Catella AB Year-End Report 2011

Fourth quarter of 2011, October – December

• Net sales in the fourth quarter totalled SEK 306 M (308). Excluding invoiced direct assignment costs and commission, income amounted to SEK 263 M (273).
• Profit after tax for the quarter amounted to SEK 65 M (35). Profit for the quarter was charged with acquisition and start-up costs of SEK 3 M, as well as a provision of SEK 2 M for higher VAT expenses. Tax totalling SEK 32 M (-17) was recognised in the quarter, resulting from recognition of deferred tax assets on the Group’s taxable deficit.
• Earnings per share for the total operation amounted to SEK 0.79 (0.42) for the quarter.

Full-year 2011, January – December

• Net sales for the year amounted to SEK 794 M (308). Excluding invoiced direct assignment costs and commission, income amounted to SEK 639 M (273).
• Profit after tax for the year amounted to SEK 21 M (25). Profit for the year was charged with impairment losses totalling SEK 57 M (49), of which impairment losses on loan portfolios accounted for SEK 34 M (2). The result includes acquisition and start-up costs of SEK 12 M, as well as a provision of SEK 5 M for higher VAT expenses. Tax totalling SEK 30 M (-16) was recognised for the year, resulting from recognition of deferred tax assets on the Group’s taxable deficit.
• Earnings per share for the total operation for the year amounted to SEK 0.25 (0.28).
• The Board of Directors intends to communicate dividend proposal and dividend for 2011 in the Notice to attend the Genereal Annual Meeting.

CEO’s Comment
During the quarter, a large number of property projects were concluded in the Corporate Finance operating segment, which contributed strongly to the consolidated earnings. At the same time, management volumes in the Asset Management operating segment increased, primarily in the German property funds, which also contributed positively to earnings. However, in total, Asset Management did not achieve its targeted results. This was primarily due to diminishing fees in the Swedish fund operations, resulting from the general stock-market climate. Furthermore, Catella’s earnings, as in preceding quarters of 2011, were charged with start-up costs for new ventures.

It is disappointing that we have not implemented the divestment of Banque Invik within the framework of the original timeframe. The delay is partly due to external factors and partly on the authority processes that apply to the transfer of a bank. Work on the divestment will continue with an unchanged target, and negotiations are in progress with several parties.

Catella continues to change, with the aim of generating higher profitability through specialist financial advisory and asset management services with the ability to deliver competitive returns. During 2011, several initiatives were taken to strengthen Catella’s two operating segments, Corporate Finance and Asset Management.

In Corporate Finance, the Nordic Fixed Income unit was established in the market for financing through fixed-income products, including trading with fixed-income instruments. In Asset Management, an wealth management unit was established in the Swedish market. In parallel, a review of Catella’s Swedish fund operations has been launched to renew the fund offering and work methods. In the German fund operations, a number of new property funds have been successfully launched. In addition, Catella acquired a non-controlling interest in IPM (Informed Portfolio Management) in the fourth quarter, with the aim of exploring, jointly with IPM, the conditions for a more in-depth commitment.

Catella has an excellent platform upon which to develop into a major financial Group, with healthy earnings, based on a strong financial position and a solid market position.

Johan Ericsson, CEO Catella

For more information, please contact:
Johan Ericsson
Chief Executive Officer, Catella
46 8 463 33 10

Press contact:
Viktoria Ejenäs
Communications Officer, Catella
46 8 463 33 34, 46 72 726 33 34

About Catella: Catella is a European finance group active in Corporate Finance and Asset Management. In these operating segments, Catella focuses on selected segments in which advanced specialist expertise and local presence, combined with international reach, are key in creating added value for clients. Catella has approximately 450 employees working at offices in 24 cities in 12 European countries. Catella share is listed on First North Premier and traded under the abbreviations CAT A and CAT B. Remium AB is Catella’s Certified Adviser, 46 8 454 32 00. Read more about Catella at www.catella.se.

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