Annual Report • Feb 10, 2023
Annual Report
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Catella concluded a successful year with a strong quarter. Compared to 2021 full year operating profit more than tripled to SEK 618 M, while Assets under Management increased by 15 percent to SEK 141 Bn.
Backed by a strong financial position, we look forward to invest in long-term value creation and generate value for our customers, shareholders and society in 2023 and beyond.
Christoffer Abramson, CEO and President
• Final handover of a previously completed logistics property is expected to generate income of SEK 42 M, which implies improved profit of SEK 21 M attributable to to shareholders of the Parent Company.
Last 12 months
SEK 810 M
Assets under management
SEK 1,183 M
SEK 141 Bn End of period
End of period
Since the decision in 2021 to focus on property operations, we have continued to deliver on our targets and advanced our position in prioritised markets. The focused Catella that we continue to build now summarizes its strongest year to date. The results are built on a dedicated strategy and efforts to strengthen our three property-focused business areas in 12 European markets. Our progress is also founded on our belief that qualified advice, investment management, and own investments generate value over time and therefore require a long-term approach from a social, environmental and investor perspective.
2022 was characterized by strengthening our position and product offering in existing markets, entering new markets, and by ending businesses with limited synergies and low profitability. This included acquiring a majority share in WPP in Poland (now Catella Poland), which opens up opportunities for growth and investments in an additional major European market with high potential. Through our UK company Catella APAM we also entered the Irish market where we are now pleased to offer our services. In Corporate Finance, we focused operations to five markets from a previous eight, and can now wholeheartedly focus on strengthening Corporate Finance on these remaining markets. In addition to structural changes we also advanced in the area of sustainability. For example, we launched our second Article 9 fund under Sustainable Finance Disclosure Regulation (SFDR), which means that the fund's investments have a direct positive impact on the environment and society, while also not negatively affecting other sustainability goals. The fund's long-term ambition is to develop 100 energy-positive residential properties around Europe. In addition, we decided on our long-term ESG strategy and goals at group level, a very significant step forward for us.
During the year, assets under management increased by SEK 18 Bn to SEK 141 Bn in Investment Management. Compared to the previous quarter, assets under management decreased slightly as an effect of the strategic sale of 34 residential properties in Germany and the Netherlands. The reason behind the transaction was to modernize the property portfolios and to release liquidity for new investments with an improved sustainability profile.
On a subdued transaction market with reduced investment appetite and lower capital inflows in the most recent quarter we are encouraged by that interest in products with a sustainability profile remains strong. We will continue to invest the substantial liquidity in funds in future-focused assets. In addition, we are pleased with our balanced offering and expertise in managing underperforming property assets in our management mandates, and we strongly believe that our Asset Management companies will grow ahead, as value-add and re-positioning mandates will be key market needs from 2023 onwards.
Principal Investments completed three sales of development projects in the year, which contributed to an operating profit exceeding SEK 180 M. Given the current market conditions, no divestments were made in the fourth quarter and we continue to lean on our strong financial position awaiting the market uncertainty to subside.
At the same time we continue to develop our projects according to plan, albeit at a slightly slower pace and identifying opportunities for the next long term value investments. The European property market will certainly be exciting in 2023 and we anticipate interesting investment opportunities that we can back by our strong liquidity.
At the end of the quarter, Principal Investments' investments in six countries totalled approximately SEK 1.2 Bn in 9 projects.
At the start of the year, a decision was made to discontinue Corporate Finance operations in Germany and the Baltics in order to wholeheartedly allocate time and resources to develop operations on the five remaining markets. The focus of the operations is behind the year's positive operating profit of SEK 22 M despite a very slow transaction market during the second half of 2022.
In order to take the next step in our profitable growth journey, we have identified four prioritised areas that we will focus on over the coming years.
• Increase the product offering with a clear sustainability profile. Currently Catella offers two so-called dark green Article 9 funds, i.e. funds where the investments have a direct positive impact on the environment and society without adversely affecting any other sustainability goals. In addition, we also have other funds and mandates focused on realignment and repositioning of properties.
Looking ahead, we will develop this offering further. We do this in part because it is the right thing to do for us as a company and because we have the competencies and market position to meet the substantial demand we see from investors.
• Broaden and adapt product offerings for various stages of the economic cycle.
Catella already has a broad offering that suits investors in varying economic cycles. We are now taking the next steps in expanding our offering. Near term, we will launch strategies, mandates and services for the uncertain period we currently experience. This might include mandates for repositioning underperforming assets or expanding debt and capital advisory services. In parallel, we are developing the next generation of funds, investments
and mandates based on a detailed analysis and our view on the future, ready to be launched from 2023 and onwards.
• Strengthen synergies and further develop pan-European investment strategies.
Catella currently has a strong position with a broad presence on the European market complemented by strong local connections and knowledge. We will continue to build on our unique position and offer pan-European investment strategies and mandates in areas where we assess that we can offer investors attractive returns.
• Capitalise on our financial position to generate new business and expand on markets where we want to grow. We are well equipped to undertake investments in both companies and assets that we consider a close fit with Catella and that can contribute to our growth and profitability. Uncertain and sometimes turbulent market conditions increases possible opportunistic investments, which is facilitated by our liquidity position. We will continue to selectively analyse acquisition
opportunities in business areas and in markets where we want to develop our operations.
With the strong financial position of Catella and in our funds, we look forward to investing in long-term value creation and to generate value for our customers, shareholders and society in 2023 and beyond.
Christoffer Abramson, CEO and President Stockholm, Sweden, 10 February 2023
Profit and comments on page 4-10 relate to Operating profit attributable to Catella AB's shareholders, which is consistent with the internal reporting delivered to Group Management and the Board. The difference to the Group's formal Income Statement is that deductions have been made in the Income Statement for profit attributable to shareholders with non-controlling interests. A full reconciliation can be found in note 1.
| Investment | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Management | Principal Investments | Corporate Finance | Other | Group | ||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| SEK M | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec |
| Net sales | 390 | 311 | 44 | $\overline{2}$ | 186 | 292 | $-2$ | $-2$ | 618 | 603 |
| Other operating income | 3 | 3 | 38 | 6 | 5 | 3 | $-6$ | 8 | 40 | 30 |
| Total income | 394 | 314 | 82 | 8 | 190 | 295 | $-8$ | 16 | 658 | 633 |
| Provisions, direct assigment and production costs | $-50$ | $-34$ | $-23$ | $-3$ | $-38$ | $-21$ | 3 | $-0$ | $-108$ | $-58$ |
| Other external expenses | $-79$ | $-58$ | $-2$ | $-4$ | $-32$ | $-30$ | 8 | 9 | $-105$ | $-84$ |
| Personnel costs | $-143$ | $-130$ | $-15$ | $-4$ | $-103$ | $-177$ | $-16$ | $-20$ | $-277$ | $-331$ |
| Depreciation | $-10$ | $-9$ | $-3$ | $-1$ | $-5$ | $-6$ | $-2$ | $-5$ | $-21$ | $-21$ |
| Other operating expenses | $-5$ | $-2$ | $-15$ | $-0$ | $\mathbf{0}$ | $-3$ | 12 | $\overline{7}$ | $-8$ | $\overline{2}$ |
| Less profit attributable to non-controlling interests | $-2$ | $-1$ | $-19$ | $\Omega$ | $\mathbf{0}$ | $\mathbf{0}$ | $\mathbf{0}$ | $-2$ | $-21$ | $-3$ |
| Operating profit/loss | 103 | 79 | $\overline{4}$ | $-4$ | $\vert \vert$ | 57 | $-2$ | 5 | 117 | 138 |
| Interest income | $\mathbf{L}$ | 5 | ||||||||
| Interest expenses | $-22$ | $-19$ | ||||||||
| Other financial items | 24 | 8 | ||||||||
| Financial items-net | 4 | $-6$ | ||||||||
| Profit/loss before tax | 3 | 131 | ||||||||
| Tax | $-34$ | $-36$ | ||||||||
| Net profit/loss for the period * | 97 | 95 |
* Profit/loss for the period is reconciled in note 1. Income Statement by business area - Profit/loss attributable to the Parent Company Catella AB's shareholders.
The Group's Net sales totalled SEK 618 M (603) and the Group's total income amounted to SEK 658 M (633) of which SEK 394 M (314) relates to Investment Management, SEK 82 M (8) to Principal Investments and SEK 190 M (295) to Corporate Finance. The increased income was mainly attributable to the Property Funds service area, where both fixed and variable income from divested properties increased in year-on-year terms. Furthermore, Principal Investments' income includes additional purchase consideration estimated at SEK 42 M relating to a previously divested logistics property.
The Group's operating profit was SEK 117 M (138), where the year-on-year de-
crease was mainly attributable to Corporate Finance, where sales decreased significantly due to the sluggish transaction market. In addition, Principal Investments was charged with additional project development costs amounting to SEK 14 M in the period.
Comments on the progress of each operating segment can be found on pages 6- $10.$
The Group's net financial income/expense was SEK 14 M (-6) and included interest income of SEK 11 M (5) and loan arrangement fees of SEK 23 M (20). The valuation of securities holdings and investments at fair value resulted in a value adjustment of SEK 7 M (3), mainly attributable to Pamica and Catella's property fund Systematic C. Net financial income/expense also includes positive exchange rate differences of SEK 18 M (0) from revaluations of receivables and cash equivalents in foreign currencies.
The Group's profit/loss before tax amounted to SEK 131 M (131) and profit/loss for the period was SEK 97 M (95), corresponding to earnings per share of SEK 1.10 (1.08) to the Parent Company shareholders.
There were no significant events in the quarter.
There were no significant events after the end of the quarter.
| Investment | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Management | Principal Investments | Corporate Finance | Other | Group | ||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| SEK M | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | lan-Dec | an-Dec | Jan-Dec | Jan-Dec | an-Dec |
| Net sales | 359 | 042 | 2 | $\overline{2}$ | 533 | 670 | $-16$ | $ 9\rangle$ | 996 | 734 |
| Other operating income | 49 | 27 | 539 | 16 | $\overline{10}$ | 8 | $-$ | 22 | 597 | 73 |
| Total income | 408 | 069 | 660 | 8 | 542 | 678 | $-17$ | 4 1 | 2593 | 807 |
| Provisions, direct assigment and production costs | $-166$ | $-153$ | $-175$ | $-3$ | $-78$ | $-57$ | 17 | $-402$ | $-206$ | |
| Other external expenses | $-217$ | $-174$ | $-37$ | $-7$ | $-124$ | $-114$ | 5 | $-80$ | $-374$ | $-374$ |
| Personnel costs | $-522$ | $-452$ | $-47$ | $-4$ | $-299$ | $-405$ | $-5$ | $-133$ | $-919$ | $-994$ |
| Depreciation | $-39$ | $-35$ | $-8$ | $\overline{a}$ | $-20$ | $-23$ | $-8$ | $-63$ | $-75$ | $-121$ |
| Other operating expenses | -8 | $-6$ | $-19$ | $-0$ | $-9$ | 12 | 33 | $-14$ | 8 | |
| Less profit attributable to non-controlling interests | $-6$ | $-4$ | $-189$ | $\mathbf{0}$ | $\Omega$ | $\mathbf{0}$ | 3 | 49 | $-192$ | 46 |
| Operating profit/loss | 451 | 245 | 184 | $\overline{4}$ | 22 | 71 | $-40$ | $-144$ | 618 | 176 |
| Interest income | 43 | 9 | ||||||||
| Interest expenses | $-79$ | $-71$ | ||||||||
| Other financial items | 56 | 132 | ||||||||
| Financial items-net | 20 | 80 | ||||||||
| Profit/loss before tax | 638 | 256 | ||||||||
| Tax | $-147$ | $-81$ | ||||||||
| Net profit/loss for the period * | 491 | 174 |
* Profit/loss for the period is reconciled in note 1. Income Statement by business area - Profit/loss attributable to the Parent Company Catella AB's shareholders.
Total income in the full year 2022 was SEK 2,593 M (1,807), and the Group's net sales were SEK 1,996 M (1,734). The significantly higher income is derived from Investment Management and Principal Investments, which divested or commenced revenue recognition for several property projects during the year.
The Group's operating profit was SEK 618 M (176), of which SEK 231 M (0) related to divested property projects or property projects recognized as revenue. In addition, the improved operating profit was primarily driven by higher performance-based fees and transaction fees in Property Funds as well as higher management fees from growth in assets under management. Furthermore, the operating profit included a loss of SEK 10 M attributable to the Corporate Finance business area's operations in Germany, which were discontinued during 2022. Last year's profit was negatively affected by divestment costs of SEK 109 M relating to the subsidiary IPM.
The Group's net financial income/expense was SEK 20 M (80) and included interest income of SEK 43 M (19), and interest and loan arrangement fees of SEK 82 M (79). The higher interest income is a result of increased loan financing for property development projects. Net financial income/expense also includes fair value adjustments of loan portfolios of SEK-20 M, fund holdings of SEK -5 M and the SEK 18 M holding in Pamica, as well as positive exchange rate differences of SEK 66 M (10).
The Group's profit/loss before tax amounted to SEK 638 M (256) and profit/loss for the period was SEK 491 M (174) which corresponded to earnings per share of SEK 5.55 (1.97) to the Parent Company shareholders.
Catella is a leading specialist in investment management with a presence on ten geographical markets in Europe. Catella offers institutional and other professional investors attractive, risk-adjusted return through regulated property funds and asset management services via two service areas: Property Funds and Asset Management. Property Funds offers specialized funds with different investment strategies in terms of risk and return, type of property and location. Through over 20 open specialized property funds investors gain access to fund management and efficient allocation between different European markets. Catella's Asset Management business area provides asset management services to property funds, other institutions and family offices.
Total income was SEK 394 M (314), and income after assignment costs amounted to SEK 344 M (280) in the quarter.
Property Funds' income increased by SEK 86 M year-on-year. Fixed income increased by SEK 42 M due to increased management fees driven by growth in assets under management (+ SEK 16 Bn) over the last 12 months.
Variable income (including performance fee's) in Property Funds increased by SEK 42 M. The increase primarily relates to the divestment of 26 rental properties in Germany and eight in the Netherlands with
approximately 4,000 apartments to ZBI Group from two of our residential funds. The transaction generated divestment fees of some SEK 103 M. Asset Management generated stable income year-on-year. From the start of 2022, development companies Catella Logistic Europe and Catella Project Management are included in Principal Investments. Adjusted for income from these two companies in Q4 2021, income increased by SEK 16 M in Asset Management, mainly driven by increased income in Asset Management Benelux and Finland. Operating costs in Investment Management increased mainly due to
higher variable personnel expenses.
Operating profit/loss was SEK 103 M, and the increase was primarily attributable to assets under management within Property Funds.
3 Months
$-3.6$
$Q_{\perp}$
Total income was SEK 1,408 M (1,069), and operating profit/loss was SEK 454 M (245) for the full year.
The improved operating profit is mainly driven by higher performance-based fees and transaction fees in Property funds as well as higher management fees from growth in assets under management.
12 Months
$3.1$
34,6
$1.8$
287
$16.8$
32.3
$-14.8$
279
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Property Funds* | 339 | 253 | 183 | 859 |
| Asset Management * | 87 | 88 | 347 | 292 |
| Other operating income * | $\mathbf{0}$ | 4 | $\mathbf{0}$ | |
| Total income | 394 | 314 | 1408 | l 069 |
| Assignment expenses and commission | $-50$ | $-34$ | $-166$ | $-153$ |
| Operating expenses | $-238$ | $-200$ | $-785$ | $-667$ |
| Less profit attributable to non-controlling interests | $-2$ | $-1$ | -6 | $-4$ |
| Operating profit/loss | 103 | 79 | 451 | 245 |
| KEY FIGURES | ||||
| Operating margin, % | 26 | 25 | 32 | 23 |
| Assets under management at end of period, SEK Bn | 140,6 | 122,7 | ||
| net in-(+) and outflow(-) during the period, SEK Bn | $-3,5$ | 8,8 | 4,8 | 2,1 |
| of which Property Funds | 1060 | 90A |
of which Property Asset Management net in-(+) and outflow(-) during the period, SEK Bn
net in-(+) and outflow(-) during the period, SEK Bn
No. of employees, at end of period
* Includes internal revenue between business areas. Internal revenue has been eliminated in the service area for the current period and for the corresponding period in 2021.
$13$
Total assets under management amounted to SEK 141 Bn, of which SEK 106 Bn related to Property Funds and SEK 35 Bn to Asset Management. At the end of the period, 75 percent was invested in Catella's property funds. Germany is Property
Funds largest market with the highest proportion of invested capital, primarily through Catella Residential Investment Management and Catella Real Estate.
Change in assets under management
Assets under management increased from SEK 122.7 Bn to SEK 140.6 Bn in the last 12-month period. The increase of SEK 18 Bn was mainly driven by broad-based inflows to residential funds. The property funds Catella Wohnen Europa, Catella European Residential, AVW European Real Estate Fund, KVBW Immobilienspezialfonds. Sarasin Sustainable Properties -
ASSETS UNDER MANAGEMENT, LAST 12 MONTHS, SEK BN
European Cities (SSP) and broad-based growth in a majority of property funds.
Assets under management decreased from SEK 142.4 Bn to SEK 140.6 Bn in the quarter. Inflows of approximately SEK 4 Bn were mainly driven by acquisitions in Catella's property funds. Outflows of approximately SEK 8 Bn were mainly derived from the divestment of 26 rental properties in Germany and eight in The Netherlands
Revaluations in Asset Management APAM generated a value decrease of SEK -0.5 Bn in the quarter. The revaluation mainly related to office premises.
Exchange rate differences, mainly in EUR/SEK, had a positive impact of approximately SEK 2 Bn on assets under management.
Through Principal Investments, Catella carries out principal property investments alongside partners and external investors. Catella currently invests in offices, residential units and logistics properties on seven geographical markets. Investments are made through subsidiaries and associated companies with the aim of generating an average IRR of 20 percent as well as a strategic advantages for Catella's other business areas.
Total income was SEK 82 M (8) in the fourth quarter and relates mainly to income from final handover of divested logistics projects, continuous revenue recognition in Catella Logistics Europe and management fees in Catella Project Management. The development companies and their project companies have operating costs that are not capitalised. Operating
profit/loss for the segment was SEK 4 M in a quarter where two projects were impaired. Catella Logistics Europe's project Metz was impaired by SEK 11 M and there was an additional SEK 11 M in costs for the divested property Infrahubs Ljungby.
As of 31 December, Principal Investments had invested a total of SEK 1,183 M in residential projects, logistics projects, office projects and retail projects in Europe.
Total income was SEK 660 M (18), and operating profit for the year was SEK 184 M (4) for the full year 2022.
The improved operating profit in 2022 is primarily attributable to the sale of Infrahubs' properties in Norrköping, Örebro and Ljungby.
| 3 Months | 12 Months | |||
|---|---|---|---|---|
| SEK M | 2022 | 2021 | 2022 | 2021 |
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Total income | 82 | 8 | 660 | 18 |
| Provisions, direct assigment and production costs | $-23$ | $-3$ | $-175$ | $-3$ |
| Operating expenses | $-36$ | $-9$ | $-111$ | $-11$ |
| Less profit attributable to non-controlling interests | $-19$ | $\Omega$ | $-189$ | $\mathbf{0}$ |
| Operating profit/loss | 4 | $-4$ | 184 | 4 |
| KEY FIGURES | ||||
| Operating margin, % | $-46$ | 28 | 23 | |
| Catella invested capital | $-135$ | 390 | 1183 | 688 |
| No. of employees, at end of period | 38 | $\mathbf{0}$ | 38 | $\Omega$ |
Logistics 50%
Residential 28%
Retail 15%
$\blacksquare$ Office 8%
$H$ otell 0%
Industri 0%
* The figures indicate the share of Principal Investments' total investment and which consists of both capital injections and loans provided
The following table shows ongoing property development projects and investment status as of 31 December 2022. Other property development projects relate to securing land etc. and project development costs ahead of the start-up of future projects. The project company's total investment includes invested capital from Catella, partners and external financing. Catella's total investment includes total capital invested from Principal Investments. Seestadt and Düssel-Terrassen consist of a number of phases within each project, which will be completed at different times.
In the fourth quarter 2022, Catella's total investment volume decreased by SEK 106 M to SEK 1,183 M as a result of the refinancing of the Danish project development company Kaktus and repayment of loans from Catella of some SEK 209 M. Additional investments in the fourth quarter mainly related to the ongoing construction of Infrahubs projects.
| Project company's | Total Catella | ||||||
|---|---|---|---|---|---|---|---|
| Estimated | Catella capital | total investment, | Equity Invested, | ||||
| Property Development Projects | Country | Investment type | Project start | completion | share, % | SEK M | SEK M **** |
| Seestadt MG+* | Germany | Residential | QI 2019 | $2030+$ | 45 | 757 | 55 |
| Düssel-Terrassen* | Germany | Residential | O4 2018 | $2030+$ | 45 | 169 | 29 |
| Königsallee 106* | Germany | Office | Q2 2021 | 2026 | 23 | 915 | 90 |
| Total Catella Project Capital | 840 | 175 | |||||
| Barcelona Logistics ** | Spain | Logistics | Q4 2020 | 2023 | 100 | 61 | 61 |
| Other Catella Logistic Europe ** | France | Logistics | 66 | 52 | |||
| Total Catella Logistic Europe*** | 127 | $ $ 4 | |||||
| Vaggeryd ** | Sweden | Logistics | Q3 2021 | Q4 2022 | 50 | 304 | 303 |
| Jönköping* | Sweden | Logistics | Q2 2022 | Q2 2023 | 40 | 215 | 93 |
| Other* | Sweden | Logistics | 40 | 73 | 72 | ||
| Total Infrahubs | 593 | 468 | |||||
| Kaktus ** | Denmark | Residential | Q2 2017 | Q3 2022 **** | 93 | 630 | 224 |
| Salisbury** | UK | Retail | Q4 2021 | $2025+$ | 88 | 228 | 74 |
| Mander Centre** | UK | Retail | QI 2022 | Ej tillämpligt | 100 | 100 | 100 |
| Total Direct Investments | 958 | 398 | |||||
| Total Co-Investments | 29 | ||||||
| Total | 4518 | 1183 |
* The project is consolidated as an associated company according to the equity method
** The project is consolidated as a subsidiary with full consolidation
*** Project within Catella Logstic Europé are sold through forward-funding arrangements with investors. Catella profit is earned upon project completion completion **** Refers to both capital injections and loans provided
***** The residential part of the building is completed and residents moved in in September 2022. The commercial part is expected to be finished during 2023
Catella's commitments in Principal Investments that have not been included the Statement of Financial Position are specified in Note 5. Pledged assets and contingent liabilities.
Catella provides quality capital markets services to property owners and advisory services for all types of property-related transactions to various categories of property owners and investors. Operations are carried out on five markets and offer local expertise about the property markets in combination with European reach.
During the fourth quarter, the transaction market remained cautious with delayed transactions.
Property transactions where Catella acted as advisor totalled SEK 12.9 Bn (27.0) in the quarter. Of the total transaction volumes in the quarter, Sweden provided SEK 2.9 Bn (10.7) France 6.8 Bn (10.3), Denmark 1.5 Bn (1.2), Finland 0.9 Bn (2.4) and Spain 0.9 Bn (0.5).
Corporate Finance's total income was SEK 190 M (295) and total income, adjusted for assignment costs, was SEK 152 M (274), a decrease of SEK 122 M during the period.
Operating costs decreased by SEK 76 M, mainly due to lower performance-based personnel costs. This resulted in operating profit of SEK 11 M (57) which was a decrease of SEK 46 M.
Total income was SEK 542 M (678), and operating profit for the year was SEK 22 M (71) for the full year 2022.
After a strategic review of the Corporate Finance business area, Catella decided to divest its operations in Germany and the Baltics. Expected divestment costs for the German operations totalled SEK 17 M which was recognized in the first quarter.
| SEK M | 3 Months | 12 Months | ||
|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |
| INCOME STATEMENT-CONDENSED | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Total income | 190 | 295 | 542 | 678 |
| Assignment expenses and commission | $-38$ | $-21$ | $-78$ | $-57$ |
| Operating expenses | $-140$ | $-216$ | $-442$ | $-551$ |
| Less profit attributable to non-controlling interests | $\Omega$ | $\mathbf 0$ | $\mathbf{0}$ | $\mathbf{0}$ |
| Operating profit/loss | П | 57 | 22 | 71 |
| KEY FIGURES | ||||
| Operating margin, % | 6 | 9 | $\overline{4}$ | $\overline{0}$ |
| Property transaction volume for the period, SEK Bn | 12,9 | 27,0 | 44,9 | 57,3 |
| of which Nordic | 5,3 | 14,5 | 26,0 | 35,1 |
| of which Continental Europe | 7,7 | 12,5 | 18,9 | 22,1 |
| No. of employees, at end of period | 164 | 196 |
* Includes internal revenue between business areas. Internal revenue has been eliminated in the service area for the current period and for the corresponding period in 2021.
TOTAL INCOME
OPERATING PROFIT
The Group's total income amounted to SEK 658 M (633) and is commented on in the section "Group Progress". The Group's operating profit was in line with the previous year and amounted to SEK 138 M (141), although fluctuations were greater in the various operating segments. Investment Management and Principal Investments recorded improved profit due to fees received for divested fund assets and additional purchase consideration for previously divested development projects while Corporate Finance delivered a lower profit driven by lower transaction volumes. The tax expense for the period was SEK 34 M (36), corresponding to effective tax of 22 % (27). The year-on-year decline in effective tax is mainly due to low or no tax on profit in Principal Investments.
In the fourth quarter, the Group's total assets increased by SEK 507 M, amounting to SEK 6,320 M as of 31 December 2022. The change was mainly due to further investments in the project Kaktus, increased invoicing and improved cash flows, which increased accounts receivable and cash and cash equivalents. The stronger EUR and DKK in the period increased the Group's total assets further after translation of foreign subsidiaries' and associated companies' balance sheets to the Group reporting currency of SEK.
Catella carried out impairment tests on assets with indefinite useful lives. Catella's assets with indefinite useful lives comprise goodwill and trademarks and brands. The impairment test is calculated on estimated future cash flows based on budgets approved by Group management and the Board of Directors. The test indicated no need for Goodwill Impairment.
In the fourth quarter, the Group's consolidated equity increased by SEK 157 M, amounting to SEK 2,430 M as of 31 December 2022. In addition to profit for the period of SEK 118 M, consolidated equity was also impacted by positive exchange rate differences of SEK 30 M, and by fair value changes in Visa shares for SEK 4 M, which has been recognised under other comprehensive income. Consolidated equity was also impacted by transactions with non-controlling interests of SEK 3 M net.
As of 31 December 2022, the Group's equity/assets ratio was 38 percent (33 percent as of 31 December 2021).
Consolidated cash flow from operating activities before changes in working capital and cash flow from property projects amounted to SEK 84 M (102). Tax paid totalled SEK 40 M (37) in the period.
Cash flow from property projects amounted to SEK-218 M (-665) and relates to ongoing investments in Infrahubs' projects totalling SEK 82 M, Kaktus SEK 105 M and the French logistics projects of SEK 30 M net of funding from investors.
Consolidated cash flow from operating activities was SEK -51 M (-656), of which changes in working capital comprised SEK 84 M (-93) in the period.
Cash flow from investing activities amounted to SEK-8 M (10) and includes the final call relating to the investment in unlisted Pamica 2 AB of SEK 3 M, and payment received from the loan portfolio Lucitano of SEK 4 M.
Cash flow from financing activities amounted to SEK 233 M (373), of which SEK 239 M related to refinancing and raising of new loans from credit institutions for the Kaktus project.
Cash flow in the period was SEK 174 M (-273) and cash and cash equivalents at the end of the period was SEK 1,794 M (1,442) of which cash and cash equivalents relating to the Group's Swedish holding company amounted to SEK 679 M (300).
Consolidated cash flow from operating activities, before changes in working capital and cash flow from property projects amounted to SEK 368 M (98). Tax paid totalled SEK 136 M (110) for the full year 2022.
Cash flow from property projects totalled SEK -155 M (-1,752) and includes payments received from the divestments of Infrahubs Norrköping, Örebro and Ljungby of SEK 1,001 M and payments received from French logistics projects recognised for revenue totalling SEK 303 M. In addition, Köningsalle repaid loans totalling SEK 105 M. Additional investments
were also made in ongoing projects plus new investments totalling SEK 1,569 M, of which SEK 638 M related to Infrahubs, SEK 464 M to Kaktus, SEK 348 M to French and Spanish logistics projects and SEK 96 M related to Mander Centre.
Cash flow from investing activities amounted to SEK - I I M (233) and included payments from SEK 60 M for the sale of the remaining 30 percent of shares in Catella Fondförvaltning AB and the sale of Visa shares totalling SEK 43 M. Consolidated cash flow was also affected by the acquisition of WPP and by additional acquisitions of shares in subsidiaries totalling SEK-73 M. Investments in shares and fund units amounted to SEK 41 M.
Cash flow from financing activities amounted to SEK 150 M (1,113) and included loans relating to Kaktus totalling SEK 375 M. Dividends to the Parent Company's shareholders totalled SEK 88 M and dividend to non-controlling holdings was SEK 88 M.
Cash flow in the period totalled SEK 279 M (-436).
The Parent Company recognised income of SEK 31.4 M (10.3) and operating profit/loss was break-even in the period (-10.6). The improved operating profit was mainly due to increased invoicing of management fees and services to subsidiaries. The number of employees at the end of the period was 24 (20).
The Parent Company's Net financial income/expense totalled SEK 178.7 M (-15.5) and included dividend of SEK 200 M from the Catella subsidiary Holding AB. Net financial income/expense also includes interest and arrangement costs for bond loans totalling SEK 21.4 M (15.7)
Profit/loss before tax and profit/loss for the period was SEK 178.8 M (-26.1).
Total income was SEK 60.4 M (20.7), and operating profit/loss was SEK-36.4 M (-49.2) in the period.
Financial items amounted to SEK 189.3 M (-56.4), of which dividend from subsidiary totalled SEK 257.4 M (0) and interest
and arrangement fees for bond loans totalled SEK 71.4 M (65.4). The previous year's net financial income/expense also included profit from derivatives of SEK 8.1 M.
Profit/loss before tax and profit/loss for the period was SEK 152.9 M (-105.6).
At the end of the period, there were 513 (501) employees, expressed as full-time equivalents.
The current macro economic position with rising inflation and increased interest rates could impact future return and transaction levels, and hence also impact assets under management and profit in Catella Investment Management and Catella Corporate Finance. Rising material costs and supply shortages have affected projects in Principal Investments to some degree in 2022. However, management has noted that cost increases have slowed in recent months and supply chains have opened up again, which means that the risks are assessed to be lower looking ahead.
See Note 4 in the Annual Report 2021 for further significant estimates and judgements.
Within the Corporate Finance operating segment, seasonal variations are significant. Transaction volumes and income have historically been highest in the fourth 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-Reporting Board.
In the fourth quarter 2022, development costs relating to Principal Investments were reclassified in the Group Income Statement, from Other operating expenses to Commission, assignment and production expenses. The change has not affected Group operating profit. Comparative figures for previous periods have been adjusted accordingly. Furthermore, cash flow from investments and divestments of property projects have been reclassified in the Group's Statement of Cash Flows. These were previously recognized as cash flow from investing activities but from the fourth quarter 2022 have been included in Group cash flow from operating activities. Comparative figures for previous periods have been adjusted accordingly.
The Parent Company's financial statements were prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Accounting for legal entities, issued by RFR, the Swedish Financial Reporting Board.
The Group's and Parent Company's key accounting principles are presented in Catella's Annual Report for 2021. Figures in tables and comments may be rounded.
Catella holds shares in the associated company Catella Project Capital GmbH, whose other owners are the Claesson & Anderzén group and the management of Catella Project Management GmbH.
Catella's German subsidiary Catella Project Management GmbH operates the property development projects within Catella Project Capital GmbH. In addition, Catella's subsidiary Infrahubs AB runs property development projects within several associated companies. No part of the fees levied for services rendered that Catella Project Management GmbH and Infrahus AB invoice to associated companies have been eliminated in Catella's Consolidated Income Statement, as associated companies fall
outside Catella's associated enterprises. For more information, see Principal Investments in this report and Notes 20 and 38 in the Annual Report 2021.
Catella does not publish forecasts.
The information in this report is mandatory for Catella AB to publish in accordance with EU's Market Abuse Regulation and the Swedish Securities Market Act. This information was submitted to the market, through the agency of the below contact, for publication on 10 February 2023 at 07:00 a.m. CET.
This Report has not been subject to review by the Company's Auditors.
Stockholm, Sweden, 10 February 2023 Catella AB (publ)
Christoffer Abramson CEO and President
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK M Note |
Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 618 | 603 | 996 | 1734 |
| Other operating income | 40 | 30 | 597 | 73 |
| Total income | 658 | 633 | 2 5 9 3 | 807 |
| Provisions, direct assigment and production costs | $-108$ | $-58$ | $-402$ | $-206$ |
| Other external expenses | $-105$ | $-84$ | $-374$ | $-374$ |
| Personnel costs | $-277$ | $-331$ | $-919$ | $-994$ |
| Depreciation | $-21$ | $-21$ | $-75$ | $-121$ |
| Other operating expenses | $-8$ | $\overline{2}$ | $-14$ | 8 |
| Operating profit/loss | 138 | 4 | 810 | 130 |
| Interest income | $\vert \vert$ | 5 | 43 | 9 |
| Interest expenses | $-22$ | $-19$ | $-79$ | $-71$ |
| Other financial items | 24 | 8 | 56 | 132 |
| Financial items-net | 4 | $-6$ | 20 | 80 |
| Profit/loss before tax | 152 | 134 | 830 | 210 |
| Tax | $-34$ | $-36$ | $-147$ | $-81$ |
| Net profit/loss for the period | 118 | 98 | 683 | 128 |
| Profit/loss attributable to: | ||||
| Shareholders of the Parent Company | 97 | 95 | 491 | 174 |
| Non-controlling interests | 21 | 3 | 192 | $-46$ |
| 118 | 98 | 683 | 128 | |
| Earnings per share attributable to shareholders of the Parent Company, SEK | ||||
| - before dilution | 1,10 | 1,08 | 5,55 | 1,97 |
| - after dilution | 1,07 | 1,04 | 5,41 | 1.92 |
| No. of shares at end of the period | 88 348 572 | 88 348 572 | 88 348 572 | 88 348 572 |
| Average weighted number of shares after dilution | 90 667 322 | 91 098 572 | 90 662 237 | 90 617 837 |
Information on Income Statement by operating segment is in Note 1.
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK M | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net profit/loss for the period | 118 | 98 | 683 | 128 |
| Other comprehensive income | ||||
| Items that will not be reclassified subsequently to profit or loss: | ||||
| Value change in defined benefit pension plans | $\overline{2}$ | $\mathbf{0}$ | ||
| Fair value changes in financial assets through other comprehensive income | $\overline{4}$ | $-1$ | 4 | $\overline{10}$ |
| Items that will be reclassified subsequently to profit or loss: | ||||
| Hedging of net investment | $\mathbf{0}$ | $\theta$ | $\mathbf{0}$ | $-2$ |
| Translation differences | 30 | 9 | 0 | 17 |
| Other comprehensive income for the period, net after tax | 36 | 8 | 117 | 25 |
| Total comprehensive income/loss for the period | 154 | 106 | 800 | 153 |
| Profit/loss attributable to: | ||||
| Shareholders of the Parent Company | 3 | 102 | 596 | 198 |
| Non-controlling interests | 23 | 204 | $-45$ | |
| 154 | 106 | 800 | 153 |
| SEK M | 2022 31 Dec Note |
2021 31 Dec |
|---|---|---|
| ASSETS | ||
| Non-current assets | ||
| Intangible assets | 6 452 |
404 |
| Contract assets leasing agreements | 109 | 127 |
| Property, plant and equipment | 27 | 25 |
| Holdings in associated companies | 182 | 187 |
| Non-current receivables from associated companies | 127 | 201 |
| Other non-current securities | 2, 3, 4 308 |
176 |
| Deferred tax receivables | 7 | 23 |
| Other non-current receivables | 4 1 | 15 |
| 1254 | 158 | |
| Current assets | ||
| Development and project properties | 2 2 4 4 | 2 1 0 5 |
| Contract assets | 63 | 0 |
| Receivables from associated companies | 5 | 4 |
| Accounts receivable and other receivables | 775 | 537 |
| Current investments | 2, 3, 4 39 |
59 |
| Cash and cash equivalents * | 1794 | 1442 |
| 5 0 6 6 | 4 2 8 3 | |
| Total assets | 6 3 2 0 | 5 4 4 2 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Share capital | 177 | 177 |
| Other contributed capital | 296 | 295 |
| Reserves | 72 | 12 |
| Profit brought forward including net profit for the period | 1624 | 1205 |
| Equity attributable to shareholders of the Parent Company | 2 1 6 8 | 1688 |
| Non-controlling interests | 262 | 132 |
| Total equity | 2 4 3 0 | 82 |
| Liabilities | ||
| Non-current liabilities | ||
| Borrowings from credit institutions | 1519 | 1300 |
| Bond issue | 1244 | 24 |
| Contract liabilities leasing agreements | 82 | 100 |
| Other non-current liabilities | 34 | 103 |
| Deferred tax liabilities | 17 | 9 |
| Other provisions | 93 | 75 |
| 2 9 8 9 | 2838 | |
| Current liabilities | ||
| Borrowings from credit institutions | 3 $\mathbf{2}$ |
|
| Contract liabilities leasing agreements | 36 | 34 |
| Contract liabilities | 5 0 |
|
| Accounts payable and other liabilities | 812 | 705 |
| Tax liabilities | 46 | 42 |
| 901 | 783 | |
| Total liabilities | 3 8 9 0 | 3621 |
| Total equity and liabilities | 6 3 2 0 | 5 4 4 2 |
| * Of which pledged and blocked liquid funds | 70 | 54 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK M | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Cash flow from operating activities | ||||
| Profit/loss before tax | 152 | 134 | 830 | 210 |
| Reclassification and adjustments for non-cash items: | ||||
| Wind down expenses | $-13$ | $-9$ | $-23$ | 3 |
| Other financial items | $-24$ | $-11$ | $-56$ | $-132$ |
| Depreciation | 21 | 21 | 75 | 2 |
| Impairment / reversal of impairment of current receivables | $\overline{0}$ 9 |
$-4$ | $\overline{1}$ | $\overline{\phantom{a}}$ |
| Change in provisions | 3 | 15 | $\overline{\phantom{a}}$ | |
| Reported interest income from loan portfolios | $-4$ | $-5$ | $-17$ | $-17$ |
| Acquisition expenses | $\mathbf{0}$ | $\mathbf 0$ | $\overline{2}$ | $\sim$ |
| Profit/loss from participations in associated companies | 17 | $-19$ | $-63$ | $-42$ |
| Personnel costs not affecting cash flow | $\overline{7}$ | 27 | 5 | 55 |
| Other reclassifications and non-cash items | $-41$ | $\mathbf{0}$ | $-266$ | |
| Paid income tax | $-40$ | $-37$ | $-136$ | $-110$ |
| Cash flow from operating activities before changes in working capital | 84 | 102 | 368 | 98 |
| Investments in property projects | $-276$ | $-665$ | $-1569$ | $-1776$ |
| Divestment of property projects | 57 | $\theta$ | 4 4 | 24 |
| Cash flow from property projects | $-218$ | $-665$ | $-155$ | $-1752$ |
| Cash flow from changes in working capital | ||||
| Increase (-)/decrease (+) of operating receivables | $-5$ | $-181$ | $-118$ | $-51$ |
| Increase $(+)$ / decrease $(-)$ in operating liabilities | 88 | 88 | 45 | $-77$ |
| Cash flow from operating activities | $-51$ | -656 | 40 | $-1782$ |
| Cash flow from investing activities | ||||
| Purchase of property, plant and equipment | $-3$ | $-2$ | $\sim$ $\mid$ $\mid$ | $-10$ |
| Purchase of intangible assets | $-5$ | $-2$ | $-13$ | $-4$ |
| Purchase of subsidiaries, after deductions for acquired cash and cash equivalents | $-$ | 7 | $-74$ | $-47$ |
| Sale of subsidiaries, net of cash disposed | $\mathbf{0}$ | $\mathbf 0$ | $\sim$ | 109 |
| Divestment of associated companies | $\overline{0}$ | $\mathbf{0}$ | 60 | $\overline{\phantom{a}}$ |
| Dividend and other disbursements from associated companies | $\mathbf{0}$ | $\mathbf{0}$ | 21 | 5 |
| Purchase of financial assets | $-4$ | $-12$ | $-54$ | $-104$ |
| Sale of financial assets | $\mathbf 0$ | 15 | 44 | 269 |
| Cash flow from loan portfolios | $\overline{4}$ | $\overline{4}$ | 17 | 15 |
| Cash flow from investing activities | $-8$ | $ 0\rangle$ | $-$ | 233 |
| Cash flow from financing activities | ||||
| Proceeds from share warrants issued | $\sqrt{a}$ | $\mathbf{0}$ | $\mathbf{I}$ | 6 |
| Borrowings | 240 | 390 | 376 | 2 0 6 9 |
| Amortisation of loans | $-3$ | $-4$ | $-13$ | $-798$ |
| Amortisation of leasing debt | -4 | -11 | $-38$ | -59 |
| Dividend | $\sqrt{0}$ | $\mathbf 0$ | $-88-$ | $-80$ |
| Transactions with, and payments to, non-controlling interests | $-0$ | $\sim$ [ | $-88$ | $-26$ |
| Cash flow from financing activities | 233 | 373 | 150 | 1113 |
| Cash flow for the period | 174 | $-273$ | 279 | $-436$ |
| Cash and cash equivalents at beginning of period | 1601 | 1712 | 1442 | 856 |
| Exchange rate differences in cash and cash equivalents | 9 | 3 | 73 | 21 |
| Cash and cash equivalents at end of the period | 1794 | 1442 | 1794 | 1442 |
| Equity attributable to shareholders of the Parent Company | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | Share capital | Other contributed capital * |
Fair value reserve |
Profit brought forward incl. Translation net profit/loss reserve for the period |
Total | Non- controlling interests ** |
Total equity |
|
| Opening balance at 1 January 2022 | 177 | 295 | 18 | $-7$ | 205 | 688 | 132 | 82 |
| Comprehensive income for January - December 2022: Net profit/loss for the period |
491 | 491 | 192 | 683 | ||||
| Other comprehensive income, net of tax | $-29$ | 89 | 45 | 105 | 12 | 117 | ||
| Comprehensive income/loss for the period | $-29$ | 89 | 536 | 596 | 204 | 800 | ||
| Transactions with shareholders: | ||||||||
| Transactions with non-controlling interests | $-29$ | $-29$ | $-74$ | $-103$ | ||||
| Warrants issued | ||||||||
| Dividend | $-88$ | $-88$ | $-88$ | |||||
| Closing balance at 31 December 2022 | 177 | 296 | $-11$ | 83 | 624 | 2 1 6 8 | 262 | 2 4 3 0 |
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling interests are attributable to minority shares in the subsidiaries within all Group business areas.
The Extraordinary General Meeting in December 2020 decided to introduce a new incentive program through the issue of a maximum of 3,000,000 warrants distributed over two series: 2020/2024:A and
2020/2025:B. In June 2021, 2
| Equity attributable to shareholders of the Parent Company | ||||||||
|---|---|---|---|---|---|---|---|---|
| SEK M | Share capital | Other contributed capital * |
Fair value reserve |
Profit brought forward incl. Translation net profit/loss reserve for the period |
Total | Non- controlling interests ** |
Total equity |
|
| Opening balance at 1 January 2021 | 177 | 289 | 95 | $-20$ | 1072 | 612 | 185 | 797 |
| Comprehensive income for January - December 2021: | ||||||||
| Net profit/loss for the period | 174 | 174 | $-46$ | 128 | ||||
| Other comprehensive income, net of tax | $-77$ | 4 | 87 | 24 | 25 | |||
| Comprehensive income/loss for the period | -77 | 4 | 261 | 198 | $-45$ | 153 | ||
| Transactions with shareholders: | ||||||||
| Transactions with non-controlling interests | $-49$ | $-49$ | $-8$ | $-57$ | ||||
| Warrants issued | 6 | 6 | 6 | |||||
| Dividend | $-80$ | $-80$ | $-80$ | |||||
| Closing balance at 31 December 2021 | 177 | 295 | 8 | $-7$ | 205 | 688 | 132 | 821 |
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling interests are attributable to minority shares in the subsidiary IPM, and several subsidiaries in Investment Management and Corporate Finance.
The Extraordinary General Meeting in December 2020 decided to introduce a new incentive program through the issue of a maximum of 3,000,000 warrants distributed over two series: 2020/2024:A and
2020/2025:B. As of 1 June 20
| Investment | Principal | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Management | Investments | Corporate Finance | Other | Eliminations | Group | |||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| SEK M | Oct-Dec Oct-Dec | Oct-Dec | Oct-Dec | Oct-Dec Oct-Dec | Oct-Dec Oct-Dec | Oct-Dec Oct-Dec | Oct-Dec Oct-Dec | |||||
| Net sales | 390 | 311 | 44 | 2 | 186 | 292 | 23 | 9 | $-26$ | -11 | 618 | 603 |
| Other operating income | 3 | 3 | 38 | 6 | 5 | 3 | 8 | 9 | $-14$ | $\sim$ [ | 40 | 30 |
| Total income | 394 | 314 | 82 | 8 | 190 | 295 | 32 | 28 | $-40$ | $-11$ | 658 | 633 |
| Provisions, direct assigment and production costs |
-50 | $-34$ | $-23$ | -3 | $-38$ | -21 | $-0$ | $-0$ | 3 | $\mathbf 0$ | $-108$ | $-58$ |
| Other external expenses | $-79$ | $-58$ | $-2$ | $-4$ | $-32$ | $-30$ | $-13$ | $-0$ | 21 | 9 | $-105$ | $-84$ |
| Personnel costs | $-143$ | $-130$ | $-15$ | $-4$ | $-103$ | $-177$ | $-18$ | $-22$ | $\overline{2}$ | $\overline{2}$ | $-277$ | -331 |
| Depreciation | $-10$ | $-9$ | $-3$ | $\sim$ [ | $-5$ | $-6$ | $-2$ | $-5$ | $\mathbf 0$ | $\mathbf 0$ | $-21$ | $-21$ |
| Other operating expenses | $-5$ | $-2$ | $-15$ | $-0$ | $\,0\,$ | $-3$ | $\overline{\phantom{a}}$ | $\boldsymbol{6}$ | 4 | $\overline{\phantom{a}}$ | $-8$ | 2 |
| Less profit attributable to non- | ||||||||||||
| controlling interests * | $-2$ | $\sim$ [ | $-19$ | $\mathbf 0$ | $-0$ | $\boldsymbol{0}$ | $\mathbf 0$ | $-2$ | 21 | 3 | $\mathbf 0$ | $-0$ |
| Operating profit/loss | 103 | 79 | $\overline{4}$ | $-4$ | $\vert \vert$ | 57 | $-2$ | 5 | 21 | 3 | 138 | 4 |
| Interest income | $\vert \vert$ | 5 | ||||||||||
| Interest expenses | $-22$ | $-19$ | ||||||||||
| Other financial items | 24 | 8 | ||||||||||
| Financial items-net | 4 | $-6$ | ||||||||||
| Profit/loss before tax | 152 | 134 | ||||||||||
| Tax | $-34$ | -36 | ||||||||||
| Net profit/loss for the period | 118 | 98 | ||||||||||
| Profit/loss attributable to shareholders of the Parent Company |
97 | 95 | ||||||||||
| Investment Management |
Principal Investments |
Other | Eliminations | Group | ||||||||
| 2022 | 2021 | 2022 | 2021 | Corporate Finance 2022 |
2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
| SEK M | an-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec | Jan-Dec |
| Net sales | 1359 | 1042 | 2 | 2 | 533 | 670 | 51 | 54 | $-67$ | $-35$ | 996 | 1734 |
| 49 | 27 | 539 | 16 | $ 0\rangle$ | 8 | 4 | 25 | $-16$ | $-3$ | 597 | 73 | |
| Other operating income Total income |
1408 | 1069 | 660 | 8 | 542 | 678 | 65 | 79 | $-82$ | $-37$ | 2 5 9 3 | 1807 |
| Provisions, direct assigment and | $-166$ | $-153$ | $-175$ | $-3$ | $-78$ | $-57$ | $-$ | $-2$ | 17 | 9 | $-402$ | $-206$ |
| production costs | ||||||||||||
| Other external expenses | $-217$ | $-174$ | $-37$ | $-7$ | $-124$ | $-114$ | $-40$ | -99 | 45 | 9 | $-374$ | $-374$ |
| Personnel costs | $-522$ | $-452$ | $-47$ | $-4$ | $-299$ | $-405$ | $-56$ | $-140$ | 5 | 7 | $-919$ | $-994$ |
| Depreciation | $-39$ | $-35$ | $-8$ | $\sim$ [ | $-20$ | $-23$ | $-8$ | $-63$ | $\mathbf 0$ | $\mathbf 0$ | $-75$ | $-121$ |
| Other operating expenses Less profit attributable to non- |
$-8$ | $-6$ | $-19$ | $-0$ | $\mathbf{I}$ | -9 | $-4$ | 31 | 15 | 3 | $-14$ | 8 |
| controlling interests * | $-6$ | $-4$ | $-189$ | $\boldsymbol{0}$ | $\,0\,$ | $\mathbf 0$ | 3 | 50 | 192 | $-46$ | $\mathbf 0$ | $\mathbf 0$ |
| Operating profit/loss | 45 | 245 | 184 | 22 | $-40$ | $-144$ | 192 | -46 | 810 | 130 | ||
| Interest income | 43 | 9 | ||||||||||
| Interest expenses | $-79$ | $-71$ | ||||||||||
| Other financial items | 56 | 132 | ||||||||||
| Financial items-net | 20 | 80 | ||||||||||
| Profit/loss before tax | 830 | 210 | ||||||||||
| Tax | $-147$ | $-81$ | ||||||||||
| Net profit/loss for the period | 683 | 128 | ||||||||||
| Profit/loss attributable to shareholders |
* Profit/loss attributable to non-controlling interests for each business area are not included. To clarify the operating profit is attributable to shareholders of the Parent Company by business area and which
reconciles t
The operating segments reported above, Investment Management, Principal Investment and Corporate Finance, are consistent with internal reporting submitted to management and the Board of Directors and thus represent the Gro
The loan portfolios comprise securitized European loans with primary exposure in housing. The performance of the loan portfolios is closely monitored and remeasurements are continuously performed.
| SEK M | Forecast undiscounted cash |
Share of undiscounted |
Forecast discounted |
Share of discounted |
Discount | ||
|---|---|---|---|---|---|---|---|
| Loan portfolio | Country: | flow | cash flow | cash flow | cash flow | rate | Duration, years |
| Pastor 2 | Spain | 55,6 | 58.5% | 48.7 | 55.3% | 4.6% | 3,00 |
| Lusitano 5 | Portugal | 39.4 | 41.5% | 39.4 | 44.7% | $0.0\%$ | 0,25 |
| Total cash flow * | 95,0 | 100.0% | 88.1 | 100.0% | 2.5% | .8 | |
| Carrying amount in consolidated balance sheet ** | 88 |
* The discount rate recognised in the line "Total cash flow" is the weighted average interest of the total discounted cash flow.
** Catella's loan portfolio also includes the portfolios Pastor 3, 4 and 5 as well as Lusitano 4 whose book value have been attributed a value of SEK 0.
In the sub-portfolio Pastor 2, the underlying loans are less than ten percent of the issued amount and Catella expects the issuer to utilize its clean-up call. The administration of the portfolio is frequently unprofitable when it falls below 10 percent of the issued amount, and this structure allows the issuer to avoid these additional costs. Catella considers the credit risk in the portfolio to be low, although the precise timing of the exercise of the option is difficult to forecast given several unknown factors relating to the issuer. Catella has made the assumption that a repurchase will take place in the fourth quarter of 2025. The portfolio is valued at the full repayable amount of EUR 5.0 M, discounted to the present value with application of a discount rate for similar assets. This corresponds to a value of EUR 4.4 M.
The time call affects sub-portfolio Lusitano 5 and constitutes an option held by the issuer that enables the repurchase of the sub-portfolio at a specific point in time, and from time to time subsequently. The option has been available since 2015. Catella evaluates that the time call will be exercised in the first quarter of 2023. The assumption is conservative due to this requiring no further cash flows other than the position's current capital amount of
EUR 3.1 M plus the following quarter's cash flow when exercising the time call. The portfolio is hence valued to EUR 3.5 M. This assessment is different to assessments from the annual accounts for 2021 due to the assumption previously having been that the time call would not be exercised and that the position would instead continue maturing until the clean-up call in 2027. This resulted in the portfolio being impaired by SEK 17.3 M (EUR 1.6 M) in the first quarter of 2022.
Further information regarding the loan portfolio can be found in the Annual Report 2021.
| SEK M | Spain Portugal | Other | |||
|---|---|---|---|---|---|
| Loan portfolio | Pastor 2 | Lusitano 5 | Total | ||
| Outcome | |||||
| Full year 2009-2020 | 27.2 | 0,8 | 267.0 | 295.1 | |
| Full year 2021 | 0,0 | 15,0 | 0,0 | 15,0 | |
| Q | 2022 | 0,0 | 2.7 | 0,0 | 2,7 |
| Q2 | 2022 | 0,0 | 3,7 | 0,0 | 3,7 |
| Q 3 | 2022 | 0,0 | 6,1 | 0,0 | 6,1 |
| Q4 | 2022 | 0,0 | 4,3 | 0.0 | 0,0 |
| Total | 27,2 | 32.7 | 267.0 | 322,6 |
| 2022 | 2021 | |
|---|---|---|
| SEK M | $3$ -dec | $31 - dec$ |
| Visa preferred stock C series | 36 | |
| Loan portfolios | 88 | 00 |
| Operation-related investments ** | ||
| Total * | 347 | 234 |
* of which short-term investments SEK 39 M and long-term investments SEK 308 M.
** includes investments in shares and funds, co-investments and assets within segment Principal Investments being classified as financial assets.
In accordance with IFRS 7, financial instruments are recognized on the basis of fair value hierarchically with three different levels. Classification is based on the input data used 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 2021.
The Group's assets and liabilities measured at fair value as of 31 December 2022 are stated in the following table.
| SEK M | ler. | Lier 7 | ler 3 | otal |
|---|---|---|---|---|
| ASSETS | ||||
| Financial assets measured at fair value through other comprehensive income |
36 | 36 | ||
| Financial assets measured at fair value through profit or loss |
23 | $\overline{2}$ | 287 | 311 |
| Acrued income | 42 | 42 | ||
| Total assets | 23 | 38 | 329 | 389 |
| LIABILITIES | ||||
| Financial liabilities measured at fair value | 93 | 93 | ||
| Total liabilities | 0 | $\Omega$ | 93 | 93 |
No changes between levels occurred the previous year.
Change analysis, financial assets, level 3 for the full-year period 2022
| as of I lanuary | 171 |
|---|---|
| Purchases | 109 |
| Disposals | $\Omega$ |
| Gains and losses recognised through profit or loss | 39 |
| Translation differences | 9 |
| As of 31 December | 329 |
| Change analysis, financial liabilities, level 3 for the full-year period 2022 | |
| as of I lanuary | 74 |
| Additional items | $\theta$ |
| Deductions | $-4$ |
| Revaluation through profit & loss | 20 |
| Translation differences | 3 |
| As of 31 December | 93 |
| 2022 | 2021 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Cash and cash equivalents | 70 | 54 |
| Other pledged assets | ||
| 70 | 54 |
Cash and cash equivalents include cash tion requirements, funds that are to be funds in accordance with minimum retenmade available at all times for regulatory
reasons as well as frozen funds for other purposes.
| 2022 | $\sim$ | |
|---|---|---|
| SEK M | 31 Dec | Dec |
| Other contingent liabilities | 625 | 881 |
| 62. | 881 |
Other contingent liabilities mainly relate to guarantees to credit institutes as collateral for approved credit lines to subsidiary Kaktus | HoldCo ApS. In addition, Catella Holding AB is party to guarantee commitments relating to sold properties, as well as to a tenant guarantee commitment relating to the project company's completion of their commitment under the relevant rental agreement. Other contingent liabilities also pertains to ongoing disputes in discontinued operations and guarantees
which were provided for rental contracts with landlords.
Of the Group's total contingent liabilities, SEK 1,602 M relates to Principal Investments.
| 2022 | 2021 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Investment commitments | $\circ$ | |
| Other commitments | 0 | |
| $\Omega$ |
No investment commitments remain in the unlisted holding in Pamica 2 AB.
| Contractual | Software | ||||
|---|---|---|---|---|---|
| Trademarks and | customer | licenses and IT | |||
| Financial year 2021 | Goodwill | brands | relations | systems | Total |
| Opening balance | 318 | 50 | 52 | 23 | 443 |
| Purchases | 3 | 3 | |||
| Disposals | $-1$ | $\sim$ [ | |||
| Depreciation | $-$ | $-13$ | $-23$ | ||
| Impairment of intangible assets | $-39$ | $-2$ | $-4$ | ||
| Exchange rate differences | 8 | 5 | $\boldsymbol{0}$ | 23 | |
| Closing balance | 298 | 50 | 45 | $\vert \vert$ | 404 |
| At 31 December 2021 | |||||
| Cost | 366 | 50 | 127 | 135 | 679 |
| Accumulated depreciation and impairment | $-69$ | $\Omega$ | $-82$ | $-124$ | $-275$ |
| Book value | 298 | 50 | 45 | $\ $ | 404 |
| Financial year 2022 | |||||
| Opening balance | 298 | 50 | 45 | $\mathbf{1}$ | 404 |
| Purchases | 13 | 13 | |||
| Cost in acquired companies | 38 | $\mathbf{2}$ | 40 | ||
| Disposals | $-1$ | $\sim$ [ | |||
| Depreciation | $-12$ | $-7$ | $-19$ | ||
| Impairment of intangible assets | $\overline{a}$ | $-1$ | $-2$ | ||
| Exchange rate differences | 4 | $\overline{2}$ | 17 | ||
| Closing balance | 349 | 50 | 36 | 17 | 452 |
| At 31 December 2022 | |||||
| Cost | 418 | 50 | 3 | 49 | 748 |
| Accumulated depreciation and impairment | $-70$ | $-94$ | $-132$ | $-296$ | |
| Book value | 348 | 50 | 37 | 17 | 452 |
| 2022 | 2021 | 2022 | 2021 | |
|---|---|---|---|---|
| SEK M | Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec |
| Net sales | 21,2 | 9,5 | 47,8 | 18,7 |
| Other operating income | 10,3 | 0.8 | 12,6 | 2,0 |
| Total income | 31,4 | 10,3 | 60,4 | 20,7 |
| Other external expenses | $-13,8$ | $-4,8$ | $-42,8$ | $-24,7$ |
| Personnel costs | $-17,2$ | $-14,9$ | $-54,3$ | $-43,5$ |
| Depreciation | $-0, 1$ | $-0,1$ | $-0,3$ | $-0,7$ |
| Other operating expenses | $-0,3$ | $-1,1$ | 0,6 | $-1,0$ |
| Operating profit/loss | 0.0 | $-10,6$ | $-36,4$ | $-49,2$ |
| Profit/loss from participations in group companies | 200,0 | 0,0 | 257,4 | 0,0 |
| Interest income and similar profit/loss items | 0,1 | 0,2 | 3,2 | 8,7 |
| Interest expenses and similar profit/loss items | $-21,4$ | $-15,7$ | $-71,4$ | $-65,0$ |
| Financial items | 178,7 | $-15,5$ | 189,3 | $-56,4$ |
| Profit/loss before tax | 178,8 | $-26,1$ | 152,9 | $-105,6$ |
| Tax on net profit for the year | 0,0 | 0,0 | 0,0 | 0,0 |
| Net profit/loss for the period | 178,8 | $-26,1$ | 152,9 | $-105,6$ |
| SEK M | 2022 Oct-Dec |
2021 Oct-Dec |
2022 lan-Dec |
2021 Jan-Dec |
|---|---|---|---|---|
| Net profit/loss for the period | 178.8 | $-26.1$ | 152.9 | $-105,6$ |
| Other comprehensive income | $\sim$ | |||
| Other comprehensive income for the period, net after tax | 0,0 | 0.0 | 0.0 | 0,0 |
| Total comprehensive income/loss for the period | 178.8 | $-26.1$ | 152.9 | $-105.6$ |
| 2022 | 2021 | |
|---|---|---|
| SEK M | 31 Dec | 31 Dec |
| Intangible assets | 0,4 | 0,7 |
| Property, plant and equipment | 0,1 | 0,1 |
| Participations in Group companies | 1358,2 | 058,2 |
| Current receivables from Group companies | 307,5 | 531,5 |
| Other current receivables | 11,0 | 8,9 |
| Cash and cash equivalents | 0,1 | 0,1 |
| Total assets | 1677,4 | 599,5 |
| Equity | 399,6 | 335,0 |
| Provisions | 0,0 | 0,0 |
| Bond issue | 1243,8 | 1241,0 |
| Current liabilities to Group companies | 5,4 | 0,5 |
| Other current liabilities | 28,7 | 23,0 |
| Total equity and liabilities | 1677,4 | 599,5 |
Catella AB has issued guarantees to credit institutes of SEK 1,351 M as security for approved credit lines to subsidiary Kaktus 1 HoldCo ApS. For the comparative period 31 December 2021, the Parent Company's total contingent liabilities amounted to SEK 376 M.
The Consolidated Accounts of Catella are prepared in accordance with IFRS, which only defines a limited number of performance measures. Catella, applies the European Securities and Markets Authority's (ESMA) 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 in IFRS. In order to assist corporate management and other stakeholders in their analysis of Group progress, Catella presents certain performance measures not defined under IFRS. Corporate management considers that this information facilitates the analysis of the Group's performance. This additional information is complementary to the information provided by IFRS and does not
replace performance measures defined in IFRS. Catella's definitions of measures not defined under IFRS may differ from other companies' definitions. All of Catella's definitions are presented below. The calculation of all performance measures corresponds to items in the Income Statement and Balance Sheet.
| Non-IFRS performance measure | Description | Reason for using the measure |
|---|---|---|
| Operating profit attributable to Parent Company shareholders |
Group's operating profit for the period, less profit at- tributable to non-controlling interests. |
The measure illustrates the proportion of the Group's oper- ating profit attributable to shareholders of the Parent Com- pany. |
| Operating margin | Operating Profit/loss attributable to the Parent Com- pany shareholders divided by total income for the pe- riod. |
The measure illustrates profitability in underlying operations attributable to shareholders of the Parent Company. |
| IRR | Internal Rate of Return, a measure of the average annual return generated by an investment. |
The measure is calculated for the purpose of comparing the actual return on projects Catella invests in with the average expected return of 20 percent. |
| Assets under management at year end |
Assets under management constitutes the value of Ca- tella's customers' deposited/invested capital. |
An element of Catella's income in Investment Management is agreed with customers on the basis of the value of the un- derlying invested capital. Provides investors with a view of what drives an element of Catella's income. |
| Property transaction volumes in the period |
Property transaction volumes in the period constitute 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 prop- erty value of the relevant assignment. Provides investors with a view of what drives an element of Catella's income. |
| Equity/Asset ratio | Equity divided by total assets. | Catella considers the measure to be relevant to investors and other stakeholders wishing to assess Catella's financial stability and long-term viability. |
| Earnings per share | Profit for the period attributable to the Parent Com- pany shareholders divided by the number of shares. |
Provides investors with a view of the company's Earnings per share when making comparisons with earlier periods. |
| Dividend per share | Dividend divided by the number of shares. | Provides investors with a view of the company's dividend over time |
Annual Report 2022 31 March 2023 Interim Report January- March 2023 5 May 2023 30 May 2023 Annual General Meeting 2023 Interim Report April-June 2023 18 August 2023 Interim Report July-September 2023 27 October 2023 Year-end Report October-December 2023 9 February 2024
Mattias Brodin, CFO Tel. +46 (0)8-463 33 10
Michel Fischier, Head of Investor Relations and Group Communications Tel. +46 (0)8-463 33 10
More information on Catella and all financial reports are available at catella.com.
CATELLA AB (PUBL) P.O. BOX 5894, SE-102 40 STOCKHOLM, SWEDEN | VISITORS: BIRGER JARLSGATAN 6 CORP. ID NO. 556079-1419 | REGISTERED OFFICE: STOCKHOLM, SWEDEN TELEPHONE +46 (0)8-463 33 10| [email protected] CATELLA.COM
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