Catella (CAT) ABGSC Investor Days summary

Business overview and strategy

• Operates across investment management, principal investments, and corporate finance, with SEK 160 billion in AUM and presence in 12 European countries.

• Nearly 60% of revenues are recurring, supporting business stability and long-term growth.

• Emphasizes sustainability, strong local teams, and partnerships to manage institutional capital and build a pan-European brand.

• Key priorities include integrating Principal Investments into core operations, optimizing profitability, and growing AUM via scalable sustainable products.

• Uses balance sheet for co-investments to seed funds and grow AUM, aiming for increased recurring revenues.

Market environment and financial performance

• European real estate transaction volumes have increased 15% year-over-year, indicating a slow but ongoing market recovery.

• Investment Management has grown AUM by over 15% annually since 2015, with continued growth even during industry downturns.

• Maintains a solid cash position, with SEK 1.6 billion in cash, SEK 1.3 billion in debt, and an additional SEK 200 million credit facility.

• Exited unprofitable markets like Germany and the Baltics, now focusing on Sweden, Finland, Denmark, France, and Spain.

• Growth strategy centers on building a pan-European platform, cost control, and increasing fixed income.

Investment management and principal investments

• Manages a broad range of property investments, with a 16% AUM CAGR and recent acquisitions and divestments shaping portfolio size.

• Ongoing projects span residential, office, logistics, and mixed-use assets across Denmark, Germany, France, and the UK.

• Targets project IRRs above 15% and aims for diversification and growth through co-investments and fund investments.

• Plans to integrate Principal Investments into Investment Management for clearer reporting and risk reduction.

• Will continue to invest in minority and co-investments to grow AUM and consider M&A for strategic expansion.