Earnings Release • Aug 25, 2017
Earnings Release
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Total income increased in the first-half year2017 by SEK 141 M, or 15% year-on-year, corresponding
to an increase in operating profit of 15%. Over the last 12 months, we've increased assets under management by SEK 25 Bn, up 18% and in line with our growth strategy. Total assets under management remained unchanged on the first quarter, but with a significantly improved composition that generates higher fixed revenues and improved performance-based income.
CONSOLIDATED OPERATING PROFIT/LOSS*
CORPORATE FINANCE TOTAL INCOME
* The sale of shares in Visa Europe generated non-recurring income of SEK 219 M before tax reported in net financial income
Over the last 12 months, we've increased assets under management by SEK 25 Bn, corresponding to an increase of 18% and in line with our growth strategy in active alternative asset management, both for property-related products and equity, hedge and fixed income products. Total assets under management remained unchanged on the first quarter, but with a greatly improved composition that generates increased fixed revenues and enhances opportunities for performancebased income.
Total income increased in the first half year 2017 by SEK 141 M, or 15% year-onyear, corresponding to an increase in operating profit of 15%.
In Equity, Hedge and Fixed Income, assets under management continued to grow for the product Systematic Macro in the quarter, which now totals SEK 40.6 Bn, double last year's figure. At the same time as we're seeing the results of our focused distribution initiatives for Systematic Macro, we've also seen outflows from Systematic Equity. In terms of earnings, the outflows from Systematic Equity had less of an impact because of significantly lower fixed fees and the absence of performance-based remuneration. We'll continue to allocate most of the distribution resources to Systematic Macro. The situation was similar for Mutual Funds, with outflows from fixed income products and inflows to hedge products. Profit from fund management was very strong in the quarter, mainly in Mutual Funds, which contributed to doubling operating profit in year-on-year terms. Overall, we expect that the strong performance from managing our funds in recent quarters will contribute to inflows in Mutual Funds.
Despite net outflows in the business area, we succeeded in attracting inflows that generate a more favourable distribution of assets under management and future earnings. The business area's annualized profit from fixed income/fixed expenses was SEK 196 M at the end of the quarter.
Card and payment volumes and assets under management in the Banking business area increased in the quarter compared to the corresponding period in the previous year. We've confirmed that our offering in Wealth Management is attractive, as we saw continued inflows of SEK 1.5 Bn in the quarter. Assets under management increased by SEK 5.4 Bn, or 38% over the past 12 months. The increase is the result of our initiatives aimed at creating relevant investment products in the property segment, but also alternative investment areas including private equity. In addition, the resources allocated to sales initiatives is yielding results, and we'll continue to actively evaluate opportunities to reach new customers. In card and payment services, we've focused on working on the product mix, which has hampered short term growth, although we're now seeing a gradual increase. We strongly believe in offering selected customer groups tailormade products. The loan book didn't increase in the quarter as a result of the delayed launch of our deposit product in Sweden. We expect the product to gain approval from the Luxembourg supervisory authority shortly, with launch scheduled for this autumn. This gives us the opportunity to actively pursue financing of property-related activities in the Nordics, which will also generate positive synergies with other business areas in Catella.
In Property Investment Management. we're seeing the results of our investments in recent years in the form of increased assets under management and income. We're expecting continued profit growth from these initiatives, but will be investing selectively where relevant to complement existing platforms in the business area. One consequence of this is our establishment in the Netherlands in the third quarter 2017. We're clearly seeing that the product and geographical breadth of our offering increases our relevance to national and international investors alike. Assets under management are growing in both Property Funds and Property Asset Management, which generates more stable earnings looking ahead.
In the quarter, property volumes in Europe, excluding the UK, decreased by 21% and on two of Corporate Finance's key markets, Sweden and France, property volumes decreased by 49% and 64% respectively year-on-year. The volume decrease and a lower proportion of capital markets-related services affected income in the quarter, mainly in France and Sweden. Activity levels are high in the business area, although a number of transactions didn't complete until after the end of the quarter.
In June 2017, Catella issued an unsecured bond loan of SEK 500 M with a framework amount of SEK 750 M and a term of 5 years. Apart from the ability to redeem outstanding bonds this generates, it also provides us with scope for investments in growth and potential acquisitions.
As previously communicated, Catella will invest a proportion of equity in propertyrelated activities where we can use multiple parts of our system to generate good returns and added value for the company. We're currently evaluating a number of promising opportunities where our demanding requirements in terms of added value, returns and risk profile can be meet.
Catella has entered a strategic partnership with China Merchant Securities International relating to the distribution of products and services to the Chinese and other Asian markets. China Merchant Securities, and its main owner China Merchant Group, provide highly credible access to this market. Against the background of this collaboration and increased capital flows from the Asian markets to Europe, we'll be establishing a presence in Hong Kong in line with our London office.
We're continuing to execute our growth strategy and now have a platform and a product offering relevant to a larger group of customers and investors than ever. Looking ahead, a growing proportion of resources will be allocated to ensuring our distribution capacity.
KNUT PEDERSEN 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 Nasdag Stockholm.
Amounts are in SFK M unless otherwise indicated. Figures in tables and comments may be rounded.
The Group's total income was SEK 587 M (478) and net sales were SEK 586 M (475), of which SEK 130 M (172) relates to Corporate Finance and SEK 463 M (309) 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 6 M (222). The comparative period for 2016 includes non-recurring income from the Visa transaction totalling SEK 219 M. Net financial income/expense also includes interest income of SEK 6 M (6), which mainly relate to loan portfolios, and interest expenses of SEK 4 M (3) relating to Catella's bond issue. Net financial income/expense for the period also includes a cost of SEK 2 M relating to early redemption of the bond Ioan 2012/2017. Fair value measurement of non-current securities and current investments resulted in a value adjustment of SEK 6 M (-6). Fair value of the shares in Nordic Light Fund and derivatives holdings increased by SEK 2 M and SEK 4 m respectively in the period. Closed currency forwards only generated marginal profit.
The Group's profit before tax was SEK 84 M (287, excluding Visa 67) and profit after tax was SEK 61 M (198, excluding Visa 50), of which SEK 33 M (182, excluding Visa 35) was attributable to parent company shareholders. This corresponds to Earnings per Share of SEK 0.40 (2.23, excluding Visa 0.43).
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The Group's total income was SEK 1,081 M (940) in the first half of the year and consolidated net sales were SEK 1,079 M $(926)$ .
The Group's net financial income and expense was SEK 12 M (237), of which interest income was SEK 11 M (12) and interest expenses SEK 7 M (5). Fair value measurement of non-current securities and current investments resulted in a value adjustment of SEK 5 M (2). Closed currency forwards intended to limit currency exposure generated gains of SEK 4 M.
The Group's profit before tax was SEK 156 M (361, excluding Visa; 142 and profit after tax was SEK I I 4 M (253, excluding Visa; 106), of which SEK 66 M (199, excluding Visa 52) was attributable to parent company shareholders. This corresponds to Earnings per Share of SEK 0.81 (2.44, excluding Visa; 0.63).
Catella published the Annual Report for the financial year 2016 on 28 April 2017, which is available for download on Catella's website, catella.com.
In September 2012, Catella issued a 5-year unsecured bond loan of SEK 200 M maturing in September 2017.
In June 2017, Catella issued a new 5year 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), providing additional capital for operating activities and continued expansion and enable potential future acquisitions. The bond carries floating rate interest of 3-month STIBOR plus 400 b.p.
In July 2017, Catella utilised 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 unpaid interest.
In July 2017, Catella published a prospectus and applied for listing of the new bond Ioan on Nasdag Stockholm. The first day of trading of the bond was 9 August 2017.
In July 2017, Catella has agreed to acquire the shares in the Dutch property advisor Panta Rhei Advisory B.V. Panta Rhei Advisory will change its name to Catella IM Benelux. The acquisition assumes approval from CSSF, the Luxembourg financial supervisory authority.
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.
A preliminary acquisition analysis will be presented in connection with the Interim Report for the third quarter 2017.
| 3 Months | 6 Months | 12 Months | |||||
|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | ||
| SEK M | Apr-Jun | Apr-Jun | lan-lun | lan-lun | 12 Months | Jan-Dec | |
| CORPORATE FINANCE | |||||||
| Total income | 3 | 174 | 253 | 253 | 585 | 586 | |
| Operating profit/loss | $\mathbf 2$ | 36 | $\overline{4}$ | 24 | 38 | 58 | |
| Operating margin, % | $\overline{2}$ | 21 | $\overline{2}$ | 10 ° | 7 | 10 ° | |
| ASSET MANAGEMENT AND BANKING | |||||||
| Total income | 463 | 311 | 842 | 697 | 1,617 | 1,473 | |
| Operating profit/loss | 99 | 40 | 175 | 122 | 307 | 255 | |
| Operating margin, % | 21 | 13 | 21 | 18 | 19 | 17 | |
| Equity-, Hedge and Fixed Income Funds | |||||||
| Total income * | 228 | 163 | 413 | 407 | 754 | 748 | |
| Operating profit/loss | 91 | 47 | 164 | 5 | 271 | 258 | |
| Operating margin, % | 40 | 29 | 40 | 37 | 36 | 35 | |
| Banking | |||||||
| Total income * | 106 | 94 | 222 | 185 | 470 | 433 | |
| Operating profit/loss | $\mathbf 0$ | $-3$ | 3 | $-18$ | 15 | $-6$ | |
| Operating margin, % | $\mathcal{O}$ | $-3$ | $\overline{1}$ | $-10$ | 3 | $-I$ | |
| Property Investment Management | |||||||
| Total income * | 130 | 54 | 208 | 106 | 397 | 295 | |
| Operating profit/loss | 8 | $-4$ | 8 | $-11$ | 22 | 3 | |
| Operating margin, % | 6 | $-8$ | $\overline{4}$ | $-10$ | 6 | $\overline{1}$ | |
| OTHER ** | |||||||
| Total income | $-8$ | $-7$ | $-13$ | $-10$ | $-35$ | $-31$ | |
| Operating profit/loss | $-23$ | $-12$ | $-35$ | $-22$ | $-68$ | $-55$ | |
| GROUP | |||||||
| Total income | 587 | 478 | 1,081 | 940 | 2,168 | 2,027 | |
| Operating profit/loss | 78 | 64 | 44 | 125 | 278 | 258 | |
| Operating margin, % | 13 | 13 | 13 | 13 | 13 | 13 |
* Includes internal income.
** Includes eliminations.
| 3 Months ** | 6 Months ** | 12 Months ** | ||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| GROUP | Apr-Jun | Apr-Jun | lan-lun | lan-lun | 12 Months | Jan-Dec |
| Profit margin, % | $\overline{10}$ | 4 1 | $\vert \ \vert$ | 27 | $\overline{10}$ | 8 |
| Return on equity, % * | $\sim$ | × | 9 | 27 | 9 | |
| Equity/Asset ratio, % | $\sim$ | ×, | 32 | 31 | $\overline{a}$ | 31 |
| Equity, SEK M * | $\overline{\phantom{a}}$ | $\sim$ | 1.577 | 1.484 | $\overline{a}$ | 1,563 |
| No. of employees, at end of period | × | 615 | 563 | 579 | ||
| Earnings per share, SEK * | 0.40 | 2.23 | 0.81 | 2.44 | 1.69 | 3.32 |
| Equity per share, SEK * | × | 19.27 | 18.14 | 19.10 | ||
| CORPORATE FINANCE | ||||||
| Profit margin, % | $\overline{0}$ | 21 | $\circ$ | $\vert \vert$ | $\overline{4}$ | 9 |
| Return on equity, % * | $\sim$ | × | $\vert \ \vert$ | 37 | $\overline{a}$ | 22 |
| Equity/Asset ratio, % | $\sim$ | × | 29 | 59 | $\overline{a}$ | 59 |
| Equity, SEK M * | $\sim$ | × | 78 | 222 | $\overline{a}$ | 254 |
| No. of employees, at end of period | $\sim$ | × | 225 | 213 | $\sim$ | 203 |
| Property transaction volume for the period, SEK Bn | 15.3 | 20.0 | 22.3 | 26.1 | 51.7 | 55.5 |
| ASSET MANAGEMENT AND BANKING | ||||||
| Profit margin, % | 16 | 56 | 16 | 34 | 15 | 23 |
| Return on equity, % * | $\sim$ | × | 8 | 39 | L. | 34 |
| Equity/Asset ratio, % | $\sim$ | $\sim$ | 23 | 21 | L. | 22 |
| Equity, SEK M * | $\sim$ | $\sim$ | 941 | 789 | 859 | |
| No. of employees, at end of period | ÷ | ×, | 375 | 336 | L. | 359 |
| Asset under management at end of period, SEK Bn | $\sim$ | ×, | 163.1 | 137.9 | $\overline{a}$ | 155.7 |
| net in-(+) and outflow(-) during the period, mdkr | $-1.0$ | $-0.9$ | 3.9 | $-2.0$ | 10.7 | 4.8 |
| Card and payment volumes, SEK Bn | 4.1 | 1.9 | 8.1 | 3.6 | 16.3 | 11.8 |
Card and payment volumes, SEK Bn
example to shareholders of the Parent Company.
* Attributable to shareholders of the Parent Company.
** During the second quarter 2016, Asset Management and Banking received a non-recurring income of SEK 219 M resulting
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8B1 0B 10B 10 B 8B1 0B 10B 8B1 0B 10B 10 B
1B 13 B13 B1 3B 12B 14 B14 B1 4B 13B 15 B15 B1 5B
The total commercial property transaction market in Europe, excluding the UK, totalled EUR 41.6 Bn (52.7) in the quarter, a reduction of 21% year-on-year. On two of Catella's key markets, Sweden and France, property volumes declined by 49% and 64% respectively year-on-year.
Property transactions where Catella served as an advisor totalled SEK 15.3 Bn (20.0) in the quarter. Of total transaction volumes in the quarter, Sweden provided SEK 5.9 Bn (5.6), France SEK 1.8 Bn (5.8) and Germany SEK 0.5 Bn (1.3).
Total income was SEK 131 M (174) and operating profit was SEK 2 M (36) in the quarter.
In the quarter, the proportion of valueadding services was low in year-on-year terms, which affected income and profit, mainly in the Nordics, while continental Europe was mainly influenced by the decrease in property volumes on the French market. The decrease in year-on-year income and profit was mainly driven by Sweden, France and Germany.
$2.84 - 10$
Transaction volumes in Europe, excluding the UK, were EUR 88.6 Bn (96.3) in the first half-year a decrease of 8% on the corresponding period of the previous year. Catella had transaction volumes of SEK 22.3 Bn (26.1) in the period.
Total income was SEK 253 M (253) and operating profit was SEK 4 M (24) in the period. Increased assignment costs of SEK 13 M attributable to French projects jointly invoiced with another advisor.
$10.64 - 11$
| DETECT | O L'IOHLIS | TZ PIONUIS | ||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| SEK M | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | 12 Months | Jan-Dec |
| Nordic * | 76 | 106 | 138 | 137 | 299 | 299 |
| Continental Europe * | 55 | 68 | $ $ 4 | 116 | 285 | 286 |
| Total income | 3 | 174 | 253 | 253 | 585 | 586 |
| Assignment expenses and commission | $-19$ | $-14$ | $-32$ | $-19$ | $-77$ | -64 |
| Operating expenses | $-110$ | $-123$ | $-217$ | $-210$ | $-470$ | $-463$ |
| Operating profit/loss | 2 | 36 | 4 | 24 | 38 | 58 |
| Key Figures | ||||||
| Operating margin, % | $\overline{2}1$ | $\overline{10}$ | $\overline{10}$ | |||
| Property transaction volume for the period, SEK Bn | 15.3 | 20.0 | 22.3 | 26.1 | 51.7 | 55.5 |
| of which Nordic | 12.9 | 12.5 | 16.7 | 16.6 | 30.2 | 30.0 |
nika ili
$24$
in l
$74$
| of which Continental Europe | |
|---|---|
| No. of employees, at end of period |
* Includes internal income
56
$\sim$ 225
$96$
$213$
$215$
an a
$255$
203
New savings in mutual funds in Sweden was SEK 33.4 Bn in the quarter. All categories reported inflows although fixed income funds, mixed funds and equity funds provided the highest share of new savings. At the end of the quarter, Mutual Funds' share of Swedish fund volumes was 0.8% $(1.2)$ .
Catella's assets under management decreased by SEK 4.1 Bn (2.7) in the quarter, of which net outflows totalled SEK 0.7 Bn (-1.4) in Mutual Funds and net outflows of SEK 2.0 Bn (1.7) in Systematic Funds, mainly due to outflows from the product Systematic Equity and simultaneous inflows in the product Systematic Macro. Despite
net outflows for the business area, the distribution between assets under management is more favourable for Catella's future earnings.
Total income was SEK 228 M (163) in the quarter. Operating profit was SEK 91 $M(47)$ .
The increase in both income and profit on the previous year is mainly due to variable earnings in Mutual Funds and increased fixed earnings in Systematic Funds, which were in turn driven by increased assets under management.
Systematic Macro's and Systematic Equity's assets under management at the end of the period totalled SEK 40.6 Bn (21.0) and SEK 26.1 Bn (34.4). Income is mainly
derived from Systematic Macro and a majority of sales resources are allocated to this product.
In the period, total fund volumes in Sweden increased by SEK 249.7 Bn, of which new savings were SEK 59.5 Bn, amounting to SEK 3.817 Bn at the end of the period. Catella's assets under management decreased by SEK 1.7 Bn (-0.6) in the period, totalling SEK 97.2 Bn (92.5) at the end of the period, but with a more favourable distribution for future earnings.
Total income was SEK 413 M (407) and operating profit was SEK 164 M (151).
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 |
|---|---|---|---|---|---|
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | 12 Months | Jan-Dec |
| 98 | 78 | 187 | 158 | 344 | 315 |
| 130 ° | 86 | 226 | 249 | 410 | 433 |
| 228 | 163 | 413 | 407 | 754 | 748 |
| $-38$ | $-48$ | $-76$ | $-98$ | $-160$ | $-182$ |
| $-100$ | $-69$ | $-173$ | $-158$ | $-323$ | $-308$ |
| 91 | 47 | 164 | 5 | 271 | 258 |
| 3 Months | 6 Months | 12 Months |
| Key Figures | ||||||
|---|---|---|---|---|---|---|
| Operating margin, % | 40 | 29 | 40 | 37 | 36 | 35 |
| Asset under management at end of period, SEK Bn | $\overline{\phantom{a}}$ | 97.2 | 92.5 | 98.9 | ||
| net in-(+) and outflow(-) during the period, mdkr | $-2.7$ | 0.3 | $-2.8$ | $-1.1$ | $-4.2$ | $-2.5$ |
| of which Mutual Funds | STAR | 30.7 | 37.1 | 30.8 | ||
| net in-(+) and outflow(-) during the period, mdkr | $-0.7$ | $-1.4$ | .3 $-1$ |
$-6.3$ | $-9.5$ | $-14.4$ |
| of which Systematic Funds | $\sim$ | 66.6 | 55.4 | 68.1 | ||
| net in-(+) and outflow(-) during the period, mdkr | $-2.0$ | $1.5^{\circ}$ $-1$ |
5. | 11.9 | ||
| No. of employees, at end of period | 84 | 79 | 78 |
* Includes internal income
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Volumes in the Cards and Payment Solutions operations were SEK 4.1 Bn (1.9) in the quarter.
Assets under management in Wealth Management increased by SEK 2.1 Bn (-0.2) and net inflows were SEK 1.5 Bn (0.1) in the quarter.
The loan portfolio increased by SEK 27 M in the second quarter totalling SEK 1.3 Bn (1.1) at the end of the period.
Total income was SEK 106 M (94) in the quarter. Operating profit was SEK 0 M (-3) in the quarter.
Earnings increased year-on-year and were evenly distributed between Cards and Payment Solutions and Wealth Management. Fixed earnings increased yearon-year, and driven by increased assets under management and an expanded loan book, while variable earnings decrease mainly driven by Wealth Management which completed fewer capital raisings in the quarter. Higher volumes in the high margin segment increased year-on-year earnings in Cards and Payment Solutions. The sharp volume growth in the fourth quarter 2016 in Cards and Payment Solutions took place in the low margin segment and had a marginal impact on earnings in the second quarter, and will mainly ensure
future volume growth in the high margin segment.
Volumes in Cards and Payment Solutions totalled SEK 8.1 Bn (3.6) in the period.
Assets under management in Wealth Management increased by SEK 3.1 Bn (0.6) and net inflows were SEK 2.1 Bn (0.6) in the period, amounting to SEK 19.6 Bn (14.2) at the end of the period.
Total income was SEK 222 M (185) and operating profit was SEK 3 M (-18).
| 3 Months 6 Months |
12 Months | |||||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| SEK M | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | 12 Months | Jan-Dec |
| Cards and Payment Solutions * | 67 | 62 | $ 42\rangle$ | 128 | 297 | 283 |
| Wealth Management * | 39 | 33 | 87 | 58 | 186 | 157 |
| Total income | 106 | 94 | 222 | 185 | 470 | 433 |
| Assignment expenses and commission | $-31$ | $-19$ | $-63$ | $-46$ | $-127$ | $-110$ |
| Operating expenses | $-74$ | $-78$ | $-156$ | $-157$ | $-328$ | $-329$ |
| Operating profit/loss | 0 | $-3$ | з | $-18$ | 15 | $-6$ |
| Key Figures | |||||
|---|---|---|---|---|---|
| Operating margin, % | -10 | ||||
| Card and payment volumes, SEK Bn | 9 | .3.6 | 16.1 | 11.8 | |
| Asset under management at end of period, SEK Bn | 110 | 19.6 | 14.7 | 16.5 | |
| net in-(+) and outflow(-) during the period, mdkr | $-(1)^2$ | .9 | 0.6 | 2.4 | |
| No. of employees, at end of period | 176. |
* Includes internal income
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Assets under management increased by SEK 1.5 Bn (-0.3) and net inflows were SEK 0.5 Bn (-0.9) in the quarter, mainly attributable to residential property funds in Germany.
Total income was SEK 130 M (54) and income after assignment costs totalled SEK 67 M (39) in the quarter. Operating profit was SEK 8 M (-4). The increase in assignment costs was mainly due to Bouwfonds European Residential fund exceeding the level where the fund is allocated performance-based fees, which were recognised
in Property Funds and shared with a third party.
The focus on building a European platform continues, at the same time as both income and profit increased in year-onyear terms. The improvement is mainly driven by increased variable earnings from the Bouwfonds European Residential fund and increased assets under management of SEK 15.0 Bn compared to the corresponding period in the previous year. Fixed earnings increased in a majority of operations, although mainly in Property Funds and Property Asset Management in France.
The cost increase is mainly due to aggressive initiatives in residential property funds and Property Asset Management in Spain.
Assets under management increased by SEK 6.0 Bn (-0.3) and net inflows were SEK 4.8 Bn (-1.5) in the period, amounting to SEK 46.3 Bn (31.3) at the end of the period.
Total income was SEK 208 M (106) and operating profit was SEK 8 M (-11).
| $\sim$ $\sim$ |
3 Months | 6 Months | 12 Months | |||
|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |
| SEK M | Apr-Jun | Apr-Jun | Jan-Jun | lan-lun | 12 Months | Jan-Dec |
| Property Funds * | 113 | 40 | 176 | 8 1 | 307 | 212 |
| Property Asset Management * | 19 | 15 | 37 | 27 | 105 | 95 |
| Total income | 130 | 54 | 208 | 106 | 397 | 295 |
| Assignment expenses and commission | $-63$ | $-15$ | $-84$ | $-33$ | $-135$ | $-85$ |
| Operating expenses | $-59$ | $-43$ | $-116$ | $-83$ | $-240$ | $-207$ |
| Operating profit/loss | 8 | $-4$ | 8 | $-11$ | 22 |
| Key Figures | ||||||
|---|---|---|---|---|---|---|
| Operating margin, % | $-8$ | $-10$ | ||||
| Asset under management at end of period, SEK Bn | 46.3 | 31.3 | 40.3 | |||
| net in-(+) and outflow(-) during the period, mdkr | 0.5 | $-0.9$ | 4.8 | $-1.5$ | 11.3 | 4.9 |
| of which Property Funds | $\sim$ | 31.2 | 21.5 | 25.6 | ||
| net in-(+) and outflow(-) during the period, mdkr | 0.5 | 0.4 | 4.6 | 0.4 | /4 | 3.2 |
| of which Property Asset Management | $\sim$ | 15.1 | -9.7 | 14.7 | ||
| net in-(+) and outflow(-) during the period, mdkr | 0.0 | $-1.3$ | 0.2 | $-1.9$ | 3.8 | |
| No. of employees, at end of period | 16 | 87 | 105 |
* Includes internal income.
OPERATING PROFIT/LOSS
In the second quarter, the Group's total assets decreased by SEK 68 M, totalling SEK 5,451 M as of 30 June 2017. Total assets were affected by factors including dividends in the period of SEK 155 M.
In accordance with IAS 12 Income Tax, a deferred tax asset attributable to loss carry-forwards is recognised to the extent that it is probable that future taxable profit will be available. In accordance with this standard, Catella is recognising 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 carryforwards amount to some SEK 660 M. Essentially, the loss carry-forwards relate to operations in Sweden and have indefinite useful lives.
In September 2012, Catella AB (publ) issued a five-year unsecured bond of SEK 200 M maturing in September 2017. In the Consolidated Statement of Financial Position as of 30 June 2017 this item was reported in current liabilities. The bond accrues variable interest at 3-month STIBOR plus 500 basis points.
In June 2017, Catella issued a new 5year 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. The issue proceeds were deposited in a blocked bank account which Catella was prohibited from disposing over until the buy-back of the existing bond loan, which took place on 20 July 2017. In the Consolidated Statement of Financial Position as of 30 June 2017, the new bond loan was net recognized at the unavailable issue proceeds, for more information see note 6. 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 June 2017.
The Group's equity decreased by SEK 74 M in the quarter, reaching SEK 1,717 M as of 30 June 2017. Apart from profit for the period of SEK 61 M and positive translation differences of SEK 14 M, equity was affected by a dividend payment to parent company shareholders of SEK 65 M and by dividends and other transactions with noncontrolling interests totalling SEK 83 M. The Group's equity/assets ratio as o 30 June 2017 was 32% (31% as of 31 December 2016).
Consolidated cash flow from operating activities before changes in working capital amounted to SEK 85 M (64). Consolidated cash flow from operating activities was SEK 100 M (-72) of which changes in working capital for the period was SEK 15 M (-136). Of the changes in working capital, SEK I IOM is attributable to banking operations and SEK-95 M to other operations. The bank's working capital was positively affected mainly by increased deposits from credit institutes and settlement of customer receivables relating to customer purchases of mutual fund units.
Cash flow from investing activities was SEK -37 M (80), of which SEK -37 M relates to IPM's investments in proprietary funds. Cash flow from loan portfolios totalled SEK 5 M in the quarter. Cash flow from financing operations was SEK-155 M (-111), of which SEK-65 M relates to dividends to parent company shareholders and SEK-90 M to dividends to non-controlling interests. Cash flow for the period was SEK-92 M (-103) of which cash flow from banking operations was SEK III M (76) and cash flow from other operations was SEK-203
M (-179).
Cash and cash equivalents at the end of the period were SEK 2,371 M (2,522), of which cash and cash equivalents relating to the banking operations were SEK 1.931 M (1.922) and cash and cash equivalents relating to other activities were SEK 440 M $(600).$
Consolidated cash flow from operating activities before changes in working capital amounted to SEK 137 M (84).
Consolidated cash flow from operating activities was SEK-202 M (-381), of which changes in working capital for the period was SEK-339 M (-465). Of the changes in working capital, SEK -148 M is attributable to banking operations and SEK-191 M to other operations.
Cash flow from investing activities was SEK -46 M (105), 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 -9 M to other business-related investments. In addition, SEK 8 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 4 M was received for terminated currency forwards. Cash flow from loan portfolios totalled SEK 10 M in the first half-year.
Cash flow from financing operations was SEK-153 M (-121), of which-155 M relates to dividend and SEK 2 M relates to capital contributions from non-controlling interests.
Cash flow for the period was SEK-401 M (-398), of which cash flow from the banking operations was SEK-142 M (-159) and cash flow from other activities SEK -259 M (-239).
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-12.5 M (-10.9). The profit decrease on the previous year is mainly due to increased personnel costs.
In September 2012. Catella AB issued a 5-year unsecured bond loan of SEK 200 M maturing in September 2017.
In June 2017, Catella AB issued a new 5year unsecured bond loan of SEK 500 M, partly with the purpose of refinancing the existing bond loan. The issue proceeds were deposited in a blocked bank account which Catella AB was prohibited from disposing over until the buy-back of the existing bond loan, which took place on 20 luly 2017. In the Parent Company Balance Sheet as of 30 June 2017, the new bond loan was net recognised at the unavailable issue proceeds, for more information see note 6.
The Parent Company also reported financial items totalling SEK 84.2 M (-0.7), of which SEK 90 M relates to dividends from subsidiary Catella Holding AB, SEK 3.5 M relates to interest in bond loans and SEK 2.0 M relates to costs for early redemption of the bond loan 2012/2017.
Profit/loss before tax was SEK 71.6 M (-11.6), and profit/loss for the period was SEK 71.6 M (-11.6).
The Parent Company reported total loss carry-forwards of SEK 131.4 M. Catella's Balance Sheet includes a deferred tax asset of SEK 19.8 M (18.9) M as of 31 December 2016) relating to these loss carry-forwards. 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 31.4 M, compared to SEK 31.3 M as of 31 December 2016.
The number of employees of the Parent Company expressed as full-time equivalents was 9 (7).
The Parent Company reported income of SEK 6.2 M (4.3) in the first half-year 2017. Operating profit/loss was SEK-23.5 M (-19.7) and profit before tax was SEK 58.3 $M$ (-21.0).
Catella has principal investments of SEK 346 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 615 (563) at the end of the period, of which 225 (213) in the Corporate Finance operating segment, 375 (336) in the Asset Management and Banking operating segment and 15 (14) in other functions.
As of 30 June 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 1 vote per share
As of 30 June 2017, the parent company had a total of 7,000,000 outstanding warrants, 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 first half-year 2017 there were no transactions involving warrants.
Catella is listed on Mid Cap on Nasdaq Stockholm, trading under the ticker symbols CAT A and CAT B. The price of Catella's Class B share was SEK 20.60 (18.80) as of 30 June 2017. Total market capitalisation at the end of the period was SEK 1,696 M (1,542).
Catella had 7,175 (6,391) shareholders registered at the end of the period. As of 30 June 2017, the single largest share-holders 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 AB's Annual General Meeting (AGM) was held on Monday 29 May 2017 in Stockholm, Sweden. Information on Catella's AGM is available at catella.com.
Catella's Annual Report for 2016 is available at the company's website,
catella.com and head office, Birger Jarlsgatan 6, Stockholm, Sweden, from 28 April 2017.
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 profitrelated 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 macroeconomic 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 cur-rent 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 dis-closures on contingent liabilities, for ex-ample. 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 ownership in combination with the terms of a shareholder agreement relating to the subsidiary that matures in November 2017.
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 realising 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 is-sued 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, acquisitionrelated 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 half-year 2017, Catella made additional investments of SEK 16 M in associated company Nordic Seeding GmbH. where the other shareholders are the Claesson & Anderzén Group and the management of Catella Project Management GmbH. As of 30 lune 2017. Catella had invested SEK 67 M, of a total commitment of SEK 87 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 does not publish forecasts.
This Interim Report has not been subject to review by the company's auditors.
Interim Report January - September 2017 14 November 2017 Year-end Report 2017
23 February 2018
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 25 August 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
| 2017 | 2016 | 2017 | 2016 | 2016 | |
|---|---|---|---|---|---|
| SEK M | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec |
| Net sales | 586 | 475 | 1,079 | 926 | 2,007 |
| Other operating income | 3 | $\overline{2}$ | 15 | 20 | |
| Total income | 587 | 478 | 1,081 | 940 | 2,027 |
| Assignment expenses and commission | $-147$ | $-91$ | $-247$ | $-191$ | $-417$ |
| Other external expenses | $-116$ | $-117$ | $-233$ | $-212$ | $-441$ |
| Personnel costs | $-226$ | $-209$ | $-431$ | $-397$ | $-878$ |
| Depreciation | $-6$ | $-4$ | $-13$ | $-9$ | $-18$ |
| Other operating expenses | $-13$ | 7 | $-14$ | $-7$ | $-14$ |
| Operating profit/loss | 78 | 64 | 44 | 125 | 258 |
| Interest income | 6 | 6 | $\vert \vert$ | 12 | 24 |
| Interest expenses | $-4$ | $-3$ | $-7$ | $-5$ | $\sim$ $\mid$ $\mid$ |
| Other financial items | 5 | 220 | $\, 8$ | 230 | 227 |
| Financial items-net | 6 | 222 | 12 | 237 | 239 |
| Profit/loss before tax | 84 | 287 | 156 | 361 | 497 |
| Tax | $-23$ | $-89$ | $-42$ | $-108$ | $-141$ |
| Net profit/loss for the period | 61 | 198 | $ $ 4 | 253 | 357 |
| Profit/loss attributable to: | |||||
| Shareholders of the Parent Company | 33 | 182 | 66 | 199 | 272 |
| Non-controlling interests | 28 | 15 | 48 | 54 | 85 |
| 61 | 198 | $ $ 4 | 253 | 357 | |
| Earnings per share attributable to shareholders of the Parent Company, SEK | |||||
| - before dilution | 0.40 | 2.23 | 0.81 | 2.44 | 3.32 |
| - after dilution | 0.37 | 2.06 | 0.75 | 2.24 | 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 | 89.069.548 | 88,775,608 |
| 2017 | 2016 | 2017 | 2016 | 2016 | |
|---|---|---|---|---|---|
| SEK M | Apr-Jun | Apr-Jun | lan-lun | lan-lun | Jan-Dec |
| Net profit/loss for the period | 61 | 198 | $ $ 4 | 253 | 357 |
| Other comprehensive income | |||||
| Items that will not be reclassified subsequently to profit or loss: | |||||
| Value change in defined benefit pension plans | $\mathbf{0}$ | $\mathbf{0}$ | $\circ$ | $\Omega$ | 0 |
| Items that will be reclassified subsequently to profit or loss: | |||||
| Fair value changes in financial assets available for sale | $-0$ | $\mathbf{0}$ | 3 | $\circ$ | 3. |
| Translation differences | 4 | 19 | 10 | 26 | 36 |
| Other comprehensive income for the period, net after tax | 13 | 19 | 4 | 26 | 39 |
| Total comprehensive income/loss for the period | 74 | 216 | 128 | 279 | 395 |
| Profit/loss attributable to: | |||||
| Shareholders of the Parent Company | 46 | 201 | 80 | 225 | 310 |
| Non-controlling interests | 28 | 16. | 48 | 54 | 86 |
| 74 | 216 | 128 | 279 | 395 |
Information on Income Statement by operating segment is in Note 1.
| SEK M Note |
2017 30 Jun |
2016 30 Jun |
2016 31 Dec |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 413 | 369 | 412 |
| Property, plant and equipment | 25 | 24 | 26 |
| 3 Holdings in associated companies |
59 | 44 | 51 |
| 3, 4, 5 Other non-current securities |
427 | 388 | 382 |
| Deferred tax receivables | 96 | 89 | 97 |
| Other non-current receivables | 721 | 541 | 775 |
| 1,742 | 1,454 | 1,743 | |
| Current assets | |||
| Current loan receivables | 656 | 564 | 577 |
| Accounts receivable and other receivables | 588 | 536 | 493 |
| 3, 4, 5 Current investments |
93 | 82 | 88 |
| Cash and cash equivalents * | 2,371 | 2,522 | 2,750 |
| 3,709 | 3,705 | 3,907 | |
| Total assets | 5,451 | 5,159 | 5,651 |
| EQUITY AND LIABILITIES | |||
| Equity | |||
| Share capital | 164 | 164 | 164 |
| Other contributed capital | 253 | 250 | 253 |
| Reserves | $-97$ | $-116$ | $-107$ |
| Profit brought forward including net profit for the period | 1,257 | 1,187 | 1,253 |
| Equity attributable to shareholders of the Parent Company | 1,577 | 1,484 | 1,563 |
| Non-controlling interests | 40 | 119 | 167 |
| Total equity | 1,717 | 1,604 | 1,730 |
| Liabilities | |||
| Non-current liabilities | |||
| Borrowings | $\perp$ | $\,0\,$ | $\circ$ |
| Long-term loan liabilities | $\circ$ | 200 | $\circ$ |
| Deferred tax liabilities | 35 | 34 | 34 |
| Other provisions | 3 | 3 | 3 |
| 39 | 236 | 37 | |
| Current liabilities | |||
| Borrowings | 224 | 47 | 260 |
| Current Ioan liabilities | 2,753 | 2,576 | 2,806 |
| Accounts payable and other liabilities | 647 | 593 | 739 |
| Tax liabilities | 71 | 104 | 79 |
| 3,695 | 3,320 | 3,884 | |
| Total liabilities | 3,734 | 3,556 | 3,921 |
| Total equity and liabilities | 5,451 | 5,159 | 5,651 |
| * Of which pledged and blocked liquid funds | 199 | 166 | 188 |
Information on financial position by operating segment is in Note 2.
| 2017 | 2016 | 2017 | 2016 | 2016 | |
|---|---|---|---|---|---|
| SEK M | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec |
| Cash flow from operating activities | |||||
| Profit/loss before tax | 84 | 287 | 156 | 361 | 497 |
| Adjustments for non-cash items: | |||||
| Other financial items | $-5$ | $-220$ | $-8$ | $-230$ | $-227$ |
| Depreciation | $\epsilon$ | $\overline{4}$ | 13 | 9 | 8 |
| Impairment current receivables | $\overline{2}$ | $\overline{2}$ | 3 | $\overline{4}$ | 12 |
| Reported interest income from loan portfolios | $-5$ | $-5$ | $-$ | $-12$ | $-22$ |
| Acquisition expenses | $\theta$ | $\circ$ | $\circ$ | $\circ$ | $\mathbf{I}$ |
| Profit/loss from participations in associated companies | 9 | $\circ$ | 9 | $\circ$ | $\mathbf{I}$ |
| Capital gain/loss, financial assets | $\mathbf 0$ | $\Omega$ | ÷, | $-6$ | $-6$ |
| Personnel costs not affecting cash flow | 8 | 8 | 16 | 4 | 35 |
| Paid income tax | $-15$ | $-22$ | $-41$ | $-57$ | $-126$ |
| Cash flow from operating activities before changes in working capital | 85 | 64 | 137 | 84 | 184 |
| Cash flow from changes in working capital | |||||
| Increase (-)/decrease (+) of operating receivables | 53 | $\overline{\phantom{a}}$ | $-122$ | $-340$ | $-533$ |
| $-38$ | $-137$ | $-217$ | $-125$ | 212 | |
| Increase $(+)$ / decrease $(-)$ in operating liabilities Cash flow from operating activities |
100 | $-72$ | $-202$ | $-381$ | $-137$ |
| Cash flow from investing activities Purchase of property, plant and equipment |
$-3$ | $-4$ | $-4$ | $-5$ | $-10$ |
| Purchase of intangible assets | $-4$ | $-5$ | $-8$ | $-7$ | $-42$ |
| $-$ 0 | $-39$ | $\sim$ [ | $-39$ | $-57$ | |
| Purchase of subsidiaries, after deductions for acquired cash and cash equivalents | |||||
| Purchase of associated companies | $\theta$ | $\circ$ | $-16$ | $-18$ | $-25$ |
| Purchase of financial assets | $-37$ | $-67$ | $-46$ | $-86$ | $-110$ |
| Sale of financial assets | $\mathbf{I}$ | 190 | 9 | 201 | 227 |
| Cash flow from loan portfolios | 5 | 6 | $ 0\rangle$ | 58 | 71 |
| Dividends from investments | $\overline{\phantom{a}}$ | $\circ$ | $\mathbf{0}$ 105 |
$\theta$ 55 |
|
| Cash flow from investing activities | $-37$ | 80 | $-46$ | ||
| Cash flow from financing activities | |||||
| Re-purchase of share warrants | $\overline{0}$ | $-12$ | $\overline{\phantom{a}}$ | $-22$ | $-22$ |
| New share issue | $\overline{0}$ | $\overline{\phantom{a}}$ | $\overline{a}$ | $\overline{\phantom{a}}$ | $\blacksquare$ |
| Dividend | $-65$ | $-49$ | $-65$ | $-49$ | $-49$ |
| Transactions with, and payments to, non-controlling interests | $-89$ | $-51$ | $-88$ | $-51$ | $-56$ |
| Cash flow from financing activities | $-155$ | $-111$ | $-153$ | $-121$ | $-126$ |
| Cash flow for the period | $-92$ | $-103$ | $-401$ | $-398$ | $-208$ |
| Cash and cash equivalents at beginning of period | 2,435 | 2,585 | 2,750 | 2,854 | 2,854 |
| Exchange rate differences in cash and cash equivalents | 28 | 40 | 22 | 67 | 104 |
| Cash and cash equivalents at end of the period | 2,371 | 2,522 | 2,371 | 2,522 | 2,750 |
SEK 1,931 M of the Group's cash and cash equivalents relate 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 I January 2017 | 164 | 253 | $-107$ | 1,253 | 1,563 | 167 | 1,730 |
| Comprehensive income for January - June 2017: | |||||||
| Net profit/loss for the period | 66 | 66 | 48 | $ $ 4 | |||
| Other comprehensive income, net of tax | $ 0\rangle$ | 3 | 4 | $\Omega$ | 4 | ||
| Comprehensive income/loss for the period | 0 | 70 | 80 | 48 | 128 | ||
| Transactions with shareholders: | |||||||
| Transactions with non-controlling interests | $\overline{0}$ | $\theta$ | $-75$ | $-75$ | |||
| Dividend | $-65$ | $-65$ | $-65$ | ||||
| Closing balance at 30 June 2017 | 164 | 253 | $-97$ | 1,257 | 1,577 | $ 40\rangle$ | 1,717 |
Equity attributable to shareholders of the Parent Company
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling interests are attributable to minority holdings in subsidiaries in Systematic Funds and Property Funds, and a number of subsidiaries in Property Asset Management and Corporate Finance.
As of 30 June 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 half year 2017.
Repurchases of warrants are reported amounts.
| Equity attributable to shareholders of the Parent Company | |
|---|---|
| ----------------------------------------------------------- | -- |
| SEK M Opening balance as of I January 2016 |
Share capital 163 |
Other contributed capital * 250 |
Translation reserve $-142$ |
Profit brought forward incl. net profit/loss for the period 1,048 |
Total 1,319 |
Non- controlling 117 |
interests Total equity 1.436 |
|---|---|---|---|---|---|---|---|
| Comprehensive income for January - June 2016: | |||||||
| Net profit/loss for the period | 199 | 199 | 54 | 253 | |||
| Other comprehensive income, net of tax | 26 | 26 | 26 | ||||
| Comprehensive income/loss for the period | 26 | 199 | 225 | 54 | 279 | ||
| Transactions with shareholders: | |||||||
| Transactions with non-controlling interests | $\bigcirc$ | $\Omega$ | $-53$ | $-53$ | |||
| Re-purchase of warrants issued | $-12$ | $-12$ | $-12$ | ||||
| New share issue during registration | $\circ$ | ||||||
| Dividend | $-49$ | $-49$ | $-49$ | ||||
| Closing balance at 30 June 2016 | 164 | 250 | $-116$ | 1.187 | 1,484 | 119 | 1.604 |
* Other capital contributed pertains to reserve funds in the Parent Company.
As of 30 June 2016, the Parent Company had a total of 9,034,000 outstanding warrants of which 2,534,000 held in treasury. In the first half year 2016 1,440,000 warrants were repurchased on market terms from employees for a
| Corporate Finance | Asset Management and Banking | Other | Group | ||||||
|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | ||
| SEK M | Apr-Jun | Apr-Jun | Apr-Jun | Apr-Jun | Apr-Jun | Apr-Jun | Apr-Jun | Apr-Jun | |
| Net sales | 130 | 172 | 463 | 309 | $-7$ | $-6$ | 586 | 475 | |
| Other operating income | $\Omega$ | $\overline{2}$ | $-$ | $\overline{a}$ | 3 | ||||
| Total income | 3 | 174 | 463 | 311 | $-8$ | $-7$ | 587 | 478 | |
| Assignment expenses and commission | $-19$ | $-14$ | $-132$ | $-8$ | $\overline{4}$ | 5 | $-147$ | $-91$ | |
| Other external expenses | $-33$ | $-33$ | $-78$ | $-78$ | $-5$ | $-6$ | $-116$ | $-117$ | |
| Personnel costs | $-74$ | $-89$ | $-147$ | $-116$ | $-6$ | $-5$ | $-226$ | $-209$ | |
| Depreciation | $-$ | $\overline{a}$ | $-5$ | $-3$ | $-()$ | $-()$ | $-6$ | $-4$ | |
| Other operating expenses | $-2$ | $\overline{a}$ | $-3$ | 8 | $-8$ | $-13$ | 7 | ||
| Operating profit/loss | $\overline{2}$ | 36 | 99 | 40 | $-23$ | $-12$ | 78 | 64 | |
| Interest income | $\left\langle {}\right\rangle$ | $\mathbf{0}$ | $\theta$ | $\theta$ | 5 | 5 | 6 | 6 | |
| Interest expenses | $-$ | $\circ$ | $-0$ | $\overline{a}$ | $-3$ | $-3$ | $-4$ | $-3$ | |
| Other financial items | $\mathbf 0$ | $\Omega$ | $\overline{4}$ | 217 | $-()$ | 3 | 5 | 220 | |
| Financial items-net | $-{\cal O}$ | $\overline{4}$ | 217 | $\overline{2}$ | 5 | 6 | 222 | ||
| Profit/loss before tax | $\overline{2}$ | 36 | 103 | 257 | $-21$ | $-6$ | 84 | 287 | |
| Tax | $-2$ | $\overline{a}$ | $-27$ | $-83$ | 6 | $-5$ | $-23$ | $-89$ | |
| Net profit/loss for the period | $\mathbf 0$ | 36 | 76 | 174 | $-15$ | $-12$ | 61 | 198 | |
| Profit/loss attributable to shareholders of the Parent Company |
$\mathbf{0}$ | 36 | 48 | 158 | $-15$ | $-12$ | 33 | 182 |
| Corporate Finance | Asset Management and Banking | Other | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | |
| SEK M | lan-lun | lan-lun | Jan-Dec | lan-lun | lan-lun | lan-Dec | lan-lun | lan-lun | Jan-Dec | lan-lun | lan-lun | Jan-Dec |
| Net sales | 251 | 245 | 575 | 840 | 689 | 1.461 | $-12$ | $-9$ | $-29$ | 1.079 | 926 | 2,007 |
| Other operating income | $\overline{2}$ | 8 | $\vert \vert$ | $\overline{2}$ | 8 | $\vert \vert$ | $-$ | $-1$ | $-3$ | $\overline{\phantom{a}}$ | 15 | 20 |
| Total income | 253 | 253 | 586 | 842 | 697 | 1,473 | $-13$ | $-10$ | $-31$ | 1,081 | 940 | 2,027 |
| Assignment expenses and commission | $-32$ | $-19$ | $-64$ | $-222$ | $-177$ | $-374$ | 7 | 5 | 21 | $-247$ | $-191$ | $-417$ |
| Other external expenses | $-71$ | $-68$ | $-129$ | $-153$ | $-134$ | $-289$ | $-9$ | $-10$ | $-22$ | $-233$ | $-212$ | $-44$ |
| Personnel costs | $-142$ | $-138$ | $-322$ | $-277$ | $-251$ | $-532$ | $-12$ | $-8$ | $-24$ | $-431$ | $-397$ | $-878$ |
| Depreciation | $-2$ | $-2$ | $-4$ | $-10$ | $-6$ | $-13$ | $-0$ | $-()$ | $-0$ | $-13$ | $-9$ | $-18$ |
| Other operating expenses | $-2$ | $-2$ | $-7$ | $-4$ | $-7$ | $-9$ | $-8$ | $\overline{2}$ | $-14$ | $-7$ | $-14$ | |
| Operating profit/loss | 4 | 24 | 58 | 175 | 122 | 255 | $-35$ | $-22$ | $-55$ | 44 | 125 | 258 |
| Interest income | $\circ$ | $\circ$ | 0 | $\circ$ | 0 | $\perp$ | 12 | 22 | $\perp$ | 12 | 24 | |
| Interest expenses | $\overline{a}$ | $\Omega$ | $\theta$ | $-$ | $-1$ | $-1$ | $-5$ | $-5$ | $-10$ | $-7$ | $-5$ | $\sim$ $\mid$ $\mid$ |
| Other financial items | $\Omega$ | 8 | 221 | 216 | $\sim$ $\mid$ | 9 | 10 | 8 | 230 | 227 | ||
| Financial items-net | $-0$ | 2 | 8 | 221 | 215 | 5. | 15 | 22 | 12 | 237 | 239 | |
| Profit/loss before tax | $\overline{4}$ | 25 | 60 | 182 | 343 | 470 | $-31$ | $-7$ | $-33$ | 156 | 361 | 497 |
| Tax | $-5$ | 3 | $-10$ | $-49$ | $-106$ | $-132$ | 12 | $-4$ | $-42$ | $-108$ | $-141$ | |
| Net profit/loss for the period | $\overline{\phantom{a}}$ | 28 | 50 | 134 | 237 | 338 | $-19$ | $-11$ | $-31$ | $ $ 4 | 253 | 357 |
| Profit/loss attributable to shareholders of the Parent Company |
-1 | 28 | 50 | 86 | 183 | 253 | $-19$ | -11 | $-31$ | 66 | 199 | 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 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | ||||
| SEK M | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | |||
| Net sales | 130 | 2 | 187 | 42 | 172 | 73 | 222 | 155 | |||
| Other operating income | $\overline{2}$ | $\overline{2}$ | 6 | $\overline{4}$ | $\theta$ | ||||||
| Total income | 3 | 2 | 188 | 44 | 174 | 80 | 226 | 156 | |||
| Assignment expenses and commission | $-19$ | $-13$ | $-19$ | $-26$ | $-14$ | $-4$ | $-10$ | $-9$ | |||
| Other external expenses | $-33$ | $-38$ | $-32$ | $-29$ | $-33$ | $-36$ | $-39$ | $-30$ | |||
| Personnel costs | $-74$ | $-68$ | $-112$ | $-72$ | $-89$ | $-49$ | $-144$ | $-91$ | |||
| Depreciation | $-$ | $-1$ | $-1$ | $-1$ | $-$ | $-$ | $-$ | $-2$ | |||
| Other operating expenses | $-2$ | $-()$ | $-4$ | $-2$ | $-1$ | $-()$ | $-$ | $-0$ | |||
| Operating profit/loss | $\overline{2}$ | $\overline{2}$ | 20 | 4 | 36 | $-12$ | 32 | 24 | |||
| Interest income | $\circ$ | $\circ$ | $\circ$ | $\overline{0}$ | $\theta$ | $\circ$ | $\circ$ | $\theta$ | |||
| Interest expenses | $\overline{\phantom{a}}$ | $-$ | $-()$ | $\overline{0}$ | $\overline{0}$ | $\theta$ | $-()$ | $-0$ | |||
| Other financial items | $\Omega$ | $\Omega$ | $-()$ | $\Omega$ | $\circ$ | 5 | $\overline{0}$ | ||||
| Financial items-net | $-0$ | $-()$ | $-()$ | 5 | $\theta$ | ||||||
| Profit/loss before tax | $\overline{2}$ | $\overline{2}$ | 20 | 15 | 36 | $-11$ | 37 | 24 | |||
| Tax | $-2$ | $-3$ | $-8$ | $-4$ | 3 | $-4$ | $-11$ | ||||
| Net profit/loss for the period | $\mathbf 0$ | -1 | $\vert \vert$ | $\mathbf{1}$ | 36 | $-8$ | 32 | 3 | |||
| Profit/loss attributable to shareholders of the Parent Company | $\mathbf 0$ | $-1$ | $\mathsf{I}$ | $\perp$ | 36 | -8 | 32 | 3 |
| Asset Management and Banking | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | ||||
| SEK M | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | Apr-Jun | Jan-Mar | Oct-Dec | Jul-Sep | |||
| Net sales | 463 | 377 | 428 | 345 | 309 | 379 | 352 | 300 | |||
| Other operating income | $\Omega$ | $\overline{2}$ | $\overline{2}$ | $\overline{2}$ | 6 | ||||||
| Total income | 463 | 378 | 430 | 345 | 311 | 386 | 353 | 301 | |||
| Assignment expenses and commission | $-132$ | $-90$ | $-100$ | $-98$ | $-8$ | -96 | $-79$ | $-84$ | |||
| Other external expenses | $-78$ | $-76$ | $-90$ | -66 | $-78$ | $-55$ | $-67$ | $-55$ | |||
| Personnel costs | $-147$ | $-130$ | $-154$ | $-126$ | $-116$ | $-135$ | $-114$ | $-119$ | |||
| Depreciation | $-4$ | $-4$ | $-2$ | $-2$ | $-2$ | $-2$ | $-2$ | $-2$ | |||
| Other operating expenses | $-3$ | $-1$ | $\overline{2}$ | $-4$ | 8 | $-15$ | $\overline{a}$ | $-2$ | |||
| Operating profit/loss | 99 | 76 | 84 | 49 | 40 | 82 | 86 | 38 | |||
| Interest income | $\circ$ | $\circ$ | $\mathbf{0}$ | $\theta$ | $\circ$ | $\overline{0}$ | $\mathbf{0}$ | $\theta$ | |||
| Interest expenses | $-0$ | $-0$ | $-()$ | $-0$ | $-1$ | $-0$ | $-0$ | $-0$ | |||
| 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 | 103 | 80 | 80 | 47 | 257 | 86 | 86 | 39 | |||
| Tax | $-27$ | $-21$ | $-16$ | $-10$ | $-83$ | $-24$ | $-14$ | $-11$ | |||
| Net profit/loss for the period | 76 | 58 | 64 | 37 | 174 | 63 | 72 | 28 | |||
| Profit/loss attributable to shareholders of the Parent Company | 48 | 38 | 43 | 27 | 158 | 24 | 66 | 4 |
| Corporate Finance | Asset Management and Banking | Other | Group | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | 2017 30 Jun |
2016 30 Jun |
2016 31 Dec |
2017 30 Jun |
2016 30 Jun |
2016 31 Dec |
2017 | 2016 | 2016 31 Dec |
2017 | 2016 30 Jun |
2016 31 Dec |
| 30 Jun | 30 Jun | 30 Jun | ||||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Intangible assets | 62 | 62 | 62 | 301 | 257 | 300 | 50 | 50 | 50 | 413 | 369 | 412 |
| Property, plant and equipment | $\ \hspace{1mm}\ $ | $\ \; \ $ | $\vert \vert$ | 13 | 12 | 4 | $\mathbf{I}$ | $\mathbf{0}$ | 25 | 24 | 26 | |
| Holdings in associated companies | $\,0\,$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | 59 | 43 | 51 | 59 | 44 | 51 | |
| Other non-current securities | $\mathbf 0$ | $\,0\,$ | $\mathbb O$ | 168 | 40 | 136 | 259 | 248 | 246 | 427 | 388 | 382 |
| Deferred tax receivables | $\circ$ | $\,0\,$ | I. | 28 | 21 | 28 | 68 | 68 | 68 | 96 | 89 | 97 |
| Other non-current receivables | 6 | 5 | 5 | 716 | 536 | 771 | $-$ | $-()$ | $-$ 0 | 721 | 541 | 775 |
| 81 | 79 | 79 | 1,226 | 966 | 1,249 | 435 | 409 | 416 | 1,742 | 1,454 | 1,744 | |
| Current assets | ||||||||||||
| Current loan receivables | $\circ$ | $\,0\,$ | $\Large{0}$ | 656 | 564 | 577 | $\,0\,$ | $\mathbb O$ | 0 | 656 | 564 | 577 |
| Accounts receivable and other receivables | 120 | 44 | 162 | 460 | 379 | 327 | $\, 8$ | 13 | 5 | 588 | 536 | 493 |
| Current investments | $\,0\,$ | $\,0\,$ | $\mathbb O$ | 65 | 53 | 59 | 28 | 29 | 29 | 93 | 82 | 88 |
| Cash and cash equivalents | 42 | 195 | 237 | 2,161 | 2,165 | 2,408 | 67 | 163 | 105 | 2,371 | 2,522 | 2,750 |
| 263 | 338 | 399 | 3,342 | 3,162 | 3,370 | 104 | 205 | 138 | 3,709 | 3,705 | 3,907 | |
| Total assets | 343 | 4 7 | 478 | 4,568 | 4,128 | 4,619 | 539 | 614 | 554 | 5,451 | 5,159 | 5,651 |
| EQUITY AND LIABILITIES | ||||||||||||
| Equity | ||||||||||||
| Equity attributable to shareholders of the Parent Company |
78 | 222 | 254 | 941 | 789 | 859 | 558 | 474 | 451 | 1,577 | 1,484 | 1,563 |
| Non-controlling interests | 21 | 24 | 27 | 119 | 95 | 139 | $-{\cal O}$ | $-()$ | $-0$ | 40 | 119 | 167 |
| Total equity | 99 | 246 | 281 | 1,060 | 884 | 998 | 558 | 474 | 451 | 1,717 | 1,604 | 1,730 |
| Liabilities | ||||||||||||
| Non-current liabilities | ||||||||||||
| Borrowings | $\mathsf{L}$ | $\,0\,$ | $\mathbf 0$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | $\mathbf 0$ | $\mathbf 0$ | $\mathbf{L}$ | $\circ$ | $\circ$ |
| Long-term loan liabilities | $\hbox{O}$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | $\,0\,$ | 200 | $\mathbf 0$ | $\,0\,$ | 200 | $\circ$ |
| Deferred tax liabilities | $\rm{O}$ | $\,0\,$ | $\,0\,$ | 24 | 23 | 23 | $\mathbf{H}$ | $\vert \vert$ | $\vert \vert$ | 35 | 34 | 34 |
| Other provisions | 3 | $\overline{2}$ | 3 | $\,0\,$ | $\circ$ | 0 | 3 | 3 | 3 | |||
| $\mathsf{I}$ | $\overline{1}$ | $\mathsf{I}$ | 28 | 25 | 25 | 9 | 210 | $\vert \vert$ | 39 | 236 | 37 | |
| Current liabilities | ||||||||||||
| Borrowings | $\hbox{O}$ | $\,0\,$ | $\hbox{O}$ | 224 | 47 | 260 | $\,0\,$ | $\,0\,$ | $\,0\,$ | 224 | 47 | 260 |
| Current Ioan liabilities | $\hbox{O}$ | $\,0\,$ | $\,0\,$ | 2,551 | 2,576 | 2,606 | 202 | $\mathbb O$ | 200 | 2,753 | 2,576 | 2,806 |
| Accounts payable and other liabilities | 231 | 152 | 176 | 634 | 515 | 678 | $-219$ | $-74$ | $-115$ | 647 | 593 | 739 |
| Tax liabilities | 12 | 8 | 20 | 71 | 82 | 51 | $-12$ | $\overline{4}$ | 8 | 71 | 104 | 79 |
| 243 | 170 | 196 | 3,480 | 3,220 | 3,596 | $-28$ | $-70$ | 93 | 3,695 | 3,320 | 3,884 | |
| Total liabilities | 244 | 7 | 197 | 3,508 | 3,244 | 3,621 | $-19$ | 4 | 103 | 3,734 | 3,556 | 3,921 |
| Total equity and liabilities | 343 | 417 | 478 | 4,568 | 4,128 | 4,619 | 539 | 614 | 554 | 5,451 | 5,159 | 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 loan 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.
| 59 | 259 | 28 | 346 |
|---|---|---|---|
| $\overline{\phantom{a}}$ | 8 | ||
| $\overline{\phantom{a}}$ | 13 | ||
| 235 | 256 | ||
| 59 | $\sim$ | 59 | |
| Total | |||
| Holdings in associated | Other non-current companies |
securities Current investments |
Investment commitments
* The investments 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 Düsseldorf consisting of 1,000 apartments over a total of 38,075 m2.
Residential property development project located in Frankfurt consisting of 125 apartments and premises over a total of 4,258 m2.
The loan portfolios consist of securitised European loans mainly exposed to residential property. The progress of the loan
portfolios is closely monitored, and revaluations are made on a continuous basis. Forecasting is performed by French investment advisor Cartesia S.A.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 Luxembourgbased Nordic Light Fund, which has invested in loan portfolios and is managed by Catella Bank. The loan portfolios consist of loans to small and medium-sized companies, mainly located in Germany and Spain. In addition, the portfolios include a diversified pool of loans to small and mediumsized 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 realised income on investments to fund holders in the form of quarterly repurchases of units.
$\overline{24}$
Other holdings mainly consist of listed and unlisted 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 | 48.8 | 13.1% | 42.7 | 16.9% | 6.1% | 2.2 |
| Pastor 3 ** | Spain | $\sim$ | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\sim$ | ×, |
| Pastor 4 | Spain | 32.9 | 8.9% | 15.7 | 6.2% | 11.1% | 7.0 |
| Pastor 5 ** | Spain | × | ×, | ×, | ×, | ×, | $\sim$ |
| Lusitano 3 | Portugal | 84.0 | 22.6% | 68.3 | 27.0% | 6.1% | 3.7 |
| Lusitano 4 ** | Portugal | $\sim$ | ×. | $\overline{\phantom{a}}$ | ٠ | $\overline{\phantom{a}}$ | |
| Lusitano 5 | Portugal | 106.9 | 28.8% | 64.4 | 25.5% | 11.1% | 5.2 |
| Minotaure | France | 46.8 | 12.6% | 21.3 | 8.4% | 11.1% | 7.5 |
| Ludgate **** | UK | 51.9 | 14.0% | 40.3 | 15.9% | 11.1% | 2.5 |
| Sestante 2 ** | Italy | × | ×, | ×, | ×, | ||
| Sestante 3 ** | Italy | $\overline{\phantom{a}}$ | |||||
| Sestante 4 ** | Italy | × | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | ||
| Total cash flow *** | 371.4 | 100.0% | 252.7 | 100% | 8,9% | 4.5 | |
| Accrued interest | 3.4 | ||||||
| Carrying amount in consolidated balance sheet | 256.1 |
* The forecast was produced by investment advisor Cartesia S.A.S.
These investments were assigned a value of SFK 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 loan portfolio 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 investments, valuation is performed using the mark-tomodel method. This method is based on projecting cash flow until maturity for each investment using market-based credit assumptions. 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 Eurozone, 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 owner-ship of the same asset class. Some investments also include structural features by which more highly ranked securities that are secured or represented by ownership of the same asset class are prioritised 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 ** | Gems ** | Semper ** | Minotaure | Ludgate | Outcome | Forecast | Diff | |||
| Outcome | |||||||||||||||||
| Q4 | 2009 | 4.6 | 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 | ä, | i. | ×, | ×, | $\overline{\phantom{a}}$ | ×. | 0.8 | 1.6 | 0.2 | 1.5 | 1.9 | 0.3 | 9.5 | 6.3 | 3.3 |
| Q2 | 2010 | 2.3 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.7 | $\overline{\phantom{a}}$ | $\sim$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.3 | 0.1 | 9.3 | 15.5 | $-6.2$ |
| Q 3 | 2010 | 0.6 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 2.0 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.5 | 0.1 | 9.1 | 8.0 | $\left\vert .\right\vert$ |
| Q4 | 2010 | 1.5 | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\bar{z}$ | $\overline{\phantom{a}}$ | $\sim$ | 0.8 | 1.5 | 0.2 | 1.4 | 2.1 | 0.1 | 7.7 | 5.9 | 1.7 |
| $Q \mid$ | 2011 | 2.8 | ł, | ×, | ×, | 0.8 | $\frac{1}{2}$ | ä, | 0.8 | 1.5 | 0.2 | 1.3 | 1.2 | 0.1 | 8.6 | 6.5 | 2.1 |
| Q2 | 2011 | 3.4 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.7 | $\bar{z}$ | 0.2 | 0.8 | 1.4 | 0.2 | 1.4 | 1.9 | 0.1 | 14.3 | 7.1 | 7.1 |
| Q3 | 2011 | 2.0 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.2 | $\overline{\phantom{a}}$ | 0.2 | 0.8 | 1.5 | 0.2 | 1.5 | 2.2 | 0.1 | $ $ $ $ $ $ $ $ $ $ | 6.9 | 4.9 |
| $\mathbb{Q}4$ | 2011 | 1.5 | $\sim$ | $\overline{\phantom{a}}$ | $\sim$ | 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 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.3 | $\overline{\phantom{a}}$ | 0.2 | 0.8 | $\overline{\phantom{a}}$ | 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 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.2 | 1.3 | 1.2 | 0.0 | 7.8 | 8.7 | $-0.9$ |
| Q3 | 2012 | 0.8 | $\overline{\phantom{a}}$ | $\sim$ | $\sim$ | 2.5 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\sim$ | 0.1 | 1.3 | 0.9 | 0.0 | 5.7 | 7.7 | $-2.0$ |
| Q4 | 2012 | 0.1 | ÷, | ÷, | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | ÷, | 0.1 | $\overline{\phantom{a}}$ | ÷, | 0.1 | 1.2 | ×, | 0.0 | 1.5 | 6.8 | $-5.3$ |
| $\mathop{\mathrm{Q}}$ | 2013 | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | ×, | ÷, | 0.1 | ×, | $\overline{\phantom{a}}$ | 0.1 | 1.2 | ÷, | 0.1 | 1.5 | 1.5 | $-0.0$ |
| Q2 | 2013 | $\sim$ | × | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\sim$ | 0.1 | ä, | $\sim$ | $\overline{\phantom{a}}$ | 0.2 | 2.3 | $-2.1$ |
| Q3 | 2013 | 0.1 | ÷, | ÷, | $\overline{\phantom{a}}$ | 1.7 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{m}}$ | $\overline{\phantom{a}}$ | 0.1 | 2.2 | 2.6 | $-0.4$ | |
| Q 4 | 2013 | $\sim$ | ÷, | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{1.0}$ | ÷, | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\ .\ $ | $\ .\ $ | 0.0 |
| $Q \mid$ | 2014 | $\sim$ | $\sim$ | ×, | $\overline{\phantom{a}}$ | 1.6 | $\overline{\phantom{a}}$ | 0.1 | ×. | $\overline{\phantom{a}}$ | 0.1 | $\bar{z}$ | $\bar{a}$ | 0.0 | 1.9 | $\overline{1.0}$ | $0.8\,$ |
| Q2 | 2014 | $\overline{\phantom{a}}$ | i, | $\sim$ | $\sim$ | 0.7 | $\overline{\phantom{a}}$ | 0.1 | ×, | $\overline{\phantom{a}}$ | 0.1 | $\overline{\phantom{a}}$ | ÷, | 2.6 | 3.5 | 0.3 | 3.3 |
| Q3 | 2014 | $\bar{z}$ | ×, | $\overline{\phantom{a}}$ | 2.2 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | ×. | ÷, | 5.2 | 7.7 | 5.9 | $\vert .8$ | |
| 2014 | 0.3 | $\sim$ | ×. | 2.2 | $\bar{z}$ | 0.1 | 0.1 | $\bar{z}$ | 5.2 | 7.9 | 5.7 | 2.2 | |||||
| Q4 | 0.0 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.3 | $-0.2$ | |||||||||
| $\mathop{\mathrm{Q}}$ | 2015 2015 |
0.0 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\vert \hspace{0.5pt} \vert$ , $\vert \hspace{0.5pt} \vert$ $\overline{1.0}$ |
$\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 0.1 |
$\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 4.5 | 5.6 5.7 |
5.8 5.9 |
$-0.2$ |
| Q2 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | |||||||||
| Q3 | 2015 | 0.0 | $\overline{\phantom{a}}$ | ×, | $\overline{\phantom{a}}$ | 0.7 | $\overline{\phantom{a}}$ | 0.1 | $\sim$ | $\overline{\phantom{a}}$ | 0.1 | $\bar{z}$ | $\overline{\phantom{a}}$ | 5.1 | 6.0 | 6.1 | $-0.1$ |
| Q4 | 2015 | $\sim$ | ÷, | ä, | ×, | $\overline{1.0}$ | $\overline{\phantom{a}}$ | 0.1 | ×, | $\overline{\phantom{a}}$ | 0.1 | ä, | ÷, | 3.1 | 4.3 | 5.4 51.3 |
$-1.2$ $\left\vert .\right\vert$ |
| Q1 | 2016 | ×, 0.1 |
i, ×, |
$\overline{a}$ ×, |
×, ×. |
1.7 | $\overline{\phantom{a}}$ | 0.1 0.1 |
$\sim$ | $\overline{\phantom{a}}$ ×, |
46.7 ÷, |
÷, $\overline{\phantom{a}}$ |
÷, ÷, |
3.9 4.0 |
52.4 6.2 |
5.4 | 0.9 |
| Q2 | 2016 2016 |
2.0 0.9 |
$\overline{\phantom{a}}$ ×, |
0.1 | $\sim$ | 3.4 | 4.5 | 5.0 | $-0.5$ | ||||||||
| Q3 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | 3.7 | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | |||||||
| Q4 | 2016 2017 |
$\overline{\phantom{a}}$ $\bar{z}$ |
÷, $\sim$ |
$\overline{\phantom{a}}$ ×, |
$\overline{\phantom{a}}$ $\overline{\phantom{a}}$ |
1.5 | $\overline{\phantom{a}}$ $\sim$ |
0.1 | $\overline{\phantom{a}}$ ×, |
$\overline{\phantom{a}}$ ×, |
$\overline{\phantom{a}}$ $\bar{a}$ |
$\overline{\phantom{m}}$ $\overline{\phantom{a}}$ |
$\overline{\phantom{a}}$ $\bar{a}$ |
3.4 2.6 |
7.2 4.1 |
5.2 5.0 |
2.1 $-0.9$ |
| Q١ | $\bar{z}$ | 5.5 | |||||||||||||||
| Q2 Total |
2017 | ×, 27.2 |
×, 0.0 |
×, 0.0 |
× 0.0 |
1.9 49.3 |
$\bar{a}$ 0.8 |
$\overline{\phantom{a}}$ 2.9 |
ä, 8.4 |
×, 12.2 |
÷, 50.4 |
ä, 19.4 |
×, 21.7 |
3.5 52.0 |
244.2 | 5.6 222.7 |
$-0.1$ 21.5 |
| Forecast | |||||||||||||||||
| Forecast | Quarter/ Year |
Acc. | |||||||||||||||
| Q3 | 2017 | 0.1 | $1.7\,$ | 3.2 | $5.0\,$ | $5.0\,$ | |||||||||||
| $\mathbb{Q}4$ | 2017 | 0.0 | ÷, | 2.3 | 3.1 | 5.4 | 10.4 | ||||||||||
| Full year | 2018 | 0.2 | $\overline{\phantom{a}}$ | 11.2 | $\overline{\phantom{a}}$ | ÷, | 11.3 | 22.6 | 33.0 | ||||||||
| Full year | 2019 | 48.5 | $\overline{\phantom{a}}$ | 17.2 | ÷, | 9.6 | 75.2 | 108.2 | |||||||||
| Full year | 2020 | ÷, | 27.2 | 41.9 | ÷, | 7.6 | 76.7 | 185.0 | |||||||||
| Full year | 2021 | $\overline{\phantom{a}}$ | 3.1 | 35.6 | ÷, | 17.0 | 55.7 | 240.7 | |||||||||
| Full year | 2022 | $\overline{\phantom{a}}$ | 2.8 | 3.1 | $\overline{\phantom{a}}$ | 5.9 | 246.6 | ||||||||||
| Full year | 2023 | $\overline{\phantom{a}}$ | 2.5 | 2.5 | 8.2 | 13.2 | 259.8 | ||||||||||
| Full year | 2024 | 32.9 | 2.2 | 2.2 | 18.6 | 55.9 | 315.7 | ||||||||||
| Full year | 2025 | 13.9 | 1.9 | 20.1 | 35.8 | 351.6 | |||||||||||
| Full year | 2026 | 1.6 | 1.6 | 353.2 | |||||||||||||
| Full year | 2027 | 1.3 | 1.3 | 354.5 | |||||||||||||
| Full year | 2028 | 16.9 | 16.9 | 371.4 | |||||||||||||
| Total | 48.8 | 0.0 | 32.9 | 0.0 | 84.0 | 106.9 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 46.8 | 51.9 | 371.4 | |||
f 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.
| SEK M | 30 June 2017 |
|---|---|
| Loan portfolio and Nordic Light Fund * | 272 |
| Operation-related investments | 200 |
| Other securities | 48 |
| Total ** | 52 |
* of which Loan portfolios SEK 256 M.
** of which short-term investments SEK 93 M and long-term investments SEK 427 M.
In accordance with IFRS 7, financial instruments are recognised 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. Ob-
servable 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 of 30 June 2017 are stated in the following table.
| SEK M | Tier | Tier 2 | Tier 3 | Гоtal |
|---|---|---|---|---|
| ASSETS | ||||
| Derivative instruments | 17 | 17 | ||
| Financial assets available for sale | 50 | 50 | ||
| Financial assets measured at fair value through profit or loss |
55 | $ $ 4 | 284 | 453 |
| Total assets | 55 | 8 | 284 | 521 |
| LIABILITIES | ||||
| Derivative instruments | 10 | 10 | ||
| Total liabilities | 10 | 0 | $\overline{0}$ |
No changes between levels occurred the previous year.
| 2017 | |
|---|---|
| as of I January | 270 |
| Purchases | 9 |
| Disposals | $\mathbf{-}$ |
| Amortisation | $-5$ |
| Gains and losses recognised through profit or loss | $\overline{2}$ |
| Capitalised interest income | 6 |
| Exchange rate differences | 3 |
| At 30 June | 284 |
Certain assets and liabilities are net recognized where conditions for net recognition apply, e.g. the right to offset, in accordance with Catella's accounting principles. The
following assets and liabilities were net recognized as of the respective reporting dates.
| 2.017 | 2016 | 2016 | |
|---|---|---|---|
| SEK M | 30 Jun | 30 lun | 31 Dec |
| Receivable on not yet available bond funds | 495 | ||
| Less: Debt attributable to unavailable funds | $-495$ | ||
The above funds relate to the new 5-year unsecured bond loan. The funds became
available to Catella on 20 July 2017 and net recognition does not occur after that date.
| 248 | 228 | 24 I | |
|---|---|---|---|
| Other pledged assets | 49 | 50 | |
| Cash and cash equivalents | 199 | 178 | 188 |
| Securities | |||
| SEK M | 30 Jun | 30 lun | 31 Dec |
| 2017 | 2016 | 2016 |
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.
| 49 | 564 | ||
|---|---|---|---|
| Other contingent liabilities | |||
| Client funds managed on behalf of clients | 40 | 552 | |
| SFK M | 30 Jun | 30 lun | 31 Dec |
| 2.017 | 2016 | 2016 |
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 relate to guarantee commitments primarily provided for rental contracts with landlords.
| 2,693 | 2.054 | 2,420 | |
|---|---|---|---|
| Other commitments | |||
| Investment commitments | 24 | 48 | |
| Currency forwards | 0 | ||
| Unutilised credit facilities, granted by Catella Bank | 2.662 | 2.054 | 2.366 |
| SFK M | $30 \mid$ un | 30 lun | 31 Dec |
| 2,017 | 2016 | 2016 |
Unutilized credit facilities 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 matters that 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), ÅRKL, stipulates that consolidated accounts shall be prepared for a consolidated financial situation. Catella
complies with this requirement by supplying the information contained in this note on the consolidated financial situation's accounts in accordance with ARKL The accounting principles indicated in Other financial information have been applied when preparing these financial statements, and are consistent with ÅRKL. 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-Jun | Jan-Jun | Jan-Dec |
| Net sales | 813 | 669 | 1,392 |
| Other operating income | 8 | $\vert \vert$ | |
| Total income | 814 | 678 | 1,403 |
| Assignment expenses & commission | $-224$ | $-177$ | $-379$ |
| Income excl. direct assignment costs and commission | 590 | 501 | 1,024 |
| Operating expenses | $-432$ | $-393$ | $-823$ |
| Operating profit/loss | 158 | 108 | 201 |
| Financial items-net | 85 | 231 | 253 |
| Profit/loss before tax | 243 | 339 | 454 |
| Appropriations | $\mathbf{0}$ | $\circ$ | $\overline{2}$ |
| Tax | $-38$ | $-103$ | $-122$ |
| Net profit/loss for the period | 205 | 235 | 334 |
| Profit/loss attributable to: | |||
| Shareholders of the Parent Company | 157 | 182 | 249 |
| Non-controlling interests | 48 | 54 | 85 |
| 205 | 235 | 334 | |
| Employees at end of period | 345 | 319 | 335 |
| 2017 | 2016 | 2016 | |
|---|---|---|---|
| SEK M | $30 \, \text{lun}$ | 30 Jun | 31 Dec |
| Non-current assets | 1,650 | 1.376 | 1,672 |
| Current assets | 3,527 | 3,408 | 3,532 |
| Total assets | 5,177 | 4,783 | 5,204 |
| Equity | 1,581 | 385، | 1,497 |
| Liabilities | 3.595 | 3.398 | 3,707 |
| Total equity and liabilities | 5,177 | 4.783 | 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 Jun | 30 Jun | 31 Dec |
| Core tier I capital | 918 | 749 | 725 |
| Other tier I capital | $\overline{0}$ | $\mathbf{0}$ | $\,0\,$ |
| Tier 2 capital | $\overline{0}$ | $\mathbf{0}$ | $\mathbf{0}$ |
| Capital base | 918 | 749 | 725 |
| Total risk-weighted exposure | 5,281 | 4,114 | 4,440 |
| CAPITAL ADEQUACY AND BUFFERS | |||
| Capital adequacy pillar I | 422 | 329 | 355 |
| of which capital adequacy requirement for credit risk | 227 | 171 | 196 |
| of which capital adequacy requirement for market risk | 69 | 62 | 64 |
| of which capital adequacy requirement for operational risk | 127 | 96 | 96 |
| Capital adequacy pillar 2 | 4 | 94 | 100 |
| Institution-specific buffer requirements | 163 | 118 | 129 |
| Internal buffer | 53 | 4 1 | 44 |
| Total capital adequacy and buffer requirement | 780 | 582 | 629 |
| Capital surplus after capital adequacy and buffers requirements | 139 | 167 | 96 |
| Capital surplus after regulatory required capital adequacy and buffers | 9 | 208 | 4 |
| CAPITAL RELATIONS, % OF TOTAL RISK-WEIGHTED EXPOSURE AMOUNT | |||
| Core tier capital ratio | 17.4 | 18.2 | 16.3 |
| Tier capital ratio | 17.4 | 18.2 | 16.3 |
| Total capital ratio | 17.4 | 18.2 | 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 | 2.7 | 2.3 | 2.3 |
| Institution-specific buffer requirements | 3.1 | 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 | 0.6 | 0.4 | 0.4 |
| Internal buffer | $\overline{0}$ . | 1.0 | 1.0 |
| Total capital adequacy and buffer requirement | 14.8 | 4.1 | 14.2 |
| Capital surplus after capital adequacy and buffers requirements | 2.6 | 4.1 | 2.2 |
| Capital surplus after regulatory required capital adequacy and buffers | 3.6 | 5.1 | 3.2 |
Catella AB's consolidated financial situation satisfies the minimum capital base requirement.
| 2017 | 2016 | 2016 | |
|---|---|---|---|
| Capital base, SEK M | 30 Jun | 30 Jun | 31 Dec |
| Core tier I capital | |||
| Share capital and share premium reserve | 399 | 399 | 399 |
| Retained earnings and other reserves | 1,182 | 986 | 1,097 |
| Less: | |||
| Intangible assets | $-318$ | $-285$ | $-317$ |
| Price adjustments | $-28$ | $-28$ | $-27$ |
| Deferred tax receivables | $-68$ | $-88$ | $-67$ |
| Positive results not yet verified by the Annual General Meeting | $-205$ | $-235$ | $-334$ |
| $\sim$ | |||
|---|---|---|---|
| Other deductions | $-4$ | -27 | |
| Total core tier I capital | 918 | 749 | 725 |
| Other tier I capital | $\sim$ | ||
| Tier 2 capital and the control of the con- |
$\sim$ | ||
| Capital base | 918 | 749 | 725 |
| 2017 30 Jun |
2016 30 Jun |
2016 31 Dec |
||||
|---|---|---|---|---|---|---|
| Specification of risk-weighted exposure amounts and capital adequacy requirement pillar 1, SEK M |
exp.amount | Risk-weighted Capital adequacy pillar I |
exp.amount | Risk-weighted Capital adequacy pillar I |
exp.amount | Risk-weighted Capital adequacy pillar |
| Credit risk according to standardised method | ||||||
| Exposures to institutions | 492 | 39 | 441 | 35 | 451 | 36 |
| Exposures to corporates | 747 | 60 | 425 | 34 | 852 | 68 |
| Exposures to retail | 3 | $\theta$ | 202 | 16 | 123 | 10 |
| Exposures secured by mortgages on real property | 298 | 24 | 128 | $ 0\rangle$ | 286 | 23 |
| Exposures in default | 275 | 22 | 226 | 18 | 277 | 22 |
| Items associated with particular high risk | 174 | 4 | $\Omega$ | $\mathbf{0}$ | 134 | $\vert$ |
| Exposures in the form of covered bonds | 3 | $\Omega$ | $\overline{2}$ | $\Omega$ | 3 | $\overline{0}$ |
| Exposures to collective investment undertakings (funds) | 4 | 120 | 10 | 16 | ||
| Equity exposures | 128 | 10 | 79 | 6 | 129 | 10 |
| Other items | 701 | 56 | 512 | 41 | 175 | 4 |
| 2,835 | 227 | 2.135 | 7 | 2,446 | 196 | |
| Market risk | ||||||
| Interest risks | $\mathbf{0}$ | $\overline{0}$ | $\Omega$ | $\mathbf{0}$ | $\circ$ | $\mathbf{0}$ |
| Exchange rate risks | 857 | 69 | 780 | 62 | 795 | 64 |
| 857 | 69 | 780 | 62 | 795 | 64 | |
| Operational risk according to basic method | 1,589 | 127 | 1.199 | 96 | 1.199 | 96 |
| Total | 5,281 | 422 | 4.114 | 329 | 4,440 | 355 |
| 2017 | 2016 | 2017 | 2016 | 2016 | |
|---|---|---|---|---|---|
| SEK M | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec |
| Net sales | 3.0 | 2.1 | 6.1 | 4.3 | 9.1 |
| Other operating income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total income | 3.0 | 2.1 | 6.2 | 4.3 | 9.2 |
| Other external expenses | $-8.1$ | $-7.2$ | $-14.4$ | $-12.9$ | $-29.7$ |
| Personnel costs * | $-7.4$ | $-5.8$ | $-15.2$ | $-11.0$ | $-30.4$ |
| 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 | $-12.5$ | $-10.9$ | $-23.5$ | $-19.7$ | $-51.0$ |
| Profit/loss from participations in group companies | 90.0 | 0.0 | 90.0 | 0.0 | 0.3 |
| Interest income and similar profit/loss items | 0.0 | 1.7 | 0.0 | 3.7 | 6.6 |
| Interest expenses and similar profit/loss items | $-5.9$ | $-2.5$ | $-8.2$ | $-5.0$ | $-9.8$ |
| Financial items | 84.2 | $-0.7$ | 81.8 | $-1.3$ | $-3.0$ |
| Profit/loss before tax | 71.6 | $-11.6$ | 58.3 | $-21.0$ | $-54.0$ |
| 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 | 71.6 | $-11.6$ | 59.2 | $-21.0$ | $-15.0$ |
* Personnel costs include directors' fees
| SEK M | 2017 Apr-Jun |
2016 Apr-Jun |
2017 lan-lun |
2016 lan-lun |
2016 Jan-Dec |
|---|---|---|---|---|---|
| Net profit/loss for the period | 71.6 | $-11.6$ | 59.2 | $-21.0$ | $-15.0$ |
| 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 | 71.6 | $-11.6$ | 59.2 | $-21.0$ | $-15.0$ |
| SEK M | 2017 30 Jun |
2016 30 Jun |
2016 31 Dec |
|---|---|---|---|
| Property, plant and equipment | 0.1 | 0.1 | $\vert 0.1 \vert$ |
| Participations in Group companies | 654.4 | 523.2 | 519.1 |
| Deferred tax receivables | 19.8 | 18.9 | 18.9 |
| Current receivables from Group companies | 14.9 | 145.2 | 164.9 |
| Other current receivables | 10.4 | 6.0 | 5.9 |
| Cash and cash equivalents | 31.4 | 31.2 | 31.3 |
| Total assets | 731.0 | 724.5 | 740.1 |
| Equity | 512.8 | 513.1 | 519.0 |
| Non-current liabilities | 0.0 | 199.3 | 0.0 |
| Other current liabilities | 218.2 | 12.2 | 221.0 |
| Total equity and liabilities | 731.0 | 724.5 | 740.1 |
There were no assets pledged or contingent liabilities as of 30 June 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 items in the Income Statement and Balance Sheet.
| Non-IFRS performance measures | 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 assess 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
| Calculation of performance measures for the Group | ||||||
|---|---|---|---|---|---|---|
| -- | -- | --------------------------------------------------- | -- | -- | -- | -- |
| 3 Months | 6 Months | 12 Months | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | |||||||||||
| GROUP | Apr-Jun | Apr-Jun | lan-lun | Jan-Jun | 12 Months | Jan-Dec | ||||||||||
| Net profit/loss for the period, SEK M | 61 | 198 | $ $ 4 | 253 | 218 | 357 | ||||||||||
| Total income. SEK M | 587 | 478 | 1,081 | 940 | 2168 | 2027 | ||||||||||
| Profit margin, % | $ 0\rangle$ | 4 1 | $\vert \vert$ | 27 | $\overline{0}$ | 8 | ||||||||||
| Equity, SEK M | $\sim$ | 1,717 | 1.604 | 1730 | ||||||||||||
| Total assets, SEK M | ×. | 5,451 | 5,159 | 5651 | ||||||||||||
| Equity/Asset ratio, % | $\blacksquare$ | 32 | 31 | 31 | ||||||||||||
| Net profit/loss for the period, SEK M * | 33 | 182 | 66 | 199 | 139 | 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 * | 0.40 | 2.23 | 0.81 | 2.44 | 1.69 | 3.32 | ||||||||||
| Equity, SEK M * | ×. | 1,577 | 1.484 | 1563 | ||||||||||||
| No. of shares at end of the period | $\sim$ | 81,848,572 81,848,572 | $- 81,848,572$ | |||||||||||||
| Equity per share, SEK * | ٠ | 19.27 | 18.14 | $\overline{\phantom{a}}$ | 19.10 | |||||||||||
| 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | |
| GROUP | Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec | Jul-Sep | ||||||||||||||
| Net profit/loss for the period, SEK M * | 33 | 33 | 37 | 35 | 182 | 17 | 122 | 38 | 48 | 35 | 96 | 21 | 85 | 15 | $-4$ | $\overline{10}$ |
| Equity, SEK M * | 1,577 | 1,597 | 1,563 | 1,534 | 1,484 | 1,333 | 1,319 | 1,233 | 1,177 | 1,151 | 1,164 | 1,041 | 1,027 | 920 | 904 | 888 |
| Return on equity, % | 9 | 9 | 9 | 26 | 27 | 8 | 20 | 9 | 8 | 22 | 21 | 2 |
| 3 Months . | 6 Months | 12 Months | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 Rolling |
2016 | ||||||||||||
| CORPORATE FINANCE | Apr-Jun | Apr-Jun | lan-lun | Jan-Jun | 12 Months | Jan-Dec | ||||||||||
| Net profit/loss for the period, SEK M | $\Omega$ | 36 | 28 | 21 | 50 | |||||||||||
| Total income, SEK M | 3 | 174 | 253 | 253 | 585 | 586 | ||||||||||
| Profit margin, % | 21 | $\mathbf 0$ | $\mathsf{I}$ | 9 | ||||||||||||
| Equity, SEK M | $\sim$ | 99 | 246 | 281 | ||||||||||||
| Total assets. SEK M | $\sim$ | 343 | 417 | 478 | ||||||||||||
| Equity/Asset ratio, % | $\overline{a}$ | 29 | 59 | 59 | ||||||||||||
| 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | |
| CORPORATE FINANCE | Apr-Jun Jan-Mar Oct-Dec | Jul-Sep Apr-Jun Jan-MarOct-Dec | Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep Apr-Jun Jan-Mar Oct-Dec Jul-Sep | |||||||||||||
| Net profit/loss for the period, SEK M * | $\circ$ | $\sim$ | 36 | $-8$ | 32 | 13 | 16 | $-15$ | 42 | 5. | 16 | $-9$ | $\overline{4}$ | 17 | ||
| Equity, SEK M * | 78 | 177 | 254 | 237 | 222 | 206 | 213 | 183 | 7 | 187 | 206 | 144 | 43 | 138 | 287 | 284 |
| Return on equity, % | П | 26 | 22 | 34 | 37 | 28 | 24 | $\overline{3}$ | 28 | 30 | 30 | 8 |
| 3 Months | 6 Months | 12 Months | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2017 | 2016 | 2017 | 2016 | Rolling | 2016 | ||||||||||||
| ASSET MANAGEMENT AND BANKING | Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | 12 Months | Jan-Dec | |||||||||||
| Net profit/loss for the period, SEK M | 76 | 174 | 134 | 237 | 235 | 338 | |||||||||||
| Total income, SEK M | 463 | 311 | 842 | 697 | 1617 | 1473 | |||||||||||
| Profit margin, % | 16 | 56 | 16 | 34 | 15 | 23 | |||||||||||
| Equity, SEK M | $\sim$ | 1.060 | 884 | 998 | |||||||||||||
| Total assets. SEK M | $\overline{\phantom{a}}$ | 4.568 | 4.128 | 4619 | |||||||||||||
| Equity/Asset ratio, % | $\overline{a}$ | 23 | 21 | 22 | |||||||||||||
| 2017 | 2017 | 2016 | 2016 | 2016 | 2016 | 2015 | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | 2014 | 2013 | 2013 | ||
| ASSET MANAGEMENT AND BANKING | Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep Apr-Jun Jan-MarOct-Dec Jul-Sep | ||||||||||||||||
| Net profit/loss for the period. SEK M * | 48 | 38 | 43 | 27 | 158 | 24 | 66 | 4 | 18 | 44 | 26 | 20 | 9 | $-8$ | $-5$ |
22
$15$
$12$
$\overline{7}$
* Attributable to shareholders of the Parent Company.
Equity, SEK M *
Return on equity, %
$\overline{\phantom{0}}$ 18
33 34
38 39
Catella AB (publ)
P.O. Box 5894, 102 40 Stockholm, Sweden | Visitors: Birger Jarlsgatan 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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