28.02.2017
TAALERI PLC FINANCIAL STATEMENTS BULLETIN 28 FEBRUARY 2017 AT 9.00
TAALERI GROUP 1 JANUARY – 31 DECEMBER 2016
- The Group's income grew by 3.7 percent to EUR 60.6 million (1–12/2015: EUR 58.4 million)
- The Group's assets under management grew by 22.7 percent to EUR 4.8 billion (EUR 3.9 billion).
- The Group's operating profit was EUR 16.3 million (47.4). The result for the reference year 2015 included the entry of EUR 27.3 million of negative goodwill from the acquisition of Garantia.
- The Group's adjusted operating profit was EUR 16.3 million (20.1). EUR 2.5 million costs related to rebranding, stock exchange listing and sale of Finsilva affect the financial comparability.
- The result per share was EUR 0.45 (1.53) and the adjusted result per share EUR 0.45 (0.55).
- The Board of Directors proposes a dividend of EUR 0.22 per share to be distributed.
- The company carried out a major brand change, and changed its name from Taaleritehdas Plc to Taaleri Plc in January 2016.
TAALERI GROUP 1 JULY – 31 DECEMBER 2016
- The Group’s income declined by 5.4 percent to EUR 26.9 million (1-7/2015: EUR 28.4 million)
- The Group’s assets under management grew by 14 percent to EUR 4.8 billion (30 June 2016: 4.2)
- The Group’s operating profit was EUR 4.6 million (8.3).
- The result per share was EUR 0.12 (0.21)
| The Group's realised financial objectives | Year 2016 | Year 2015 | H2 2016 | H2 2015 |
2016 objective |
| Adjusted operating profit, EUR million | 16.3 | 20.1 | 4.6 | 8.3 | - |
| Adjusted operating profit, % | 27.0 | 34.4 | 17.1 | 29.0 | > 15.0 |
| Adjusted profit after taxes, EUR million | 12.8 | 16.8 | 3.6 | 6.9 | - |
| Adjusted return on equity, % | 13.4 | 24.9 | 7.9 | 14.8 | > 15.0* |
| Equity ratio | 44.0 | 44.8 | 44.0 | 44.8 | > 30.0 |
| Conglomerate's capital adequacy ratio, % | 268.9 | 259.2 | 268.9 | 259.2 | > 150.0 |
* long term objective
Estimate of likely future development
The company’s management thinks that the business environment has become more demanding, but that the company has an opportunity to win market share in capital markets. The development of the Wealth Management segment has been positive, particularly in the latter half of the year, and the company has gained new customers in a competitive market, thanks to successful and varied private equity fund projects. The development of the Financing segment has been positive, both in relation to premiums written and claims incurred. The company believes that through active sales and high-level risk management, significant growth can be achieved. It is expected that the Group’s expansion into the energy sector will significantly increase the assets managed by the company’s private equity funds in the long term.
Taaleri’s Board of Directors confirms at least 20 percent of income as the new target for operating profit. Financial targets related to growth are growth of more than 15 percent per annum in assets under management for the Wealth Management segment and growth of more than 15 percent per annum in gross premiums written for the Financing segment. Taaleri’s target for return on equity over a long period is more than 15 percent and equity ratio is at least 30 percent. In addition to these, the company is endeavouring to increase the amount of dividend it distributes, and annually to distribute a competitive dividend, taking into account the company’s financial and financing situation, the capital adequacy requirements, and future investment plans.
CEO Juhani Elomaa on the result
2016 certainly brought plenty of changes and anticipation of other changes to come, both within the company and in our operating environment. Tensions in the operating environment, driven by the Brexit referendum and the US presidential election, in particular, caused much uncertainty, but interestingly the direct impact on the market was lower and shorter than expected. The long-term effects remain to be seen, however.
Taaleri Group achieved good financial results with an operating profit of 27 percent. While the market situation was characterised by nervousness, which affected customers’ investment activity, thus weakening continuing earnings, sales profits and the positive development of investment assets drove improved profits for the period. Streamlining of cost structures also continued to gain momentum.
Assets under management increased during the year from EUR 3.9 billion to EUR 4.8 billion. Assets are still growing by a good rate of 20 percent. We see the fastest growth in private equity funds, where assets under management increased by more than 40 percent. In June, we established the world's first private equity fund investing in the circular economy and, at the end of the year, a solar energy and wind power fund and a fund for social housing, financing the production of reasonably-priced rental units.
Taaleri's equity and money market funds also continue to play a significant role, and last year they were a great success. The continuing earnings from wealth management have remained at the level of the previous year. Fewer sales of private equity projects were recorded last year than the year before. On the other hand, in spring 2016 Taaleri's investment company sold its share of forestry business Finsilva to Etera, a mutual employment pension insurance company, from which we recorded a significant sales profit.
Last year was the first whole financial period that Garantia, which sells guaranty insurance, was part of Taaleri Group. In August, credit rating company Standard & Poors confirmed Garantia's credit rating as an independent company at A- (stable outlook). Garantia's income from insurance premiums grew by 22 percent, a significant change of direction for the company. Garantia's investment activity was also very successful last year, showing a return of 5.8 percent. Significant events for Taaleri also included the company's move from the First North marketplace to the Helsinki main market as a medium-sized company with a market value of about EUR 230 million, and the establishment of its Energy segment. At the end of 2016, a EUR 35 million bond issue targeted at institutions was significantly oversubscribed.
Taaleri has published statements on Corporate Governance and Remuneration
Compliance with the Securities Market Association’s Finnish Corporate Governance Code, Taaleri Plc has published a Corporate Governance Statement and the Taaleri Group’s Remuneration Statement at the address www.taaleri.com/en/investor-relations/governance/statements.
Taaleri Plc
Communications
Additional information:
Juhani Elomaa, CEO, Tel. 358 40 778 9020
Minna Smedsten, CFO, Tel. 358 40 700 1738
Taneli Hassinen, Head of Communications and IR, Tel. 358 40 504 3321
Taaleri in brief
Taaleri is a Finnish financial service company, whose parent company Taaleri Plc is listed on Nasdaq Helsinki's main market. The Taaleri Group comprises three business areas: Wealth Management, Financing, and Energy. Taaleri provides services to institutional investors, companies and private individuals. The Group’s operational subsidiaries are: Taaleri Wealth Management Ltd and its subsidiaries, Taaleri Private Equity Funds Group, Taaleri Investments Group, Taaleri Energia Oy and Garantia Insurance Company Ltd. In addition, Taaleri has associated companies Fellow Finance Plc, which offers peer-to-peer lending services, and Inderes Oy, which produces analyses and media content for investors.
At the end of 2016, Taaleri had assets under management totalling EUR 4.8 billion and 3,900 wealth management customers. Taaleri Plc has some 2,700 shareholders. Taaleri's operations are supervised by the Finnish Financial Supervisory Authority.
More information about our company and services:
www.taaleri.com
www.fellowfinance.fi
www.garantia.fi