline{4}$ | 6 | 23 | ||
| Interest expenses | $\overline{\phantom{a}}$ | $-1$ | $-3$ | $-2$ | $-()$ | $-2$ | $-4$ | $-2$ | $-13$ | $-6$ | $-3$ | $-17$ |
| Other financial items | $\overline{2}$ | $\circ$ | $\overline{2}$ | $\sim$ [ | $\overline{4}$ | 8 | 6 | $-1$ | 19 | 6 | 3 | 28 |
| Financial items-net | $-0$ | $-()$ | $-3$ | 3 | 7 | 6 | $\overline{2}$ | 27 | $\overline{4}$ | 6 | 34 | |
| Profit/loss before tax | $-0$ | $\overline{2}$ | 70 | 78 | 80 | 372 | $-14$ | $-10$ | $-47$ | 64 | 72 | 395 |
| Tax | $-5$ | $-3$ | $-27$ | $-25$ | $-21$ | $-$ | 7 | 6 | 27 | $-22$ | $-18$ | $-$ |
| Net profit/loss for the period | $-5$ | $-1$ | 43 | 53 | 58 | 262 | $-7$ | $-3$ | $-20$ | 42 | 53 | 284 |
| Profit/loss attributable to shareholders of the Parent Company |
$-5$ | - 1 | 43 | 33 | 38 | 169 | $-7$ | $-3$ | $-20$ | 22 | 33 | 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
| Corporate Finance | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | |||
| SEK M | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | lan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | ||
| Net sales | 110 | 262 | 43 | 130 | 2 | 187 | 142 | 172 | ||
| Other operating income | $\theta$ | $\overline{2}$ | $\overline{2}$ | |||||||
| Total income | $ \ $ | 262 | 44 | 3 | 2 | 188 | 44 | 174 | ||
| Assignment expenses and commission | -6 | $-29$ | $-13$ | $-19$ | $-13$ | $-19$ | $-26$ | $-14$ | ||
| Other external expenses | $-36$ | $-33$ | $-33$ | $-33$ | $-38$ | $-32$ | $-29$ | $-33$ | ||
| Personnel costs | $-70$ | $-155$ | $-75$ | $-74$ | $-68$ | $-112$ | $-72$ | $-89$ | ||
| Depreciation | $-$ | $-1$ | $-1$ | $-1$ | $-$ | $\overline{a}$ | $\sim$ [ | $-1$ | ||
| Other operating expenses | $-1$ | $-2$ | $-()$ | $-4$ | $-2$ | $\sim$ | ||||
| Operating profit/loss | $-2$ | 43 | 23 | $\overline{2}$ | $\overline{2}$ | 20 | 4 | 36 | ||
| Interest income | $\mathbf{0}$ | $\mathbf{0}$ | $\theta$ | 0 | $\theta$ | 0 | $\mathbf{0}$ | 0 | ||
| Interest expenses | $-$ | $-1$ | $-1$ | $-1$ | $-$ | $-0$ | $\mathbf{0}$ | $\overline{0}$ | ||
| Other financial items | $\overline{2}$ | $\Omega$ | $\Omega$ | $\Omega$ | 16 | $\theta$ | ||||
| Financial items-net | $\Omega$ | $-()$ | $-0$ | $-0$ | 16 | |||||
| Profit/loss before tax | $-0$ | 44 | $\overline{23}$ | $\overline{2}$ | $\overline{2}$ | 36 | 15 | 36 | ||
| Tax | $-5$ | $-15$ | $-8$ | $-2$ | $-3$ | $-8$ | $-4$ | $\overline{a}$ | ||
| Net profit/loss for the period | $-5$ | 29 | 15 | $\mathbf{0}$ | $-1$ | 28 | $\mathbf{1}$ | 36 | ||
| Profit/loss attributable to shareholders of the Parent Company | $-5$ | 29 | 15 | $\mathbf{0}$ | $-1$ | 28 | $\mathsf{I}$ | 36 |
| Asset Management and Banking | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | |||
| SEK M | lan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | lan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | ||
| Net sales | 402 | 561 | 428 | 463 | 377 | 428 | 345 | 309 | ||
| Other operating income | 31 | $\perp$ | 3 | $\Omega$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{2}$ | |||
| Total income | 433 | 572 | 430 | 463 | 378 | 430 | 345 | 311 | ||
| Assignment expenses and commission | $-100$ | $-108$ | $-88$ | $-132$ | $-90$ | $-100$ | $-98$ | $-8$ | ||
| Other external expenses | $-104$ | $-115$ | $-78$ | $-78$ | $-76$ | $-90$ | $-66$ | $-78$ | ||
| Personnel costs | $-139$ | $-206$ | $-145$ | $-147$ | $-130$ | $-154$ | $-126$ | $-116$ | ||
| Depreciation | $-5$ | $-7$ | $-7$ | $-5$ | $-5$ | $-4$ | $-3$ | $-3$ | ||
| Other operating expenses | $-4$ | $-0$ | $-5$ | $-3$ | $\overline{\phantom{0}}$ | $\overline{\phantom{a}}$ | $-4$ | 8 | ||
| Operating profit/loss before items affecting comparability | 81 | 136 | 107 | 99 | 76 | 84 | 49 | 40 | ||
| Items affecting comparability | $\Omega$ | $-53$ | $\Omega$ | $\Omega$ | $\begin{array}{c} \n\end{array}$ | $\Omega$ | $\circ$ | $\theta$ | ||
| Operating profit/loss | 8 1 | 83 | 107 | 99 | 76 | 84 | 49 | 40 | ||
| Interest income | $\Omega$ | $\Omega$ | $\theta$ | $\Omega$ | $\theta$ | $\Omega$ | $\mathbf{0}$ | |||
| Interest expenses | $-2$ | $-1$ | $-()$ | $-()$ | $-()$ | $-()$ | $-()$ | $\frac{1}{2}$ | ||
| Other financial items | $\overline{\phantom{a}}$ | $-2$ | $\overline{4}$ | $\overline{4}$ | $-3$ | $-2$ | 217 | |||
| Financial items-net | $-3$ | $-2$ | $\overline{4}$ | 3 | $-4$ | $-2$ | 217 | |||
| Profit/loss before tax | 78 | 8 1 | 108 | 103 | 80 | 80 | 47 | 257 | ||
| Tax | $-25$ | $-31$ | $-31$ | $-27$ | $-21$ | $-16$ | $-10$ | $-83$ | ||
| Net profit/loss for the period | 53 | 50 | 77 | 76 | 58 | 64 | 37 | 174 | ||
| Profit/loss attributable to shareholders of the Parent Company | 33 | 30 | 53 | 48 | 38 | 43 | 27 | 158 |
| Asset Management | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Corporate Finance | and Banking | Other | Group | ||||||
| SEK M | 2018 31 Mar |
2017 31 Mar |
2018 31 Mar |
2017 31 Mar |
2018 31 Mar |
2017 31 Mar |
2018 31 Mar |
2017 31 Mar |
|
| ASSETS | |||||||||
| Non-current assets | |||||||||
| Intangible assets | 65 | 62 | 272 | 301 | 56 | 50 | 393 | 412 | |
| Property, plant and equipment | 12 | $\vert \vert$ | 21 | 13 | Т. | - 1 | 34 | 25 | |
| Holdings in associated companies | $ \bigcirc$ | $\,0\,$ | 5 | $\,0\,$ | 75 | 67 | 80 | 67 | |
| Other non-current securities | $\overline{0}$ | $\boldsymbol{0}$ | 211 | 130 | 222 | 252 | 433 | 383 | |
| Deferred tax receivables | $\theta$ | $\circ$ | 31 | 27 | 68 | 68 | 99 | 96 | |
| Other non-current receivables | 9 | 6 | 545 | 818 | $-5$ | $\sim$ [ | 550 | 823 | |
| 86 | 80 | 1,086 | 1,289 | 4 7 | 437 | 1,589 | 1,806 | ||
| Current assets | |||||||||
| Current loan receivables | $\overline{0}$ | $\circ$ | 830 | 550 | $\,0\,$ | 0 | 830 | 550 | |
| Accounts receivable and other receivables | 118 | 167 | 500 | 497 | 21 | $-19$ | 638 | 645 | |
| Current investments | $\overline{0}$ | $\mathbb O$ | 56 | 53 | 17 | 30 | 73 | 83 | |
| Cash and cash equivalents | 245 | 227 | 2,487 | 2,162 | 153 | 47 | 2,886 | 2,435 | |
| 363 | 394 | 3,872 | 3,262 | 9 | 57 | 4,427 | 3,713 | ||
| Total assets | 449 | 473 | 4,958 | 4,551 | 608 | 494 | 6,016 | 5,519 | |
| EQUITY AND LIABILITIES | |||||||||
| Equity | |||||||||
| Equity attributable to shareholders of the Parent Company | 115 | 177 | 1,023 | 898 | 487 | 522 | 1,626 | 1,597 | |
| Non-controlling interests | 45 | 35 | 163 | 160 | $-()$ | $-0$ | 209 | 194 | |
| Total equity | 160 | 212 | 1,187 | 1,057 | 487 | 522 | 1,834 | 1,791 | |
| Liabilities | |||||||||
| Non-current liabilities | |||||||||
| Borrowings | $\,0\,$ | $\sqrt{a}$ | $\,0\,$ | $\mathbf 0$ | $\,0\,$ | $\theta$ | |||
| Long-term loan liabilities | $\overline{0}$ | $\circ$ | $\mathbf 0$ | $\overline{0}$ | 494 | $\circ$ | 494 | $\circ$ | |
| Deferred tax liabilities | $\mathbf 0$ | $\circ$ | 25 | 24 | 12 | $\ \ $ | 36 | 35 | |
| Other provisions | $\sqrt{2}$ 3 |
T | 3 32 |
3 28 |
$\,0\,$ 501 |
$\circ$ 9 |
5 536 |
3 39 |
|
| Current liabilities | |||||||||
| Borrowings | 0 | 0 | 137 | 164 | 0 | 0 | 137 | 164 | |
| Current Ioan liabilities | $\mathbf 0$ | $\circ$ | 2,634 | 2,533 | $\mathbf 0$ | 200 | 2,634 | 2,733 | |
| Accounts payable and other liabilities | 266 | 245 | 894 | 703 | $-381$ | $-231$ | 779 | 717 | |
| Tax liabilities | 20 | 15 | 75 | 66 | $\mathbf 0$ | $-6$ | 95 | 75 | |
| 286 | 260 | 3,740 | 3,466 | $-381$ | $-37$ | 3,646 | 3,689 | ||
| Total liabilities | 289 | 262 | 3,772 | 3,494 | 2 | $-28$ | 4,181 | 3,728 | |
| Total equity and liabilities | 449 | 473 | 4,958 | 4,551 | 608 | 494 | 6,016 | 5,519 |
From an international perspective, it is important that, in specific circumstances, Catella is able to carry out investments alongside its customers in order to attract 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 Ioan 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 more information about the projects, see below). The projects are run by Catella's German and Danish subsidiaries. The associated companies intend 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 | 75 | |||
| Loan portfolios | 198 | 208 | ||
| Nordic Light Fund | ||||
| Other holdings | 29 | |||
| Total | 75 | 222 | 314 | |
| Investment commitments | 86 |
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.
Residential property development project located in Dusseldorf consisting of 1,000 apartments over a total of 38,075 $m2$ .
Residential property development project located in Frankfurt consisting of 125 apartments and premises over a total of 4,258 m2.
Residential property development project located in central Copenhagen consisting of 495 apartments and other premises over a total of 21,000 m2.
The loan portfolios consist of securitised European loans mainly exposed to residential property. The progress of the loan is closely, monitored, and revaluations are made on a continuous basis. Forecasting is performed by French investment advisor Cartesia SAS. 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.
Catella holds shares in the Luxembourgbased Nordic Light Fund, which has invested in loan portfolios and is managed
by Catella Bank. The Ioan portfolios consist of loans to small and medium-sized companies, mainly in Germany and Spain. In addition, the port folios include a diversified pool of loans to small and medium-sized companies in the Netherlands and Portugal, with residential mortgages as underlying security. Since the end of 2011, the fund is fully invested and is now repaying cash flows received and realized income on investments to fund holders in the form of quarterly repurchases of units.
Other holdings mainly consist of listed and unlisted shares in Swedish limited companies.
| 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 | 51.6 | 18.5% | 47.3 | 23.1% | 5.9% | 1.5 |
| Pastor 3 ** | Spain | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | $\sim$ | ||
| Pastor 4 | Spain | 28.5 | 10.2% | 15.0 | 7.3% | 10.9% | 6.3 |
| Pastor 5 ** | Spain | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | |||
| Lusitano 3 | Portugal | 83.1 | 29.7% | 69.3 | 33.8% | 5.9% | 3.3 |
| Lusitano 4 ** | Portugal | $\sim$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | ||
| Lusitano 5 | Portugal | 116.2 | 41.6% | 73.5 | 35.8% | 10.9% | 4.7 |
| Sestante 2 ** | Italy | × | $\sim$ | $\sim$ | $\sim$ | ||
| Sestante 3 ** | Italy | × | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | |
| Sestante 4 ** | Italy | $\sim$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | |
| Total cash flow *** | 279.4 | 100.0% | 205.1 | 100% | 8,0% | 3.8 | |
| Accrued interest | 3.4 | ||||||
| Carrying amount in consolidated balance sheet | 208.5 |
* 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.
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. There is more information on Catella's loan portfolio on the website.
The portfolio is valued according to the fair value method, as defined in IFRS. In the absence of a functional and sufficiently liguid market for essentially all in-vestments and comparable subordinated investment s, valuation is performed using the mark-t o-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.
The discount rates applied are set internally, and based on a rolling 24-month 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. Adiustments to discount rates affect this value and are stated in a sensitivity analysis on Catella's website.
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.
| SEK M | Spain | Portugal | Italy | Netherlands | Germany | France | UK | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Loan portfolio | Pastor 2 | Pastor 3 | Pastor 4 | Pastor 5 | Lusitano 3 Lusitano 5 | Sestante 4 | Memphis ** | Shield ** | Gems ** | Semper ** | Minotaure $\pm \pm$ |
Ludgate ** | Outcome | Forecast | Diff | ||
| Outcome | |||||||||||||||||
| Q4 | 2009 | 4.6 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 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 |
| Q١ | 2010 | 3.4 | ä, | ÷, | $\overline{\phantom{a}}$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.8 | 1.6 | 0.2 | 1.5 | 1.9 | 0.3 | 9.5 | 6.3 | 3.3 |
| Q2 | 2010 | 2.3 | ä, | $\sim$ | ×. | 0.7 | ÷, | $\overline{\phantom{a}}$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.3 | 0.1 | 9.3 | 15.5 | $-6.2$ |
| Q3 | 2010 | 0.6 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.0 | $\bar{z}$ | $\overline{\phantom{a}}$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.5 | 0.1 | 9.1 | 8.0 | $ \cdot $ |
| Q 4 | 2010 | 1.5 | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.1 | 0.1 | 7.7 | 5.9 | 1.7 |
| Q١ | 2011 | 2.8 | $\sim$ | ×, | $\overline{\phantom{a}}$ | 0.8 | $\bar{z}$ | $\sim$ | 0.8 | 1.5 | 0.2 | 1.3 | 1.2 | 0.1 | 8.6 | 6.5 | 2.1 |
| Q2 | 2011 | 3.4 | ä, | $\sim$ | ×. | 4.7 | ä, | 0.2 | 0.8 | $\vert A$ | 0.2 | 1.4 | 1.9 | 0.1 | 14.3 | 7.1 | 7.1 |
| Q3 | 2011 | 2.0 | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.2 | $\overline{\phantom{a}}$ | 0.2 | 0.8 | 1.5 | 0.2 | 1.5 | 2.2 | 0.1 | 11.8 | 6.9 | 4.9 |
| Q4 | 2011 | 1.5 | $\sim$ | ×. | $\sim$ | 2.5 | $\overline{\phantom{a}}$ | 0.2 | 0.9 | $\sim$ | 0.3 | 1.5 | 1.6 | 0.1 | 8.5 | 7.8 | 0.6 |
| Q١ | 2012 | 2.1 | ×, | ×. | ×. | 4.3 | $\overline{\phantom{a}}$ | 0.2 | 0.8 | $\overline{\phantom{a}}$ | 0.2 | 1.4 | 1.7 | 0.0 | 10.8 | 6.9 | 3.9 |
| Q2 | 2012 | 1.5 | ×, | $\sim$ | ×. | 3.4 | ×. | 0.1 | $\sim$ | $\sim$ | 0.2 | 1.3 | 1.2 | 0.0 | 7.8 | 8.7 | $-0.9$ |
| Q3 | 2012 | 0.8 | ×, | ÷ | ×, | 2.5 | ×, | 0.1 | ×. | $\sim$ | 0.1 | 1.3 | 0.9 | 0.0 | 5.7 | 7.7 | $-2.0$ |
| Q4 | 2012 | 0.1 | × | $\sim$ | ×. | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | 1.2 | $\overline{\phantom{a}}$ | 0.0 | 1.5 | 6.8 | $-5.3$ |
| QΙ | 2013 | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | 1.2 | $\overline{\phantom{a}}$ | 0.1 | 1.5 | 1.5 | $-0.0$ |
| Q2 | 2013 | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\sim$ | 0.1 | $\sim$ | $\sim$ | $\sim$ | 0.2 | 2.3 | $-2.1$ |
| Q3 | 2013 | 0.1 | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | 1.7 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\sim$ | 0.1 | ×, | $\overline{\phantom{a}}$ | 0.1 | 2.2 | 2.6 | $-0.4$ |
| Q4 | 2013 | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\pm 0$ | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\vert . \vert$ | $\vert \, . \, \vert$ | 0.0 |
| $\mathop{\mathrm{Q}}$ | 2014 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 1.6 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.0 | 1.9 | $\overline{0}$ . | 0.8 |
| Q2 | 2014 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.7 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.6 | 3.5 | 0.3 | 3.3 |
| Q3 | 2014 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.2 | ÷, | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{m}}$ | ÷, | 5.2 | 7.7 | 5.9 | 1.8 | |
| Q4 | 2014 | 0.3 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.2 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 5.2 | 7.9 | 5.7 | 2.2 |
| $\mathop{\mathrm{Q}}$ | 2015 | 0.0 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\vert \cdot \vert$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.3 | 5.6 | 5.8 | $-0.2$ |
| Q2 | 2015 | 0.0 | ÷, | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\pm 0$ | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | ÷, | ÷, | 4.5 | 5.7 | 5.9 | $-0.2$ |
| Q3 | 2015 | 0.0 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.7 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 5.1 | 6.0 | 6.1 | $-0.1$ |
| Q 4 | 2015 | $\overline{\phantom{a}}$ | $\bar{z}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{1.0}$ | $\bar{z}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.1 | 4.3 | 5.4 | $-1.2$ |
| $\mathop{\mathrm{Q}}$ | 2016 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | 1.7 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 46.7 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.9 | 52.4 | 51.3 | $ \cdot $ |
| Q2 | 2016 | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.0 | $\overline{\phantom{a}}$ | 0.1 | $\bar{ }$ | $\overline{\phantom{a}}$ | ÷, | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.0 | 6.2 | 5.4 | 0.9 |
| Q3 | 2016 | ×, | ×, | ×, | ×. | 0.9 | ä, | 0.1 | ×, | ×, | ×, | ×. | ä, | 3.4 | 4.5 | 5.0 | $-0.5$ |
| Q4 | 2016 | $\bar{z}$ | ×, | ×, | $\overline{\phantom{a}}$ | 3.7 | $\bar{z}$ | 0.1 | ×. | ×, | $\sim$ | $\overline{\phantom{a}}$ | $\bar{z}$ | 3.4 | 7.2 | 5.2 | 2.1 |
| $\mathop{\mathrm{Q}}$ | 2017 | $\sim$ | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | 1.5 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | $\sim$ | 2.6 | 4.1 | 5.0 | $-0.9$ |
| Q2 | 2017 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\overline{\phantom{a}}$ | 1.9 | $\overline{\phantom{a}}$ | $\sim$ | ×, | $\sim$ | ×, | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.5 | 5.5 | 5.6 | $-0.1$ |
| Q3 | 2017 | × | $\sim$ | $\sim$ | ×. | 1.8 | ä, | × | $\sim$ | $\sim$ | $\sim$ | $\sim$ | ×, | 4.6 | 6.4 | 5.0 | 1.4 |
| Q4 | 2017 | 0.0 | $\bar{a}$ | ×, | $\overline{\phantom{a}}$ | 3.8 | $\bar{z}$ | $\sim$ | $\sim$ | ×, | ×, | ×, | $\overline{\phantom{a}}$ | 2.7 | 6.5 | 4.8 | 1.7 |
| Q١ | 2018 | 0.0 | $\overline{\phantom{a}}$ | × | ×. | 3.1 | $\sim$ | × | $\sim$ | $\sim$ | $\sim$ | ×. | ×. | $\overline{\phantom{a}}$ | 3.1 | 2.6 | 0.5 |
| Total | 27.2 | 0.0 | 0.0 | 0.0 | 58.0 | 0.8 | 2.9 | 8.4 | 12.2 | 50.4 | 19.4 | 21.7 | 59.3 | 260.2 | 235.1 | 25.1 | |
| Forecast | |||||||||||||||||
| Forecast | Quarter/ Year |
||||||||||||||||
| Q2 | 2018 | 0.0 | ×, | 2.7 | 0.0 | 2.7 | Acc. 2.7 |
||||||||||
| Q3 | 2018 | 0.0 | $\overline{\phantom{a}}$ | 2.7 | 0.0 | 2.7 | 5.4 | ||||||||||
| Q4 | 2018 | 0.0 | $\sim$ | 2.8 | 0.0 | $2.8\,$ | 8.2 | ||||||||||
| Full year | 2019 | 51.5 | $\overline{\phantom{a}}$ | 13.0 | 0.0 | 64.5 | 72.7 | ||||||||||
| Full year | 2020 | ×, | 16.8 | 4.4 | 21.2 | 93.9 | |||||||||||
| Full year | 2021 | $\sim$ | 21.1 | 55.6 | 76.8 | 170.6 | |||||||||||
| Full year | 2022 | $\sim$ | 6.2 | 30.6 | 36.8 | 207.4 | |||||||||||
| Full year | 2023 | $\overline{\phantom{a}}$ | 2.5 | 2.5 | 5.0 | 212.4 | |||||||||||
| Full year | 2024 | 28.5 | 15.4 | 2.1 | 46.0 | 258.4 | |||||||||||
| Full year | 2025 | 1.7 | 1.7 | 260.1 | |||||||||||||
| Full year | 2026 | 1.4 | 1.4 | 261.5 | |||||||||||||
| Full year | 2027 | 179 | 179 | 2794 |
$0.0$
$\overline{28.5}$
$0.0$
$83.1$ 116.2
$51.6$
$Total$
* The forecast was produced by investment advisor Cartesia S.A.S.
** Shield was divested in Q4 2011, Memphis in Q2 2012 and Semper in Q2 2013. Gems was re-purchased in Q1 2016 by the issuer. Ludgate and Minotaure were dive
$0.0$
$\overline{0.0}$
$0.0$
$\overline{0.0}$
$0.0$
$\overline{0.0}$
$\overline{0.0}$
$279.4$
| SFK M | 31 March 2018 |
|---|---|
| Loan portfolio and Nordic Light Fund * | 210 |
| Operation-related investments | 248 |
| Other securities | 48 |
| $Total$ ** | 506 |
* of which Loan portfolios SEK 208 M.
** of which short-term investments SEK 73 M and long-term investments SEK 433 M.
In accordance with IFRS7, financial instruments are recognized on the basis of fair value hierarchically with three different levels. Classification is based on the input dataused for measuring instruments. Quoted prices on an active market on the reporting date are applied for level I. 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 non-observable market data. Specific valuation techniques used for level 3 are the measurement of discounted cash flows to determine the
fair value of financial instruments. For more information, see Note 3 in the Annual Report 2017.
The Group's assets and liabilities measured at fair value as of 31 March 2018 are stated in the following table.
| SEK M | Tier I | Tier 2 | Tier 3 | Total |
|---|---|---|---|---|
| ASSETS | ||||
| Derivative instruments | 8 | 8 | ||
| Financial assets measured at fair value through other comprehensive income |
64 | 64 | ||
| Financial assets measured at fair value through profit or loss |
55 | 116 | 264 | 435 |
| Total assets | 55 | 188 | 264 | 506 |
| LIABILITIES | ||||
| Derivative instruments | 16 | 16 | ||
| Total liabilities | 0 | 16 | 0 | 16 |
No changes between levels occurred the previous year.
| 2018 | |
|---|---|
| as of I January | 309 |
| Purchases | 40 |
| Disposals | $-99$ |
| Amortisation | $-2$ |
| Gains and losses recognised through profit or loss | 6 |
| Exchange rate differences | $ 0\rangle$ |
| At 31 March | 264 |
| 262 | 232 | 253 | |
|---|---|---|---|
| Other pledged assets | AC | 48 | |
| Cash and cash equivalents | 213 | 180 | 205 |
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| 2018 | 201 |
Cash and cash equivalents include pledged cash funds. These funds are used as collateral in the Asset Management and Banking operating segment for ongoing transactions. Cash and cash equivalents also include cash funds in accordance with
minimum retention requirements of Catella Bank's card operations, funds that are to be accessible from time to time for regulatory reasons, as well as frozen funds for other purposes.
| 94 | 48 | 63 | |
|---|---|---|---|
| Other contingent liabilities | 20 | ||
| Client funds managed on behalf of clients | 80 | 28 | 56 |
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| 2.018 | 201 |
Client funds relate to assets belonging to customers managed by Catella Bank branch office. These assets are deposited in separate bank accounts by the branch
office under a third-party name. Other contingent liabilities mainly re late to guarantee commitments primarily provided for rental contracts with landlords.
| 2,751 | 2.512 | 2.697 | |
|---|---|---|---|
| Other commitments | |||
| Investment commitments | 86 | ||
| Unutilised credit facilities, granted by Catella Bank | 2.659 | 2.482 | 2.668 |
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| 2.018 | 2017 | 2017 |
Unutilized credit facilities mainly relate to the credit commitments issued by Catella Bank to its credit card clients. Customers can utilize these facilities under certain circumstances, depending on what collateral they can provide. Investment commitments
mainly relate to associated company Nordic Seeding GmbH and Kaktus | TopCo ApS.
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 Luxemburg. Catella Bank S.A is the reporting entity and responsible institute.
In January 2018, CSSF announced that a further four smaller Group companies, Catella Asset Management AS, Elementum Asset Management AS, Ambolt Advisors Sarl and IPM Informed Portfolio Management UK Ltd, would be included in the consolidated financial situation from 31 December 2017. Group companies cur-
rently 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 reporting and other mattersthat apply to the consolidated financial situation which could lead to all or a majority of the group being considered to constitute a consolidated financial situation. The potential effects of an expanded consolidated financial situation in addition to the companies mentioned above have been analysed and the calculations indicate that the Group as a whole would satisfy the minimum capital adequacy requirement.
The consolidated financial situation complies with the EU 's and the Council's statute (EU) no.575/32013 (CRR).
The Annual Accounts 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.
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| SEK M | lan-Mar | Jan-Mar | Jan-Dec |
| Net sales | 384 | 365 | 1.694 |
| Other operating income | 8 | 15 | |
| Total income | 392 | 366 | 1,709 |
| Assignment expenses & commission | $-105$ | $-92$ | $-454$ |
| Income excl. direct assignment costs and commission | 287 | 274 | 1,256 |
| Operating expenses | $-221$ | $-205$ | $-926$ |
| Operating profit/loss before items affecting comparability | 65 | 69 | 330 |
| Items affecting comparability | $\mathbf{0}$ | $\Omega$ | $-53$ |
| Operating profit/loss | 65 | 69 | 277 |
| Financial items-net | 7 | 10 | 407 |
| Profit/loss before tax | 72 | 79 | 684 |
| Appropriations | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ |
| Tax | $-15$ | $-16$ | $-72$ |
| Net profit/loss for the period | 57 | 63 | 612 |
| Profit/loss attributable to: | |||
| Shareholders of the Parent Company | 37 | 43 | 520 |
| Non-controlling interests | 20 | 20 | 92 |
| 57 | 63 | 612 | |
| Employees at end of period | 346 | 337 | 343 |
| SEK M | 2018 31 Mar |
2017 31 Mar |
2017 31 Dec |
|---|---|---|---|
| Non-current assets | 1,669 | 1,722 | 1,921 |
| Current assets | 4,192 | 3,434 | 4,264 |
| Total assets | 5,860 | 5,157 | 6,185 |
| Equity | 1,907 | 1,563 | 2,011 |
| Liabilities | 3.953 | 3.594 | 4,174 |
| Total equity and liabilities | 5,860 | 5.157 | 6,185 |
The company Catella AB is a parent financial holding company in the Catella Group, and publishes disclosures on capital adequacy for the consolidated financial situation below.
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| Common Equity Tier I capital | 1,209 | 723 | 1,111 |
| Additional Tier capital | $\boldsymbol{0}$ | $\overline{0}$ | $\mathbf{0}$ |
| Tier 2 capital | $\theta$ | $\theta$ | $\mathbf{0}$ |
| Own funds | 1,209 | 723 | 1,111 |
| Total risk exposure amount | 5.723 | 5.126 | 5,708 |
| OWN FUNDS AND BUFFERS | |||
| Own funds requirements Pillar | 458 | 410 | 457 |
| of which own funds requirements for credit risk | 226 | 217 | 259 |
| of which own funds requirements for market risk | 75 | 66 | 71 |
| of which own funds requirements for operational risk | 156 | 127 | 126 |
| of which own funds requirements for credit valuation adjustment risk | $\cal O$ | 0 | $\cal O$ |
| Own funds requirements Pillar 2 | 172 | 100 | 184 |
| Institution-specific buffer requirements | 203 | 155 | 200 |
| Internal buffer | 57 | 51 | 57 |
| Total own funds and buffer requirements | 889 | 716 | 898 |
| Capital surplus after own funds and buffer requirements | 319 | 7 | 212 |
| Capital surplus after regulatory required own funds and buffer requirements | 377 | 58 | 269 |
| CAPITAL RATIOS, % OF TOTAL RISK EXPOSURE AMOUNT | |||
| Common Equity Tier capital ratio | 21.1 | 4.1 | 19.5 |
| Tier I capital ratio | 21.1 | 4. | 19.5 |
| Total capital ratio | 21.1 | 14.1 | 19.5 |
| OWB FUNDS AND BUFFERS, % OF TOTAL RISK EXPOSURE AMOUNT | |||
| Own funds requirements Pillar I | 8.0 | 8.0 | 8.0 |
| Own funds requirements Pillar 2 | 3.0 | 2.0 | 3.2 |
| Institution-specific buffer requirements | 3.5 | 3.0 | 3.5 |
| of which requirement for capital conservation buffer | 2.5 | 2.5 | 2.5 |
| of which requirement for countercyclical capital buffer | 1.0 | 0.5 | 1.0 |
| Internal buffer | 1.0 | 1.0 | 1.0 |
| Total own funds and buffer requirements | 15.5 | 14.0 | 15.7 |
| Capital surplus after own funds and buffer requirements | 5.6 | 0.1 | 3.7 |
| Capital surplus after regulatory required own funds and buffer requirements | 6.6 | $ \cdot $ | 4.7 |
Catella AB's consolidated financial situation satisfies the minimum capital base requirements. Capital adequacy calculations have also been performed in the event that a majority or all of the group were to be considered a consolidated financial situation. These calculations indicate that the group as a whole would satisfy minimum capital adequacy requirements.
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| Own funds, SEK M | 31 Mar | 31 Mar | 31 Dec |
| Common Equity Tier 1 capital | |||
| Share capital and share premium reserve | 400 | 399 | 399 |
| Retained earnings and other reserves | 1,423 | 1,163 | 1,612 |
| Less: | |||
| Intangible assets | $-299$ | $-317$ | $-298$ |
| Price adjustments | $-22$ | $-28$ | $-31$ |
| Deferred tax receivables | $-68$ | $-68$ | $-68$ |
| Qualifying holdings outside the financial sector | $-38$ | $-51$ | |
| Positive results not yet verified by the Annual General Meeting | $-57$ | $-397$ | $-329$ |
| Other deductions | $-129$ | $-29$ | $-123$ |
| Total Common Equity Tier I capital | 1,209 | 723 | 1,111 |
| Additional Tier I capital | $\overline{\phantom{a}}$ | ||
| Tier 2 capital | $\overline{\phantom{a}}$ | ||
| Own funds | 1,209 | 723 | 1,111 |
| 2018 | 2017 | 2017 | ||||||
|---|---|---|---|---|---|---|---|---|
| 31 Mar | 31 Mar | 31 Dec | ||||||
| Specification of risk-weighted exposure amounts and own funds requirements Pillar 1, SEK M |
Risk-weighted exp.amount |
UWILTURIUS requirements Pillar |
Risk-weighted exp.amount |
UTTER TURNS requirements Pillar |
Risk-weighted exp.amount |
o mi runus requirements Pillar |
||
| Credit risk according to Standardised Approach | ||||||||
| Exposures to institutions | 425 | 34 | 356 | 28 | 584 | 47 | ||
| Exposures to corporates | 683 | 55 | 737 | 59 | 850 | 68 | ||
| Exposures to retail | $ 0\rangle$ | 3 | $\Omega$ | 3 | $\Omega$ | |||
| Exposures secured by mortgages on immovable property | 242 | 19 | 379 | 30 | 744 | 20 | ||
| Exposures in default | 235 | 9 | 277 | 22 | 295 | 24 | ||
| Items associated with particular high risk | 173 | 4 | 118 | 9 | 169 | 13 | ||
| Exposures in the form of covered bonds | 3 | $\Omega$ | 3 | $\Omega$ | 3 | $\theta$ | ||
| Exposures to collective investment undertakings (funds) | $\overline{2}$ | $\Omega$ | 12 | 15 | ||||
| Equity exposures | 342 | 27 | 44 | 12 | 340 | 27 | ||
| Other items | 715 | 57 | 682 | 55 | 741 | 59 | ||
| 2,831 | 226 | 2,711 | 217 | 3,242 | 259 | |||
| Market risk | ||||||||
| Interest risk | $\Omega$ | $\mathbf{0}$ | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | ||
| Foreign exchange risk | 944 | 75 | 826 | 66 | 893 | 71 | ||
| 944 | 75 | 826 | 66 | 893 | 71 | |||
| Operational risk according to the Basic Indicator Approach | 1,948 | 156 | 1,589 | 127 | 1,570 | 126 | ||
| Credit valuation adjustment risk | $\mathbf{0}$ | 0 | 0 | 3 | $\mathbf{0}$ | |||
| Total | 5,723 | 458 | 5.126 | 410 | 5,708 | 457 |
| 2018 | 2017 | 2017 | |
|---|---|---|---|
| SEK M | Jan-Mar | Jan-Mar | Jan-Dec |
| Net sales | 4.6 | 3.1 | $ \ $ |
| Other operating income | 0.0 | 0.0 | 0.0 |
| Total income | 4.6 | 3.1 | 11.2 |
| Other external expenses | $-9.6$ | $-6.2$ | $-26.8$ |
| Personnel costs * | $-7.2$ | $-7.8$ | $-36.2$ |
| Depreciation | $-0.0$ | $-0.0$ | $-0.0$ |
| Other operating expenses | $-0.0$ | 0.0 | 0.0 |
| Operating profit/loss | $-12.3$ | $-10.9$ | $-51.9$ |
| Profit/loss from participations in group companies | 0.0 | 0.0 | 190.0 |
| Interest income and similar profit/loss items | 0.0 | 0.0 | $-0.0$ |
| Interest expenses and similar profit/loss items | $-4.9$ | $-2.4$ | $-18.6$ |
| Financial items | $-4.9$ | $-2.4$ | 171.4 |
| Profit/loss before tax | $-17.2$ | $-13.3$ | 119.5 |
| Tax on net profit for the year | 0.0 | 0.9 | 0.9 |
| Net profit/loss for the period | $-17.2$ | $-12.4$ | 120.4 |
* Personnel costs include directors' fees
| SEK M | 2018 lan-Mar |
2017 lan-Mar |
2017 Jan-Dec |
|---|---|---|---|
| Net profit/loss for the period | -17.2 | $-124$ | 120.4 |
| Other comprehensive income | |||
| Other comprehensive income for the period, net after tax | 0.0 | 0.0 | 0.0 |
| Total comprehensive income/loss for the period | $-17.2$ | $-12.4$ | 120.4 |
| SEK M | 2018 31 Mar |
2017 31 Mar |
2017 31 Dec |
|---|---|---|---|
| Property, plant and equipment | 0.1 | $\vert 0.1 \vert$ | 0.0 |
| Participations in Group companies | 654.1 | 654.3 | 654.1 |
| Deferred tax receivables | 19.8 | 19.8 | 19.8 |
| Current receivables from Group companies | 269.3 | 40.3 | 46.8 |
| Other current receivables | 111.0 | 8.2 | 103.9 |
| Cash and cash equivalents | 19.1 | 31.2 | 263.9 |
| Total assets | 1,073.3 | 753.8 | 1,088.6 |
| Equity | 562.5 | 506.6 | 574.0 |
| Non-current liabilities | 494.1 | 0.0 | 494.0 |
| Current liabilities to Group companies | 0.0 | 30.9 | 0.0 |
| Other current liabilities | 16.7 | 216.4 | 20.6 |
| Total equity and liabilities | 1,073.3 | 753.8 | 0.88.6 |
There were no assets pledged or contingent liabilities as of 31 March 2018.
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 measure Definitions
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 di- | Provides investors with a view of equity as represented by a |
| parent company shareholders* | vided by the number of shares at the end of the period. | single share. |
| Return on equity* | Total profit in the period attributable to parent company | The company considers that the performance measure pro- |
| shareholders for the most recent four quarters divided | vides investors with a better understanding of return on eq- | |
| by average equity attributable to parent company share- | uity. | |
| holders in the most recent five quarters. | ||
| Adjusted return on equity* | Total profit in the period attributable to the parent com- | The company considers that the performance measure pro- |
| pany share adjusted for items affecting comparability for | vides investors with a better understanding of return on eq- | |
| the most recent four quarters divided by average equity | uity when making comparisons with earlier periods. | |
| attributable to parent company shareholders in the most | ||
| recent five quarters. | ||
| 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 pe- | The measure illustrates profitability regardless of the rate of |
| riod. | corporation tax. | |
| Adjusted profit margin* | Profit for the period adjusted for items affecting compa- | The measure illustrates profitability regardless of the rate of |
| rability divided by total income for the period. | corporation tax when making comparisons with earlier peri- | |
| ods. | ||
| Property transaction volumes in | Property transaction volumes in the period constitutes | An element of Catella's income in Corporate Finance is |
| the period | the value of underlying properties at the transaction | agreed with customers on the basis of the underlying prop- |
| dates. | erty value of the relevant 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 Ca- | An element of Catella's income in Asset |
| end | tella's customers' deposited/invested capital. | Management and 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 underly- | Card and payment volumes are value drivers for Catella's in- |
| ing card transactions processed by Catella. | come in Card & Payment Solutions. Provides investors with a | |
| view of what drives an element of Catella's income. | ||
| Adjusted Earnings per share | Profit for the period attributable to parent company | Provides investors with a view of the company's Earnings per |
| shareholders divided by the number of share. | share when making comparisons with earlier periods. |
* See next page for basis of calculation
| 3 Months | 12 Months | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | Rolling | 2017 | |||||||||||||
| GROUP | Jan-Mar | Jan-Mar | 12 Months | Jan-Dec | ||||||||||||
| Net profit/loss for the period, SEK M | 42 | 53 | 273 | 284 | ||||||||||||
| Total income, SEK M | 541 | 495 | 2523 | 2477 | ||||||||||||
| Profit margin, % | 8 | $\perp$ | $\mathbf{1}$ | $\perp$ | ||||||||||||
| Adjusted profit for the period, SEK M | 42 | 53 | 326 | 337 | ||||||||||||
| Total income. SEK M | 541 | 495 | 2523 | 2477 | ||||||||||||
| Adjusted Profit margin, % | 8 | $\mathbf{H}$ | 3 | 4 | ||||||||||||
| Equity, SEK M | 1.834 | 1.791 | 1943 | |||||||||||||
| Total assets, SEK M | 6.016 | 5,519 | 6396 | |||||||||||||
| Equity/Asset ratio, % | 30 | 32 | 30 | |||||||||||||
| Net profit/loss for the period, SEK M * | 22 | 33 | 180 | 192 | ||||||||||||
| No. of shares at end of the period | 81,848,572 81,848,572 | 81,848,572 | 81,848,572 | |||||||||||||
| Earnings per share, SEK * | 0.26 | 0.41 | 2.20 | 2.35 | ||||||||||||
| Adjusted profit for the period, SEK M * | 42 | 53 | 326 | 337 | ||||||||||||
| No. of shares at end of the period | 81,848,572 81,848,572 | 81,848,572 81,848,572 | ||||||||||||||
| Adjusted earnings per share, SEK * | 0.26 | 0.41 | 2.85 | 2.99 | ||||||||||||
| Equity, SEK M * | 1.626 | 1.597 | 1729 | |||||||||||||
| No. of shares at end of the period | 81,848,572 81,848,572 | $-81,848,572$ | ||||||||||||||
| Equity per share, SEK * | 0.00 | 0.00 | $\overline{\phantom{a}}$ | 0.00 | ||||||||||||
| 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | |
| GROUP | Jan-Mar 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 * | 22 | 67 | 59 | 33 | 33 | 37 | 35 | 182 | 17 | 122 | 38 | 48 | 35 | 96 | 21 | 85 |
| Equity, SEK M * | 1,626 | 1,729 | 1,628 | 1,577 | 1,597 | 1,563 | 1,534 | ,484 | 1,333 | 1,319 | 1,233 | 1,177 | 1,151 | 1,164 | 1,041 | 1,027 |
| Return on equity, % | $\perp$ | 2 | 0 | 9 | 9 | 9 | 26 | 27 | 8 | 20 | 9 | 8 |
| Adjusted profit for the period, SEK M $*$ | 182 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted equity, SEK * | .626 | .782 | .628 | .577 | 1.597 | .563 | 1.534 | .484 | 1.333 | 1.319 | 1.233 | . 177 | 1.151 | .164 | 1,041 | .027 |
| Adjusted return on equity, % | 19 | 26 |
| 3 Months | 12 Months I | ||||
|---|---|---|---|---|---|
| 2018 | 2017 | Rolling | 2017 | ||
| CORPORATE FINANCE | Jan-Mar | Jan-Mar | 12 Months | Jan-Dec | |
| Net profit/loss for the period, SEK M | -5 | $\sim$ 1 | 39 | 43 | |
| Total income, SEK M | . I I | $\perp$ | 648 | 659 | |
| Profit margin, % | $-4$ | $\overline{a}$ | 6 | ||
| Equity, SEK M | 160 | 212 | 165 | ||
| Total assets, SEK M | 449 | 473 | 511 | ||
| Equity/Asset ratio, % | 36 | 45 | 32 | ||
| _________ . |
_ __ |
. | . |
| 2018. | 2017 | 2017 | 2017 | 2016 | - 2016 | 2016 2016 2015 2015 2015 2015 | 2014 | 2014 | 2014 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CORPORATE FINANCE | Jan-MarOct-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 * | 28 | 36 | -16 | 16. | ||||||||||||
| Equity, SEK M * | 78. | 254 | 237 | 222 | 206 | - 213 | 183 | 171 | 187 | 8 | 44 | 143 | ||||
| Return on equity, % | 9 | 29 | 34 | 28 | 25 |
* Attributable to shareholders of the Parent Company.
| 3 Months | 12 Months | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018 | 2017 | Rolling | ||||||||||||||
| ASSET MANAGEMENT AND BANKING | lan-Mar | lan-Mar | 12 Months | Jan-Dec | ||||||||||||
| Net profit/loss for the period, SEK M | 53 | 58 | 257 | 262 | ||||||||||||
| Total income, SEK M | 433 | 378 | 1899 | 1844 | ||||||||||||
| Profit margin, % | 2 | 15 | 4 | 4 | ||||||||||||
| Adjusted profit for the period, SEK M | 53 | 58 | 310 | 315 | ||||||||||||
| Total income, SEK M | 433 378 |
1899 | ||||||||||||||
| Adjusted Profit margin, % | 2 | 15 | 16 | 17 | ||||||||||||
| Equity, SEK M | 1.187 | 1.057 | 1100 | |||||||||||||
| Total assets, SEK M | 4,958 | 4,551 | $\overline{\phantom{a}}$ | 5106 | ||||||||||||
| Equity/Asset ratio, % | 23 24 |
$\overline{\phantom{a}}$ | ||||||||||||||
| 2018 | 2017 | 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | |
| ASSET MANAGEMENT AND BANKING | Jan-Mar Oct-Dec | Jul-Sep Apr-Jun Jan-MarOct-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 * | 33 | 30 | 53 | 48 | 38 | 43 | 27 | 158 | 24 | 66 | 4 | 18 | 44 | 26 | 5 | 20 |
| Equity, SEK M * | 1,023 | 931 | 967 | 941 | 898 | 918 | 855 | 789 | 649 | 620 | 686 | 660 | 676 | 159 | 651 | 575 |
| Return on equity, % | 17 | 8 | 20 | 8 | 32 | 33 | 38 | 39 | 9 | 26 | 8 | 17 | ||||
| Adjusted profit for the period, SEK M * | 33 | 83 | 53 | 48 | 38 | 43 | 27 | 158 | 24 | 66 | 4 | 8 | 44 | 26 | 5 | 20 |
| Adjusted equity, SEK * | 1,023 | 984 | 967 | 941 | 898 | 918 | 855 | 789 | 649 | 620 | 686 | 660 | 676 | 159 | 651 | 575 |
| Adjusted return on equity, % | 23 | 24 | 20 | 8 | 32 | 33 | 38 | 39 | 9 | 26 | 8 | 17 |
* Attributable to shareholders of the Parent Company.
Catella AB (publ)
P.O. Box 5894, 102 40 Stockholm | Visitors: Birger Jarlsgatan 6
Corp. ID no. 556079–1419 | Reg. Office: Stockholm, Sweden
Tel: +46 (0)8 463 33 10 | [email protected]
catella.com
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