Catella : Annual Review 2020

ANNUAL REPORT 2020

1. THIS IS CATELLA

This is Catella	2
2020 in brief	3
CEO comment	4
Strategy	6

2. OPERATIONS AND MARKETS

Business areas	10
Corporate Finance	12
Property Investment Management	14
Equity, Hedge and
Fixed Income Funds	16
Case	18
Sustainability report	20

3.	SHARES AND SHAREHOLDERS
	The Catella share and ownership	26
4.	CORPORATE GOVERNANCE
	Corporate governance report	32
	Board of directors and auditors	38
	Group management	40
5.	FINANCIAL STATEMENTS
	Content	44
	Board of directors report	45
	Consolidated statements	51
	Parent company statements	96
	Audit report	104

Production: Catella and Narva

Photography: Mats Lundqvist, Getty Images,

Catella.

d

Delivering beyond the expected

Through a pan-European platform with global reach, Catella offers local expertise and customised services in property and alternative investments to professional investors. Our vision is to be the preferred European partner for investors - together shaping the future in property and alternative investments. Through geographical range and a broad product offer aimed at professional investors, Catella is reducing exposure to individual markets and asset classes and building stable earnings over time.

_

Catella was founded in 1987 and the head office is in Stockholm. The company has more than 566 employees at 27 offices in Europe.

JYVÄSKYLÄ

OULU

LAHTI

TAMPERE

TURKU

HELSINKI

OSLO

STOCKHOLM

TALLINN

GOTHENBURG

RIGA

MANCHESTER

COPENHAGEN

MALMÖ

VILNIUS

HAMBURG

BERLIN

LONDON

MAASTRICHT

DUSSELDORF

PARIS

FRANKFURT

LUXEMBURG

NANTESMUNICH

LYON

MADRID

CATELLA Annual Report 2020

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1. This is Catella

FOCUS ON PROPERTY

Catella was founded in 1987 and the head office is in Stockholm. With more than 566 employees at 27 offices in Europe, Catella offers professional advice, innovative products, and active and systematic management in several asset classes. The business is run through three business areas: Corporate Finance, Property Investment Management and Equity, Hedge and Fixed Income Funds. In 2021, the company will report Principal Investment as a separate business area.

for clients while working actively to leverage existing investment solutions. Market conditions have shifted geographically - Carnegie has retaken the role of market leader in Sweden, for example, while the Baltics have been a challenge. Turn to page 12 for more information. Property Investment Management had a strong year despite the ongoing pandemic and assets under management have grown by more than 200 percent in the

CATELLA OPERATES in 13 countries and has a strong local presence with outstanding expertise in the markets

in which the company does business. The organisational structure promotes synergies through collaboration within and among the business areas. Catella has built a platform where employees from different countries and business areas exchange knowledge and coordinate activities and client contacts, enabling Catella to create innovative offerings that appeal to local and international investors. During 2020, Catella had sales of more than SEK 2.3 billion and assets under management of SEK 130 billion at year-end.

2020 IN BRIEF

2020 was a year of focus on a new strategy for Catella. The strategy orients the company more towards property and broader expansion in terms of geographies, types of property and risk categories - this is presented in greater detail on pages 6-7. As a natural result of the concentration to real estate, Catella has continued to trim the Equity, Hedge and Fixed Income Funds business area. Read more on page 16. The Corporate Finance business concentrated on existing markets and presence with current clients during the year. Catella has focused on creating new and innovative solutions

past six years. Focus moving forward will be on leveraging positive momentum via expansion projects in the new business area, Principal Investments. Read more in-depth information about this and Principal Invest- ments' pan-European business on page 14. Covid-19 has naturally had impact on Catella and its clients, including capital outflows and changing transaction patterns.

OUR PLATFORM

• A pan-European platform with strong local presence in 13 countries and 27 cities.

OUR EXPERTISE AND

OUR OFFERING

• Focus on property investments in a broad spectrum of risk classes.
• Advanced advisory and capital market services in the property segment.
• A wide selection of active and alternative funds with focus on sustainability.
• Global niche leader in systematic macro strategies.

HOW WE CREATE VALUE FOR

OUR CLIENTS

• A revenue model focused on the best interests and needs of clients.
• Local teams with profound insight into each market.
• Diversification through geographies and asset classes.
• Capital, products and synergies across the entire value growth chain.

• Continuing operations within Catella are comprised of three business areas reported in two segments: Corporate Finance and Asset Management, where the latter includes Property Investment Management and Equity, Hedge and Fixed Income Funds.

2

SIGNIFICANT EVENTS IN 2020

MARKET VALUE

SEK M

2,399

At 31 Dec 2020

+17 % change from last year

• The Covid-19 pandemic had negative impact on transaction volumes in Corporate Finance and contributed to capital outflows from Systematic Macro. Property Investment Management demonstrated strong growth despite the pandemic.
• Catella AB sold 70 percent of the shares in Catella Fondförvaltning to further strengthen liquidity and sharpen focus on property investments.

GROWTH IN ASSETS UNDER MANAGEMENT

SEK Bn

200
150
100
50
0
2016	2017	2018	2019	2020

Assets under management

SEK Bn

• The Grand Central property project in Düsseldorf, Germany, was sold. Turn to page 19 for more information.
• Investment in logistics property in Norrköping. Read more on page 18.
• The winding up of the banking business was largely completed and the banking license will be returned in 2021.
• Johan Claesson began as Acting CEO and Jan Roxendal began serving as Acting Chairman of the Board.

INCOME DISTRIBU-

TION BY BUSINESS

AREA*

%

Corporate Finance 29 %

Property Investment

Management 53 %

Equity, Hedge and Fixed

Income Funds 18 %

ASSETS UNDER MANAGEMENT*

SEK Bn

129.9

At 31 Dec 2020

-24% change from last year

TOTAL INCOME*

SEK M

2,312

2020

-4% change from last year

OPERATING PROFIT *

SEK M

393

INCOME PER	GROWTH IN TOTAL INCOME
COUNTRY	AND OPERATING PROFIT
%	SEK Bn

2020

-7% change from last year

Germany SEK 759m, 33% Sweden SEK 712m, 31%

France SEK 466m, 20%

Rest of the world SEK 260m, 11%

Finland SEK 88m, 4%

Denmark SEK 28m, 1%

3.0				30
				24
				18
1.5
				12
				6
0.0				0
2016	2017	2018	2019	2020

Income, SEK Bn

Operating profit, SEK Bn

Operating margin, % 

NUMBER OF EMPLOYEES*

566

At 31 Dec 2020

-3 % change from last year

* Continuing operations.

CATELLA Annual Report 2020

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