The positive trend continues

• Operating earnings/EBIT of NOK 10 million and EBITDA of NOK 14 million in the fourth quarter of 2013, compared with EBIT and EBITDA of NOK -12 million and NOK -5 million in the corresponding quarter of 2012, and EBIT of NOK 18 million and EBITDA of NOK 37 million on an annual basis in 2013, compared with EBIT and EBITDA of NOK -56 million and NOK -33 million the previous year
• The Group has delivered a profit for the first time in five years after an extensive restructuring process and improved the operating earnings in 2013 with NOK 74 million compared with 2012
• The Agasti Group has reached its strategic ambition for recurring revenues to cover both fixed and activity-based costs on an annual basis
• Solid returns of 4% in the fourth quarter and 20% during the year for clients who have invested in the Real Estate asset class
• Equity under management increased by NOK 6.2 billion to NOK 30 billion during 2013, and Agasti has a total of NOK 57 billion under management at year-end 2013
• Obligo Investment Management successfully established, assuming full operational control over portfolios and enabling NOK 700 million to be distributed to Wealth Management clients during 2013
• The positive trend in Wealth Management continues. Client satisfaction has consistently improved throughout 2013. Agasti continues to strengthen its Wealth Management platform through the recruitment of Mr. Jens Morten Wembstad and entering into a strategic client relationship with Griff Kapital AS with ambitions to further increase our value adding investment advisory services towards our clients.

The Agasti Group achieved operating earnings of NOK 10 million in the fourth quarter of 2013, compared with NOK -12 million in the corresponding quarter of the previous year. Profit for the year ended at NOK 18 million, compared with NOK -56 million in 2012. 2013 is the first year to deliver a profit since 2008, and means that a long-term negative trend has now been broken.

“The positive trend is continuing, and for the year as a whole we are delivering a profit for the first time in five years, which is in line with our ambitions that we have communicated to the market throughout 2013. The Agasti Group improved the operating earnings in 2013 with NOK 74 million compared with 2012. The turnaround has been achieved through a year with significant reorganisation, restructuring, and the establishment of a new business model. We are satisfied with the results of the turnaround that we have achieved, but we have by no means reached our final goal. The potential within all our business areas is significant, and we shall continue to work tirelessly every single day to create increased profitability for our clients, owners and employees,” says CEO Jørgen Pleym Ulvness.

Within the Markets segment, Obligo Investment Management (Obligo), well-supported by Agasti Wunderlich Capital Markets (AWCM), is delivering promisingly on the Agasti Group’s ambitions. The ambitions are to attract international institutional capital to recognised Norwegian and international institutions within the industries in which Agasti has specialist competence.

“During the fourth quarter we have attracted significant interest and capital from international investors in the Middle East and other regions, where both institutions and affluent investors wish to invest in our projects. This is a direct result of Obligo and AWCM’s unique competence and international investor network, which help to ensure attractive and profitable opportunities for clients of the Agasti Group,” says Ulvness.

In the fourth quarter, several transactions were also carried out which were positive for clients in the form of either appreciation in value, improved liquidity, reduced liabilities or repayments. In addition to the sale of properties in Sweden and a shopping centre portfolio in the USA at a combined value of NOK 2.3 billion, a company has been established using capital from investors in the Middle East. This company has currently invested in property in London worth NOK 110 million, with ambitions to multiply the investment amount.

A positive development has also been seen on the secondary market, and total brokerage transactions ended at NOK 187 million in the fourth quarter and 700 million for 2013.

The positive trend in the Wealth Management segment also continued in terms of revenues and in other areas such as compliance, business processes and cost efficiency. Equity under management (EUM) from new and existing clients increased by NOK 660 million in the fourth quarter, which means a total increase of NOK 3.7 billion in 2013. The return on the Real Estate asset class in 2013 was 19.9 per cent, compared with the typical mandate of 9.0 per cent. Approximately 90 per cent of advisory clients follow the current applicable recommendations of Navigea Securities’ (Navigea) Investment Director and her team. Clients investing in the core selection of funds in 2013 could note a return of 20.5 per cent.

The positive trend in Wealth Management continues. Client satisfaction has consistently improved throughout 2013. Agasti continues to strengthen its Wealth Management platform through the recruitment of Mr. Jens Morten Wembstad and entering into a strategic client relationship with Griff Kapital AS with ambitions to further increase our value adding investment advisory services towards our clients.

It is most gratifying to conclude that Navigea's clients in both Norway and Sweden are increasingly becoming more satisfied. Measurements showed at the end of January a satisfaction index at 73 while the willingness to recommend Navigea Securities to others at 80 (Index of 70 is normally considered as good, while index levels above 80 are considered very good). Navigea is in a positive trend compared to Norwegian banks, where satisfaction according to the rating agency EPSI dropped back in 2013.

“The feedback we have received from our clients through customer satisfaction surveys in the latter half of the year is very gratifying and in contrast to the feedback the same clients gave in 2012. Satisfied clients are the best proof that the work we have done with the establishment of the new business model, new routines and strengthened competence within advisory services, management and compliance has been justified and necessary,” says Ulvness.

As explained in the third quarter, subsidiary Navigea received a preliminary report from the Financial Supervisory Authority of Norway in October 2013, which contained criticism resulting from on-site inspections carried out in April 2013. Both the Navigea management and the Agasti management have taken the criticism very seriously, and as previously communicated have implemented extensive actions and changes. In December 2013 Navigea sent its response to the report to the Financial Supervisory Authority. The final report is expected to be issued in the spring of 2014.

A complete English version of the interim report of the fourth quarter of 2013 is attached on www.newsweb.no and on Agasti's Investor Relations web pages www.agasti.no.

Contact details:

CEO, Jørgen Pleym Ulvness: (+47) 906 67 877

CCO, Tor Arne Olsen, mobile phone: (+47) 900 90 470

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