Arribatec Group ASA — Management Reports 2014

Jun 4, 2014

Agasti cuts cost quicker than expected and delivers on strategy

Agasti cuts cost quicker than expected and delivers on strategy

Since the end of April 2014, Agasti Holding ASA (Agasti) has reduced the

amount of employees with 100 and will by the end of the 3rdquarter

employ approximately 130 people. The company has also entered into an

agreement relating to the Swedish business in Navigea Securities AS'

(Navigea), and will when this process is completed have divested or shut

down 13 offices in Norway and Sweden. The planned cost reductions have

therefore been achieved quicker than expected. From the 4thquarter,

Agasti will have reduced the annual fixed cost base by NOK 100-120

million. In parallel, the group's re-established strategy delivers

results. Agasti has now established a solid business based on its two

new business areas and a significantly more efficient organisation

represented in Oslo, Stavanger, Stockholm, London, Luxembourg and New

York.

Two relevant transactions in investment companies managed by the Agasti

group illustrates that the company delivers on its stated ambitions and

business model:

The investment companies Hyresbostäder i Sverige II AB (HBS II) and

Etatbygg Holding I and II, all managed by Agasti subsidiary Obligo

Investment Management, is in process with structural changes that

safeguard shareholder value and flexibility for the shareholders. This

is in accordance with the group's redefined management strategy.

"With these moves, Agasti, on behalf of clients and investors, aims to

generate the best possible return, highlight underlying portfolio

values, ensure improved liquidity and provide shareholders with more

options, says Jørgen Pleym Ulvness, managing director of Agasti Holding

ASA.

On 3 June 2014, Agasti entered into an agreement with Söderberg &

Partners regarding the transfer of parts of Navigea's Swedish operation.

Under the agreement, Söderberg & Partners has the right to work with

parts of the company´s Swedish customers to provide consulting services.

The agreement includes a small amount of cash and a revenue sharing

agreement for clients who choose to be served by Söderberg & Partners

going forward. Söderberg & Partners is amongst the most reputable wealth

management organisations in Sweden. Agasti will contribute towards

ensuring the smoothest possible transfer for the clients who choose this

solution. Agasti maintains its brokerage services and Obligo-related

activities in Sweden, based out of its Stockholm office.

As communicated on several occasions in the past few months, Agasti

expects that the Financial Services Authority soon will confirm its

notice of revocation of Navigea's licenses to provide investment

advisory services. Based on this, Agasti will liquidate its invest

advisory business by the end of 2014.

"In connection with our 1st quarter presentation on 11 February, we said

that we would make the necessary changes quickly and efficiently. We

have delivered on that promise. The comprehensive changes that have been

made over the past few months have laid a foundation that ensures that

customers of the Agasti group are serviced more effectively while their

investments and future investment needs are well managed through Obligo

Investment Management and Agasti Wunderlich Capital Markets. We have a

robust business based on our new business areas, an efficient

organization and a platform consisting of capital management, corporate

finance and brokerage services with solid distribution capacity. The

underlying operation is healthy and we have strong ambitions for the

future," says Jørgen Pleym Ulvness.

For further information, please contact:

Jørgen Pleym Ulvness, managing director, telephone: +47 906 67 877

Christian Dovland, CFO, telephone: +47 908 84 730

Tor Arne Olsen, communication director, telephone: +47 900 90 470