Earnings Release • Nov 14, 2017
Earnings Release
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The positive trend continued in the third quarter, with total income up by 20%. Operating profit insets under management and a more favourable product mix, and good performance from managing our funds in Equity, Hedge and Fixed Income Funds. Total income for the nine-month period increased by 17% and operating profit increased by 47% to SEK 256 million in year-on-year terms.
SEK M
Total income SEK 396 M (397)
Operating profit/loss SEK 27 M (39)
Property transaction volumes SEK 33.6 Bn
Net sales SEK 394 M (388)
France SEK 7.5 Bn (10.5)
Sweden SEK 9.7 Bn (12.2)
Germany 1.2 Bn (2.0)
NINE-MONTH PERIOD
$(33.8):$
Equity per share** SEK 19.89 (18.75)
month period 2016 of SEK 221 M before tax reported in net financial income and expenses and SEK 149 M after tax ** Attributable to parent company shareholders
Over the last three years, assets under management have increased by 52% and total income increased by 74%. In addition, we made significant investments in growth, and operating profit increased by 315% in the same period. This positive trend continued in the third quarter, with total income up by 20%. Operating profit increased by 126% to SEK 112 million in year-on-year terms. The increase was driven by increased assets under management and a more favourable product mix, and good performance from managing our funds in Equity, Hedge and Fixed Income Funds. Total income for the nine-month period increased by 17% and operating profit increased by 47% to SEK 256 million in year-on-year terms.
The product mix in Equity, Hedge and Fixed Income Funds continued to improve as a result of increased inflows to our more profitable hedge products, both in Mutual Funds and Systematic Funds.
The fund management team in Mutual Funds generated positive returns on hedge and fixed income products in the quarter, which contributed to increased variable earnings in year-on-year terms. Systematic Funds increased assets under management by SEK 7.6 billion, compared to the corresponding quarter in the previous year, which contributed to higher fixed and variable earnings.
A high rate of acquisitions, the banks' need to reduce risk and increased regulation are driving market demand for alternative financing solutions. In response to this and in collaboration with Nordic banks, Mutual Funds is planning to launch a loan fund that will provide syndicated loans and bonds to medium-sized companies in the Nordics to finance acquisitions, for refinancing purposes and/or ownership changes.
Our priority has been and remains to increase assets under management for our hedge products. The products are attracting considerable interest from customers wanting to adjust the weighting of their portfolios by reducing the correlation with
the stock market. We're improving our profitability in the business area and positioning ourselves for the future by improving the product mix and increasing assets under management, alongside sound management of our funds.
Assets under management in the business area increased by SEK 4.5 billion in year-on-year terms, and annualized profit from fixed revenue/fixed expenses was SEK 234 million at the end of the quarter.
In Banking, income was in line with the corresponding quarter in the previous year, while profit decreased as a result of higher operating costs.
Wealth Management increased assets under management by SEK 4.2 billion yearon-year, mainly driven by property-related products originally generated by Corporate Finance. Property-related products are a key part of our offering, and our aim is to capitalize on Catella's property expertise in order to generate value for customers and further increase volumes and earnings.
We're seeing a gradual increase in income in Cards and Payment Solutions, driven by a slightly improved product mix in the card acquiring operations and an increased number of cards issued through partner banks.
The delays relating to the Swedish deposit product contributed to a marginal increase in the loan book in the quarter. Our ambition remains to launch the deposit product following approval from the Luxembourg supervisory authority. The flow of property transactions and property expertise in Catella will enable future expansion of the loan book with limited risk and relatively high margins.
The year-on-year increase in Property Investment Management's income and profit was largely attributable to the Property Funds service area, where assets under management increased by SEK 9.8 billion, with most of the growth attributable to residential property funds. The Property Asset Management service area established operations in the Netherlands and Sweden after the end of the quarter, in line with the strategy of creating a European platform that makes us more relevant as a partner to international investors.
In order to meet the needs of international investors, we're establishing a flexible mutual funds platform in Luxembourg for the distribution of existing and new property products. The existing products are mainly in Property Funds, but our mezzanine fund will also access a broader customer base where Catella banks customers will be able to invest.
The work of capitalizing on the synergies between service areas continues, with Property Funds utilizing local expertise in property asset management for investments in its funds. The collaboration between these two service areas creates a more complete product offering that is relevant to a broader customer base.
Our presence in London and the future establishment in Hong Kong enables Catella to distribute property products aimed at global capital. The broader offering increases Catella's attractiveness to global investors seeking property exposure in Europe.
In Corporate Finance, income was in line with the corresponding quarter of the previous year, while profit increased. In Continental Europe, income and profit increased, mainly driven by France and Germany, while in the Nordics, Sweden reported a weaker quarter while the quarter was stronger in Denmark year-on-year. In historical terms, the first and third quarter are the weakest, while the second and particularly the fourth quarter are the strongest.
Activity in the Nordics remained high, with a focus on value added services that make us significantly less dependent on traditional property transactions. A number of transactions were completed in Denmark in the quarter, consisting of property development projects and office premises in Copenhagen.
After the end of the quarter, Corporate Finance in Sweden acted as financial advisor and arranger of recently established property company Tre Kronor Property Investment AB, which acquired a portfolio of 72 grocery properties in southern Sweden through subsidiaries, and which intends to list its shares on Nasdag First North in Stockholm. 200 of Wealth Management's customers invested in the new issue, which totalled SEK 355 million, with Catella Bank providing junior financing. In
conjunction with this transaction, Catella established Property Asset Management operations in Sweden for the management of the property holding. The project provides another example of synergies in the Catella group, and our ambition is to offer customers in Wealth Management high quality investment opportunities in the property sector based on our property expertise.
Catella will continue to work to increase collaboration across national borders to
capitalize on the opportunities arising from European and global capital seeking to diversify the geographical risk of investments. Given the increased geographical breadth and our strong product portfolio, we are convinced that we'll continue to attract assets under management that will contribute to increased growth and profitability.
CEO and President
Catella is a leading specialist in property advisory services and investments, mutual funds and banking, with operations in twelve countries in Europe. Catella is listed on Mid Cap on Nasdaq Stockholm.
Amounts are in SFK M unless otherwise indicated.Figuresintablesandcommentsmay be rounded.
The Group's total income was SEK571 M (477) and net sales were SEK 568 M (475), of which SEK 143 M (142) relates to Corporate Finance and SEK 428 M (345) 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 2 M (6). Net financial income/expense also includes interest income of SEK 6 M (6), which mainly relates to loan portfolios, and interest expenses of SEK 5 M (3), relating to Catella's bond issue. Fair value measurement of non-recurring securities and current investments resulted in value adjustment of SEK -7 M (-7), of which SEK -8 M relates to derivatives. Closed currency forwards generated positive profit of SEK 10 M.
The Group's profit before tax was SEK II4 M (56), and profit after tax was SEK 84 M (45), of which SEK 59 M (35) was attributable to parent company shareholders. This corresponds to Earnings per Share of SEK 0.72 (0.43).
The Group's total income was SEK 1,653 M (1,417) in the nine-month period, and consolidated net sales were SEK 1,647 M $(1,401)$ .
The Group's net financial income and expense was SEK 14 M (243). The com-
parative period in 2016 includes non-recurring income from the Visa transaction of SEK 221 M. Net financial income and expense includes interest income of SEK 17 M (18) and interest expenses of SEK 12 M (8). Increased interest expenses are mainly due to the parent company's increased borrowing in June. Net financial income and expense also includes a cost of SEK 2 M relating to the early redemption of the bond loan 2012/2017. Fair value measurement of non-current securities and current investments resulted in a value adjustment of SEK -2 M (-5). Closed currency forwards intended to limit currency exposure generated gains of SEK 14 M.
The Group's profit before tax was SEK 270 M (417, excluding Visa; 196) and profit after tax was SEK 199 M (299, excluding Visa; 150), of which SEK 125 M was attributable to parent company shareholders (235, excluding Visa 86). This corresponds to Earnings per Share of SEK 1.53 (2.87, excluding Visa; 1.05).
In July 2017, Catella utilized the right to early redemption of the bond loan maturing in September 2017. The bond was redeemed at an amount corresponding to 101% of the nominal amount plus accrued interest.
In July 2017, Catella published a prospectus and applied for listing of the new bond Ioan on Nasdaq Stockholm. The first day of trading of the bond was 9 August 2017.
In October 2017, following approval by the Luxembourg supervisory authority (CSSF), Catella acquired the shares in Dutch property advisor Panta Rhei Advisory B.V. Panta Rhei Advisory will change its name to Catella IM Benelux.
The acquisition means that Catella will strengthen its position in Property Investment Management on the European property market and increase the number of European countries with local representation from 12 to 13.
In October 2017, following approval by the Luxembourg supervisory authority (CSSF), Catella established Property Asset Management operations in Sweden in connection with the Tre Kronor assignment.
Catella will assume responsibility for the management of Tre Kronor's property holding, comprising 72 retail properties located in 68 municipalities in southern Sweden.
In the fourth quarter 2017, Catella plans to establish a subsidiary, Catella Asia Ltd, for the distribution of products and services for the Chinese and other Asian markets.
The Luxembourg supervisory authority (CSSF) gave its approval in September 2017.
| 3 Months | 12 Months | |||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec |
| CORPORATE FINANCE | ||||||
| Total income | 44 | 44 | 396 | 397 | 585 | 586 |
| Operating profit/loss | 23 | 4 | 27 | 39 | 47 | 58 |
| Operating margin, % | 16 | 10 ° | 7 | 10 | 8 | 10 |
| ASSET MANAGEMENT AND BANKING | ||||||
| Total income | 430 | 345 | 1.272 | 1,043 | 1.702 | 1,473 |
| Operating profit/loss | 107 | 49 | 282 | 7 | 366 | 255 |
| Operating margin, % | 25 | 14 | 22 | 16 | 21 | 17 |
| Equity-, Hedge and Fixed Income Funds | ||||||
| Total income * | 220 | 162 | 633 | 569 | 811 | 748 |
| Operating profit/loss | 97 | 44 | 260 | 195 | 323 | 258 |
| Operating margin, % | 44 | 27 | 41 | 34 | 40 | 35 |
| Banking | ||||||
| Total income * | 115 | 117 | 337 | 303 | 467 | 433 |
| Operating profit/loss | 3 | $\mathbf{1}$ | 6 | $-7$ | $\overline{7}$ | $-6$ |
| Operating margin, % | 3 | 9 | $\mathcal{P}$ | $-2$ | $\mathcal{P}$ | $-1$ |
| Property Investment Management | ||||||
| Total income * | 96 | 66 | 304 | 172 | 427 | 295 |
| Operating profit/loss | 8 | $-6$ | 6 | $-17$ | 35 | 3 |
| Operating margin, % | 8 | $-9$ | 5 | $-10$ | 8 | |
| OTHER ** | ||||||
| Total income | $-3$ | $-13$ | $-16$ | $-23$ | $-25$ | $-31$ |
| Operating profit/loss | $-18$ | $-14$ | $-53$ | $-36$ | $-73$ | $-55$ |
| GROUP | ||||||
| Total income | 571 | 477 | 1.653 | .417 | 2,262 | 2,027 |
| Operating profit/loss | 12 | 50 | 256 | 174 | 340 | 258 |
| Operating margin, % | 20 | 10 ° | 15 | 12 | 15 | 13 |
| the property of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control of the control |
* Includes internal income.
** Includes eliminations.
| 3 Months | 9 Months ** | 12 Months ** | ||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| GROUP | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec |
| Profit margin, % | 15 | 10 | 12 | 21 | $\mathbf{ }$ | 8 |
| Return on equity, % * | ×, | 10 | 26 | $\sim$ | 19 | |
| Equity/Asset ratio, % | ×, | 28 | 32 | $\sim$ | 31 | |
| Equity, SEK M * | $\overline{\phantom{a}}$ | 628, | 1,534 | $\sim$ | 1,563 | |
| No. of employees, at end of period | $\sim$ | ×. | 607 | 576 | ÷ | 579 |
| Earnings per share, SEK * | 0.72 | 0.43 | 1.53 | 2.87 | 1.98 | 3.32 |
| Equity per share, SEK * | 19.89 | 18.75 | 19.10 | |||
| CORPORATE FINANCE | ||||||
| Profit margin, % | $ 0\rangle$ | 8 | 3 | 10 ° | $\overline{4}$ | 9 |
| Return on equity, % * | $\sim$ | $\sim$ | 15 | 34 | $\sim$ | 22 |
| Equity/Asset ratio, % | ×, | 31 | 62 | 59 | ||
| Equity, SEK M * | L, | 90 | 237 | 254 | ||
| No. of employees, at end of period | ÷ | 212 | 206 | 203 | ||
| Property transaction volume for the period, SEK Bn | 11.3 | 7.7 | 33.6 | 33.8 | 55.4 | 55.5 |
| ASSET MANAGEMENT AND BANKING | ||||||
| Profit margin, % | 8 | $\vert$ $\vert$ | 17 | 26 | 16 | 23 |
| Return on equity, % * | ÷ | 20 | 38 | $\sim$ | $\overline{34}$ | |
| Equity/Asset ratio, % | $\sim$ | ×, | 21 | 22 | $\sim$ | 22 |
| Equity, SEK M * | $\sim$ | ×. | 967 | 855 | $\sim$ | 859 |
| No. of employees, at end of period | ×. | 379 | 353 | 359 | ||
| Asset under management at end of period, SEK Bn | ×, | 170.2 | 148.3 | ÷ | 155.7 | |
| net in-(+) and outflow(-) during the period, mdkr | 6.2 | 4.1 | 10.1 | 2.1 | 12.7 | 4.8 |
| Card and payment volumes, SEK Bn | 3.9 | .8 | 12.0 | 5.4 | 18.4 | 11.8 |
Card and payment volumes, JEN on
* 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 from Visa Inc's
6
1B3 12B4 13B5
The total commercial property transaction market in Europe, excluding the UK, totalled EUR 40.5 Bn (43.7) in the quarter, a decrease of 7% year-on-year.
Property transactions where Catella served as advisor totalled SEK 11.3 Bn (7.7) in the quarter. Of total transaction volumes in the quarter. Sweden provided SEK 1.7 Bn (3.4), France SEK 3.5 Bn (3.2) and Germany SEK 0.5 Bn (0.2).
Total income was SEK 144 M (144) and operating profit was SEK 23 M (14) in the quarter.
In the quarter, the proportion of capital markets services was low in year-on-year terms, which affected income and profit, mainly in the Nordics. Income and profit mainly decreased in Sweden, while the rest of the Nordics increased, with Denmark providing most of the increase. Income and profit increased throughout continental Europe, mainly driven by France.
Transaction volumes in Europe, excluding the UK, were EUR 137.4 Bn (140.3) in the period, a decrease of 2% in year-on-year terms. Catella's transaction volumes were SEK 33.6 Bn (33.8) in the period.
Total income was SEK 396 M (397) and operating profit was SEK 27 M (39) in the period.
| 3 Months | 9 Months | 12 Months | ||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec |
| Nordic * | 62 | 80 | 200 | 217 | 282 | 299 |
| Continental Europe * | 8 1 | 64 | 196 | 180 | 302 | 286 |
| Total income | 44 | 44 | 396 | 397 | 585 | 586 |
| Assignment expenses and commission | $-13$ | $-26$ | $-44$ | $-45$ | $-63$ | $-64$ |
| Operating expenses | $-108$ | $-104$ | $-325$ | $-314$ | $-474$ | $-463$ |
| Operating profit/loss | 23 | 4 | 27 | 39 | 47 | 58 |
| Key Figures | ||||||
| Operating margin, % | 16 | 10 | $\overline{ }$ | $\overline{10}$ | 8 | $ 0\rangle$ |
| Property transaction volume for the period, SEK Bn | 1.3 | 7.7 | 33.6 | 33.8 | 55.4 | 55.5 |
| of which Nordic | 6.7 | 4.0 | 23.4 | 20.6 | 32.9 | 30.0 |
| of which Continental Europe | 4.6 | 3.6 | 10.2 | 13.2 | 22.5 | 25.5 |
| No. of employees, at end of period | $\overline{\phantom{a}}$ | 212 | 206 | 203 |
* Includes internal income
8
New savings in mutual funds in Sweden was SEK 8.6 Bn in the quarter. All categories reported inflows, with the exception of equity funds, and fixed income funds provided a majority of new savings. At the end of the quarter, Mutual Funds' share of Swedish fund volumes was 0.8% (1.0).
Catella's assets under management increased by SEK 5.1 Bn (5.3) in the quarter, of which net inflows were SEK 0.6 Bn (-3.8) in Mutual Funds and SEK 4.1 Bn (6.1) in Systematic Funds. Systematic Macro's and Systematic Equity's assets under management at the end of the period totalled
SEK 44.3 Bn (28.9) and SEK 26.4 Bn (34.2) respectively. Revenue is mainly generated by Systematic Macro and a majority of sales resources were allocated to this product. The distribution of assets under management throughout the business area continued to progress in a positive direction for Catella's future earnings in the quarter.
Total income was SEK 220 M (162) in the quarter. Operating profit/loss was SEK 97 M (44).
The increase in both income and profit on the previous year is mainly due to variable earnings in Mutual Funds, while fixed
3 Months
earnings decreased. Fixed and variable earnings both increased in Systematic Funds.
In the period, total fund volumes in Sweden increased by SEK 307 Bn, of which new savings were SEK 68 Bn, amounting to SEK 3.874 Bn at the end of the period. Catella's assets under management increased by SEK 3.4 Bn (4.7) in the period, totalling SEK 102.3 Bn (97.8) at the end of the period.
Total income was SEK 633 M (569) and operating profit was SEK 260 M (195).
12 Months
9 Months
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
|---|---|---|---|---|---|---|
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec |
| Mutual Funds * | $\Box$ | 84 | 298 | 243 | 371 | 315 |
| Systematic Funds * | 108 | 78 | 334 | 326 | 44 | 433 |
| Total income | 220 | 162 | 633 | 569 | 811 | 748 |
| Assignment expenses and commission | $-37$ | $-46$ | $-113$ | $-144$ | $-151$ | $-182$ |
| Operating expenses | $-86$ | $-73$ | $-260$ | $-231$ | $-337$ | $-308$ |
| Operating profit/loss | 97 | 44 | 260 | 195 | 323 | 258 |
| Key Figures | ||||||
| Operating margin, % | 44 | 27 | 4 1 | 34 | 40 | 35 |
| Accordination proposacrophed of and of popular CEIX Dis- | 1022 | 070 | 000 |
| Asset under management at end of period, SEK Bn | $\overline{\phantom{a}}$ | LO2.3 | 97.8 | 98.9 | |
|---|---|---|---|---|---|
| net in-(+) and outflow(-) during the period, mdkr | 4.0 | 2.4 | .8 | $-2.5$ | |
| of which Mutual Funds | 31.6 | 34.7 | 30.8 | ||
| net in-(+) and outflow(-) during the period, mdkr | 0.6 | $-3.8$ | $-0.8$ | $-10.0$ | $-14.4$ |
| of which Systematic Funds | $\sim$ | 70.7 | 63.0 | 68. I | |
| net in-(+) and outflow(-) during the period, mdkr | 4. | Ö. | $2.6^{\circ}$ | 11.9 | |
| No. of employees, at end of period | $\sim$ | 85 | 78 |
* Includes internal income
9
Volumes in the Cards and Payment Solutions operations were SEK 3.9 Bn (1.8) in the quarter.
Assets under management in Wealth Management increased by SEK 0.2 Bn (1.4) and net outflows were SEK 0.1 Bn (0.7) in the quarter.
The Ioan book increased by SEK 88 M in the second quarter, totalling SEK 1.4 Bn (1.1) at the end of the period.
Total income was SEK 115 M (117) in the quarter. Operating profit was SEK 3 M $(11)$ in the quarter.
Fixed earnings increased year-on-year, driven by increased assets under management and an expanded loan book, while variable earnings decreased mainly driven by Wealth Management, which completed fewer capital raisings in the quarter. Higher volumes in the high margin segment increased year-on-year in Cards and Payment Solutions, which contributed to income growth.
The increased operating expenses in year-on-year terms mainly comprise consulting expenses associated with complying with new requirements within the framework of MiFID II.
Volumes in Cards and Payment Solutions totalled SEK 12.0 Bn (5.4) in the period.
Assets under management in Wealth Management increased by SEK 3.3 Bn (2.0), and net inflows were SEK 1.7 Bn (1.3) in the period, amounting to SEK 19.8 Bn (15.6) at the end of the period.
Total income was SEK 337 M (303) and operating profit was SEK 6 M (-7).
| 3 Months | 9 Months | 12 Months | ||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| SEK M | Jul-Sep | Jul-Sep | an-Sep | Jan-Sep | 12 Months | Jan-Dec |
| Cards and Payment Solutions * | 80 | 75 | 222 | 203 | 302 | 283 |
| Wealth Management * | 35 | 43 | 122 | 0 | 178 | 157 |
| Total income | 115 | 117 | 337 | 303 | 467 | 433 |
| Assignment expenses and commission | $-26$ | $-29$ | $-89$ | -76 | $-123$ | $-110$ |
| Operating expenses | $-86$ | $-77$ | $-242$ | $-234$ | $-337$ | $-329$ |
| Operating profit/loss | b | $-1$ | $-6$ | |||
| Key Figures | ||||||
|---|---|---|---|---|---|---|
| Operating margin, % | ||||||
| Card and payment volumes, SEK Bn | $\supset$ C | .8 | 12.0 | - 4 | 18.4 | 11.8 |
| Asset under management at end of period, SEK Bn | $\sim$ | 19.8 | 15.6 | 16.5 | ||
| net in-(+) and outflow(-) during the period, mdkr | -0 | 2.4 | ||||
| No. of employees, at end of period | $\sim$ | 169 | 176 |
* Includes internal income
Assets under management increased by SEK 1.8 Bn (3.6) and net inflows were SEK 1.7 Bn (1.1) in the quarter, mainly due to Property Funds.
Total income was SEK 96 M (66). Operating profit was SEK 8 M (-6). A majority of the increased income comprises fixed revenue mainly derived from Property
Funds, where assets under management increased by SEK 9.8 Bn year-on-year.
After the end of the quarter, Property Asset Management established operations in the Netherlands and Sweden, in line with the strategy of establishing a European platform.
Assets under management increased by SEK 7.8 Bn (3.3) and net inflows were SEK 6.5 Bn (-0.4) in the period, totalling SEK 48.1 Bn (34.9) at the end of the period.
Total income was SEK 304 M (172) and operating profit was SEK 16 M (-17).
| 3 Months | 9 Months | 12 Months | ||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec |
| Property Funds * | 79 | 49 | 256 | 130 | 338 | 212 |
| Property Asset Management * | 22 | 20 | 59 | 47 | 107 | 95 |
| Total income | 96 | 66 | 304 | 172 | 427 | 295 |
| Assignment expenses and commission | $-26$ | $-23$ | $-110$ | $-56$ | $-138$ | $-85$ |
| Operating expenses | $-63$ | $-49$ | $-179$ | $-132$ | $-254$ | $-207$ |
| Operating profit/loss | 8 | -6 | 16 | $-17$ | 35 | 3 |
| Key Figures | ||||||
| Operating margin, % | 8 | $-9$ | 5 | $-10$ | 8 | |
| Asset under management at end of period, SEK Bn | $\sim$ | 48.1 | 34.9 | 40.3 | ||
| net in-(+) and outflow(-) during the period, mdkr | 1.7 | IJ | 6.5 | $-0.4$ | 11.8 | 4.9 |
| of which Property Funds | × | 32.7 | 22.9 | 25.6 | ||
| net in-(+) and outflow(-) during the period, mdkr | 1.2 | 0.3 | 5.8 | 0.6 | 8.4 | 3.2 |
| of which Property Asset Management | $\sim$ | 15.4 | 12.0 | 14.7 | ||
| net in-(+) and outflow(-) during the period, mdkr | 0.5 | 0.9 | 0.7 | $-1.0$ | 3.4 | 1.7 |
| No. of employees, at end of period | $\overline{\phantom{a}}$ | 125 | 100 | 105 |
* Includes internal income
OPERATING PROFIT/LOSS
In the third quarter, the Group's total assets increased by SEK 1,065 M, totaling 6,516 as of 30 September 2017. As a result of Catella Bank's customers bonds maturing at the end of September while reinvestment was not effected until after the end of the month, the bank's cash and cash equivalents increased by SEK 551 M. Group cash and cash equivalents also increased in connection with Catella AB's new bond issue and the repayment of older bond loans at a net amount of SEK 291 M.
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 96 M (SEK 97 M as of 31 December 2016), 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 650 M. Essentially, the loss carry-forwards relate to operations in Sweden and have indefinite useful lives.
In June 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 (including buy-back), 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 30 September 2017, the new bond loan was recognized in Long-term Ioan liabilities. The new bond accrues variable interest at 3-month STIBOR plus 400 b.p.
The Group also has approved overdraft facilities totaling SEK 30 M, of which the unutilized part was SEK 30 M as of 30 September 2017.
The Group's equity increased by SEK 81 M in the third quarter, reaching SEK 1.798 M as of 30 September 2017. Apart from profit for the period of SEK 84 M and negative translation differences of SEK 9 M, equity was affected by transactions
with non-controlling interests totaling SEK 6 M. The Group's equity/assets ratio as of 30 September 2017 was 28% (31% as of 31 December 2016).
Consolidated cash flow from operating activities before changes in working capital amounted to SEK 113 M (38). Consolidated cash flow from operating activities was SEK 805 M (148) of which changes in working capital for the period was SEK 692 M (110). Of the changes in working capital, SEK 647 M is attributable to banking operations and SEK 45 M to other operations. The sharp change in the bank's working capital was temporary and was affected by the maturity of customer bonds at the end of September, with reinvestment not taking place until after the end of the month.
Cash flow from investing activities was SEK-5 M (-6), of which SEK-16 related to investments in new fund management and other IT systems. Cash flow from terminated currency forwards and from loan portfolios was SEK 10 M and SEK 5 M respectively in the quarter.
Cash flow from financing operations was SEK 291 M (0), of which SEK 493 M relates to the issue a new bond loan net of expenses and SEK-202 M to buy-back of older bond loans at 101% of the nominal amount.
Cash flow for the period was SEK 1,091 M (141), of which cash flow from banking operations was SEK 651 M (105) and cash flow from other operations was SEK 440 $M(36)$
Cash and cash equivalents at the end of the period were SEK 3,438 M (2,711), of which cash and cash equivalents relating to the banking operations were SEK 2,581 M (2,068) and cash and cash equivalents relating to other activities were SEK 857 M $(643).$
Consolidated cash flow from operating activities before changes in working capital amounted to SEK 250 M (122).
Consolidated cash flow from operating activities was SEK 603 M (-234) of which changes in working capital for the period was SEK 353 M (-356). Of the changes in working capital, SEK 498 was attributable to banking operations and SEK -145 M to other operations.
Cash flow from investing activities was SEK -51 M (99), of which SEK -37 M relates to IPM's investments in proprietary funds, SEK -16 M relates to additional investments in associated company Nordic Seeding GmbH and SEK -11 M to other business-related investments. In addition, SEK 24 M was invested in intangible assets of which the majority relates to new fund management systems. Furthermore, holdings in proprietary funds under management were divested for SEK 13 M and SEK 14 M was received for terminated currency forwards. Cash flow from loan portfolios totaled SEK 16 M in the nine-month period.
Cash flow from financing operations was SEK 138 M (-121), of which SEK 291 M relates to net borrowings raised and amortized, SEK -155 M relates to dividends and SEK 2 M to contributions from non-controlling interests.
Cash flow for the nine-month period was SEK 690 M (-257), of which cash flow from the banking operations was SEK 509 M (-55) and cash flow from other activities SEK 181 M (-202).
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 3.0 M (2.1) and operating profit/loss was SEK -11.7 M (-12.6). The profit increase on the previous year is mainly due to last year's figure being burdened by costs associated with the change of listing in 2016.
In June 2017, Catella AB issued a new 5year unsecured bond loan of SEK 500 M. The older bond loan totalling SEK 200 M was repurchased in July 2017 at 101% of
the nominal amount. In the Parent Company Balance Sheet as of 30 September 2017, the new bond loan is recognized as a Iong-term liability.
The Parent Company also reported financial items totalling SEK -5.2 M (-0.7), of which SEK -4.9 M relates to interest and costs associated with arranging bond loans.
Profit/loss before tax was SEK -16.8 M (-13.3) and profit/loss for the period was SEK-16.8 M (-13.3).
The Parent Company reported total loss carry-forwards of SEK 146.8 M. Catella's Balance Sheet includes a deferred tax asset of SEK 19.8 M (18.9 as of 31 December 2016) 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 267.8 M, compared to SEK 313 M as of 31 December 2016.
The number of employees of the Parent Company expressed as full -time equivalents was $10(9)$ .
The Parent Company reported income of SEK 9.2 M (6.4) in the first nine months of the year. Operating profit/loss was SEK -35.1 M (-32.2) and profit before tax was SEK 41.5 M (-34.3).
Catella has principal investments of SEK 339 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 606 (576) at the end of the period, of which 212 (206) in the Corporate Finance operating segment, 378 (353) in the Asset Management and Banking operating segment and 16 (17) in other functions.
As of 30 September 2017, 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 I vote per share.
As of 30 September 2017, the parent company had a total of 7,000,000 warrants outstanding of which 200,000 were held in treasury. On full utilisation of the 7,000,000 warrants, dilution of Catella's capital and votes would be 7.9% and 7.1% respectively. In the nine-month period 2017 there were no transactions involving warrants.
Catella is listed on Nasdag Stockholm Mid Cap, trading under the ticker symbols CAT A and CAT B. The price of Catella's Class B share was SEK 19.30 (22.00) as of 30 September 2017. Total market capitalisation at the end of the period was SEK 1,594 M $(1,800)$ .
Catella had 7,223 (6,286) shareholders registered at the end of the period. As of 30 September 2017, the single largest shareholders were the Claesson & Anderzén group, with a holding of 49.8% (49.9) of the capital and 49.1% (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'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.
For the financial year 2016 and 2015, the Parent Company paid dividend of SEK 0.80 and SEK 0.60 respectively per class A and B share 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 macro economic 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. Catella works continuously to ensure compliance with current 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 2016 for significant estimates and judgments. Actual outcomes may differ from these estimates and judgments due to other circumstances or other conditions.
IPM Informed Portfolio Management AB is currently consolidated as a subsidiary of Catella on the basis of Catella's owner ship in combination with the terms of a shareholder agreement relating to the subsidiary that terminates in November 2017. In the event that consolidation as a subsidiary is no longer applicable, the company would be consolidated as an associated company. Catella's ownership and proportion of capital is not affected by the reporting
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 Corporate 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
In the first quarter 2017, the SEK 67 M (42) holding in associated company Nordic Seeding GmbH, which invests in and operates property development projects in Germany, was reclassified from the Asset Management and Banking operating segment to Proprietary Investments under the "Other" category. Comparative figures from earlier periods were adjusted correspondingly. Collating completed and future proprietary investments in a dedicated category creates a structure for continued expansion and progress in this area.
From the first quarter 2017, acquisition-related items are no longer reported separately, as management does not judge the information to be essential.
The accounting policies that are most critical to the Group and Parent Company are stated in Catella's Annual Report for 2016. Figures in tables and comments may be rounded.
In the first nine months of 2017, Catella made additional investments totalling SEK 16 M in associated company Nordic Seeding GmbH, where the other shareholders are the Claesson & Anderzen Group and the management of Catella Project Management GmbH. As of 30 September 2017. Catella had invested SEK 67 M, of a total commitment of SEK 86 M, in Nordic Seeding GmbH. For more information, see Note 3 in this report and Notes 20 and 39 of the Annual Report 2016.
Catella's German subsidiary Catella Project Management GmbH operates the property development projects within associated company Nordic Seeding GmbH. In the nine-month period 2017, Catella Project Management GmbH invoiced Nordic Seeding GmbH a total of SEK 8 M relating to services provided under applicable agreements. No proportion of this income was eliminated in Catellas Consolidated Financial Statement as the associated company falls outside Catellas affinity group.
Catella does not publish forecasts.
Year-end Report 2017 23 February 2018 Annual Report 2017 30 April 2018 Interim Report January-March 2018 8 May 2018
The Annual General Meeting in Catella AB (publ) will be held on 28 May 2018 in Stockholm, Sweden. Shareholders wishing to nominate candidates to the Nomination Committee must do so in writing by no later than 23 February 2018.
Interim Report January-September 2018 14 November 2018 Year-end Report 2018 21 February 2019
Knut Pedersen, CEO and President Tel. +46 (0)8 463 33 10
More information on Catella and all financial reports are available at catella.com.
The information in this Report is mandatory for Catella AB to publish in accordance with the EU's Market Abuse Regulation and the Swedish Securities Markets Act. This information was submitted
to the market, through the agency of the above contact, for publication on 14 November 2017 at 07:00 a.m. CET.
The undersigned certify that this Interim report gives a true and fair view of the Parent Company's and the Group's operations, financial position and results of operations, and describes the material risks and uncertainties facing the Parent Company and companies included in the Group.
Johan Claesson, Chairman of the Board Johan Damne, Board member Joachim Gahm, Board member Anna Ramel, Board member Jan Roxendal, Board member Knut Pedersen, CEO and President
Auditor's review report for interim financial information in summary (Interim Report) prepared in accordance with IAS 34 and Chapter 9 of the Swedish Annual Accounts Act.
We have reviewed the condensed interim financial information (Interim Report) of Catella AB (corporate ID no. 556079-1419) as of 30 September 2017 and the nine-month period then ended. The Board of Directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on the Interim Report based on our review.
We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express and audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.
Stockholm, Sweden, 14 November 2017
PricewaterhouseCoopers AB
Patrik Adolfson Authorized Public Accountant
| 2017 | 2016 | 2017 | 2016 | 2016 | |
|---|---|---|---|---|---|
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec |
| Net sales | 568 | 475 | 1,647 | 1,401 | 2,007 |
| Other operating income | 3 | $\overline{2}$ | 5 | 17 | 20 |
| Total income | 571 | 477 | 1,653 | 1,417 | 2,027 |
| Assignment expenses and commission | $-100$ | $-114$ | $-347$ | $-304$ | $-417$ |
| Other external expenses | $-115$ | $-100$ | $-348$ | $-311$ | $-44$ |
| Personnel costs | $-227$ | $-204$ | $-658$ | $-602$ | $-878$ |
| Depreciation | $-8$ | $-5$ | $-20$ | $-13$ | $-18$ |
| Other operating expenses | $-9$ | $-5$ | $-23$ | $-13$ | $-14$ |
| Operating profit/loss | 112 | 50 | 256 | 174 | 258 |
| Interest income | 6 | 6 | 17 | 8 | 24 |
| Interest expenses | $-5$ | $-3$ | $-12$ | $-8$ | $-$ |
| Other financial items | 3 | 9 | 233 | 227 | |
| Financial items-net | $\overline{2}$ | 6 | 4 | 243 | 239 |
| Profit/loss before tax | $ $ 4 | 56 | 270 | 417 | 497 |
| Tax | $-30$ | $\sim$ $\mid$ $\mid$ | $-72$ | $-119$ | $-141$ |
| Net profit/loss for the period | 84 | 45 | 198 | 299 | 357 |
| Profit/loss attributable to: | |||||
| Shareholders of the Parent Company | 59 | 35 | 125 | 235 | 272 |
| Non-controlling interests | 25 | 10 | 72 | 64 | 85 |
| 84 | 45 | 198 | 299 | 357 | |
| Earnings per share attributable to shareholders of the Parent Company, SEK | |||||
| - before dilution | 0.72 | 0.43 | 1.53 | 2.87 | 3.32 |
| - after dilution | 0.67 | 0.40 | .4 | 2.64 | 3.06 |
| No. of shares at end of the period | 81.848.572 | 81.848.572 | 81.848.572 | 81.848.572 | 81.848.572 |
| Average weighted number of shares after dilution | 88,648,572 | 88,348,572 | 88,648,572 | 88,821,397 | 88,775,608 |
| 2017 | 2016 | 2017 | 2016 | 2016 | |
|---|---|---|---|---|---|
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec |
| Net profit/loss for the period | 84 | 45 | 198 | 299 | 357 |
| Other comprehensive income | |||||
| Items that will not be reclassified subsequently to profit or loss: | |||||
| Value change in defined benefit pension plans | 0 | $\theta$ | $\circ$ | $\circ$ | |
| Items that will be reclassified subsequently to profit or loss: | |||||
| Fair value changes in financial assets available for sale | 3 | 3 | 6 | 3 | |
| Translation differences | $-12$ | 18 | 45 | 36 | |
| Other comprehensive income for the period, net after tax | $-9$ | $\overline{2}$ | 47 | 39 | |
| Total comprehensive income/loss for the period | 75 | 66 | 203 | 346 | 395 |
| Profit/loss attributable to: | |||||
| Shareholders of the Parent Company | 50 | -56 | 130 | 281 | 310 |
| Non-controlling interests | 25 | 72 | 65 | 86 | |
| 75 | 66 | 203 | 346 | 395 |
Information on Income Statement by operating segment is in Note I.
| SEK M | Note | 2017 30 Sep |
2016 30 Sep |
2016 31 Dec |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 423 | 384 | 412 | |
| Property, plant and equipment | 25 | 24 | 26 | |
| Holdings in associated companies | 3 | 53 | 45 | 51 |
| Other non-current securities | 3, 4, 5 | 432 | 390 | 382 |
| Deferred tax receivables | 96 | 89 | 97 | |
| Other non-current receivables | 777 | 624 | 775 | |
| 1,807 | 1,556 | 1,743 | ||
| Current assets | ||||
| Current loan receivables | 631 | 508 | 577 | |
| Accounts receivable and other receivables | 556 | 440 | 493 | |
| Current investments | 3, 4, 5 | 84 | 84 | 88 |
| Cash and cash equivalents * | 3,438 | 2,711 | 2,750 | |
| 4,709 | 3,742 | 3,907 | ||
| Total assets | 6,516 | 5,298 | 5,651 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 164 | 164 | 164 | |
| Other contributed capital | 253 | 253 | 253 | |
| Reserves | $-108$ | $-98$ | $-107$ | |
| Profit brought forward including net profit for the period | 1,319 | 1,216 | 1,253 | |
| Equity attributable to shareholders of the Parent Company | 1,628 | 1,534 | 1,563 | |
| Non-controlling interests | 170 | 4 | 167 | |
| Total equity | 1,798 | 1,675 | 1,730 | |
| Liabilities | ||||
| Non-current liabilities | ||||
| Borrowings | $\mathbf 0$ | $\mathbf 0$ | $\theta$ | |
| Long-term loan liabilities | 494 | $\,0\,$ | $\circ$ | |
| Deferred tax liabilities | 35 | 35 | 34 | |
| Other provisions | 5 | 3 | 3 | |
| 534 | 38 | 37 | ||
| Current liabilities | ||||
| Borrowings | 192 | 84 | 260 | |
| Current Ioan liabilities | 3,216 | 2,802 | 2,806 | |
| Accounts payable and other liabilities | 684 | 627 | 739 | |
| Tax liabilities | 92 | 73 | 79 | |
| 4,183 | 3,585 | 3,884 | ||
| Total liabilities | 4,718 | 3,623 | 3,921 | |
| Total equity and liabilities | 6,516 | 5,298 | 5,651 | |
| * Of which pledged and blocked liquid funds | 203 | 166 | 188 |
Information regarding financial position by operating segment is in Note 2.
| Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec SEK M Cash flow from operating activities $ $ 4 56 270 417 497 Profit/loss before tax Adjustments for non-cash items: $-3$ $-9$ $-233$ $-227$ Other financial items $\sim$ [ 5 $\, 8$ 20 13 8 Depreciation $\overline{2}$ 5 7 3 12 Impairment current receivables $\overline{2}$ $\theta$ $\overline{2}$ $\overline{0}$ $\theta$ Change in provisions $-5$ $-17$ $-22$ Reported interest income from loan portfolios $-6$ $-16$ $\overline{0}$ $\mathsf I$ $\circ$ $\overline{\phantom{a}}$ Acquisition expenses 5 $\circ$ 4 $\theta$ Profit/loss from participations in associated companies $\parallel$ $\,0\,$ $-0$ $-6$ $-6$ Capital gain/loss, financial assets J. 7 3 24 17 35 Personnel costs not affecting cash flow $-19$ $-77$ $-126$ $-20$ $-61$ Paid income tax 38 250 122 84 Cash flow from operating activities before changes in working capital 113 |
|---|
| Cash flow from changes in working capital |
| 75 $-265$ $-533$ Increase (-)/decrease (+) of operating receivables $-10$ $-132$ |
| 702 34 485 $-91$ 212 Increase $(+)$ / decrease $(-)$ in operating liabilities |
| $-137$ 805 48 603 $-234$ Cash flow from operating activities |
| Cash flow from investing activities |
| $-7$ $-3$ $-2$ $-7$ $-10$ Purchase of property, plant and equipment |
| $-3$ $-24$ $-16$ $-11$ $-42$ Purchase of intangible assets |
| $-57$ $\sim$ [ $-13$ $\sim$ [ $-52$ Purchase of subsidiaries, after deductions for acquired cash and cash equivalents |
| $-25$ $\theta$ $-16$ $-18$ Purchase of associated companies $\mathbf{0}$ |
| $-2$ $-10$ $-48$ $-96$ $-110$ Purchase of financial assets |
| $ 0\rangle$ 17 29 218 227 Sale of financial assets |
| 5 71 $\epsilon$ 16 63 Cash flow from loan portfolios |
| $\overline{0}$ $\overline{0}$ Dividends from investments $\circ$ $\theta$ |
| 55 $-5$ 99 Cash flow from investing activities $-6$ $-51$ |
| Cash flow from financing activities |
| $\theta$ $\circ$ $-22$ $-22$ Re-purchase of share warrants $\sim$ |
| $\theta$ $\Omega$ $\overline{\phantom{a}}$ $\perp$ New share issue $\overline{a}$ |
| $\theta$ 493 $\circ$ 494 $\mathbf 0$ Borrowings |
| $-202$ $-()$ $-0$ $-0$ $-202$ Repayment of loans |
| $-65$ $-49$ $-49$ Dividend $\overline{0}$ $\circ$ |
| $\theta$ $-56$ $\Omega$ $-88$ $-51$ Transactions with, and payments to, non-controlling interests |
| 291 $-0$ 138 $-121$ $-126$ Cash flow from financing activities |
| 1,091 4 $-257$ Cash flow for the period 690 $-208$ |
| 2,522 2,371 2,750 2,854 2,854 Cash and cash equivalents at beginning of period |
| Exchange rate differences in cash and cash equivalents $-24$ 47 $ $ 4 104 $\sim$ $\mid$ |
| 2,711 2,750 3,438 3,438 2.711 Cash and cash equivalents at end of the period |
SEK 2,581 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 as of 1 January 2017 | 164 | 253 | $-107$ | 1,253 | 1.563 | 167 | 1,730 |
| Comprehensive income for January - September 2017: | |||||||
| Net profit/loss for the period | 125 | 125 | 72 | 198 | |||
| Other comprehensive income, net of tax | $\sim$ | 6 | 5 | ||||
| Comprehensive income/loss for the period | $\overline{a}$ | 3 | 130 | 72 | 203 | ||
| Transactions with shareholders: | |||||||
| Transactions with non-controlling interests | $\Omega$ | $\Omega$ | $-69$ | $-69$ | |||
| Dividend | $-65$ | $-65$ | $-65$ | ||||
| Closing balance at 30 September 2017 | 164 | 253 | $-108$ | 1.319 | 1.628 | 170 | 1,798 |
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 SystematicFundsandProperty Funds,andanumber of subsidiariesinPropertyAssetManagementand Corporate Finance
As of 30 September 2017, the Parent company had 7.000,000 warrants outstanding, of which 200,000 held in treasury. There were no transactions involving warrants in the first nine months of
2017, Repurchasesof warrantsarere
| 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 2016 | 163 | 250 | $-142$ | 1,048 | 1,319 | 117 | 1,436 |
| Comprehensive income for January - September 2016: | |||||||
| Net profit/loss for the period | 235 | 235 | 64 | 299 | |||
| Other comprehensive income, net of tax | 44 | 3 | 46 | 47 | |||
| Comprehensive income/loss for the period | 44 | 237 | 281 | 65 | 346 | ||
| Transactions with shareholders: | |||||||
| Transactions with non-controlling interests | $-9$ | $-9$ | $-42$ | $-51$ | |||
| Warrants issued | 3 | 3 | 3 | ||||
| Re-purchase of warrants issued | $-12$ | $-12$ | $-12$ | ||||
| New share issue | $\mathbf{0}$ | ||||||
| Dividend | $-49$ | $-49$ | $-49$ | ||||
| Closing balance at 30 September 2016 | 164 | 253 | $-98$ | 1,216 | 1,534 | 4 | 1,675 |
* Other capital contributed pertains to reserve funds in the Parent Company.
As of 30 September 2016, the Parent Company had a total of 9,034,000 outstanding warrants, of which 2,234,000 held in treasury. In the third quarter 2016, 300,000 warrants were sold to a key member of staff for a total pur without being utilized, of which all were held in treasury.
| Corporate Finance | Asset Management and Banking | Other | Group | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||
| SEK M | Jul-Sep | Jul-Sep | Jul-Sep | Jul-Sep | Jul-Sep | Jul-Sep | Jul-Sep | Jul-Sep | |
| Net sales | 43 | 142 | 428 | 345 | $-2$ | $-12$ | 568 | 475 | |
| Other operating income | $\overline{2}$ | 3 | $-()$ | $-1$ | 3 | $\overline{\phantom{a}}$ | |||
| Total income | 44 | 44 | 430 | 345 | $-3$ | $-13$ | 571 | 477 | |
| Assignment expenses and commission | $-13$ | $-26$ | $-88$ | $-98$ | $\Omega$ | $ 0\rangle$ | $-100$ | $-114$ | |
| Other external expenses | $-33$ | $-29$ | $-78$ | $-66$ | $-4$ | $-5$ | $-115$ | $-100$ | |
| Personnel costs | $-75$ | $-72$ | $-145$ | $-126$ | $-7$ | $-7$ | $-227$ | $-204$ | |
| Depreciation | $-$ | $-$ | $-7$ | $-3$ | $-()$ | $-()$ | $-8$ | $-5$ | |
| Other operating expenses | $-2$ | $-5$ | $-4$ | $-5$ | $\theta$ | $-9$ | $-5$ | ||
| Operating profit/loss | 23 | 4 | 107 | 49 | $-18$ | $-14$ | 12 | 50 | |
| Interest income | $\mathbf 0$ | $\circ$ | $\circ$ | $\,0\,$ | 5 | 6 | 6 | 6 | |
| Interest expenses | $-$ | $\mathbf{0}$ | $-0$ | $-0$ | $-4$ | $-3$ | $-5$ | $-3$ | |
| Other financial items | $\Omega$ | $-2$ | $-()$ | 5 | 3 | ||||
| Financial items-net | $-0$ | $-2$ | 8 | $\overline{\phantom{a}}$ | 6 | ||||
| Profit/loss before tax | 23 | 15 | 108 | 47 | $-17$ | $-6$ | $ $ 4 | 56 | |
| Tax | $-8$ | $-4$ | $-31$ | $-10$ | 9 | 3 | $-30$ | $-11$ | |
| Net profit/loss for the period | 15 | $\vert \vert$ | 77 | 37 | $-8$ | $-3$ | 84 | 45 | |
| Profit/loss attributable to shareholders of the Parent Company |
15 | $\mathsf{L}$ | 53 | 27 | -8 | $-3$ | 59 | 35 |
| Corporate Finance | Asset Management and Banking | Other | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | |
| SEK M | Jan-Sep | Jan-Sep | Jan-Dec | Jan-Sep | Jan-Sep | Jan-Dec | Jan-Sep | Jan-Sep | Jan-Dec | Jan-Sep | Jan-Sep | Jan-Dec |
| Net sales | 394 | 388 | 575 | 1,268 | 1,033 | 1,461 | $-14$ | $-21$ | $-29$ | 1,647 | 1,401 | 2,007 |
| Other operating income | $\overline{\phantom{a}}$ | 9 | $\overline{4}$ | 9 | $\vert \vert$ | $-$ | $-2$ | $-3$ | 5 | 17 | 20 | |
| Total income | 396 | 397 | 586 | 1,272 | 1,043 | 1,473 | $-16$ | $-23$ | $-31$ | 1,653 | 1.417 | 2,027 |
| Assignment expenses and commission | $-44$ | $-45$ | $-64$ | $-309$ | $-274$ | $-374$ | 15 | 21 | $-347$ | $-304$ | $-417$ | |
| Other external expenses | $-104$ | $-97$ | $-129$ | $-232$ | $-199$ | $-289$ | $-13$ | $-15$ | $-22$ | $-348$ | $-311$ | $-441$ |
| Personnel costs | $-217$ | $-210$ | $-322$ | $-422$ | $-377$ | $-532$ | $-19$ | $-15$ | $-24$ | $-658$ | $-602$ | $-878$ |
| Depreciation | $-3$ | $-3$ | $-4$ | $-17$ | $-10$ | $-13$ | $-()$ | $-0$ | $-()$ | $-20$ | $-13$ | $-18$ |
| Other operating expenses | $\overline{\phantom{a}}$ | $-4$ | $-7$ | $-9$ | $-11$ | -9 | $-13$ | $\overline{2}$ | $\overline{2}$ | $-23$ | $-13$ | $-14$ |
| Operating profit/loss | 27 | 39 | 58 | 282 | 7 | 255 | $-53$ | $-36$ | $-55$ | 256 | 174 | 258 |
| Interest income | $\,0\,$ | 0 | $\overline{0}$ | $\circ$ | 16 | 17 | 22 | 17 | 8 | 24 | ||
| Interest expenses | $-2$ | $\Omega$ | $\theta$ | $\sim$ [ $\,$ | $-1$ | $-1$ | $-9$ | $-8$ | $-10$ | $-12$ | $-8$ | $\sim$ |
| Other financial items | 9 | 219 | 216 | $-2$ | 13 | 10 | 9 | 233 | 227 | |||
| Financial items-net | $-$ | $\overline{2}$ | 2 | 9 | 218 | 215 | 6 | 23 | 22 | 4 | 243 | 239 |
| Profit/loss before tax | 27 | 4 1 | 60 | 291 | 390 | 470 | $-48$ | $-13$ | $-33$ | 270 | 417 | 497 |
| Tax | $-13$ | $-2$ | $-10$ | $-80$ | $-116$ | $-132$ | 21 | $\overline{a}$ | $-72$ | $-119$ | $-141$ | |
| Net profit/loss for the period | 4 | 39 | 50 | 211 | 274 | 338 | $-27$ | $-14$ | $-31$ | 198 | 299 | 357 |
| Profit/loss attributable to shareholders of the Parent Company |
4 | 39 | 50 | 139 | 210 | 253 | $-27$ | $-14$ | $-31$ | 125 | 235 | 272 |
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 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | |||
| SEK M | Jul-Sep | Apr-Jun | lan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | ||
| Net sales | 43 | 130 | 2 | 187 | $ 42\rangle$ | 172 | 73 | 222 | ||
| Other operating income | $\overline{2}$ | $\overline{2}$ | 6 | $\overline{4}$ | ||||||
| Total income | 44 | 3 | 2 | 188 | 44 | 174 | 80 | 226 | ||
| Assignment expenses and commission | $-13$ | $-19$ | $-13$ | $-19$ | $-26$ | $-14$ | $-4$ | $-10$ | ||
| Other external expenses | $-33$ | $-33$ | $-38$ | $-32$ | $-29$ | $-33$ | $-36$ | $-39$ | ||
| Personnel costs | $-75$ | $-74$ | $-68$ | $-112$ | $-72$ | $-89$ | $-49$ | $-144$ | ||
| Depreciation | $-$ | $-$ | $-$ | $-$ | $-$ | $\sim$ | $-$ | $\sim$ $\mid$ | ||
| Other operating expenses | $-2$ | $-()$ | $-4$ | $-2$ | $-1$ | $-0$ | $-$ | |||
| Operating profit/loss | 23 | $\overline{2}$ | 2 | 20 | 4 | 36 | $-12$ | 32 | ||
| Interest income | $\circ$ | $\circ$ | 0 | 0 | $\circ$ | $\theta$ | $\circ$ | $\circ$ | ||
| Interest expenses | $-$ | $\overline{a}$ | $-$ | $-0$ | $\theta$ | $\theta$ | $\theta$ | $-0$ | ||
| Other financial items | $\circ$ | $\Omega$ | $\circ$ | $-()$ | $\Omega$ | $\Omega$ | 5 | |||
| Financial items-net | $-0$ | $-0$ | $-()$ | $-()$ | 5 | |||||
| Profit/loss before tax | 23 | $\overline{2}$ | $\overline{2}$ | 20 | 15 | 36 | $-11$ | 37 | ||
| Tax | $-8$ | $-2$ | $-3$ | $-8$ | $-4$ | $-$ | 3 | $-4$ | ||
| Net profit/loss for the period | 15 | $\mathbf 0$ | -1 | $\vert \vert$ | $\vert \vert$ | 36 | $-8$ | 32 | ||
| Profit/loss attributable to shareholders of the Parent Company | 15 | $\mathbf{0}$ | $-1$ | $\mathbf{1}$ | $\vert \vert$ | 36 | $-8$ | 32 |
| Asset Management and Banking | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | ||||
| SEK M | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | |||
| Net sales | 428 | 463 | 377 | 428 | 345 | 309 | 379 | 352 | |||
| Other operating income | 3 | $\Omega$ | $\overline{2}$ | 2 | $\overline{\phantom{a}}$ | 6 | |||||
| Total income | 430 | 463 | 378 | 430 | 345 | 311 | 386 | 353 | |||
| Assignment expenses and commission | $-88$ | $-132$ | $-90$ | $-100$ | $-98$ | $-8$ | -96 | $-79$ | |||
| Other external expenses | $-78$ | $-78$ | $-76$ | $-90$ | $-66$ | $-78$ | $-55$ | $-67$ | |||
| Personnel costs | $-145$ | $-147$ | $-130$ | $-154$ | $-126$ | $-116$ | $-135$ | $-114$ | |||
| Depreciation | $-6$ | $-4$ | $-4$ | $-2$ | $-2$ | $-2$ | $-2$ | $-2$ | |||
| Other operating expenses | $-5$ | $-3$ | $\overline{a}$ | $\overline{2}$ | $-4$ | 8 | $-15$ | $\overline{a}$ | |||
| Operating profit/loss | 107 | 99 | 76 | 84 | 49 | 40 | 82 | 86 | |||
| Interest income | $\overline{0}$ | $\circ$ | $\circ$ | $\overline{0}$ | $\Omega$ | $\theta$ | $\circ$ | 0 | |||
| Interest expenses | $\hbox{-}{\cal O}$ | $-()$ | $-()$ | $-()$ | $-0$ | $-1$ | $-0$ | $-()$ | |||
| Other financial items | $\overline{4}$ | $\overline{4}$ | $-3$ | $-2$ | 217 | $\overline{4}$ | $-0$ | ||||
| Financial items-net | $\overline{4}$ | 3 | $-4$ | $-2$ | 217 | $\overline{4}$ | $-0$ | ||||
| Profit/loss before tax | 108 | 103 | 80 | 80 | 47 | 257 | 86 | 86 | |||
| Tax | $-31$ | $-27$ | $-21$ | $-16$ | $-10$ | $-83$ | $-24$ | $-14$ | |||
| Net profit/loss for the period | 77 | 76 | 58 | 64 | 37 | 174 | 63 | 72 | |||
| Profit/loss attributable to shareholders of the Parent Company | 53 | 48 | 38 | 43 | 27 | 158 | 24 | 66 |
| Corporate Finance | Asset Management and Banking | Other | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | |
| SEK M | 30 Sep | 30 Sep | 31 Dec | 30 Sep | 30 Sep | 31 Dec | 30 Sep | 30 Sep | 31 Dec | 30 Sep | 30 Sep | 31 Dec |
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Intangible assets | 62 | 62 | 62 | 311 | 272 | 300 | 50 | 50 | 50 | 423 | 384 | 412 |
| Property, plant and equipment | $\mathbf{L}$ | $\vert \ \vert$ | $\mathbf{H}$ | 4 | 12 | 4 | $\mathbf{I}$ | $\theta$ | $\overline{\phantom{a}}$ | 25 | 24 | 26 |
| Holdings in associated companies | $\rm{O}$ | $\circ$ | $\circ$ | $\,0\,$ | $\overline{\phantom{a}}$ | $\overline{0}$ | 53 | 44 | 51 | 53 | 45 | 51 |
| Other non-current securities | $\rm{O}$ | $\mathbf 0$ | $\mathbf 0$ | 173 | 138 | 136 | 259 | 251 | 246 | 432 | 390 | 382 |
| Deferred tax receivables | $\rm{O}$ | $\mathbf 0$ | $\overline{\phantom{a}}$ | 28 | 21 | 28 | 68 | 68 | 68 | 96 | 89 | 97 |
| Other non-current receivables | 8 | 5 | 5 | 772 | 619 | 771 | $-3$ | $-0$ | $-0$ | 777 | 624 | 775 |
| 81 | 79 | 79 | 1,297 | 1,064 | 1,249 | 429 | 413 | 416 | 1,807 | 1,556 | 1,744 | |
| Current assets | $\rm{O}$ | $\mathbf 0$ | $\,0\,$ | 577 | $\overline{0}$ | 508 | ||||||
| Current loan receivables | 126 | 125 | 631 417 |
508 310 |
13 | $\boldsymbol{0}$ $\overline{4}$ |
$\theta$ 5 |
631 556 |
440 | 577 493 |
||
| Accounts receivable and other receivables Current investments |
$\,0\,$ | $\circ$ | 162 $\circ$ |
57 | 54 | 327 59 |
26 | 30 | 29 | 84 | 84 | 88 |
| Cash and cash equivalents | 8 | 218 | 237 | 2,940 | 2,384 | 2,408 | 317 | 109 | 105 | 3,438 | 2,711 | 2,750 |
| 308 | 343 | 399 | 4,045 | 3,256 | 3,370 | 356 | 43 | 138 | 4,709 | 3,742 | 3,907 | |
| Total assets | 389 | 423 | 478 | 5,343 | 4,319 | 4,619 | 785 | 556 | 554 | 6,516 | 5,298 | 5,651 |
| EQUITY AND LIABILITIES | ||||||||||||
| Equity | ||||||||||||
| Equity attributable to shareholders of the | ||||||||||||
| Parent Company | 90 | 237 | 254 | 967 | 855 | 859 | 570 | 443 | 451 | 1,628 | 1,534 | 1,563 |
| Non-controlling interests | 28 | 25 | 27 | 142 | 116 | 139 | $-{\cal O}$ | $-0$ | $-$ 0 | 170 | 4 | 167 |
| Total equity | $ $ $ $ | 262 | 281 | 1,109 | 970 | 998 | 570 | 443 | 451 | 1,798 | 1,675 | 1,730 |
| Liabilities | ||||||||||||
| Non-current liabilities | ||||||||||||
| Borrowings | $\mathbf 0$ | $\mathbb O$ | $\circ$ | $\sqrt{ }$ | $\circ$ | $\boldsymbol{0}$ | $\circ$ | $\,0\,$ | $\theta$ | $\,0\,$ | $\,0\,$ | $\circ$ |
| Long-term loan liabilities | $\rm{O}$ | $\mathbf 0$ | $\,0\,$ | $\theta$ | $\circ$ | $\boldsymbol{0}$ | 494 | $\boldsymbol{0}$ | $\theta$ | 494 | $\overline{0}$ | $\circ$ |
| Deferred tax liabilities | $\,0\,$ | $\mathbf 0$ | $\mathbf 0$ | 24 | 24 | 23 | $\ \hspace{1mm}\ $ | $\vert \vert$ | $\vert \ \vert$ | 35 | 35 | $34\,$ |
| Other provisions | $\overline{2}$ 3 |
$\overline{\phantom{a}}$ $\mathsf{L}$ |
$\mathbf{I}$ $\overline{1}$ |
3 29 |
$\overline{2}$ 26 |
3 25 |
$\overline{0}$ 502 |
$\overline{0}$ $\vert \vert$ |
$\theta$ $\vert \vert$ |
5 534 |
3 38 |
3 $\overline{37}$ |
| Current liabilities | ||||||||||||
| Borrowings | $\hbox{O}$ | $\mathbf 0$ | $\mathbf 0$ | 192 | 84 | 260 | $\circ$ | $\,0\,$ | $\theta$ | 192 | 84 | 260 |
| Current Ioan liabilities | $\overline{0}$ | $\circ$ | $\circ$ | 3,216 | 2,602 | 2,606 | $\circ$ | 200 | 200 | 3,216 | 2,802 | 2,806 |
| Accounts payable and other liabilities | 242 | 143 | 176 | 709 | 581 | 678 | $-267$ | $-98$ | $-115$ | 684 | 627 | 739 |
| Tax liabilities | 25 | 16 | 20 | 87 | 56 | 51 | $-20$ | $\mathbf{I}$ | 8 | 92 | 73 | 79 |
| 267 | 159 | 196 | 4,204 | 3,323 | 3,596 | $-288$ | 103 | 93 | 4,183 | 3,585 | 3,884 | |
| Total liabilities | 270 | 160 | 197 | 4,233 | 3,349 | 3,621 | 214 | $ $ 4 | 103 | 4,718 | 3,623 | 3,921 |
| Total equity and liabilities | 389 | 423 | 478 | 5,343 | 4,319 | 4,619 | 785 | 556 | 554 | 6,516 | 5,298 | 5,651 |
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 company Nordic Seeding GmbH, Catella has investments in property development projects in Germany (For more information about the projects, see below). The 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 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 will be establishing 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.
| OTHER, SEK M | Holdings in associated Other non-current companies |
securities Current investments | Total | |
|---|---|---|---|---|
| Nordic Seeding GmbH * | 53 | |||
| Loan portfolios | 234 | 19 | 252 | |
| Nordic Light Fund | 13 | |||
| Other holdings | 20 | |||
| Total | 53 | 259 | 26 | 339 |
| Investment commitments | 22 |
Investment commitments
* The investments correspond to Catella's 45% holding and include the risk that Nordic Seeding GmbH 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 $m2$ .
Living Lyon
Residential property development project located in Frankfurt consisting of 125 apartment s and premises over a total of 4,258 m2.
The loan portfolios consist of securitized European loans mainly exposed to residential property. The progress of the loan
portfolio is closely monitored, and revaluations are made on a continuous basis. Forecasting is performed by French investment advisor Cartesia SA S. Book value in Catella's consolidated accounts is determined on the basis of forecast discounted cash flows mainly comprising interest payments, but also amortization. A summary of Catella's loan portfolio as well as actual and forecast cash flows are presented in the relevant Note below.
Catella holds shares in the Luxembourg-based Nordic Light Fund, which has invested in loan portfolios and is managed by Catella Bank. The loan port
folios consist of loans to small and medium-sized companies, mainly located 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 un listed 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 | 48.1 | 13.4% | 42.8 | 17.2% | 6.0% | 2.0 |
| Pastor 3 ** | Spain | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ |
| Pastor 4 | Spain | 31.1 | 8.6% | 15.7 | 6.3% | 11.0% | 6.5 |
| Pastor 5 ** | Spain | $\sim$ | ٠ | $\sim$ | × | ||
| Lusitano 3 | Portugal | 82.1 | 22.8% | 67.4 | 27.1% | 6.0% | 3.5 |
| Lusitano 4 ** | Portugal | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ | $\sim$ |
| Lusitano 5 | Portugal | 103.0 | 28.6% | 63.5 | 25.5% | 11.0% | 5.0 |
| Minotaure | France | 46.6 | 13.0% | 21.8 | 8.7% | 11.0% | 7.3 |
| Ludgate **** | UK | 48.9 | 13.6% | 37.8 | 15.2% | 11.0% | 2.6 |
| Sestante 2 ** | Italy | $\sim$ | $\sim$ | $\sim$ | ٠ | $\sim$ | $\sim$ |
| Sestante 3 ** | Italy | $\sim$ | ٠ | $\sim$ | × | $\overline{\phantom{a}}$ | - |
| Sestante 4 ** | Italy | ÷ | ٠ | $\sim$ | × | ||
| Total cash flow *** | 359.8 | 100.0% | 249.1 | 100% | 8,8% | 4.4 | |
| Accrued interest | 3.3 | ||||||
| Carrying amount in consolidated balance sheet | 252.4 |
Carrying amount in consolidated balance sheet
* 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.
**** Ludgate was revalued during the second quarter of 2014 having historically been assigned a value of SEK 0.
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 loanportfolio 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 liquid 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. Adjustments 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 2016.
| 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 ** | Gerns ** | Semper ** | Minotaure | Ludgate | Outcome | Forecast | Diff | ||
| Outcome | |||||||||||||||||
| Q4 | 2009 | 4.6 | $\sim$ | $\overline{a}$ | $\overline{\phantom{a}}$ | 0.4 | 0.8 | ×, | 0.9 | 1.7 | 0.2 | 1.6 | 2.2 | 0.0 | 12.4 | 7.7 | 4.7 |
| Q١ | 2010 | 3.4 | ×, | ×, | ×, | $\sim$ | $\overline{\phantom{a}}$ | ×, | 0.8 | 1.6 | 0.2 | 1.5 | 1.9 | 0.3 | 9.5 | 6.3 | 3.3 |
| Q2 | 2010 | 2.3 | $\sim$ | $\sim$ | ä, | 0.7 | ä, | ×, | 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 | $\overline{\phantom{a}}$ | $\sim$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.5 | 0.1 | 9.1 | 8.0 | $ \cdot $ |
| Q4 | 2010 | 1.5 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.1 | 0.1 | 7.7 | 5.9 | 1.7 |
| Q١ | 2011 | 2.8 | ×. | $\sim$ | $\sim$ | 0.8 | $\sim$ | $\sim$ | 0.8 | 1.5 | 0.2 | 1.3 | 1.2 | 0.1 | 8.6 | 6.5 | 2.1 |
| Q2 | 2011 | 3.4 | ÷ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.7 | $\sim$ | 0.2 | 0.8 | 1.4 | 0.2 | 1.4 | 1.9 | 0.1 | 14.3 | 7.1 | 7.1 |
| Q3 | 2011 | 2.0 | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | 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 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.5 | $\overline{\phantom{a}}$ | 0.2 | 0.9 | $\overline{\phantom{a}}$ | 0.3 | 1.5 | 1.6 | 0.1 | 8.5 | 7.8 | 0.6 |
| $\mathop{\mathrm{Q}}$ | 2012 | 2.1 | ×, | $\sim$ | $\sim$ | 4.3 | ä, | 0.2 | 0.8 | $\sim$ | 0.2 | 1.4 | 1.7 | 0.0 | 10.8 | 6.9 | 3.9 |
| Q2 | 2012 | 1.5 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.4 | $\overline{\phantom{a}}$ | 0.1 | × | $\overline{\phantom{a}}$ | 0.2 | 1.3 | 1.2 | 0.0 | 7.8 | 8.7 | $-0.9$ |
| Q3 | 2012 | 0.8 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.5 | $\sim$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | 1.3 | 0.9 | 0.0 | 5.7 | 7.7 | $-2.0$ |
| Q4 | 2012 | 0.1 | ×. | $\sim$ | $\sim$ | $\sim$ | $\sim$ | 0.1 | ×. | $\sim$ | 0.1 | 1.2 | $\sim$ | 0.0 | 1.5 | 6.8 | $-5.3$ |
| Q١ | 2013 | 0.1 | $\sim$ | $\sim$ | $\sim$ | ÷, | ×, | 0.1 | $\sim$ | $\sim$ | 0.1 | 1.2 | ×, | 0.1 | 1.5 | 1.5 | $-0.0$ |
| Q2 | 2013 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\sim$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.2 | 2.3 | $-2.1$ |
| Q3 | 2013 | 0.1 | ×, | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 1.7 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | 2.2 | 2.6 | $-0.4$ |
| Q4 | 2013 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\qquad \qquad -$ | 1.0 | ÷, | 0.1 | 0.1 | $\overline{\phantom{a}}$ | $\ .\ $ | $\ .\ $ | $0.0\,$ | ||||
| Q١ | 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 | $\sim$ | $\overline{\phantom{a}}$ | 0.0 | 1.9 | $\vert$ .0 | 0.8 |
| Q2 | 2014 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\overline{\phantom{a}}$ | 0.7 | $\sim$ | 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 | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | 2.2 | $\sim$ | 0.1 | $\sim$ | $\sim$ | 0.1 | $\overline{\phantom{a}}$ | $\sim$ | 5.2 | 7.7 | 5.9 | $\,1.8$ | |
| Q4 | 2014 | 0.3 | $\overline{\phantom{a}}$ | × | ×, | 2.2 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | ÷, | 0.1 | $\overline{\phantom{a}}$ | ÷, | 5.2 | 7.9 | 5.7 | 2.2 |
| $\mathop{\mathrm{Q}}$ | 2015 | 0.0 | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\vert \cdot \vert$ | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.3 | 5.6 | 5.8 | $-0.2$ |
| Q2 | 2015 | 0.0 | ä, | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 1.0 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | ÷, | ÷, | 4.5 | 5.7 | 5.9 | $-0.2$ |
| Q3 | 2015 | 0.0 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\qquad \qquad -$ | 0.7 | ÷, | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | ÷, | 5.1 | 6.0 | 6.1 | $-0.1$ | |
| Q4 | 2015 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 1.0 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | 3.1 | 4.3 | 5.4 | $-1.2$ | ||
| $\mathop{\mathrm{Q}}$ | 2016 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 1.7 | 0.1 | $\overline{\phantom{a}}$ | $\sim$ $\overline{\phantom{a}}$ |
46.7 | $\sim$ | $\overline{\phantom{a}}$ | 3.9 | 52.4 | 51.3 | $ \cdot $ | |
| Q2 | 2016 | 0.1 | $\sim$ | $\sim$ | $\sim$ | 2.0 | $\sim$ $\sim$ |
0.1 | $\sim$ | $\sim$ | $\sim$ | $\sim$ $\sim$ |
$\sim$ | 4.0 | 6.2 | 5.4 | 0.9 |
| Q 3 | 2016 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.9 | $\bar{z}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.4 | 4.5 | 5.0 | $-0.5$ |
| Q 4 | 2016 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.7 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | $\overline{\phantom{a}}$ | 3.4 | 7.2 | 5.2 | 2.1 |
| Q١ | 2017 | $\qquad \qquad -$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 1.5 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.6 | 4.1 | 5.0 | $-0.9$ |
| Q2 | 2017 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | ÷, | 1.9 | ÷, | ÷, | ÷, | ÷, | 3.5 | 5.5 | 5.6 | $-0.1$ | ||||
| Q3 | 2017 | 1.8 | 4.6 | 6.4 | 5.0 | 1.4 | |||||||||||
| Total | 27.2 | 0.0 | 0.0 | 0.0 | 51.1 | 0.8 | 2.9 | 8.4 | 12.2 | 50.4 | 19.4 | 21.7 | 56.6 | 250.6 | 227.7 | 22.9 | |
| Forecast Quarter/ |
|||||||||||||||||
| Forecast | Year | Acc. | |||||||||||||||
| Q4 | 2017 | 0.1 | $\overline{\phantom{a}}$ | 1.9 | $\sim$ | 2.8 | 4.8 | 4.8 | |||||||||
| Full year | 2018 | 0.1 | $\sim$ | 11.0 | $\sim$ | ×, | 10.4 | 21.5 | 26.3 | ||||||||
| Full year | 2019 | 47.9 | ×, | 16.7 | ×, | ×, | 9.6 | 74.2 | 100.5 | ||||||||
| Full year | 2020 | ä, | 22.4 | 38.8 | 7.8 | 69.0 | 169.5 | ||||||||||
| Full year | 2021 | $\overline{\phantom{a}}$ | 9.1 | 35.2 | ×, | 18.3 | 62.6 | 232.1 | |||||||||
| Full year | 2022 | $\sim$ | 2.7 | 3.0 | $\sim$ | 5.7 | 237.8 | ||||||||||
| Full year | 2023 | $\overline{\phantom{a}}$ | 2.4 | 2.5 | 6.7 | 11.6 | 249.4 | ||||||||||
| Full year | 2024 | 31.1 | 2.2 | 2.2 | 19.3 | 54.7 | 304.1 | ||||||||||
| Full year | 2025 | 13.7 | 1.8 | 20.6 | 36.2 | 340.3 | |||||||||||
| Full year | 2026 | 1.6 | 1.6 | 341.8 | |||||||||||||
| Full year | 2027 | 1.3 | 1.3 | 343.1 | |||||||||||||
| Full year | 2028 | 16.7 | 16.7 | 359.8 | |||||||||||||
| Total | 48.1 | 0.0 | 31.1 | 0.0 | 82.1 | 103.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 46.6 | 48.9 | 359.8 |
* 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.
| SFK M | 30 September 2017 |
|---|---|
| Loan portfolio and Nordic Light Fund * | 268 |
| Operation-related investments | 199 |
| Other securities | 48 |
| Total ** | 516 |
* of which Loan portfolios SEK 252 M.
** of which short-term investments SEK 84 M and long-term investments SEK 432 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 1. Observable market data for the asset or
liability other than quoted prices are used in level 2. Fair value is determined with the aid of valuation techniques. For level 3, fair value is determined on the basis of valuation techniques based on 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 2016.
The Group's assets and liabilities measured at fair value as o 30 September 2017 are stated in the following table.
| SEK M | Tier I | Tier 2 | Tier 3 | Total |
|---|---|---|---|---|
| ASSETS | ||||
| Derivative instruments | 9 | 9 | ||
| Financial assets available for sale | 54 | 54 | ||
| Financial assets measured at fair value through profit or loss |
55 | 115 | 283 | 453 |
| Total assets | 55 | 178 | 283 | 516 |
| LIABILITIES | ||||
| Derivative instruments | 14 | 14 | ||
| Total liabilities | 0 | 4 | 0 | ۱4 |
No changes between levels occurred the previous year.
| 2017 | |
|---|---|
| as of I January | 270 |
| Purchases | $\mathsf{I}$ |
| Disposals | $-1$ |
| Amortisation | $-10$ |
| Gains and losses recognised through profit or loss | |
| Capitalised interest income | 0 |
| Exchange rate differences | $-0$ |
| At 30 September | 283 |
| 2017 | 2016 | 2016 | |
|---|---|---|---|
| SEK M | 30 Sep | 30 Sep | 31 Dec |
| Cash and cash equivalents | 203 | 183 | 188 |
| Other pledged assets | 4 | 50 | |
| 250 | 233 | 241 |
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.
| 2.017 | 2016 | 2016 | |
|---|---|---|---|
| SFK M | 30 Sep | 30 Sep | 31 Dec |
| Client funds managed on behalf of clients | |||
| Other contingent liabilities | |||
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.
| 2.017 30 Sep |
2016 30 Sep |
2016 | |
|---|---|---|---|
| SFK M | 31 Dec | ||
| Unutilised credit facilities, granted by Catella Bank | 2.636 | 2.076 | 2.366 |
| Investment commitments | 58 | 48 | |
| Other commitments | ь | ||
| 2,664 | 2.140 | 2,420 |
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.
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. Discussions are underway with CSSF regarding reporting and other mattersthat apply to the consolidated financial situation.
The consolidated financial situation complies with the EU 's and the Council's statute (EU) no.575/32013 (CRR). Group companies currently included in / excluded from the consolidated financial situation are shown in Note 20 of Catella's Annual Report 2016.
The Annual Accounts for Credit Institutions and Investment Firms Act (1995: 1559), ARKL, stipulates that consolidated accounts shall be prepared for a consolidated financial situation. Catella complies with this requirements by supplying the information contained in this complies with
this requirement by supplying the information contained in this note on the consolidated financial situation's account s in accordance with ARKL. The accounting principles indicated in Other financial information have been applied when preparing these financial statements, and are consistent with ARKL. Otherwise, please refer to Catella AB's consolidated accounts.
The following tables state extracts from the accounts for the consolidated financial situation.
| 2017 | 2016 | 2016 | |
|---|---|---|---|
| SEK M | Jan-Sep | Jan-Sep | Jan-Dec |
| Net sales | 1,223 | 999 | 1,392 |
| Other operating income | 3 | 9 | $\perp$ |
| Total income | 1,227 | 1,008 | 1,403 |
| Assignment expenses & commission | $-314$ | $-275$ | $-379$ |
| Income excl. direct assignment costs and commission | 913 | 733 | 1,024 |
| Operating expenses | $-655$ | $-591$ | $-823$ |
| Operating profit/loss | 257 | 43 | 201 |
| Financial items-net | 87 | 243 | 253 |
| Profit/loss before tax | 344 | 386 | 454 |
| Appropriations | $\mathbf{0}$ | $\Omega$ | $\overline{2}$ |
| Tax | $-61$ | $-109$ | $-122$ |
| Net profit/loss for the period | 283 | 276 | 334 |
| Profit/loss attributable to: | |||
| Shareholders of the Parent Company | 211 | 212 | 249 |
| Non-controlling interests | 72 | 64 | 85 |
| 283 | 276 | 334 | |
| Employees at end of period | 330 | 334 | 335 |
| SEK M | 2017 30 Sep |
2016 30 Sep |
2016 31 Dec |
|---|---|---|---|
| Non-current assets | 1,726 | 1,475 | 1,672 |
| Current assets | 4.474 | 3,443 | 3,532 |
| Total assets | 6,200 | 4,918 | 5,204 |
| Equity | 1,653 | 1,446 | 1,497 |
| Liabilities | 4.547 | 3.472 | 3,707 |
| Total equity and liabilities | 6,200 | 4.918 | 5,204 |
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.
| 2017 | 2016 | 2016 | |
|---|---|---|---|
| SEK M | 30 Sep | 30 Sep | 31 Dec |
| Core tier I capital | 902 | 758 | 725 |
| Other tier I capital | $\circ$ | $\mathbf{0}$ | $\mathbf 0$ |
| Tier 2 capital | $\overline{O}$ | $\theta$ | $\overline{0}$ |
| Capital base | 902 | 758 | 725 |
| Total risk-weighted exposure | 5,236 | 4,230 | 4,440 |
| CAPITAL ADEQUACY AND BUFFERS | |||
| Capital adequacy pillar I | 419 | 338 | 355 |
| of which capital adequacy requirement for credit risk | 220 | 175 | 196 |
| of which capital adequacy requirement for market risk | 71 | 68 | 64 |
| of which capital adequacy requirement for operational risk | 127 | 96 | 96 |
| Capital adequacy pillar 2 | 159 | 94 | 100 |
| Institution-specific buffer requirements | 165 | 2 | 129 |
| Internal buffer | 52 | 42 | 44 |
| Total capital adequacy and buffer requirement | 795 | 596 | 629 |
| Capital surplus after capital adequacy and buffers requirements | 107 | 162 | 96 |
| Capital surplus after regulatory required capital adequacy and buffers | 159 | 205 | 4 |
| CAPITAL RELATIONS, % OF TOTAL RISK-WEIGHTED EXPOSURE AMOUNT | |||
| Core tier I capital ratio | 17.2 | 17.9 | 16.3 |
| Tier capital ratio | 17.2 | 17.9 | 16.3 |
| Total capital ratio | 17.2 | 17.9 | 16.3 |
| CAPITAL ADEQUACY AND BUFFERS, % OF TOTAL RISK-WEIGHTED EXPOSURE AMOUNT | |||
| Capital adequacy pillar I | 8.0 | 8.0 | 8.0 |
| Capital adequacy pillar 2 | 3.0 | 2.2 | 2.3 |
| Institution-specific buffer requirements | 3.2 | 2.9 | 2.9 |
| of which requirement for capital conservation buffer | 2.5 | 2.5 | 2.5 |
| of which requirement for counter-cyclical capital buffer | 0.7 | 0.4 | 0.4 |
| Internal buffer | $\overline{1.0}$ | 1.0 | $\overline{1.0}$ |
| Total capital adequacy and buffer requirement | 15.2 | 4.1 | 14.2 |
| Capital surplus after capital adequacy and buffers requirements | 2.0 | 3.8 | 2.2 |
| Capital surplus after regulatory required capital adequacy and buffers | 3.0 | 4.8 | 3.2 |
| Catella AB's consolidated financial situation satisfies the minimum capital base requirements. | |||
| 2017 | 2016 | 2016 | |
| Capital base, SEK M | 30 Sep | 30 Sep | 31 Dec |
| Core tier I capital | |||
| Share capital and share premium reserve | 399 | 399 | 399 |
| Retained earnings and other reserves | 1,253 | 1,047 | 1,097 |
| Reviewed results, net of any foreseeable charge or dividend | $\sim$ | ||
| Less: | $-329$ | $-288$ | $-317$ |
| Intangible assets Price adjustments |
$-28$ | $-28$ | $-27$ |
| Deferred tax receivables | $-68$ | $-67$ | $-67$ |
| Positive results not yet verified by the Annual General Meeting | $-283$ | $-276$ | $-334$ |
| Other deductions | $-42$ | $-29$ | $-27$ |
| Total core tier capital | 902 | 758 | 725 |
| Other tier I capital | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ |
| Tier 2 capital | $\overline{\phantom{a}}$ | J. | $\sim$ |
| Capital base | 902 | 758 | 725 |
| 2017 | 2016 | 2016 | ||||
|---|---|---|---|---|---|---|
| 30 Sep | 30 Sep | 31 Dec | ||||
| Specification of risk-weighted exposure amounts and capital adequacy requirement pillar 1, SEK M |
exp.amount | Risk-weighted Capital adequacy pillar |
Risk-weighted Capital adequacy exp.amount |
pillar I | exp.amount | Risk-weighted Capital adequacy pillar I |
| Credit risk according to standardised method | ||||||
| Exposures to institutions | 580 | 46 | 453 | 36 | 451 | 36 |
| Exposures to corporates | 718 | 57 | 436 | 35 | 480 | 38 |
| Exposures to retail | $\mathbf{0}$ | 189 | 15 | 123 | 10 | |
| Exposures secured by mortgages on real property | 280 | 22 | 106 | 8 | 286 | 23 |
| Exposures in default | 271 | 22 | 290 | 23 | 277 | 22 |
| Items associated with particular high risk | 176 | 4 | 83 | $\overline{7}$ | 134 | $\mathbf{1}$ |
| Exposures in the form of covered bonds | 3 | $\mathbf{0}$ | $\overline{2}$ | $\mathbf{0}$ | 3 | $\overline{0}$ |
| Exposures to collective investment undertakings (funds) | 4 | 49 | $\overline{4}$ | 16 | $\mathbf{I}$ | |
| Equity exposures | 139 | $\overline{\phantom{a}}$ | 2 | 10 | 129 | 10 |
| Other items | 572 | 46 | 457 | 37 | 548 | 44 |
| 2,754 | 220 | 2.187 | 175 | 2,446 | 196 | |
| Market risk | ||||||
| Interest risks | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ | $\Omega$ |
| Exchange rate risks | 893 | 71 | 845 | 68 | 795 | 64 |
| 893 | 71 | 845 | 68 | 795 | 64 | |
| Operational risk according to basic method | 1,589 | 127 | 1,199 | 96 | 1.199 | 96 |
| Total | 5,236 | 419 | 4,230 | 338 | 4,440 | 355 |
| 2017 | 2016 | 2017 | 2016 | 2016 | |
|---|---|---|---|---|---|
| SEK M | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | Jan-Dec |
| Net sales | 3.0 | 2.1 | 9.2 | 6.4 | 9.1 |
| Other operating income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total income | 3.0 | 2.1 | 9.2 | 6.4 | 9.2 |
| Other external expenses | $-6.3$ | $-6.9$ | $-20.7$ | $-19.8$ | $-29.7$ |
| Personnel costs * | $-8.4$ | $-7.8$ | $-23.6$ | $-18.8$ | $-30.4$ |
| Depreciation | $-0.0$ | $-0.0$ | $-0.0$ | $-0.0$ | $-0.0$ |
| Other operating expenses | $-0.0$ | $-0.0$ | 0.0 | $-0.0$ | $-0.0$ |
| Operating profit/loss | $-11.7$ | $-12.6$ | $-35.1$ | $-32.2$ | $-51.0$ |
| Profit/loss from participations in group companies | 0.0 | 0.3 | 90.0 | 0.3 | 0.3 |
| Interest income and similar profit/loss items | $-0.0$ | 1.5 | $-0.0$ | 5.1 | 6.6 |
| Interest expenses and similar profit/loss items | $-5.1$ | $-2.5$ | $-13.3$ | $-7.5$ | $-9.8$ |
| Financial items | $-5.2$ | $-0.7$ | 76.6 | $-2.0$ | $-3.0$ |
| Profit/loss before tax | $-16.8$ | $-13.3$ | 41.5 | $-34.3$ | $-54.0$ |
| Appropriations | 0.0 | 0.0 | 0.0 | 0.0 | 39.0 |
| Tax on net profit for the year | 0.0 | 0.0 | 0.9 | 0.0 | 0.0 |
| Net profit/loss for the period | $-16.8$ | $-13.3$ | 42.4 | $-34.3$ | $-15.0$ |
* Personnel costs include directors' fees
| SEK M | 2017 lul-Sep |
2016 lul-Sep |
2017 Jan-Sep |
2016 Jan-Sep |
2016 lan-Dec |
|---|---|---|---|---|---|
| Net profit/loss for the period | $-16.8$ | $-13.3$ | 42.4 | $-34.3$ | $-15.0$ |
| Other comprehensive income | |||||
| Other comprehensive income for the period, net after tax | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total comprehensive income/loss for the period | $-16.8$ | $-13.3$ | 42.4 | $-34.3$ | $-15.0$ |
| SEK M | 2017 30 Sep |
2016 30 Sep |
2016 31 Dec |
|---|---|---|---|
| Property, plant and equipment | 0.0 | 0.1 | 0.1 |
| Participations in Group companies | 656.9 | 519.1 | 519.1 |
| Deferred tax receivables | 19.8 | 18.9 | 18.9 |
| Current receivables from Group companies | 54.4 | 137.7 | 164.9 |
| Other current receivables | 5.1 | 6.7 | 5.9 |
| Cash and cash equivalents | 267.8 | 31.2 | 31.3 |
| Total assets | 1,004.1 | 713.7 | 740.1 |
| Equity | 495.9 | 499.8 | 519.0 |
| Non-current liabilities | 493.7 | 0.0 | 0.0 |
| Other current liabilities | 14.4 | 213.9 | 221.0 |
| Total equity and liabilities | 1,004.1 | 713.7 | 740.1 |
There were no assets pledged or contingent liabilities as of 30 September 2017.
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 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 it ems in the Income Statement and Balance Sheet.
| Non-IFRS performance measure | Description | Reason for using the measure |
|---|---|---|
| Equity per share attributable to parent com- pany shareholders* |
Equity attributable to parent company share- holders divided by the number of shares at the end of the period. |
Provides investors with a view of equity as represented by a single share. |
| Return on equity* | Total profit in the period for the most recent four quarters divided by average equity in the most recent five quarters. |
The company considers that the performance measure provides investors with a better understanding of return on equity. |
| Equity/assets ratio* | Equity divided by total assets. | Catella considers the measure to be relevant to inves- tors and other stakeholders wishing to asses Catella's fi- nancial stability and long-term viability. |
| Dividend per share | Dividend divided by the number of shares. | Provides investors with a view of the company's dividend over time. |
| Profit margin * | Profit for the period divided by total income for the period. |
The measure illustrates profitability regardless of the rate of corporation tax. |
| Property transaction volumes in the period | Property transaction volumes in the period con- stitutes the value of underlying properties at the transaction dates. |
An element of Catella's income in Corporate ~Finance is agreed with customers on the basis of the underlying property value of the relevant assignments. Provides in- vestors with a view of what drives parts of the income. |
| Assets under management at year-end | Assets under management constitutes the value of Catella's customers' deposited/invested capi- tal. |
An element of Catella's income in Asset 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 underlying card transactions processed by Ca- tella. |
Card and payment volumes are a value driver for Ca- tella's income in Card & Payment Solutions. Provides in- vestors with a view of what drives an element of Catella's income. |
* See next page for basis of calculation
| 3 Months | 9 Months | 12 Months | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |||||||||||
| GROUP | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec | ||||||||||
| Net profit/loss for the period, SEK M | 84 | 45 | 198 | 299 | 256 | 357 | ||||||||||
| Total income, SEK M | 571 | 477 | 1,653 | 1417 | 2262 | 2027 | ||||||||||
| Profit margin, % | 15 | $ 0\rangle$ | 2 | 21 | $\mathsf{I}$ | 8 | ||||||||||
| Equity, SEK M | ×. | 1,798 | 1,675 | 1730 | ||||||||||||
| Total assets, SEK M | ×. | 6,516 | 5,298 | 5651 | ||||||||||||
| Equity/Asset ratio, % | 28 | 32 | 31 | |||||||||||||
| Net profit/loss for the period, SEK M * | 59 | 35 | 125 | 235 | 162 | 272 | ||||||||||
| No. of shares at end of the period | 81,848,572 81,848,572 | 81,848,572 81,848,572 | 81,848,572 81,848,572 | |||||||||||||
| Earnings per share, SEK * | 0.72 | 0.43 | 1.53 | 2.87 | 1.98 | 3.32 | ||||||||||
| Equity, SEK M * | ×. | 1,628 | 1,534 | 1563 | ||||||||||||
| No. of shares at end of the period | $\sim$ | 81,848,572 81,848,572 | $-81,848,572$ | |||||||||||||
| Equity per share, SEK * | $\overline{a}$ | 19.89 | 18.75 | $\overline{\phantom{a}}$ | 19.10 | |||||||||||
| 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | |
| GROUP | Jul-Sep Apr-Jun Jan-Mar Oct-Dec | Jul-Sep Apr-Jun Jan-Mar Oct-Dec | Jul-Sep Apr-Jun Jan-Mar Oct-Dec | Jul-Sep Apr-Jun Jan-Mar Oct-Dec | ||||||||||||
| Net profit/loss for the period, SEK M * | 59 | 33 | 33 | 37 | 35 | 182 | 17 | 122 | 38 | 48 | 35 | 96 | 21 | 85 | 15 $-4$ |
|
| Equity, SEK M * | 1,628 | 1.577 | 1.597 | 1,563 | 1,534 | 1.484 | , 333 | 1,319 | .233 | .177 | 1.151 | 1.164 | 1.041 | 1,027 | 920 | 904 |
| Return on equity, % | $\overline{0}$ | 9 | 9 | 9 | 26 | 27 | 8 | 20 | 9 | 8 | 22 | 21 |
| 3 Months | 9 Months | 12 Months | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |||||||||||
| CORPORATE FINANCE | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec | ||||||||||
| Net profit/loss for the period, SEK M | 15 | 4 | 39 | 25 | 50 | |||||||||||
| Total income, SEK M | 144 | 144 | 396 | 397 | 585 | 586 | ||||||||||
| Profit margin, % | $\overline{0}$ | 8 | 3 | 10 | 9 | |||||||||||
| Equity, SEK M | $\sim$ | 118 | 262 | 281 | ||||||||||||
| Total assets, SEK M | $\sim$ | 388 | 423 | 478 | ||||||||||||
| Equity/Asset ratio, % | $\overline{\phantom{a}}$ | 31 | 62 | 59 | ||||||||||||
| 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | |
| CORPORATE FINANCE | Jul-Sep Apr-Jun Jan-Mar Oct-Dec | Jul-Sep Apr-Jun Jan-Mar Oct-Dec | lul-Sep Apr-Jun Jan-MarOct-Dec | Jul-Sep Apr-Jun Jan-MarOct-Dec | ||||||||||||
| Net profit/loss for the period, SEK M * | 15 | $\Omega$ | $\sim$ | 36 | $-8$ | 32 | 13 | 16 | $-15$ | 42 | 16. | $-9$ | 4 | |||
| Equity, SEK M * | 90 | 78 | 177 | 254 | 237 | 222 | 206 | 213 | 183 | 7 | 187 | 206 | 144 | 43 | 138 | 287 |
| Return on equity, % | 15 | $\vert \vert$ | 26 | 22 | 34 | 37 | 28 | 24 | 31 | 28 | 30 | 30 |
| 3 Months | 9 Months | 12 Months | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |||||||||||
| ASSET MANAGEMENT AND BANKING | Jul-Sep | Jul-Sep | Jan-Sep | Jan-Sep | 12 Months | Jan-Dec | ||||||||||
| Net profit/loss for the period, SEK M | 77 | 37 | 211 | 274 | 275 | 338 | ||||||||||
| Total income, SEK M | 430 | 345 | .272 | 1043 | 1702 | 1473 | ||||||||||
| Profit margin, % | 18 | $\mathsf{I}$ | 7 | 26 | 16 | 23 | ||||||||||
| Equity, SEK M | $\overline{\phantom{a}}$ | 1.109 | 970 | 998 | ||||||||||||
| Total assets, SEK M | $\sim$ | 5,342 | 4,319 | 4619 | ||||||||||||
| Equity/Asset ratio, % | $\overline{a}$ | 21 | 22 | $\overline{\phantom{a}}$ | 22 | |||||||||||
| 2017 | 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | |
| ASSET MANAGEMENT AND BANKING | Jul-Sep Apr-Jun Jan-Mar Oct-Dec | Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec | ||||||||||||||
| Net profit/loss for the period, SEK M * | 53 | 48 | 38 | 43 | 77 | 158 | 74 | 66 | 4 | 8 | 44 | 26 | 20 | 9 | $-8$ | |
| Equity, SEK M * | 967 | 941 | 898 | 859 | 855 | 789 | 649 | 620 | 686 | 660 | 676 | 639 | 65 | 575 | 545 | 436 |
| ___ | . | . | --- | --- | . | . | --- | --- | --- | --- | --- | -- |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Return ↑ equity, - 911 |
$\sim$ ∠∪ |
∢∠ | 38 ں ب |
20 | $\sim$ -- |
. . |
* Attributable to shareholders of the Parent Company.
Catella AB (publ)
P.O. Box 5894, 102 40 Stockholm, Sweden | Visitors: Birger Jarls-
gatan 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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