As a result of the divestments of Catella Bank’s operations, the entire Banking business area has been reported as a disposal group held for sale in accordance with IFRS 5. This means that in the Consolidated Income Statement net profit (after tax) is reported on a separate line under period profit from disposal group held for sale. CATELLA Interim Report JANUARY – JUNE 2020
CATELLA GROUP Summary Leading finance group in property and alternative investments Catella was founded in 1987, has 28 offices across 14 countries and 550+ employees within three business areas: CORPORATE PROPERTY INVESTMENT EQUITY, HEDGE AND FINANCE MANAGEMENT FIXED INCOME FUNDS Leading European advisor Offers institutions, companies Leading independent fund within high-end real estate and individuals specialized manager in the Nordics and a transaction services and real regulated fund products and global niche player in estate related corporate regional asset management systematic macro. finance. services. NEW YORK Headquartered in Stockholm and listed at Stockholm Stock Exchange, Nasdaq OMX, midcap. MARKET TOTAL INCOME* DISTRIBUTION OF OPERATING PROFIT* ASSETS UNDER CAPITALISATION INCOME (LTM)* MANAGEMENT “AUM”* Property Investment Corporate Management Finance SEK 1, 8 Bn SEK 2 , 3 Bn SEK 307 M SEK 149 Bn 42% 29% June 2020 Last 12 months “LTM” LTM Q2 2020 Equity,Hedge and 29% Fixed Income Funds *The Banking business area is reported as a Disposal group held for sale and is not included in the Group figures. 2 21 AUGUST 2020 Catella AB (publ) | Interim report
CATELLA GROUP Synergies Differentiated, linked business model with a clear income base Assets under Good profitability management drives despite most of fixed earnings and growth already increases Catella’s recognised in the Stable base for potential cash Income Statement position variable earnings TOTAL INCOME * OPERATING PROFIT * ASSETS UNDER MANAGEMENT CASH AND CASH EQUIVALENTS * ** SEK Bn SEK M SEK M SEK M 200 3,000 450 1,200 180 400 2,500 1,000 160 350 140 2,000 300 800 120 250 1,500 100 600 200 80 1,000 150 400 60 100 40 500 200 50 20 - - - - 2016 2017 2018 2019 LTM 2016 2017 2018 2019 LTM 2016 2017 2018 2019 Q2 2016 2017 2018 2019 Q2 2020 2020 * THE BANKING BUSINESS AREA HAS BEEN REPORTE D AS A DISPOSAL GROUP HELD FOR SALE AND HAS NOT BEEN INCLUDE D IN GROUP FIGURES . ** THE BRIDGE FINANCING OF SEK 220 M RELATING TO BANKING IS NOT INCLUDE D 3 21 AUGUST 2020 Catella group | Interim report
CATELLA GROUP Financials Sales and results of operations Group Property Investment Management was not significantly OPERATING PROFIT/LOSS, AUM, SEK Bn TOTAL INCOME, SEK M SEK M affected by the pandemic during the second quarter. 220 800 180 200 The negative trend in Equity, Hedge and Fixed Income 160 700 180 140 Funds continued during the quarter and operating 600 160 120 profit in the business area decreased by SEK 125 M 140 500 100 120 compared to the second quarter of 2019. 400 100 80 Profit after tax includes write-downs of Group 300 80 60 60 deferred tax assets of SEK 70 M related to the 200 40 40 divestment of Catella Fondförvaltning AB and 100 20 20 provisions for costs totalling SEK 55 million from the 0 0 0 winding down of Catella Bank’s operations. 2018 2019 2020 2018 2019 2020 2018 2019 2020 In the quarter, we improved liquidity in parts of the Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Group through national government borrowing schemes introduced due to the pandemic in some 3 Months 6 Months 12 Months 2020 2019 2020 2019 Rolling 2019 countries. SEK M Apr-Jun Apr-Jun Jan-Jun Jan-Jun 12 Mth. Jan-Dec Catella signed an agreement in the quarter regarding Tot otal i inc ncom ome 523 523 688 688 1, 1,027 027 1,142 1, 142 2, 2,305 305 2, 2,420 420 the divestment of 70% of the shares in Catella Assignment expenses and commission -100 -136 -170 -213 -329 -372 Fondförvaltning AB (Mutual Funds) for a cash purchase Operating expenses -385 -388 -745 -702 -1,669 -1,626 Opera rating p pro rofit/l /loss ss 39 39 164 164 111 111 226 226 307 307 422 422 consideration of SEK 126–154 M. -7 -73 114 114 -49 -4 136 136 -3 -37 148 148 Prof Pr ofit f for or t the he p period od f from om c cont ontinui nuing ng op operations ons During the spring, Catella reviewed costs at Group Ne Net p pro rofit/l /loss f ss for t the p peri riod -149 149 64 64 -139 139 197 197 -37 -3 193 193 level. Looking ahead, we will continue to reduce costs Profit/loss attributable to the Parent Company -147 38 -147 149 -183 113 at Group level, and the full effect of cost savings will be shareholders felt from next year onwards. Operating margin, % 7 24 11 20 13 17 Catella has limited Group contribution rights, which No. of employees, at end of period 578 551 578 551 - 582 contributes to increased tax over time. We will Asset et u under er m managem emen ent, S , SEK B Bn - - 148. 148.6 202. 202.2 - 171. 171.3 net in-(+) and outflow(-) -2.5 2.7 -15.2 3.3 -51.5 -33.0 review the tax situation, but this will take some time. * Includes internal income between business areas. 4 21 AUGUST 2020 Catella group | Interim report
CATELLA GROUP Balance Sheet CATELLA GROUP Financials Financial position – Remaining operations Balance sh sheet SEK EK M M CASH AND CASH EQUIVALENTS Asse ssets 3,262 294 Short and long term investments 115 Loan porfolio SEK M Other investments (Securities, Co-investments) 80 1,200 47 Treasury placements (Bonds, Macro fund) 1,000 52 Accrued bonuses invested in own products 800 Property development projects 531 600 1 Deferred tax assets * 400 1,040 Cash and cash equivalents *** 1,396 Other assets 200 1,154 Equity ty - 2016 2017 2018 2019 Q2 950 Shareholders of the parent company 2020 Minorities interest 204 2,108 Lia iabilit ilitie ies Unsecured bond ** 750 1,358 Other liabilities * Deferred tax assets offsettable against tax in Mutual Funds and the loan portfolios. ** 3M Stibor (no floor) + 4% margin, maturity June 2022 *** The bridge financing of SEK 220 M relating to Banking is not included 5 21 AUGUST 2020 Catella group | Interim report
CORPORATE FINANCE 6 21 AUGUST 2020 Catella group | Interim report
CORPORATE FINANCE Sales and results of operations The total transaction market for commercial OPERATING PROFIT/LOSS, CATELLA PROPERTY TOTAL INCOME, SEK M SEK M TRANSACTION VOLUME, SEK properties in Europe, excluding the UK, totalled 350 60 Bn 30 EUR 40.6 Bn (62.0) in the quarter, which is a 50 300 decrease of 35% year-on-year. 25 40 250 Property transactions where Catella acted as advisor 20 30 200 totalled SEK 5.0 Bn (15.4) in the quarter, of which: 20 15 150 France SEK 3.0 Bn (6.5) 10 10 100 Sweden 0 SEK 2.0 Bn (6.4) 5 50 -10 Germany SEK 0.1 Bn (1.1) 0 0 -20 Denmark SEK 0.0 Bn (0.0) 2018 2019 2020 2018 2019 2020 2018 2019 2020 The Nordics recorded a weak quarter in year-on- Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 year terms, with Sweden responsible for the majority of the reduction in income and profit 3 Months 6 Months 12 Months In Continental Europe, Germany and Spain provided 2020 2019 2020 2019 Rolling 2019 SEK M Apr-Jun Apr-Jun Jan-Jun Jan-Jun 12 Mth. Jan-Dec the majority of the decrease in income and earnings Nordic * 28 69 81 103 203 225 in year-on-year terms. France recorded an increase Continental Europe * 77 97 131 166 447 482 in operating profit. Tot otal i inc ncom ome 105 105 166 166 214 214 270 270 653 653 709 709 Catella’s assessment is that transaction volumes will -11 -17 -20 -26 -49 -55 Assignment expenses and commission Operating expenses -97 -134 -209 -240 -561 -592 be deferred to the latter part of the second half- Opera rating p pro rofit/l /loss ss -3 -3 15 15 -1 -16 3 43 43 62 62 year, which means that fewer market transactions Operating margin, % -3 9 -7 1 7 9 are expected in the third quarter 2020. This is 209 216 209 216 - 214 expected to impact business area income and profit No. of employees, at end of period Property transaction volume, SEK Bn 5.0 15.4 17.0 22.3 64.9 70.2 negatively year-on-year. of which Nordic 1.9 7.5 9.7 10.2 26.6 27.1 of which Continental Europe 3.1 7.9 7.4 12.1 38.4 43.1 * Includes internal income between business areas. 7 21 AUGUST 2020 Catella group | Interim report
PROPERTY INVESTMENT MANAGEMENT 8 21 AUGUST 2020 Catella group | Interim report
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