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Catella
Earnings Release • May 5, 2023
3024_10-q_2023-05-05_41555bab-c6d6-47ce-ace4-4876fc5feb1d.pdf
Earnings Release
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A calm quarter with continued investments for the future
"A cautious transaction market affected all Catella's business areas during the quarter. We continued to work on the next generation of funds, investments, and mandates aimed at supporting growth in assets under management and profitability going forward. With a strong flnancial position we are well-equipped to continue growing the company through investment in digitalisation and capital raising, exploration of M&A opportunistic investments together with partners, and the launch of new sustainability-profiled products in a new market environment."
Christoffer Abramson, CEO and President
Progress during the quarter
Financial results
- · Total income in the quarter amounted to SEK 462 M (581).
- · Operating profit was SEK 7 M (215).
- Operating profit attributable to Catella's shareholders was SEK -2.
- · Profit attributable to Catella's shareholders was SEK -8 M (79).
- · Earnings per share was SEK -0.09 (0.90).
Assets under management
- · Assets under management amounted to SEK 141 Bn at the end of the period, an increase of SEK 15 Bn compared to the first quarter of 2022.
- · The sale of Catella's shares in the French company Catella Hospitality Europe SAS affected AUM by SEK -2 Bn.
Principal investments
• Total investments amounted to SEK 1,211 M (1,319) at the end of the period, divided between property, logistics, offices, and retail projects across Europe.
CFO COMMENTS
"A calm quarter with continued investments for the future"
The transaction market was still cautious at the start of the year, which affected all three of Catella's business areas. Transaction volumes fell 67 percent year-on-year, the biggest decrease since the financial crisis in the late 2000s. Before buyers' and sellers' expectations align, we must work with these market conditions and continue to focus on long-term value creation.
With a strong 2022 behind us and a solid financial position, we are well-positioned to continue growing the company through investments in digitalisation and capital raising, evaluation of M&A opportunities, opportunistic investments, and the launch of new products.
In April, we welcomed Gianluca Romano, who will help to strengthen our capacity to raise capital. With Gianluca on our team, we can further utilise our unique local expertise, long experience and European investment strategy to promote future growth. With an extensive background as an advisor to institutional investors and asset managers, he will sharpen Catella's strategy and work with global institutional investors.
Stable assets under management in an inactive investment market
Assets under management totalled SEK 141 Bn at the end of the quarter, an increase of 12 percent year-on-year, but unchanged since the start of the year. Our shares in Catella Hospitality Europe were divested during the quarter, resulting in an outflow of SEK 2 Bn in assets under management. The decision to sell the platform to partners was based on profitability not meeting our targets. The transaction generated a profit of SEK 5 M and will contribute to a stronger underlying operating margin going forward.
The sluggish transaction market also resulted in lower variable income in the business area. However, due to the growth in previous years, the underlying income base from fixed management fees is strong. Operating profit of more than SEK 30 M proves the resilience of our underlying business model, with solid profitability despite the slow transaction market. Despite a limited inflow of new capital, we view 2023 with a certain optimism as we continue to have a large pipeline of transactions to complete, and capital commitments of approximately SEK 10 Bn at the end of the quarter
Stronger focus on liquidity and completion of existing investments
During the quarter, Catella signed an agreement relating to the sale of a logistics facility in Vaggeryd. The sale will generate a singledigit profit in SEK M, which will be recognised in the second quarter and further materially strengthen our liquidity.
In today's market characterised by uncertainty, low activity, and re-
pricing, we expect divestments of completed projects to be limited during 2023. However, thanks to our financial position, we can afford to delay the divestment of completed and cash flow positive properties. At the same time, we are flexible and ready to utilize liquidity for other investment opportunities that we are actively working with currently.
We have not invested in any new projects since the start of the year and are instead continuing to develop existing projects, albeit at a slower pace. At the end of the quarter, Principal Investments' investments in six countries totalled approximately SEK 1.2 Bn in 10 projects.
A weak quarter for the advisory services market
The first quarter is seasonally the least active from a historical perspective. This quarter was exceptionally weak, with transaction volumes plummeting by 67 percent in Europe and by a hefty 75 percent in Sweden. The lack of activity in the market also caused Corporate Finance's income to fall to SEK 66 M (88). However, the loss was slightly reduced by decisions taken in the first quarter 2022 to focus our operations to five countries.
Well-positioned for long-term value creation
Although profit in the quarter was hampered by a slow transaction market, we have further strengthened our liquidity at Group level and still have plenty of capital to increase our fund investments. In a continued turbulent market, we benefit from our strong financial position and strong local asset management expertise, which is more important now than ever. This enables us to continue building on the value potential of our pan-European platform and opportunities to scale our offering, broaden our customer relationships, and build long-term value.
Christoffer Abramson, CEO and President Stockholm, Sweden, 05 May 2023
Comments on the Group's progress
Profit and comments on page 3-8 relate to Operating profit attributable to Catella AB's shareholders, which is consistent with the internal reporting delivered to Group Management and the Board. The difference to the Group's formal Income Statement is that deductions have been made in the Income Statement for profit attributable to shareholders with non-controlling interests. A full reconciliation can be found in Note 1.
| nvestment | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Management | Principal Investments | Corporate Finance | Other | Group | ||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
| SEK M | lan-Mar | lan-Mar | lan-Mar | lan-Mar | lan-Mar | lan-Mar | lan-Mar | lan-Mar | lan-Mar | lan-Mar |
| Net sales | 241 | 225 | 46 | 24 | 80 | ત્ત્વે જેવ | 0 | -12 | 367 | 333 |
| Other operating income | 9 | 6 | 84 | 238 | 2 | 2 | વે છ | 248 | ||
| Total income | 250 | 231 | 131 | 262 | 81 | ರಿಕ | - d | 462 | 581 | |
| Provisions, direct assigment and production costs | -43 | -35 | -82 | -34 | -15 | -10 | -0 | l 2 | -139 | -67 |
| Other external expenses | -51 | -42 | - 4 | -12 | -28 | -37 | -2 | -3 | -95 | -94 |
| Personnel costs | -113 | -97 | - ୧ | - | -52 | -68 | -20 | - | -201 | -187 |
| Depreciation | -9 | -9 | -2 | -3 | -5 | -5 | -2 | -2 | - 19 | -18 |
| Other operating expenses | - | -3 | -0 | -0 | 2 | 2 | -2 | 0 | ||
| Less profit attributable to non-controlling interests | -2 | -0 | -5 | -104 | 0 | 0 | - - | -0 | -8 | -104 |
| Operating profit/loss | 31 | 47 | ರಿ | 97 | -20 | -22 | -22 | - 2 | -2 | |
| Interest income | 16 | 8 | ||||||||
| Interest expenses | -40 | -18 | ||||||||
| Other financial items | 25 | -9 | ||||||||
| Financial items-net | -19 | |||||||||
| Profit/loss before tax | - | 92 | ||||||||
| Tax | -7 | -12 | ||||||||
| Net profit/loss for the period * | -8 | 79 |
* Profitillos for the period is reconciled in Note I. Income Statement by business area - Profitilloss attributable to the Pareholders
Group net sales and profit/loss First quarter 2023
The Group's net sales totalled SEK 367 M (333) and the Group's total income amounted to SEK 462 M (581), of which SEK 250 M (23 I ) relates to Investment Management, SEK 131 M (262) to Principal Investments and SEK 81 M (98) to Corporate Finance. The increase in net sales during the period is mainly attributable to higher fixed management fees in Investment Management and rental income from the Kaktus residential project in Principal Investments. Corporate Finance's net sales decreased partly due to discontinued or divested operations in Germany and the Baltics, and partly due to lower fees in a sluggish transaction market. Moreover, Principal Investments recognised revenue for the project Barcelona Logistics during the period, which generated income of SEK 73 M. The previous year included the divestment of the logistics project Infrahubs Norrköping, which generated income of SEK 233 M during the period.
The Group's operating profit was SEK -2 M ( I I I ), with the year-on-year decrease
primarily attributable to an absence of sales in Principal Investments. Moreover, the Group's fixed payroll expenses rose due to a higher number of employees.
Comments on the progress of each operating segment can be found on pages 6-I O.
The Group's net financial income/expense was SEK I M (-19) and included interest income of SEK 16 M (8) and loan arrangement fees of SEK 40 M (18). Increased interest expenses are attributable partly to Catella AB's bond loan, which accrues floating-rate interest at 3-month Stibor plus 475 b.p, and partly to the Kaktus project, for which interest expenses attributable to the completed residential properties are recognised in the Income Statement as of I January 2023. Net financial income/expense also includes profit of SEK 5 M from the sale of Catella's shares in the French company Catella Hospitality Europe SAS to the company's local management, which is also the minority shareholder. The valuation of securities holdings and investments at fair value resulted in a value adjustment of SEK 6 M (-
19), attributable to Pamica. Net financial income/expense also includes positive exchange rate differences of SEK 13 M (10) due to revaluations of receivables and cash equivalents in foreign currencies.
The Group's profit/loss before tax amounted to SEK - I M (92) and profit/loss for the period was SEK -8 M (79) which corresponded to earnings per share of SEK -0.09 (0.90) to the Parent Company shareholders.
Significant events in the quarter
On 24 February, Mattias Brodin stepped down as CFO and a member of Group management. Michel Fischier, Head of Investor Relations and Group Communications, was appointed Interim CFO pending recruitment of a new CFO.
In March, 25,500 Class A shares were converted into the same number of Class B shares at the request of shareholders.
Significant events after the end of the quarter
There were no significant events after the end of the quarter.
* Profitilloss for the period is reconciled in Note I. Income Statement by business area - Profitillos attributable to the Parent Company Catella AB's shareholders
Investment Management
Catella is a leading specialist in property investment with a presence on ten geographical markets in Europe. Catella offers institutional and other professional investors attractive, risk-adjusted return through regulated and often sustainability focused property funds and asset management services through two service areas: Property Funds and Asset Management. Property Funds offers specialised funds with various investment strategies in terms of risk and return, type of property and location. Through over 20 open specialised property funds, investors gain access to fund management and efficient allocation between different European markets. Catella's Asset Management business area provides asset management services to property funds, other institutions and family offices.
First quarter 2023
Total income was SEK 250 M (23 I ), and income after assignment costs amounted to SEK 207 M (196) in the quarter.
Property Funds' income increased by SEK 16 M year-on-year. Fixed income increased by SEK 27 M due to increased management fees driven by growth in assets under management (+15 Bn) over the last 12 months.
Variable income (including performance fee¨s) in Property Funds decreased by SEK -18 M. This decrease is primarily related to lower acquisition fees resulting from a cautious transaction market with fewer transactions. Income in Asset Management
remained steady year-on-year.
Operating profit/loss was SEK 3 I M, with the decease in profit primarily attributable to higher personnel expenses due to a larger number of employees than the previous year.
| SEK M | 3 Months | 12 Months | ||
|---|---|---|---|---|
| 2023 | 2022 | Rolling | 2022 | |
| INCOME STATEMENT-CONDENSED | lan-Mar | lan-Mar | 12 Months | Jan-Dec |
| Property Funds * | 208 | 192 | 1 199 | 1 183 |
| Asset Management * | 62 | 64 | 345 | 347 |
| Other operating income * | 0 | 0 | 4 | 4 |
| Total income | 250 | 231 | 428 | 408 |
| Assignment expenses and commission | -43 | -35 | -173 | -166 |
| Operating expenses | -174 | - 49 | -811 | -785 |
| Less profit attributable to non-controlling interests | -2 | 0 | -8 | -6 |
| Operating profit/loss | 31 | 47 | 435 | 451 |
| KEY FIGURES | ||||
| Operating margin, % | 12 | 20 | 30 | 32 |
| Assets under management at end of period, SEK Bn | 140.6 | 125,5 | 140,6 | |
| net in-(+) and outflow(-) during the period, SEK Bn | -1,8 | 0,7 | 2,3 | 4,8 |
| of which Property Funds | 106,8 | 94,0 | 106,0 | |
| net in-(+) and outflow(-) during the period, SEK Bn | 0,2 | 1,2 | 2,0 | 3,1 |
| of which Property Asset Management | 33,7 | 31,5 | 34,6 | |
| net in-(+) and outflow(-) during the period, SEK Bn | -2,0 | -0,5 | 0,2 | 1,8 |
| No. of employees, at end of period | 298 | 246 | 287 |
* Includes internal revenue between business areas has been eliminated in the service area for the current period and for the corresporting period in 2021.
ASSETS UNDER MANAGEMENT SEK Bn
Investment Management
Assets under management by service area and country
Total assets under management (AUM) was SEK 140.6 Bn, of which SEK 106.8 Bn related to Property Funds and SEK 33.7 Bn to Asset Management. At the end of the period, 76 percent was invested in Catella's property funds. Germany is Property
Funds' largest market with the highest proportion of invested capital, primarily through Catella Residential Investment Management and Catella Real Estate.
ASSETS UNDER MANAGEMENT BY SERVICE AREA
Change in assets under management
Assets under management increased from SEK 125.5 Bn to SEK 140.6 Bn in the last I 2-month period, which represents an increase of SEK 15.1 Bn. The increase was driven by inflows of SEK 18.6 Bn, primarily to residential funds, with the property funds Catella Wohnen Europa, Catella European Residential and Catella Dutch Residential II accounting for the largest inflows.
ASSETS UNDER MANAGEMENT, LAST 12 MONTHS, SEK BN
Outflows of SEK -16.3 Bn were primarily due to the divestment of 34 rental properties in Germany and the Netherlands during the fourth quarter 2022. The increase in the assets' value added SEK 2.7 Bn. In addition, positive exchange rate effects of SEK 10.1 Bn, mainly related to exchange rate differences in EUR/SEK, had a positive effect on AUM. Assets under management for the first quarter are in line with the
previous quarter at SEK 140.6 Bn. The quarter saw inflows of SEK I Bn, primarily driven by residential funds. During the quarter, the sale of Catella Hospitality Europe SAS resulted in an outflow of SEK -2 Bn in AUM. Exchange rate differences, mainly in EUR/SEK, had a positive impact of SEK 1.9 Bn on AUM.
ASSETS UNDER MANAGEMENT, IN THE QUARTER, SEK BN
Principal Investments
Through Principal Investments, Catella carries out principal property investments together with partners and external investors. Catella currently invests in offices, residential units and logistics properties in seven geographical markets. Investments are made through subsidiaries and associated companies with the aim of generating an average IRR of 20 percent as well as strategic advantages for Catella's other business areas.
First quarter 2023
Total income was SEK 131 M (262) in the first quarter and relates mainly to income from the Spanish project Barcelona Logistics, for which revenue was recognised during the period following a sale of land. This recognised revenue was offset by production costs equivalent to the revenue generated, which produced a profit of
zero. Moreover, the total income relates to the logistics project Infrahubs Norrköping, which generated income from the supply of solar panels, management fees in Catella Project Management, and rental income from Kaktus. Development companies and their project companies have operating costs that are not capitalised. Operating profit/loss for the segment was
SEK 9 M in the quarter, and was primarily attributable to rental income from Kaktus and Infrahubs' sale of solar panels.
As of 31 March, Principal Investments had invested a total of SEK 1,211 M in residential projects, logistics projects, office projects and retail projects in Europe.
| 3 Months | 12 Months | |||
|---|---|---|---|---|
| SEK M | 2023 | 2022 | Rolling | 2022 |
| INCOME STATEMENT-CONDENSED | lan-Mar | lan-Mar | 12 Months | lan-Dec |
| Total income | 131 | 267 | 529 | 660 |
| Provisions, direct assigment and production costs | -82 | -34 | -223 | -175 |
| Operating expenses | -35 | -27 | -120 | - |
| Less profit attributable to non-controlling interests | -5 | -104 | -90 | -189 |
| Operating profit/loss | 9 | 97 | 95 | 184 |
| KEY FIGURES | ||||
| Operating margin, % | 37 | 18 | 28 | |
| Catella invested capital | 1211 | 1319 | 183 | |
| No. of employees, at end of period | 39 | 37 | 39 | 38 |
INVESTED CAPITAL BY COUNTRY *
OPERATING PROFIT
* The figures indicate the share of Principal Investments' total investment and what proportion consists of capital contributions and loans issued, respectively.
Principal Investments
The following table shows ongoing property development projects and investment status as of 3 I March 2023. Other property development projects relate to securing land etc. and project development costs ahead of the start-up of future projects. The project company's total investment includes invested capital financing. Catella's total investment includes total investment includes total capital invested from Principal Investments. Seestadt and Düssel-Terrassen include a number of phases in each project, which will be completed at different times.
In the first quarter 2023, Catella's total investment volume increased by SEK 1,21 M. Additional investments in the first quarter primarily related to the ongoing construction of Infrahubs Jörköping and new investments in the French project Polaxis. Barcelona Logistics made a partial loan repayment which reduced Catella's investment in the project.
| Estimated | Catella capital | Project company's total investment. |
Total Catella Equity Invested, |
||||
|---|---|---|---|---|---|---|---|
| Property Development Projects | Country | Investment type | Project start | completion | share, % | SEK M | SEK M **** |
| Seestadt MG+ * | Germany | Residential | Q1 2019 | 2030+ | 45 | 791 | 55 |
| Düssel-Terrassen * | Germany | Residential | Q4 2018 | 2030+ | 45 | 176 | 30 |
| Königsallee 106 * | Germany | Office | Q2 2021 | 2026 | 23 | 930 | 92 |
| Total Catella Project Capital | 897 | 176 | |||||
| Barcelona Logistics ** | Spain | Logistics | Q4 2020 | 2024 | 100 | 12 | 12 |
| Metz-Eurolog ** | France | Logistics | Q3 2020 | 2024 | 100 | 7 | 7 |
| Polaxis ** | France | Logistics | Q4 2022 | 2025 | 100 | 12 | 12 |
| Other Catella Logistic Europe ** | France | Logistics | 49 | 49 | |||
| Total Catella Logistic Europe *** | 79 | 79 | |||||
| Vaggeryd ** | Sweden | Logistics | Q3 2021 | Completed | 50 | 323 | 303 |
| Jönköping* | Sweden | Logistics | Q2 2022 | Q2 2023 | 40 | 254 | 44 |
| Other * | Sweden | Logistics | 40 | 78 | 77 | ||
| Total Infrahubs | 654 | 524 | |||||
| Kaktus ** | Denmark | Residential | Q2 2017 | Q2 2023* | ਰੇਤੇ | 1 679 | 226 |
| Salisbury ** | UK | Retail | Q4 2021 | 2025+ | 88 | 240 | 75 |
| Mander Centre ** | UK | Retail | QI 2022 | Not applicable | 100 | 102 | 102 |
| Total Direct Investments | 2 021 | 403 | |||||
| Total Co-Investments | 29 | ||||||
| Total | A KEI | 1711 |
* The project is consolidated as an associated company according to the equity method
** The project is consolidated as a subsidiary with full consolidation
** Project within Catella Logsic Europé forward-funding arrangements with investors. Catella profit is eamed upon project completion completion *** Refers to both capital injections and loans provided
**** The residential part of the building is completed and residents moved in in September 2022. The commercial part is expected to be finished during 2023
Catella's commitments in Principal Investments that have not been included the Statement of Financial Position are specified in Note 5. Pledged assets and contingent liabilities.
Corporate Finance
Catella provides quality capital markets services to property owners and advisory services for all types of property-related transactions to various categories of property owners and investors. Operations are carried out in five markets and offer local expertise about the property markets in combination with European reach.
First quarter 2023
During the first quarter, the transaction market remained cautious, with delayed transactions.
Property transactions where Catella acted as advisor totalled SEK 5.8 Bn (5.4) in the quarter. Of total transaction vol-
umes in the quarter, France provided SEK 4.0 Bn (2.0), Sweden 1.1 Bn (0.7), Denmark 0.5 Bn (0.2), Finland 0.2 Bn (2.0) and Spain 0.1 Bn (0.1).
Corporate Finance's total income was SEK 81 M (98) and total income adjusted for assignment costs was SEK 66 M (88), a decrease of SEK - 22 M during the period.
Operating costs decreased by SEK -24 M, primarily due to lower personnel expenses related to the divestment of the German operations in the first quarter of 2022. Operating profit was SEK -20 M (-22), an improvement of SEK 2 M.
| SEK M | 3 Months | |||
|---|---|---|---|---|
| INCOME STATEMENT-CONDENSED | 2023 lan-Mar |
2022 lan-Mar |
Rolling 12 Months |
2022 lan-Dec |
| Nordic * | 19 | 38 | 137 | 156 |
| Continental Europe * | ୧। | 60 | 388 | 386 |
| Total income | 81 | 98 | 525 | 542 |
| Assignment expenses and commission | - 5 | -10 | -83 | -78 |
| Operating expenses | -85 | -110 | -418 | -442 |
| Less profit attributable to non-controlling interests | 0 | 0 | 0 | 0 |
| Operating profit/loss | -20 | -22 | 24 | 22 |
| KEY FIGURES | ||||
| Operating margin, % | -74 | -22 | 5 | 4 |
| Property transaction volume for the period, SEK Bn | 5,8 | 5.4 | 45.3 | 44.9 |
| of which Nordic | 1,7 | 3,1 | 24,6 | 26.0 |
| of which Continental Europe | 4.1 | 2,3 | 20,6 | 18,9 |
| No. of employees, at end of period | 159 | 188 | 64 |
* Includes internal revenue between business areas has been eliminated in the service area for the current period and for the corresponding period in 2021.
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OPERATING PROFIT
Other financial information
The Group's profit and financial position first quarter 2023
The Group's total income amounted to SEK 462 M (58 I ) and is commented on in the section 'Group Progress'. The Group's operating profit was SEK 7 M (215) and was impacted by lower transaction costs in Corporate Finance, lower transactionbased fees in Investment Management, an absence of sales in Principal Investments and higher fixed personnel expenses. The previous year included the divestment of the logistics project Infrahubs Norrköping, which generated profit of SEK 219 M during the period.
The Group's total assets decreased by SEK 210 M in the first quarter, amounting to SEK 6,111 M as of 31 March 2023. This change is mainly due to adjustment of working capital items such as accounts receivable, accounts payable, accrued expenses, etc.
The Group's equity increased by SEK 6 M in the first quarter, amounting to SEK 2,436 M as of 31 March 2023. In addition to positive exchange rate differences of SEK 18 M, consolidated equity was impacted by fair value changes in Visa shares for SEK 2 M, which are recognised under Other comprehensive income. Profit/loss for the period totalled SEK 0 M. Consolidated equity was also impacted by transactions with non-controlling interests of SEK -14 M net, which included the acquisition of further shares in Catella Residential Partners SAS and Catella Asset Management Iberia. As of 31 March 2023, the Group's equity/assets ratio was 40 percent (38 percent as of 31 December 2022).
Group cash flow First quarter 2023
Consolidated cash flow from operating activities before changes in working capital and cash flow from property projects amounted to SEK -46 M (-30). Tax paid totalled SEK 30 M (34) during the period.
Cash flow from property projects totalled SEK 39 M (-136) and includes continued investments in Infrahubs projects of SEK 56 M, Catella Project Capital GmbH of SEK 37 M and Kaktus of SEK 16 M. In addition, incoming cash flow included payments/funding of SEK 101 M from investors in the French logistics projects, final
settlement of the purchase consideration for Infrahubs Norrköping of SEK 52 M and dividend of SEK 20 M from the Danish Nordkranen project.
Consolidated cash flow from operating activities was SEK -61 M (-369), of which changes in working capital comprised SEK -53 M (-203) in the period.
Cash flow from investing activities totalled SEK -18 M (-57) and comprised the acquisition of shares in Catella Residential Partners SAS and Catella Asset Management Iberia for a total of SEK 12 M from non-controlling interests.
Cash flow from financing activities amounted to SEK -20 M (90), of which SEK -15 M related to loans and leasing liabilities and SEK -6 M related to dividends to non-controlling interests.
Cash flow in the period was SEK -99 M (-335) and cash and cash equivalents at the end of the period was SEK 1,710 M (1,117), of which cash and cash equivalents relating to the Group's Swedish holding company amounted to SEK 629 M (89).
Parent Company First quarter 2023
The Parent Company recognised income of SEK II.I M (10.8), and operating profit/loss amounted to SEK -20.8 M (l 3.4). Profit/loss for the period includes non-recurring costs for redundancies. The number of employees at the end of the period was 23 (21).
The Parent Company's net financial income/expense was SEK -23.9 M (-14.6), most of which relates to interest and arrangement fees for a bond loan that accrues floating-rate interest at 3-month Stibor plus 475 b.p
Profit/loss before tax and profit/loss for the period was SEK -44.6 M (-28.0).
Employees
At the end of the period, there were 520 (497) employees, expressed as full-time equivalents.
Risks and uncertainties
The current macroeconomic situation with rising inflation and increased interest rates could impact future return and transaction levels, and hence also impact assets under management as well as profit in Catella In-
vestment Management and Catella Corporate Finance. In Principal Investments, opportunity to sell projects at acceptable prices can be affected by the current market conditions and reduced transaction volumes. Rising material costs and supply shortages have affected projects in Principal Investments to some degree in 2022. However, management has noted that cost increases have slowed in recent months and supply chains have opened up again, which means that the risks are assessed to be lower going forward.
See Note 4 in the Annual Report 2022 for further significant estimates and judgements.
Seasonal variations
Seasonal variations are significant in the Corporate Finance operating segment. Transaction volumes and income have historically been highest in the fourth quarter.
Accounting principles
This Interim Report has been prepared in compliance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The Consolidated Financial Statements were prepared in compliance with International Financial Reporting Standards (IFRS) as endorsed by the EU, the Annual Accounts Act and RFR | Complementary Accounting Rules for Groups issued by RFR, the Swedish- Reporting Board.
The Parent Company's financial statements were prepared in accordance with the Swedish Annual Accounts Act and Recommendation RFR 2 Accounting for legal entities, issued by RFR, the Swedish Financial Reporting Board.
The Group's and Parent Company's key accounting principles are presented in Catella's Annual Report for 2022. Figures in tables and comments may be rounded.
Related party transactions
Catella holds shares in the associated company Catella Project Capital GmbH, whose other owners are the Claesson & Anderzén group and the management of Catella Project Management GmbH.
Catella's German subsidiary Catella Project Management GmbH operates the property development projects in Catella
AB to publish in accordance with EU's
Market Abuse Regulation. The information
was submitted, through the agency of the
below contact, for publication on 05 May
This Report has not been subject to re-
view by the Company's Auditors.
2023 at 07:00 a.m. CEST.
Project Capital GmbH. In addition, Catella's subsidiary Infrahubs AB runs property development projects in several associated companies. No part of the fees levied for services rendered that Catella Project Management GmbH and Infrahus AB invoice to associated companies have been eliminated in Catella's Consolidated Income Statement, as associated companies fall outside Catella's associated enterprises. For more information, see Principal Investments in this report and Notes 20 and 38 in the Annual Report 2022.
Forecast
Catella does not publish forecasts.
This information is mandatory for Catella
Stockholm, Sweden, 05 May 2023 Catella AB (publ)
Christoffer Abramson CEO and President
Consolidated Income Statement
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK M Note |
Jan-Mar | Jan-Mar | Jan-Dec |
| Net sales | 367 | 333 | 1 996 |
| Other operating income | ેન્ડ | 248 | 597 |
| Total income | 462 | 581 | 2 593 |
| Provisions, direct assigment and production costs | -139 | -67 | -402 |
| Other external expenses | -95 | -94 | -374 |
| Personnel costs | -201 | -187 | -919 |
| Depreciation | -19 | -18 | -75 |
| Other operating expenses | -2 | 0 | - 4 |
| Operating profit/loss | 7 | 215 | 810 |
| Interest income | 16 | 8 | 45 |
| Interest expenses | -40 | -18 | -80 |
| Other financial items | 25 | - d | 56 |
| Financial items-net | - | -19 | 20 |
| Profit/loss before tax | 7 | 196 | 830 |
| Tax | -7 | -12 | -147 |
| Net profit/loss for the period | 0 | 183 | 683 |
| Profit/loss attributable to: | |||
| Shareholders of the Parent Company | 8 | 79 | 491 |
| Non-controlling interests | 8 | 104 | 192 |
| 0 | 183 | 683 | |
| Earnings per share attributable to shareholders of the Parent Company, SEK | |||
| - before dilution | -0,09 | 0.90 | 5,55 |
| - after dilution | -0,09 | 0,87 | 5,41 |
| No. of shares at end of the period | 88 348 572 | 88 348 572 | 88 348 572 |
| Average weighted number of shares after dilution | 90 929 822 | 91 098 572 | 90 662 237 |
Information on the Income Statement by operating segment can be found in Note I .
Consolidated Statement of Comprehensive Income
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK M | Jan-Mar | Jan-Mar | Jan-Dec |
| Net profit/loss for the period | 0 | 183 | 683 |
| Other comprehensive income | |||
| Items that will not be reclassified subsequently to profit or loss: | |||
| Value change in defined benefit pension plans | 0 | -0 | 2 |
| Fair value changes in financial assets through other comprehensive income | 2 | 3 | 4 |
| ltems that will be reclassified subsequently to profit or loss: | |||
| Hedging of net investment | 0 | 0 | 0 |
| Translation differences | 8 | 10 | 101 |
| Other comprehensive income for the period, net after tax | 20 | 13 | 117 |
| Total comprehensive income/loss for the period | 21 | 196 | 800 |
| Profit/loss attributable to: | |||
| Shareholders of the Parent Company | 2 | 92 | 596 |
| Non-controlling interests | 9 | 1 05 | 204 |
| 21 | 197 | 800 |
| SEK M | Note | 31 Mar | 31 Mar | 31 Dec |
|---|---|---|---|---|
| ASSETS | ||||
| Non-current assets | ||||
| Intangible assets | 461 | 401 | 452 | |
| Contract assets leasing agreements | 101 | 121 | 109 | |
| Property, plant and equipment | 25 | 603 | 27 | |
| Holdings in associated companies | 172 | 1 25 | 182 | |
| Non-current receivables from associated companies | 173 | 91 | 127 | |
| Other non-current securities | 2, 3, 4 | 322 | 285 | 308 |
| Deferred tax receivables | 9 | 25 | 7 | |
| Other non-current receivables | 47 | 35 | 41 | |
| I 311 | ୧୫୧ | 1 254 | ||
| Current assets | ||||
| Development and project properties | 2 239 | 1 807 | 2 244 | |
| Contract assets | 37 | 260 | 63 | |
| Receivables from associated companies | 201 | । ୧3 | । 51 | |
| Accounts receivable and other receivables | 572 | ୧। । | 775 | |
| Current investments | 2, 3, 4 | 41 | 35 | 39 |
| Cash and cash equivalents * | 1 710 | 117 | 1 794 | |
| 4 800 | 3 993 | 5 066 | ||
| Total assets | 6111 | 5 679 | 6 320 | |
| EQUITY AND LIABILITIES | ||||
| Equity | ||||
| Share capital | 177 | 177 | 177 | |
| Other contributed capital | 296 | 295 | 296 | |
| Reserves | 92 | 24 | 72 | |
| Profit brought forward including net profit for the period | 1 604 | 270 | 1 624 | |
| Equity attributable to shareholders of the Parent Company | 2 168 | 1 766 | 2168 | |
| Non-controlling interests | 268 | 234 | 262 | |
| Total equity | 2 436 | 2 000 | 2 430 | |
| Liabilities | ||||
| Non-current liabilities | ||||
| Borrowings from credit institutions | । । 65 | 1 418 | 1 519 | |
| Bond issue | 244 | 1 242 | 1 244 | |
| Contract liabilities leasing agreements | 78 | ਰੇਤੇ | 82 | |
| Other non-current liabilities | 34 | 102 | 34 | |
| Deferred tax liabilities | 19 | 20 | 17 | |
| Other provisions | તે રેણ | 75 | ਰੇਤੇ | |
| 2 636 | 2 950 | 2 989 | ||
| Current liabilities | ||||
| Borrowings from credit institutions | 377 | - | 3 | |
| Contract liabilities leasing agreements | 33 | 35 | 36 | |
| Contract liabilities | 5 | 0 | 5 | |
| Accounts payable and other liabilities | 589 | 657 | 812 | |
| Tax liabilities | 34 | 36 | 46 | |
| 1 038 | 729 | 901 | ||
| Total liabilities | 3 674 | 3 680 | 3 890 | |
| Total equity and liabilities | 6111 | 5 679 | 6 320 | |
| * Of which pledged and blocked liquid funds | 71 | ટર્ટ | 70 |
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK M | Jan-Mar | Jan-Mar | Jan-Dec |
| Cash flow from operating activities | |||
| Profit/loss before tax | 7 | । તેર | 830 |
| Reclassification and adjustments for non-cash items: | |||
| Wind down expenses | - I | 21 | -23 |
| Other financial items | -18 | 9 | -56 |
| Depreciation | 19 | ા જ | 75 |
| lmpairment / reversal of impairment of current receivables | 0 | -2 | - |
| Change in provisions | 2 | 0 | l 5 |
| Reported interest income from loan portfolios | 6 | 3 | -17 |
| Acquisition expenses | - | 2 | |
| Profit/loss from participations in associated companies | - I | - | -63 |
| Personnel costs not affecting cash flow | -7 | -2 | 5 |
| Other reclassifications and non-cash items | -12 | -233 | -266 |
| Paid income tax | -30 | -34 | -136 |
| Cash flow from operating activities before changes in working capital | -46 | -30 | 368 |
| lnvestments in property projects | -135 | -359 | -1 569 |
| Divestment of property projects | 173 | 223 | 4 4 |
| Cash flow from property projects | 39 | -136 | -155 |
| Cash flow from changes in working capital | |||
| Increase (-)/decrease (+) of operating receivables | 197 | -35 | -118 |
| Increase (+) / decrease (-) in operating liabilities | -250 | -168 | 45 |
| Cash flow from operating activities | -61 | -369 | 140 |
| Cash flow from investing activities | |||
| Purchase of property, plant and equipment | - I | 5 | - |
| Purchase of intangible assets | -6 | - | -13 |
| Purchase of subsidiaries, after deductions for acquired cash and cash equivalents | -12 | -14 | -74 |
| Divestment of associated companies | ୧୦ | ୧୦ | |
| Dividend and other disbursements from associated companies | 21 | ||
| Purchase of financial assets | 5 | -101 | 54 |
| Sale of financial assets | 44 | ||
| Cash flow from loan portfolios | 6 | 3 | 17 |
| Cash flow from investing activities | -18 | -57 | - |
| Cash flow from financing activities | |||
| Re-purchase of share warrants | -0 | ||
| Proceeds from share warrants issued | - | ||
| Borrowings | - | 112 | 376 |
| Amortisation of loans | -3 | -5 | -13 |
| Amortisation of leasing debt | -12 | - | -38 |
| Dividend | - | -6 | -88 |
| Transactions with, and payments to, non-controlling interests | -6 | -88 | |
| Cash flow from financing activities | -20 | 90 | । 20 |
| Cash flow for the period | -99 | -335 | 279 |
| Cash and cash equivalents at beginning of period | 1 794 | 1 442 | 442 |
| Exchange rate differences in cash and cash equivalents | 15 | 11 | 73 |
| Cash and cash equivalents at end of the period | 1 710 | 117 | 1 794 |
Consolidated Statement of Changes in Equity
| Equity attributable to Shareholders of the Farent Company | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | Share capital | Other contributed capital * |
Fair value reserve |
Profit brought forward incl. Translation net profit/loss reserve for the period |
Total | Non- controlling interests ** |
Total equity |
|||||
| Opening balance at I January 2023 | 177 | 296 | - | 83 | 624 | 2 168 | 262 | 2 430 | ||||
| Comprehensive income for January - March 2023: Net profit/loss for the period |
-8 | -8 | 8 | 0 | ||||||||
| Other comprehensive income, net of tax | 2 | 18 | 0 | 20 | 0 | 20 | ||||||
| Comprehensive income/loss for the period | 2 | 18 | -8 | 12 | ਰੇ | 21 | ||||||
| Transactions with shareholders: | ||||||||||||
| Transactions with non-controlling interests | -12 | -12 | -3 | - 4 | ||||||||
| Re-purchase of warrants issued | 0 | 0 | 0 | |||||||||
| Closing balance at 31 March 2023 | 177 | 296 | -9 | 100 | 604 | 2168 | 268 | 2 436 |
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling interests are attributable to minority shares in the subsidiaries in all Group business areas.
In the first garter of 2023,5000 warant were enployee de to a charge in the employee cicinners and to Constitutions the expirist. And I Mro- 2021, the raret Conayn'n at atala 3,000,000 warrants outstanding, of which 200,000 in treasury. The exercise price is SEK 35.20 per share.
| Equity attributable to shareholders of the Parent Company | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | Share capital | Other contributed capital * |
Fair value reserve |
Profit brought forward incl. Translation net profit/loss reserve for the period |
Total | Non- controlling interests ** |
Total equity |
|||
| Opening balance at January 2022 | 177 | 295 | 18 | -7 | 1 205 | 688 | 132 | 1 821 | ||
| Comprehensive income for January - March 2022: | ||||||||||
| Net profit/loss for the period | 79 | 79 | 105 | 184 | ||||||
| Other comprehensive income, net of tax | 3 | 10 | 0 | 12 | 13 | |||||
| Comprehensive income/loss for the period | 3 | 10 | 79 | 92 | 105 | 197 | ||||
| Transactions with shareholders: | ||||||||||
| Transactions with non-controlling interests | - 4 | - 4 | -4 | -18 | ||||||
| Closing balance at 31 March 2022 | 177 | 295 | 21 | 3 | 270 | 766 | 234 | 2 000 |
* Other capital contributed pertains to reserve funds in the Parent Company.
** Non-controlling interests are attributable to minority shares in the subsidiaries in Investment Management and Corporate Finance.
The Extracting General President on the new incentive program through the subsed 3,0000 waris shied the ton to we series 200,002.A. A d202022.A. Ad 2020,204.A. of 2020,204.A. share.
Note I Income Statement by operating segment
| Investment Management | Principal Investments | Corporate Finance | Other | Eliminations | Group | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | 2023 | 2022 | 2022 | |
| SEK M | lan-Mar | Jan-Mar | lan-Dec | lan-Mar | Jan-Mar | Jan-Dec | lan-Mar | lan-Mar | lan-Dec | lan-Mar | Jan-Mar | Jan-Dec | lan-Mar | Jan-Mar Jan-Dec | lan-Mar | Jan-Mar | lan-Dec | |
| Net sales | 241 | 225 | 1 359 | 46 | 24 | 121 | 80 | તેર | 533 | 9 | 9 | 51 | -9 | -21 | -67 | 367 | 333 | 996 |
| Other operating income | 9 | 6 | 49 | 84 | 238 | 539 | 2 | 10 | 3 | 3 | 14 | -2 | - | -16 | જેટ | 248 | 597 | |
| Total income | 250 | 231 | 1 408 | 131 | 262 | 660 | 81 | ರಿಕ | 542 | 12 | 12 | ર્દ | - | -22 | -82 | 462 | 581 | 2 593 |
| Provisions, direct assigment and production costs |
-43 | -35 | -166 | -82 | -34 | -175 | -15 | -10 | -78 | -0 | -0 | - | 0 | 12 | 17 | -139 | -67 | -402 |
| Other external expenses | -51 | -42 | -217 | -14 | -12 | -37 | -28 | -37 | -124 | -9 | - | -40 | 8 | 8 | 45 | - વેરે | -94 | -374 |
| Personnel costs | -113 | -97 | -522 | -16 | - | -47 | -52 | -୧୫ | -299 | -21 | -13 | -56 | ട | -201 | -187 | -919 | ||
| Depreciation | - d | - d | -39 | -2 | -3 | -8 | -5 | -5 | -20 | -2 | -2 | -8 | 0 | 0 | 0 | -19 | -18 | -75 |
| Other operating expenses | - I | - | -8 | -3 | - | -19 | -0 | -0 | - I | 2 | -4 | 2 | 15 | -2 | 0 | -14 | ||
| Less profit attributable to non- controlling interests * |
-2 | -0 | -6 | -5 | -104 | -189 | 0 | 0 | 0 | - I | -0 | 3 | 8 | 104 | 192 | 0 | 0 | 0 |
| Operating profit/loss | 31 | 47 | 451 | ರಿ | 97 | 184 | -20 | -22 | 22 | -22 | -12 | -40 | 8 | 104 | 192 | 7 | 215 | 810 |
| Interest income | ા ર | 8 | 45 | |||||||||||||||
| Interest expenses | 40 | -18 | -80 | |||||||||||||||
| Other financial items | 25 | - 9 | 56 | |||||||||||||||
| Financial items-net | -19 | 20 | ||||||||||||||||
| Profit/loss before tax | 7 | 96 | 830 | |||||||||||||||
| Tax | -7 | -12 | -147 | |||||||||||||||
| Net profit/loss for the period | 0 | 83 | 683 | |||||||||||||||
| Profit/loss attributable to shareholders of the Parent Company |
-8 | 79 | 491 |
* Profit Concentry interests for ach business ares has not been induded, in order to darify the operating of the Parent Company by business area. This iconstent with the internal reportsprovied to national of the Crupt in the couple in the counn for Group elminations of that the Group Chriminations of that the Group Ce
The scares corecin in teacher in con include in coronal concern in termines in termines in the leporties to margenerine the contres concerner concerner concerner concerner co the varios persing segments. Tharsactions segments are linted and relate maily to francial transations and certain onward invoicing of experses. Such transaction are con-
Note 2 Summary of Catella's loan portfolios
The loan portfolios comprise securitised European loans with primary exposure in housing. The performance of the loan portfolios is closely monitored and remeasurements are continuously performed
| Forecast | Share of | Forecast | Share of | ||||
|---|---|---|---|---|---|---|---|
| SEK M | undiscounted cash | undiscounted | discounted | discounted | Discount | ||
| Loan portfolio | Country | fow | cash flow | cash flow | cash flow | rate | Duration, years |
| Pastor 2 | Spain | 56.4 | 57.8% | 50.3 | 55.0% | 4.3% | 2.75 |
| Lusitano 5 | Portugal | 41.1 | 42.2% | 41.1 | 45.0% | 0.0% | 0,25 |
| Total cash flow * | 97.5 | 100.0% | 91.4 | 100.0% | 2.4% | 1.6 | |
| Carrying amount in consolidated halance sheet ** | 9 4 |
* The discount rate recognised in the "Total cash flow" is the weighted average interest of the total discounted cash flow.
** Catella's loan portfolio also includes the portfolios Pastor 3, 4 and 5 as well as Lusitano 4 whose book value of SEK 0.
Pastor 2
In the sub-portfolio Pastor 2, the underlying loans are below ten percent of the issued amount and Catella expects the issuer to utilise its clean-up call. The administration of the portfolio is frequently unprofitable when it falls below ten percent of the issued amount, and this structure allows the issuer to avoid these additional costs. Catella considers the credit risk in the portfolio to be low, although the precise timing of the exercise of the option is difficult to forecast due to various unknown factors relating to the issuer. Catella has made the assumption that a repurchase will take place in the fourth quarter of 2025. The portfolio is valued at the full repayable amount of EUR 5.0 M, discounted to the present value with application of a discount rate for similar assets. This corresponds to a value of EUR 4.5 M.
Lusitano 5
The time call affects sub-portfolio Lusitano 5 and constitutes an option held by the issuer that enables the sub-portfolio to be repurchased at a specific point in time, and subsequently from time to time. The option has been available since 2015 Catella has assumed that the time call will be exercised in the second quarter of 2023. This assumption is conservative as it means that no further cash flows than the position's current capital amount of EUR 3.1 M plus the following quarter's cash flow will be received when exercising the time call. The portfolio is hence valued at EUR 3.6 M.
Further information regarding the loan portfolio can be found in the Annual Report 2022.
Actual cash flows from the loan portfolio
| SEK M | Spain Portugal | Other | ||
|---|---|---|---|---|
| Loan portfolio | Pastor 2 Lusitano 5 | Tota | ||
| Outcome | ||||
| Full year 2009-2021 | 27,2 | 15.8 | 267.0 | 310.1 |
| Full year 2022 | 0.0 | 16.9 | 0.0 | 16.9 |
| QI 2023 |
0.0 | 5,8 | 0.0 | 5.8 |
| Total | 27.2 | 38.5 | 267.0 | 332.7 |
Note 3 Short- and long-term investments
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK M | 31-mar | 31-mar | 31-dec |
| Visa preferred stock C series | 39 | 65 | 36 |
| Loan portfolios | ਰੇ। | 83 | 88 |
| Operation-related investments * | 233 | 173 | 223 |
| Total * | 363 | 320 | 347 |
* of which short-term investments SEK 41 M and long-term investments SEK 322 M.
** includes investments in shares and funds, co-investments and assets within segments being classified as financial assets.
Note 4 The Group's assets and liabilities measured at fair value
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 the instruments. Quoted prices on an active market on the reporting date are applied for level 1. Observable market data for the asset or liability other than quoted prices are used for 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 the financial instruments. For more information, see Note 3 in the Annual Report 2022.
The Group's assets and liabilities measured at fair value as of 31 March 2023 are indicated in the following table.
| lier | Tier 3 | l ota | |
|---|---|---|---|
| 39 | 39 | ||
| 324 | |||
| 25 | 4 | 297 | 363 |
| 96 | |||
| 0 | 0 | 96 | 96 |
| 25 | Tier 2 2 |
297 96 |
No changes between levels occurred the previous year.
Change analysis, financial assets, level 3 for the first quarter 2023
| as of I January | 379 |
|---|---|
| Purchases | |
| Disposals | -44 |
| Gains and losses recognised through profit or loss | 8 |
| Translation differences | 3 |
| As of 31 December | 297 |
| Change analysis, financial liabilities, level 3 for the first quarter 2023 | |
| as of I January | 93 |
| Additional items | 4 |
| Deductions | -6 |
| Revaluation through profit & loss | 3 |
| Translation differences | 2 |
| As of 31 December | 96 |
Note 5 Pledged assets and contingent liabilities
Pledged assets
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| Cash and cash equivalents | 71 | રેટ | 70 |
| Other pledged assets | 0 | ||
| 71 | 55 | 70 |
Cash and cash equivalents include cash funds in accordance with minimum retention requirements, funds that are to be made available at all times for regulatory reasons and frozen funds for other purposes.
Contingent liabilities
| 2 023 | 2 022 | 2022 | |
|---|---|---|---|
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| Other contingent liabilities | 1 925 | 890 | 1 625 |
| 1925 | 890 | 625 |
Other contingent liabilities mainly relate to guarantees to credit institutes as collateral for approved credit lines to the subsidiary Kaktus I HoldCo ApS. In addition, Catella Holding AB is party to guarantee commitments relating to sold properties, as well as to a tenant guarantee commitment relating to the project company's completion of their commitment under the relevant rental agreement. Other contingent liabilities also relates to ongoing disputes in discontinued operations and guarantees
provided by operating subsidiaries for rental contracts with landlords.
Of the Group's total contingent liabilities, SEK 1,901 M relates to Principal Investments.
Commitments
| 2 023 | 2 022 | 2022 | |
|---|---|---|---|
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| Investment commitments | 0 | ||
| Other commitments | |||
No investment commitments remain in the unlisted holding in Pamica 2 AB.
Parent Company Income Statement
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK M | lan-Mar | lan-Mar | an-Dec |
| Net sales | 8.7 | 9,1 | 47,8 |
| Other operating income | 2.3 | 1.7 | 12,6 |
| Total income | 11,1 | 10,8 | 60,4 |
| Other external expenses | -10.2 | -11,0 | -42,8 |
| Personnel costs | -21,0 | -13,0 | -54.3 |
| Depreciation | -0, I | -0, I | -0,3 |
| Other operating expenses | -0,6 | -0.0 | 0,6 |
| Operating profit/loss | -20,8 | -13,4 | -36,4 |
| Profit/loss from participations in group companies | 0.0 | 0.0 | 257,4 |
| Interest income and similar profit/loss items | 0.1 | 0,7 | 3,3 |
| Interest expenses and similar profit/loss items | -23,9 | -15,3 | -71,4 |
| Financial items | -23,9 | -14,6 | 189,4 |
| Profit/loss before tax | -44.6 | -28,0 | 153,0 |
| Tax on net profit for the year | 0.0 | 0,0 | 0.0 |
| Net profit/loss for the period | -44,6 | -28,0 | 153,0 |
Parent Company Statement of Comprehensive Income
| SEK M | 2023 lan-Mar |
2022 lan-Mar |
2022 an-Dec |
|---|---|---|---|
| Net profit/loss for the period | -44,6 | -28.0 | 153.0 |
| Other comprehensive income | |||
| Other comprehensive income for the period, net after tax | 0.0 | 0.0 | 0.0 |
| Total comprehensive income/loss for the period | -44.6 | -28.0 | 153.0 |
Parent Company Balance Sheet - condensed
| 2023 | 2022 | 2022 | |
|---|---|---|---|
| SEK M | 31 Mar | 31 Mar | 31 Dec |
| Intangible assets | 0.3 | 0,6 | 0,4 |
| Property, plant and equipment | 0.1 | 0.1 | 0.1 |
| Participations in Group companies | 358,2 | 1 058,2 | 358,2 |
| Current receivables from Group companies | 259,7 | 498,5 | 106,6 |
| Other current receivables | 16,5 | 12,0 | 211,9 |
| Cash and cash equivalents | 0.1 | 0.9 | 0. I |
| Total assets | 634,9 | 1 570,5 | 677,4 |
| Equity | 354.9 | 307.1 | 399.6 |
| Bond issue | 244,5 | 1 241,7 | 243,8 |
| Current liabilities to Group companies | 0,8 | 0,0 | 5,4 |
| Other current liabilities | 34,7 | 21,7 | 28,7 |
| Total equity and liabilities | 634.9 | 570,5 | 677,4 |
Catella AB has issued guarantees to credit institutes of SEK 1,577 M as security for approved credit lines to the subsidiary Kaktus 1 HoldCo ApS. For the comparative period 31 March Company's total contingent liabilities amounted to SEK 379 M.
Application of key performance indicators not defined by IFRS
The Consolidated Accounts of Catella are prepared in accordance with IFRS, which only defines a limited number of performance measures. Catella, applies the European Securities and Markets Authority's (ESMA) guidelines for alternative performance measures. In summary, an alternative performance measure is a financial measure of historical or future profit progress, financial position or cash flow not
defined by or specified in IFRS. In order to assist corporate management and other stakeholders in their analysis of Group progress, Catella presents certain performance measures not defined under IFRS. Corporate management considers that this information facilitates 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.
Definitions
| Non-IFRS performance | ||
|---|---|---|
| measures | Description | Reason for using the measure |
| Operating profit attributable to Parent Company shareholders |
Group's operating profit for the period, less profit at- tributable to non-controlling interests |
The measure illustrates the proportion of the Group's oper- ating profit attributable to shareholders of the Parent Com- pany. |
| Operating margin | Operating Profit/loss attributable to the Parent Com- pany shareholders divided by total income for the pe- riod. |
The measure illustrates profitability in underlying operations attributable to shareholders of the Parent Company. |
| IRR | Internal Rate of Return, a measure of the average annual return generated by an investment. |
The measure is calculated for the purpose of comparing the actual return on projects Catella invests in with the average expected return of 20 percent. |
| Assets under management at year end |
Assets under management constitutes the value of Ca- tella's customers' deposited/invested capital. |
An element of Catella's income in Investment Management is agreed with customers on the basis of the value of the un- derlying invested capital. Provides investors with insight into the drivers behind elements of Catella's income. |
| Property transaction volumes in the period |
Property transaction volumes in the period constitute the value of underlying properties at the transaction dates. |
An element of Catella's income in Corporate Finance is agreed with customers on the basis of the underlying prop- erty value of the relevant assignment. Provides investors with a view of what drives an element of Catella's income. |
| Equity/Asset ratio | Equity divided by total assets | Catella considers the measure to be relevant to investors and other stakeholders wishing to assess Catella's financial stability and long-term viability. |
| Earnings per share | Profit for the period attributable to the Parent Com- pany shareholders divided by the number of shares. |
Provides investors with a view of the company's Earnings per share when making comparisons with earlier periods. |
| Dividend per share | Dividend divided by the number of shares. | Provides investors with a view of the company's dividend over time. |
Financial calendar
Annual General Meeting 2023 I 0 May 2023 Interim Report April-June 2023 18 August 2023 Interim Report July-September 2023 27 October 2023 Year-end Report October-December 2023 9 February 2024
For further information, please contact
Michel Fischier, CFO Tel. +46 (0)8-463 33 10
More information on Catella and all financial reports are available at catella.com.
CATELLA AB (PUBL) P.O. BOX 5894, SE-102 40 STOCKHOLM, SWEDEN | VISITORS: BIRGER JARLSGATAN 6 CORP. ID NO.556079-1419 | REGISTERED OFFICE: STOCKHOLM, SWEDEN TELEPHONE +46 (0)8-463 33 10| [email protected] CATELLA.COM