14.02.2024
TAALERI PLC STOCK EXCHANGE RELEASE 14 FEBRUARY 2024 AT 8:00 (EET)
Taaleri Plc Financial Statements Bulletin 1 January–31 December 2023: Strong result in Taaleri’s investment operations, operating profit 39% of total income in the last quarter of the year
October–December 2023
- Continuing earnings fell by 6.6% to EUR 9.9 (10.6) million. The Private Asset Management segment’s continuing earnings grew by 18.5% to EUR 6.7 (5.7) million, but the Strategic Investments segment’s continuing earnings fell by 39.3% to EUR 2.8 (4.6) million.
- Performance fees were EUR 0.0 (12.4) million, and net income from investment operations was EUR 7.8 (-6.7) million.
- Income increased by 9.0% to EUR 17.7 (16.2) million.
- Operating profit was EUR 6.9 (7.2) million, corresponding to 38.9% of income.
- The assets under management in the Private Asset Management segment grew by 5.0% to EUR 2.6 (31 December 2022: 2.5) billion.
- Earnings per share were 0.14 (0.20) EUR.
January–December 2023
- Continuing earnings grew by 8.4% to EUR 39.9 (36.8) million. The Private Asset Management segment’s continuing earnings grew by 17.8% to EUR 24.4 (20.7) million, but the Strategic Investments segment’s continuing earnings fell by 1.0% to EUR 13.6 (13.7) million.
- Performance fees were EUR 1.5 (19.4) million, and net income from investment operations grew to EUR 25.0 (2.8) million.
- Income increased by 12.5% to EUR 66.3 (58.9) million.
- Operating profit was EUR 31.9 (27.3) million, corresponding to 48.1% of income.
- Earnings per share were 0.81 (0.73) EUR.
- The Board of Directors proposes that a dividend of EUR 1.00 per share be paid for 2023.
Taaleri has implemented the IFRS 17 Insurance Contracts standard on 1 January 2023, and the adjusted comparative financial information for 2022 was published on 30 March 2023. The figures for the comparison period in this Financial Statements Bulletin are adjusted comparison figures.
The Financial Statements Bulletin has been prepared in accordance with IAS 34. The Financial Statements Bulletin is based on the audited Financial Statements of 2023. The auditor’s report has been issued on 14 February 2024. Unless otherwise stated, the figures in parentheses in the Financial Statements Bulletin refer to the corresponding period of the previous year. For further information of the accounting policies, see page 23 of the Financial Statements Bulletin.
REVIEW BY CEO PETER RAMSAY
During 2023, Taaleri strongly promoted its strategy based on renewable energy, bioindustry and real estate business, despite the challenging operating environment. We can be pleased with the Group’s profit development over the entire year. The Group’s continuing earnings for the financial year grew by 8.4%. Income increased by 12.5% to EUR 66.3 million and operating profit by 16.8% to EUR 31.9 million. The operating profit margin was 48.1.
The Group’s continuing earnings fell in the last quarter of the year, mainly due to the inter-quarter volatility caused by the valuation and recognition principles of IFRS 17 standard applied to the figures of Garantia Insurance Company Ltd. The Group’s income in the last quarter grew but operating profit fell from the corresponding period due to, among other things, performance fees recorded in the corresponding period.
In the Private Asset Management segment, continuing earnings grew by 19% in the last quarter, but income and operating profit fell from the corresponding period, during which earnings were boosted by considerable performance fees. No performance fees were recognised in the last quarter of 2023.
At the end of the last quarter, the renewable energy business announced that it had raised EUR 430 million in investment commitments for its sixth fund, Taaleri SolarWind III, at the second close. We consider the result a success in the current operating environment, and we will continue active fundraising at least until the end of 2024. Our goal is to raise EUR 700 million from investors in the fund. During the review period, we continued preparations to exit the Taaleri Wind II and Taaleri Wind III Funds, which are at the end of their lifecycle. In addition, the renewable energy business recorded an operating profit of EUR 4.1 million related to development activities in Texas between 2018 and 2021.
In the bioindustry business, we focused in the last quarter on supporting the growth of the portfolio companies of the Taaleri Bioindustry I Fund and mapping and evaluating new potential investees. We also continued the preparations for the venture capital fund and started the construction work for a torrefied biomass plant to be built in Joensuu. We launched several recruitment processes to support direct investments and international growth in line with the updated strategy.
In the real estate business, the new business director started in early 2024, and we are currently working on an updated strategy for the business. During the review period, we continued to develop new investment products and optimise the profitability of the real estate portfolios owned by the funds. The business also continued the preparations to exit funds at the end of their lifecycle.
In the Strategic Investments segment, the development of Garantia’s key figures in the last quarter reflects the inter-quarter profit fluctuation characteristic of the IFRS 17 standard. The insurance service result was EUR 2.7 million and the combined ratio was 42.0%. However, the profitability of Garantia’s insurance operations remained at a good level, although the insurance service expenses grew and revaluation of insurance contract liabilities during the quarter decreased insurance revenue from the comparison period. The insurance service result for the entire year was EUR 13.5 million and the combined ratio was excellent at 28.7%. Garantia’s net income from investment operations increased to EUR 1.4 million in the last quarter and to EUR 4.7 million in the whole year as the investment market strengthened from the corresponding period.
One of our priorities during the year was a strategy update, which we published in November. The biggest changes to our strategy are bringing direct bioindustry investments to the forefront of the business alongside the private asset management business and seeking strong international growth.
Our vision is to become a leading investment manager operating internationally in bioindustry and renewable energy. Our goal is to increase the assets under management to EUR 4 billion and the Group’s direct industrial investments to at least EUR 100 million by the end of 2026. The goals are ambitious, but I believe we have every opportunity to achieve them.
GROUP KEY FIGURES
|
Group key figures |
10–12/2023 |
10–12/2022 |
Change, % |
1–12/2023 |
1–12/2022 |
Change, % |
|
Earnings key figures |
|
|
|
|
|
|
|
Continuing earnings, MEUR |
9.9 |
10.6 |
-6.6 |
39.9 |
36.8 |
8.4 |
|
Income, MEUR |
17.7 |
16.2 |
9.0 |
66.3 |
58.9 |
12.5 |
|
Operating profit, MEUR |
6.9 |
7.2 |
-4.8 |
31.9 |
27.3 |
16.8 |
|
Operating profit, % |
38.9 |
44.6 |
|
48.1 |
46.3 |
|
|
Profit for the period in consolidated income statement, MEUR |
5.0 |
5.7 |
-12.0 |
26.5 |
21.3 |
24.6 |
|
Return on equity, annualised % |
9.7 |
11.6 |
|
13.0 |
10.0 |
|
|
Balance sheet key figures |
|
|
|
|
|
|
|
Equity ratio, % |
67.8 |
66.9 |
|
67.8 |
66.9 |
|
|
Other key figures |
|
|
|
|
|
|
|
Cost/income ratio, % |
59.0 |
57.0 |
|
52.8 |
55.2 |
|
|
Full-time permanent personnel, |
111 |
106 |
4.7 |
111 |
106 |
4.7 |
|
Assets under management in Private Asset Management segment, BEUR |
2.6 |
2.5 |
5.0 |
2.6 |
2.5 |
5.0 |
|
Guaranty insurance portfolio, BEUR |
1.7 |
1.9 |
-6.0 |
1.7 |
1.9 |
-6.0 |
DIVIDEND PROPOSAL OF THE BOARD OF DIRECTORS
The Board of Directors proposes that a dividend of EUR 1.00 per share, a total of EUR 28,285,593 will be paid for the financial year 2023. The dividend proposal is to distribute EUR 0.50 as a dividend based on the profit for the period of continuing operations, and EUR 0.50 as a dividend based on the sale of the wealth management operations. The parent company’s distributable funds were EUR 129,588,048.17, which includes EUR 10,180,208.95 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 12 April 2024. The dividend payment date proposed by the Board of Directors is 19 April 2024.
No dividend is paid to the shares held by the parent company. The amount of the proposed dividend distribution is based on the number of shares outstanding at the balance sheet date. The actual dividend payment is determined based on the number of shares outstanding on the record date.
OUTLOOK AND FINANCIAL TARGETS
Taaleri does not publish a short-term outlook. However, the company has set itself targets related to growth, return on invested capital and dividend payout.
Taaleri’s updated long-term targets are:
- Growth in Group’s continuing earnings and performance fees at least 15 percent p.a.
- Return on equity at least 15 percent
- Dividend payout at least 50 percent of the FY profit
WEBCAST PRESENTATION FOR ANALYSTS, INVESTORS AND MEDIA
An analyst, investor and media conference will be held in English by CEO Peter Ramsay on 14 February 2024 at 11:00 EET at Event Venue Eliel in Sanomatalo, Töölönlahdenkatu 2, Helsinki. The webcast can be followed online at: https://taaleri.videosync.fi/q4-2023. The event will be recorded and available later on Taaleri's investor pages at http://www.taaleri.com/en/investors/reports-and-presentations.
Helsinki, 14 February 2024
Taaleri Plc
Board of Directors
For further information, please contact:
CEO Peter Ramsay, +358 50 343 7493, peter.ramsay@taaleri.com
Head of Investor Relations, Sustainability and Communications 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 that focuses on businesses with industrial-scale opportunities within bioindustry and renewable energy. We create value by combining extensive know-how, deep expertise, entrepreneurship and capital through both funds under management and direct investments. We have been 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 become a leading investment manager operating internationally in bioindustry and renewable energy.
Taaleri has EUR 2.6 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 Investor Relations, Sustainability and Communications Siri Markula, +358 40 743 2177, siri.markula@taaleri.com