19.08.2022
TAALERI PLC STOCK EXCHANGE RELEASE 19 AUGUST 2022 AT 8:00 (EEST)
Taaleri Plc Half-Year Financial Report 1 Jan–30 June 2022: Unrealized changes in the fair value of investment operations weighed on income and operating profit, the assets under management grew by 6.3%
April–June 2022
- Continuing earnings decreased by 14.3% to EUR 9.3 (11.2) million. The continuing earnings of the Private Asset Management segment decreased by 14.4% to EUR 4.8 (5.6) million, and the continuing earnings of the Strategic Investments segment by 12.2% to EUR 4.0 (4.6) million.
- No performance fees were accrued during the review period and net income from investment operations was EUR 2.3 (3.2) million.
- Income was EUR 11.9 (14.3) million, a decrease of 17.3%.
- Operating profit was EUR 2.4 (5.4) million, corresponding to 20.5% of income.
- The assets under management in the Private Asset Management segment grew by 6.3% to EUR 2.4 (31.12.2021: 2.2) billion.
- Earnings per share were EUR 0.00 (3.94)
January–June 2022
- Continuing earnings decreased by 6.0% to EUR 18.9 (20.1) million. The continuing earnings of the Private Asset Management segment decreased by 1.5% to EUR 9.7 (9.9) million, and the continuing earnings of the Strategic Investments segment by 3.5% to EUR 7.9 (8.2) million.
- Performance fees were EUR 0.5 (0.8) million and net income from investment operations was EUR -0.4 (7.1) million.
- Income was EUR 19.0 (28.0) million, a decrease of 32.1%.
- Operating profit was EUR 1.8 (11.3) million, corresponding to 9.3% of income.
- Earnings per share were EUR -0.05 (4.18).
The Half-Year Financial Report has been prepared in accordance with IAS 34. The Half-Year Financial Report is unaudited. See page 19 of the report for further information of the accounting policies of the Half-Year Financial Report.
REVIEW BY CEO PETER RAMSAY
In the second quarter of 2022, we continued to promote our strategy that focuses on renewable energy, real estate and bioindustry. Our operating profit was EUR 2.4 million, corresponding to a profit margin of 21%. The Group’s continuing earnings decreased mainly due to the closing of the Taaleri SolarWind II fund in the comparison period. Changes in the fair values in the Strategic Investments segment weighed on the Group’s income and operating profit. The decrease in the fair values of investments is due to, among other things, the rise in interest rates, which has affected the valuations of Garantia’s investment portfolio.
Operationally, we progressed according to plan in the second quarter despite the changes and uncertainties in the operating environment. Our strategy works well also in the current situation. Europe’s desire to break away from Russian gas, oil and coal will increase the demand for renewable energy as well as for bioindustry products, which in the long term will support our private asset management business.
Income in the Private Asset Management segment increased some 9%, but operating profit declined due to the investments made in growing the business.
During the second quarter, the renewable energy business focused, for example, on advancing projects of the Taaleri SolarWind II fund that were in the construction phase. Additionally, the building of the project development portfolio continues according to plan and at the end of the review period our portfolio already included 14 projects. Marketing for the next fund, Taaleri SolarWind III, will be launched this autumn.
During the second quarter, the real estate business carried out two new investments in Aktia’s special mutual funds that are portfolio-managed by the real estate business, as well as the first investment in Taaleri Housing Fund VIII that invests in rental housing under construction.
The first fund of the bioindustry business, Taaleri Bioindustry I, did very well to reach the target size of EUR 80 million in its first round of funding and continues to raise funds supported by strong demand. The successful fundraising is an achievement for Taaleri and Aktia’s cooperation. The decision by Finnish Climate Fund to become an anchor investor reflects the fund’s ambitious goals with regard to climate change mitigation and sustainable investment. The fund’s first investments are intended to be made in the third quarter.
Fintoil, a Taaleri associated company, in June concluded a significant sales contract with the Swiss company VARO Energy. At the same time, Taaleri and VARO Energy agreed on strategic cooperation. The sales contract covers a significant part of the Fintoil’s refinery’s crude fatty acid production. Crude fatty acid can be transformed into second-generation biofuels.
In the Strategic Investments segment, Garantia’s net income from insurance operations fell despite a growth experienced in the sales of guaranty insurance. Once again, the combined ratio, which describes the profitability of insurance operations, was excellent at 31.0%. Garantia’s net income from investment operations continued to suffer, in particular, from rising interest rates and changes in risk premiums, but most of the investment losses were unrealized changes in fair value.
During the second quarter, we recognized an earn-out from the Finsilva holding sold in 2016 of EUR 6.7 million. Additionally, we announced that we will sell our stake in Ficolo Ltd and exit Taaleri Datacenter Ky. The deal was concluded after the review period in July, and from it Taaleri will record income of a total of approximately EUR 14 million in the third quarter.
I am especially pleased that in the first half of the year we were able to launch Taaleri’s first employee share savings plan and as much as 75% of those working at Taaleri enrolled for the plan. This contributes to expanding the company’s ownership base among Taaleri employees while helping to align the interests of shareholders and personnel. Additionally, we want to motivate our highly skilled employees and to commit them long-term to Taaleri.
GROUP KEY FIGURES
|
Group key figures |
4–6/2022 |
4–6/2021 |
Change, % |
1–6/2022 |
1–6/2021 |
Change, % |
1–12/2021 |
|
Earnings key figures |
|
|
|
|
|
|
|
|
Continuing earnings, MEUR |
9.6 |
11.2 |
-14.3 |
18.9 |
20.1 |
-6.0 |
40.7 |
|
Income, MEUR |
11.9 |
14.3 |
-17.3 |
19.0 |
28.0 |
-32.1 |
69.7 |
|
Operating profit, MEUR |
2.4 |
5.4 |
-55.4 |
1.8 |
11.3 |
84.3 |
30.8 |
|
Operating profit, % |
20.5 |
38.0 |
|
9.3 |
40.3 |
|
44.2 |
|
Profit for the period in consolidated income statement, MEUR |
0.0 |
114.1 |
-99.9 |
-1.1 |
120.9 |
n/a |
136.1 |
|
Return on equity*, % |
0.2 |
262.6 |
|
-1.1 |
138.2 |
|
75.0 |
|
Balance sheet key figures |
|
|
|
|
|
|
|
|
Equity ratio, % |
67.8 |
72.3 |
|
67.8 |
72.3 |
|
72.1 |
|
Other key figures |
|
|
|
|
|
|
|
|
Cost/income ratio excluding investment operations |
100.6 |
83.8 |
|
91.3 |
85.6 |
|
77.9 |
|
Cost/income ratio |
81.2 |
65.3 |
|
93.0 |
63.8 |
|
58.3 |
|
Full-time personnel in continuing operations, at the end of the period |
99 |
107 |
-7.5 |
99 |
107 |
-7.5 |
104 |
|
Assets under management in Private Asset Management segment, BEUR |
2.4 |
2.1 |
|
2.4 |
2.1 |
|
2.2 |
|
Guaranty insurance portfolio, BEUR |
1.7 |
1.7 |
|
1.7 |
1.7 |
|
1.7 |
*Annualised
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 AND MEDIA
A live webcast for analysts and the media will be held on August 19, 2022, at 11:00 a.m. The event is in English. The webcast can be followed online at: https://taaleri.videosync.fi/results-q2-2022. The event will be recorded and available later on Taaleri's investor pages at www.taaleri.com/investors/reports-and-presentations.
Helsinki, 19 August 2022
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 2.4 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.