16.02.2023
TAALERI PLC STOCK EXCHANGE RELEASE 16 FEBRUARY 2023 AT 8:00 (EET)
Taaleri Plc Financial Statements Bulletin 1 January–31 December 2022: A good last quarter for Taaleri supported by EUR 12.4 million in performance fees, but investment operations weighed on income and operating profit
October–December 2022
- Continuing earnings grew by 2.1% to EUR 11.7 (11.4) million. The Private Asset Management segment’s continuing earnings grew by 3.9% to EUR 5.7 (5.4) million and the Strategic Investments segment’s continuing earnings by 2.4% to EUR 5.7 (5.5) million.
- Performance fees were EUR 12.4 (10.6) million, and net income from investment operations was EUR -6.7 (7.4) million.
- Income decreased to EUR 17.3 (29.4) million as a result of negative net income from investment operations.
- Operating profit was EUR 7.1 (14.7) million, corresponding to 41.0% of income.
- The assets under management in the Private Asset Management segment grew by 12.9% to EUR 2.5 (31 December 2021: 2.2) billion.
- Earnings per share were EUR 0.25 (0.42).
January–December 2022
- Continuing earnings grew by 0.8% to EUR 41.0 (40.7) million. The Private Asset Management segment’s continuing earnings grew by 2.8% to EUR 20.7 (20.1) million, and the Strategic Investments segment’s continuing earnings grew by 2.2% to EUR 18.0 (17.6) million.
- Performance fees were EUR 19.4 (11.4) million, and net income from investment operations was EUR 2.8 (17.6) million.
- Income decreased by 9.3% and was EUR 63.2 (69.7) million.
- Operating profit was EUR 27.3 (30.8) million, corresponding to 43.2% of income.
- Earnings per share were EUR 0.73 (4.81).
- The Board of Directors proposes a dividend of EUR 0.70 per share for 2022.
The Financial Statements Bulletin has been prepared in accordance with IAS 34. The Financial Statements Bulletin is based on the audited Financial Statements of 2022. The auditor's report has been issued on 16 February 2023. Unless otherwise stated, the figures in parentheses in the Financial Statements Bulletin refer to the corresponding period of the previous year. See page 23 for further information of the accounting policies of the Financial Statements Bulletin.
REVIEW BY CEO PETER RAMSAY
We can be pleased with the progress of our strategy in 2022. Although the general market conditions have been challenging due to both the war in Ukraine, the rise in inflation and interest rates, and the effects of the COVID-19 pandemic, our strategy has worked well also in the current situation. Our private equity funds focusing on sustainability respond to many current challenges, such as mitigating climate change and strengthening self-sufficiency. This also supports new openings, such as expanding our business to energy storage systems.
The Group’s income for the period was EUR 63.2 million and the operating profit margin was 43%. Both continuing earnings and performance fees increased, but unrealized changes in fair value of EUR -10.1 million in the Strategic Investments segment weighed on the Group’s income and operating profit. The decrease in fair values is due to, among other things, the rise in interest rates and changes in risk premiums, which have affected the valuations of Garantia’s investment portfolio.
During the last quarter of the year, our continuing earnings developed satisfactorily, and performance fees booked grew to more than EUR 12 million. The Group’s investment operations weighed on income and operating profit.
Operating profit from the Private Asset Management segment grew in the last quarter by 68% to EUR 12.3 million due to, among other things, performance fees.
The renewable energy business announced its sixth fund, Taaleri SolarWind III. Its fundraising is ongoing, and the first closing is anticipated in the first half of 2023. The fund will be based on a project development portfolio of 25–35 projects, which already included 20 projects at the end of the financial year. With the new fund, we aim to double the size of Taaleri SolarWind II, which is approximately EUR 350 million.
I am particularly proud to say that we are the largest wind power producer in Finland with a market share of 12% (Finnish Wind Power Association’s wind power statistics 2022). This reflects both our long history as a developer of domestic wind power and the know-how and capability of our current team.
In the real estate business, investment operations proceeded as planned despite the general slowdown in the real estate investment market. The business made one acquisition for Aktia’s special mutual fund in our portfolio management.
Taaleri Bioindustry I, the first fund of the bioindustry business launched a year ago, made its first two investments. The investees are Colombier, a company producing ecological packaging, and Nordtreat, a company producing bio-based flame retardants. In the last quarter of the year, the ramp-up of Taaleri’s associated company Fintoil’s tall oil refinery was also successfully completed.
In the Strategic Investments segment, Garantia achieved its best ever profitability in its insurance operations in the fourth quarter. The combined ratio was 23.9% in the quarter and 28.4% in the full year. However, Garantia’s investment performance was weak due to the historically high interest rate movement.
I would like to thank our personnel once more for 2022. Skilled and knowledgeable Taaleri employees are the foundation of our success. One of our most important successes in 2022 was the definition of Taaleri’s new values – With know-how, skills and will, Dare to succeed and Support each other – in a process that engaged all Taaleri employees. In addition, we invested in management and the development of supervisory work. I am pleased that the personnel surveys clearly show that wellbeing at work has improved further. In addition, our eNPS score measuring employee loyalty has risen to an excellent 60.8, which is high for the sector.
Finally, I would like to thank all our shareholders and welcome the new shareholders to our impactful journey. At the end of the year, the number of shareholders rose to over 10,000, having grown by almost 70% since the 2021 strategy reform. Taaleri wants to be a pioneer in alternative investments focusing on sustainability, and our mission is to use capital and our expertise to build a better future. We believe that together, we will have an even better chance of achieving our goals this year.
GROUP KEY FIGURES
|
Group key figures |
10–12/2022 |
10–12/2021 |
Change, % |
1–12/2022 |
1–12/2021 |
Change, % |
|
Earnings key figures |
|
|
|
|
|
|
|
Continuing earnings, MEUR |
11.7 |
11.4 |
2.1 |
41.0 |
40.7 |
0.8 |
|
Income, MEUR |
17.3 |
29.4 |
-41.2 |
63.2 |
69.7 |
-9.3 |
|
Operating profit, MEUR |
7.1 |
14.7 |
-51.7 |
27.3 |
30.8 |
-11.3 |
|
Operating profit, % |
41.0 |
49.9 |
|
43.2 |
44.2 |
|
|
Profit for the period in consolidated income statement, MEUR |
7.1 |
12.1 |
-41.2 |
21.3 |
136.1 |
-84.3 |
|
Return on equity*, % |
14.3 |
21.5 |
|
9.9 |
75.0 |
|
|
Balance sheet key figures |
|
|
|
|
|
|
|
Equity ratio, % |
67.4 |
72.1 |
|
67.4 |
72.1 |
|
|
Other key figures |
|
|
|
|
|
|
|
Cost/income ratio excluding investment operations |
43.6 |
68.0 |
|
60.9 |
77.9 |
|
|
Cost/income ratio |
60.5 |
51.0 |
|
58.2 |
58.3 |
|
|
Full-time permanent personnel, |
106 |
104 |
1.9 |
106 |
104 |
1.9 |
|
Assets under management in Private Asset Management segment, BEUR |
2.5 |
2.2 |
12.9 |
2.5 |
2.2 |
12.9 |
|
Guaranty insurance portfolio, BEUR |
1.9 |
1.7 |
9.8 |
1.9 |
1.7 |
9.8 |
*Annualised
DIVIDEND PROPOSAL OF THE BOARD OF DIRECTORS
The Board of Directors proposes that a dividend of EUR 0.70 per share, a total of EUR 19,813,934.00 will be paid for the financial year 2022. The dividend proposal is to distribute EUR 0.45 as a dividend based on the profit for the period of continuing operations, and EUR 0.25 as a dividend based on the sale of the wealth management operations. The parent company’s distributable funds were EUR 139,396,913.81, which includes EUR 14,892,445.81 in net profit for the financial year. The dividend is to be paid in one instalment.
The dividend will be paid to shareholders who are registered in the list of shareholders maintained by Euroclear Finland Ltd on the record date, which is 17 April 2023. The dividend payment date proposed by the Board of Directors is 24 April 2023.
OUTLOOK AND FINANCIAL TARGETS
Taaleri does not publish a short-term outlook. However, the company has set itself targets related to growth, profitability and return on invested capital.
Taaleri’s long-term targets include:
- Continuing earnings growth at least 15 per cent
- Operating profit at least 25 per cent of income
- Return on equity at least 15 per cent.
The company’s goal is to distribute to its shareholders at least 50 per cent of the profit for the financial year as well as the capital that the company does not need for growth investments or to fulfil its targets for solvency.
WEBCAST PRESENTATION FOR ANALYSTS, INVESTORS AND MEDIA
An analyst, investor and media conference will be held in English by CEO Peter Ramsay and CFO Minna Smedsten on February 16, 2023, at 11:00 EET at Hotel Kämp, Symposion room, Pohjoisesplanadi 29, Helsinki. The webcast can be followed online at: https://taaleri.videosync.fi/q4-2022-results. The event will be recorded and available later on Taaleri's investor pages at www.taaleri.com/investors/reports-and-presentations.
Helsinki, 16 February 2023
Taaleri Plc
Board of Directors
For further information, please contact:
CEO Peter Ramsay, +358 50 343 7493, peter.ramsay@taaleri.com
CFO Minna Smedsten, +358 40 700 1738, minna.smedsten@taaleri.com
Head of Communications and IR Siri Markula, +358 40 743 2177, siri.markula@taaleri.com
Distribution:
Nasdaq Helsinki
Key media
www.taaleri.com
Taaleri in brief
Taaleri is a Nordic investment and asset manager with an emphasis on renewable energy and other alternative investments. We channel capital towards economically profitable undertakings that have a lasting positive impact on the environment and society. We combine capital with talent, expertise, entrepreneurship, and a bold sense of purpose. We are a signatory of the UN Principles for Responsible Investment (UNPRI) since 2010, and we joined the Net Zero Asset Managers initiative in 2021. Taaleri’s vision is to be a Nordic forerunner in alternative investments focusing on sustainability.
Taaleri has two business segments: Private Asset Management and Strategic Investments. Private Asset Management consists of renewable energy, real estate and bioindustry businesses. The Strategic Investments segment includes Garantia Insurance Company Ltd.
Taaleri has EUR 2.5 bn of assets under management in its private equity funds and co-investments. The company has approximately 120 employees. Taaleri Plc is listed on Nasdaq Helsinki.
Head of Communications and IR Siri Markula, +358 40 743 2177, siri.markula@taaleri.com