16.08.2023
TAALERI PLC STOCK EXCHANGE RELEASE 16 AUGUST 2023 AT 8:00 (EEST)
Taaleri Plc Half-Year Financial Report 1.1.–30.6.2023: Taaleri had a good second quarter due to an 11% increase in continuing earnings and a strong net income from investment operations
April–June 2023
- Continuing earnings grew by 11.3% to EUR 9.9 (8.9) million. The Private Asset Management segment’s continuing earnings grew by 16.7% to EUR 5.6 (4.8) million and the Strategic Investments segment’s continuing earnings by 6.0% to EUR 3.5 (3.3) million.
- Performance fees were EUR 1.5 (0.0) million, and net income from investment operations grew to EUR 15.0
(2.3) million. - Income increased by 136.0% to EUR 26.3 (11.1) million.
- Operating profit was EUR 17.8 (2.8) million, corresponding to 67.5% of income.
- The assets under management in the Private Asset Management segment grew by 5.2% to EUR 2.6 (31 December 2022: 2.5) billion.
- Earnings per share were EUR 0.49 (0.07).
January–June 2023
- Continuing earnings grew by 17.1% to EUR 19.7 (16.8) million. The Private Asset Management segment’s continuing earnings grew by 15.2% to EUR 11.2 (9.7) million and the Strategic Investments segment’s continuing earnings by 26.1% to EUR 7.4 (5.8) million.
- Performance fees were EUR 1.5 (0.5) million, and net income from investment operations was EUR 14.4 (-0.4) million.
- Income increased by 109.5% to EUR 35.6 (17.0) million.
- Operating profit was EUR 19.3 (1.8) million, corresponding to 54.3% of income.
- Earnings per share were EUR 0.51 (0.02).
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 Half-Year Financial Report are adjusted comparison figures.
The Half-Year Financial Report has been prepared in accordance with IAS 34. The Half-Year Financial Report is unaudited. Unless otherwise stated, the figures in parentheses in the Half-Year Financial Report refer to the corresponding period of the previous year. See page 20 of the Half-Year Financial Report for further information of the accounting policies.
REVIEW BY CEO PETER RAMSAY
The second quarter of the year was strong for Taaleri, and we promoted our strategy focusing on renewable energy, real estate and bioindustry despite the challenges in the market environment. Our operating profit was EUR 17.8 million, corresponding to a profit margin of 67%.
Both the private asset management business and Garantia’s guaranty insurance operations developed well during the second quarter, and the Group’s continuing earnings increased by 11%. The Group’s income grew to EUR 26.3 million, including EUR 15.0 million of net income from investment operations.
The continuing earnings from the Private Asset Management segment grew by 16.7% to EUR 5.6 million and operating profit grew to EUR 9.0 million. The segment recorded EUR 8.3 million in capital gains from the sale of the renewable energy project development portfolio, and a total of EUR 3.5 million in performance fees realized from the sale of the real estate business’s Taaleri Forest Fund III, of which a previously unrecognised proportion of EUR 1.5 million was recognised as income for the period.
The renewable energy business held its technical first closing for its sixth fund, Taaleri SolarWind III, at the end of the second quarter, and the actual first closing after the review period at the beginning of July with EUR 286 million in commitments. In connection with the closing, the fund acquired a project development portfolio developed by Taaleri Energia, which included 50 projects. With a significant number of investors in active due diligence, we expect that there will be continued strong demand in future closings. Our goal is to raise EUR 700 million from investors for the Taaleri SolarWind III fund.
During the second quarter, the real estate business focused on the active development of new investment products and the preparations to exit funds at the end of their lifecycle. The sale of Taaleri Forest Fund III and its forest estate portfolio was successfully executed during the review period.
The bioindustry business continued to map potential investees for the Taaleri Bioindustry I Fund and to prepare a venture capital fund. In addition to these, at the turn of the review period, Taaleri made a total of EUR 3.7 million in investments in WasteWise Group, a Finnish company. The technology developed by the company enables the recycling of difficult-to-recycle plastics, and the pyrolysis oil resulting from the process can be used to replace crude oil, for example, in the raw material chain of plastic production. This fits perfectly with Taaleri’s goals of creating value through sustainable development. One of the aims of the investment is to also accelerate the growth of Taaleri’s bioindustry business, and the company will be reported as part of the bioindustry business.
In the Strategic Investments segment, Garantia’s result was strong. Garantia’s insurance service result was EUR 3.5 million and the combined ratio was once again excellent at 27.1%. Garantia’s net income from investment operations increased to EUR 1.7 million as the investment market strengthened from the corresponding period.
In the Other group’s non-strategic investments, a positive change of EUR 3.3 million in fair value was recognised from Turun Toriparkki Oy in connection with the company’s refinancing. Taaleri participated in the company’s EUR 16-million capitalisation with EUR 2.3 million.
One of our strategic priorities is to expand the sales and distribution of our private equity funds. In addition to our significant domestic cooperation with Aktia, we have strengthened our own international and institutional sales. We already had our own sales organisation in the renewable energy business, which has focused on large domestic institutions as well as international investors. We have also entered into or are in the process of negotiating distribution partnerships for our funds in Europe, North America and Asia. In addition, last year and this year, we have met with a number of European institutional investors and family offices focusing on impact investing, to whom we have presented Taaleri’s operations and the SolarWind III fund.
GROUP KEY FIGURES
|
Group key figures |
4–6 /2023 |
4–6 /2022 |
Change, % |
1–6 /2023 |
1–6 /2022 |
Change, % |
1–12 /2022 |
|
Earnings key figures |
|
|
|
|
|
|
|
|
Continuing earnings, MEUR |
9.9 |
8.9 |
11.3 |
19.7 |
16.8 |
17.1 |
36.8 |
|
Income, MEUR |
26.3 |
11.1 |
136.0 |
35.6 |
17.0 |
109.5 |
58.9 |
|
Operating profit, MEUR |
17.8 |
2.8 |
>100.0 |
19.3 |
1.8 |
>100.0 |
27.3 |
|
Operating profit, % |
67.5 |
25.3 |
|
54.3 |
10.4 |
|
46.3 |
|
Profit for the period in consolidated income statement, MEUR |
16.0 |
1.9 |
>100.0 |
16.6 |
0.9 |
>100.0 |
21.3 |
|
Return on equity*, % |
31.9 |
3.8 |
|
16.6 |
0.9 |
|
10.0 |
|
Balance sheet key figures |
|
|
|
|
|
|
|
|
Equity ratio, % |
67.1 |
67.2 |
|
67.1 |
67.2 |
|
66.9 |
|
Other key figures |
|
|
|
|
|
|
|
|
Cost/income ratio excluding investment operations |
79.4 |
96.3 |
|
80.1 |
90.3 |
|
58.0 |
|
Cost/income ratio |
34.3 |
76.6 |
|
47.7 |
92.2 |
|
55.2 |
|
Full-time permanent personnel, |
114 |
99 |
15.2 |
114 |
99 |
15.2 |
106 |
|
Assets under management in Private Asset Management segment, BEUR |
2.6 |
2.4 |
|
2.6 |
2.4 |
|
2.5 |
|
Guaranty insurance portfolio, BEUR |
1.9 |
1.7 |
|
1.9 |
1.7 |
|
1.9 |
*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, INVESTORS AND MEDIA
An analyst, investor and media conference will be held in English by CEO Peter Ramsay and CFO Minna Smedsten on August 16, 2023, at 11:00 EEST at Event Venue Eliel at Sanomatalo, Töölönlahdenkatu 2, Helsinki. The webcast can be followed online at: https://taaleri.videosync.fi/q2-2023-result. The event will be recorded and available later on Taaleri's investor pages at http://www.taaleri.com/en/investors/reports-and-presentations.
Helsinki, 16 August 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 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 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 2.6 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