The best financial results since 2008

Highlights

• Agasti’s net income for the fourth quarter of 2015 was NOK 481 million compared to NOK -37 million in the same period last year. For the full year 2015, Agasti generated net income of NOK 517 million, compared to NOK -17 million in 2014.

Sale of the operating activities

• The sale of 34 per cent of the operating business to an affiliate of Blackstone is accounted for as a sale of the entire business resulting in a NOK 539 million tax free gain. The remaining 66 per cent share is recognized at fair value and accounted for as an investment in a joint venture according to the equity method. This share of net income is recognised as operating revenue.

Financial results operating activities

• The joint venture Obligo Holding AS (Obligo) generated an EBIT of NOK 119 million in the fourth quarter of 2015, and NOK 189 million for the full year.
• Agasti’s share of the profit from the Obligo Group in the fourth quarter of 2015 was NOK 57 million, before amortisations of NOK 76 million.
• Agasti distributed NOK 223 million in sales dividends in December 2015, corresponding to NOK 0.76 per share.
• Completion of the sale of 10 real estate portfolios with an asset value of approximately NOK 22 billion to Blackstone in December 2015.
• Conclusion of a two-year restructuring of the business, signalling Agasti’s successful implementation of the strategic plan adopted in 2013.
• Conclusion and closure of a large set of complaints and legal proceedings that represented extensive financial and reputational risk.

Dividend proposal

• The Board intends to propose that an additional dividend of approximately NOK 0.4 per share is paid for 2015.

For the full year, Agasti generated a net income of NOK 517 million. Net income in the fourth quarter of 2015 ended at NOK 481 million. The figures include a NOK 539 million tax free gain after completion of the transaction where an affiliate of Blackstone acquired a 34 per cent share in Obligo (The Transaction).

“2015 was a good year for Agasti and our shareholders. Old operations have been laid to rest, and we have established Obligo with the ambition of developing it into a leading Nordic real estate investor and manager. Blackstone, one of the world’s

largest and most respected asset management
institutions, has become an equity investor and partner in Obligo. Our customers have been given exit opportunities as promised, and have received distributions totalling approximately NOK 7.5 billion in 2015. The Agasti share was one of the winners on Oslo Stock Exchange in 2015, with share price increasing 135 per cent. In December shareholders also received a sales dividend of NOK 0.76 per
share, and with an operating income of NOK 189
million in Obligo Group the Board in Agasti intends to propose an ordinary dividend of approximately NOK 0.4 for 2015,” says Agasti Holding ASA CEO Jørgen Pleym Ulvness.

The Transaction, where an affiliate of Blackstone acquired a 34 per cent share in Obligo was completed on 20th of October 2015. Agasti and Blackstone have entered into a shareholders’ agreement for Obligo were certain major decisions, e.g. approval of business plan and annual
budgets requires consent from both owners. As a consequence of The Transaction, all Agasti operations and employees were transferred to Obligo and subsidiaries. Obligo is the umbrella for all operational activities. From the fourth quarter of 2015 Obligo Group will provide Agasti Holding ASA and it’s wholly owned subsidiaries with administrative and management assistance.

Obligo is to continue to manage portfolios acquired by Blackstone with an asset value of approximately NOK 10.4 billion. Obligo will for these portfolios until July 2016 receive management fees approximately at the same level as previously, and thereafter based on a cost coverage and incentive fee model. Obligo will in addition receive a fee of NOK 25 million in the first quarter of 2016 for transitional services for the portfolios that will no longer be managed by Obligo. Currently Obligo is also managing NOK 10 billion of real estate for Patrizia where Obligo in 2016 will receive approximately NOK 38 million for transitional asset management services; however these services will be terminated through 2016. For real estate portfolios containing non-Nordic assets with a combined asset value of approximately NOK 1.3 billion, Obligo considers various liquidity options which may result in a reduction of assets managed by Obligo.

Obligo considers various options within infrastructure, including a potential liquidity event and new initiatives. When it comes to private equity and shipping investments, Obligo is adopting a more opportunistic approach although the main strategy for these segments is to continue to create best value for its shareholders and manage until maturity.

In collaboration with Blackstone, Obligo has an ambition to take a leading position in the Nordic market for investment and management of real estate.

Following The Transaction and the shareholder’s agreement where Agasti ceded control, the sale of 34 per cent of the operating business is from the fourth quarter of 2015 in Agasti accounted for as a sale of the entire business, which results in a NOK 539 million tax free gain. The remaining 66 per cent share is recognised at fair value and accounted for as an investment in a joint venture according to the equity method, and recognises its share as operating revenues.

Following The Transaction Agasti is now a financial investment company that owns 66 per cent of Obligo in addition to other legal entities. Agasti has entered into a shareholders’ agreement with Blackstone which dilutes Agasti’s control in Obligo. The two owners now need to agree in many important matters going forward. Blackstone is also one of Obligo’s largest customers. The future value of Agasti will depend on Obligio’s earnings and dividend capacity that still needs to be proven. After entering into the new joint venture with Blackstone, Agasti no longer has any employees.

Obligo is a pure management company with a primary focus on investments in and management of Nordic real estate. The business model is simplified, and the Obligo organisation counts 45 employees.

As from the fourth quarter of 2015, Agasti’s main source of income is its 66 per cent of net income after tax in the Obligo Group, adjusted for amortisations of intangible assets associated with its investment in the joint venture.

The Obligo Group had operating revenues of NOK 225 million in the fourth quarter of 2015. Operating costs amounted to NOK 106 million, leading to an EBIT of NOK 119 million in the fourth quarter of 2015. Agasti Holding ASA’s relative share of profit after tax in Obligo is NOK 57 million, before amortisations of NOK 76 million, a net loss of NOK 24 million.

The Agasti share increased 135 per cent in 2015. The shareholders received in December a sales dividend of NOK 0.76 per share. The Board of Directors intends to propose that an additional dividend of approximately NOK 0.4 per share is paid for the financial year 2015.

A complete English version of the interim report is attached on www.newsweb.no and on Agasti's Investor Relations web pages www.agasti.no.

Contact details:
CEO, Jørgen Pleym Ulvness, phone (+47) 906 67 877
CFO, Christian Dovland, phone (+47) 908 84 730
CCO, Tor Arne Olsen, phone (+47) 900 90 470

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.