Arribatec Group ASA — Earnings Release 2015

Aug 19, 2015

High activity level ensures continued solid profitability for Agasti

High activity level ensures continued solid profitability for Agasti

·

EBIT of NOK 12 million and EBITDA of NOK 15 million in the second quarter

compared to EBIT of NOK 1 million and EBITDA of NOK 5 million in the

corresponding quarter of 2014

·

Adjusted EBIT of NOK 30 million and adjusted EBITDA of NOK 32 million in the

second quarter before deducting expenses related to settlements and disputes of

NOK 17 million

·

EBIT of NOK 32 million and EBITDA of NOK 38 million in the first half of 2015,

compared to EBIT of NOK 8 million and EBITDA of NOK 15 million in the

corresponding period for 2014

·

High activity level and solid profitability in both business areas

·

Transaction revenues of NOK 42 million in the second quarter and NOK 75 million

in the first half of 2015

·

Settlements entered into with 97 per cent of claimants in the Lehman complex in

Sweden, thereby significantly reducing the overall financial risk associated

with remaining complaints

·

18 months of targeted work to restructure the group and secure a future-oriented

and profitable business has resulted in Agasti now undertaking the largest ever

Norwegian real estate transaction with American firm Blackstone at a value of

NOK 22 billion

·

Blackstone is also purchasing 34 per cent of Agasti's operational businesses,

and together with Agasti has ambitions to jointly pursue further real estate

transactions and to potentially build up a leading position in the Nordic real

estate market

A continued high level of activity and the effects of the restructuring of the

business have ensured that the Agasti Group is continuing to see a positive

trend in earnings. In the second quarter, the group achieved EBIT of NOK 12

million and EBITDA of NOK 15 million. Adjusted for expenses related to

settlements and disputes, EBIT was NOK 30 million and EBITDA NOK 32 million in

the second quarter of 2015. In the first half of 2015, EBIT and EBITDA was NOK

32 million and NOK 38 million, respectively.

A long-term process and negotiations with a number of leading Nordic and

international real estate investors resulted in American firm Blackstone

entering into an agreement that funds managed by Blackstone are to acquire ten

real estate portfolios managed by Agasti's investment management company Obligo

Investment Management AS for NOK 22 billion. Blackstone presented the highest

and best bid of all the interested parties for all the portfolios. The

settlement is to be all cash and the transaction does not have any financing

contingencies. The transaction is a result of a comprehensive process initiated

in 2013/2014 where the objective has been to enhance shareholder value in the

portfolios managed by Obligo. In order to ensure continuity in the management of

the portfolios, as well as to establish a Nordic presence within real estate

management, Blackstone will also acquire 34 per cent of Agasti's operational

businesses for NOK 250 million. The Board of Directors propose that the proceeds

after deducting expenses associated with the wind-down of Agasti's remaining

activities, will be paid to Agasti's shareholders as dividend.

"The positive development in earnings continues as a consequence of a generally

high activity level within investment management, corporate finance and

brokerage activities. We are now about to complete the largest ever real estate

transaction in Norway, and when Blackstone becomes a major shareholder, we will

achieve an important milestone in the restructuring of the group and lay the

foundation for a profitable business going forward," says Agasti CEO Jørgen

Pleym Ulvness.

Since late 2013, Agasti has undertaken targeted work to establish a stronger

asset management strategy, where solid returns, improved liquidity, dividends

and opportunities for our investors are the main elements. As part of this

process, Agasti focused a greater part of its business activities earlier in

2015 around the investment management company Obligo. Corporate finance was

integrated with the asset management team in order to optimise the management of

the portfolios and to be able to work with transaction-based restructuring of

these portfolios.

"The establishment of our model and asset management strategy, together with the

broad marketing of our real estate portfolios, has generated significant

interest in both the investment portfolios and our management platform. The

agreement with Blackstone is a direct result of the decisions we have made and

the course we set for ourselves as far back as 2013. Agasti and Blackstone have

ambitions to jointly pursue further real estate transactions and to potentially

take a leading position in the Nordic real estate market. Together with Agasti's

management, Blackstone will assess how to operate and develop the combined

business going forward," says Ulvness.

The transaction with Blackstone and their funds has been well received by

Agasti's clients and shareholders. Clients receive a flexible exit opportunity,

while shareholders in Agasti become owners of a firm that eventually can become

one of the dominating and most profitable real estate managers in the Nordic

region. Obligo is to continue to manage approximately half of the portfolios to

be acquired by Blackstone's managed entities, as well as certain real estate

portfolios that are not included in the transaction and portfolios within

Shipping, Private Equity and Infrastructure. When the transactions relating to

the real estate portfolios are closed, Obligo will receive exit fees and

performance fees totalling around NOK 150 million. Agasti is to own 66 per cent

of a new entity receiving these fees, following corporate restructuring and

Blackstone's investment.

"This adds a new dimension to our model. We are securing our main business area;

investment management, we are achieving improved utilisation of our competence,

and we have laid the foundation for a profitable business going forward," says

Jørgen Pleym Ulvness.

A complete English version of the interim report 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.