Arribatec Group ASA — Earnings Release 2014

May 14, 2014

A high level of activity ensures good operations in Agasti

A high level of activity ensures good operations in Agasti

· EBITDA of NOK 11 million and EBIT of NOK 7 million in the first

quarter of 2014, an improvement of NOK 10 million and NOK 11 million,

respectively, compared with the corresponding quarter of 2013

· Suggested dividends/payments of around NOK 900 million proposed for

shareholders in alternative investments, which follows

dividends/payments of NOK 700 million in 2013

· High level of activity within the group on all main lines

established in 2012. If this level is maintained the Agasti Group will

be heading for a positive EBIT for 2014 despite significant

restructuring costs

· Cost reductions within Wealth Management of around NOK 100-120

million have been decided upon as part of a realignment of activities

· Sale of individual offices in Navigea on several locations in

Norway, which could reduce restructuring costs

· Equity under management remains stable at around NOK 30 billion

· The FSA is considering revoking Navigea's licences to provide

investment services. A potential closing of Navigea is estimated to have

a positive effect on the Agasti Group's profitability

The Agasti Group (Agasti) achieved an EBIT of NOK 7 million in the first

quarter of 2014, compared with NOK -4 million in the corresponding

quarter of 2013. The result is negatively affected by pre-paid expenses

of NOK 2.5 million associated with projects in the Markets segment,

which upon complete or partial realisation may be recharged and thereby

contribute positively to the result at a later date. Costs associated

with the Financial Supervisory Authority's notice regarding the

revocation of Navigea Securities AS's licences to operate investment

services also negatively affect the group's result for the first quarter

of 2014.

""The group is continuing the positive development in underlying

operations as a result of our ability to carry out planned improvement

initiatives and projects.The Capital Markets and Investment Management

business areas are continuing to develop positively, and there is a high

level of activity within all the main lines that were established in the

new business areas in 2012. If we maintain the current level of

activity, I am confident that we can expect a positive EBIT for the

year, even when the restructuring costs associated with the downscaling

of Navigea are taken into account. The activities and result for the

quarter show that our model has great potential which is promising for

the future," says Jørgen Pleym Ulvness, CEO of Agasti Holding ASA.

As the market has previously been informed, Agasti has decided to

undertake significant cost cuts within the group's Wealth Management

operations. The cuts will be made over a period of time and involve the

dismissal of up to 100 employees, as well as cost reductions of between

NOK 100 and 120 million. The purpose of the cuts is to improve

profitability within the group, and their timing is partially a result

of the FSA's notice regarding the revocation of Navigea's licenses, and

partially a result of the fact that the group has implemented extensive

changes since late 2012, including cost reductions and efficiency

-improvement measures, which mean that clients can now be served through

a more streamlined organisation.

Current analyses indicate that the group's profitability may be

strengthened through the full or partial discontinuation of the

activities within Wealth Management, either by workforce reductions or

by other structural alternatives.

As previously informed, the restructuring costs are estimated to NOK 40

million, of which NOK 14 million were entered in 2013 and NOK 3 million

in the first quarter of 2014. The remaining estimate of NOK 23 million

will depend on the outcome of the restructuring process. In connection

with this, Agasti has entered into agreements related to the sale of

individual offices in Navigea on several locations in Norway.

"The turnaround operation we have undertaken during the past 18 months

has enabled clients of the Agasti Group to be served more effectively.

At the same time, the effect of the measures currently being undertaken

in Navigea will help to improve the group's profitability. The FSA's

notice regarding the revocation of licences has forced and partially

increased the scope of these changes, and we are prepared for the fact

that the notice may be enforced. However, we are well prepared for the

changes, and the synergies we achieve will be visible as early as in the

autumn," says Ulvness.

Shortly Agasti will have an adjusted commercial alignment of the

organisation, where the investment advisory services subject to licences

will be significantly reduced or discontinued, but in which customers

will be served in the best possible way in continued operations. If the

licences are retained, activities within Wealth Management will be

continued in a trimmed down version and upon a significantly more

efficient cost platform than previously, cf. the efficiency improvement

measures undertaken through restructuring and cost cuts since late 2012.

"We are dependent upon our clients and we want to continue to do

everything within our power to ensure that we deserve their trust.

During the summer we will establish a solid and liquid mutual fund

platform (UCITS fund) and distribution capacity, which will meet our

clients' needs for these types of investments. In addition, expanded

brokerage services and customer centres will meet clients' needs for

information, follow-up and reporting. Obligo Investment Management has

previously established one of the country's most experienced and

competent management teams, which ensures effective management of

clients' investments in real estate and other direct and indirect

investments. In sum, this means that clients can feel confident that

their investments and future investment needs will be handled in an

excellent manner," says Ulvness.

Going forward, the Agasti Group will prioritise the execution of all

cost reductions in Wealth Management and return to normal operations

during the autumn of 2014, but with significantly lower costs in

addition to improved profitability in Capital Markets and Investment

Management.

"When the process of downscaling and/or the partial sale of activities

in Navigea is completed, the group will have approximately 140

employees. A vast majority of these, including the entire executive

management team and most other managers, will have started work with the

group after late 2012. We are now looking forward and wish to create an

atmosphere of calmness within the company with respect to our owners,

clients and employees," says Ulvness.

The Agasti Group will however continue to maintain intense focus on

ensuring good returns and high quality in the investments offered to

clients.

"An improved financing platform for the portfolios, increased liquidity

and continued solid dividend payments are what our clients shall be able

to expect from us. The boards of various portfolios have recently

suggested dividends/payments totalling around NOK 900 million. If these

dividends/payments are approved, they follow the dividends/payments of

NOK 700 million that were paid in 2013, which was the first year that

dividends/payments of significance had been paid in several years," says

Ulvness.

During the quarter, several processes were carried out which are

positive for clients in both the short and long term, and which ensure

recurring revenues for the group. In Etatbygg I and II, the general

assemblies voted in favour of the board's proposal to carry out a

transaction that ensures value for shareholders who wish to terminate

their investment at original maturity, while simultaneously offering the

opportunity to entirely or partially extend the investment for

shareholders who wish to do so through a significantly more liquid

structure that ensures shareholders can redeem their units when they

wish.

In Sweden, Hyresbostäder i Sverige II AB, a real estate company managed

by Obligo Investment Management AS, initiated negotiations with Swedish

listed real estate company D. Carnegie & Co AB regarding the possible

merging of the two companies' real estate portfolios into what would

become Sweden's largest listed real estate company within residential

housing. The transaction will involve a significantly more liquid

structure, which ensures that shareholders can redeem their units

whenever they wish.

"I am satisfied that, in a demanding period for large parts of the

group, we are managing to provide good results, conducting

restructurings, while winning mandates and complete transactions in line

with our stated ambitions. This shows a willingness and execution

capacity that will really give results when the entire group returns to

a normal operating situation," says Jørgen Pleym Ulvness.

A complete English version of the interim report of the first quarter of

2014 is attached on www.newsweb.no and on Agasti's Investor Relations

web pages www.agasti.no.

Contact details:

CEO, Jørgen Pleym Ulvness, phone (+47) 906 67 877

CFO, Christian Dovland, phone (+47) 908 84 730

CCO, Tor Arne Olsen, phone (+47) 900 90 470

This information is subject of the disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act.