01.11.2023
TAALERI PLC STOCK EXCHANGE RELEASE 1 NOVEMBER 2023 AT 8:00 (EET)
Taaleri Plc Interim Statement 1 January–30 September 2023: Taaleri’s continuing earnings grew by 9.8% to EUR 10.3 million in the third quarter due to the successful fundraising of the Taaleri SolarWind III Fund
July–September 2023
- Continuing earnings grew by 9.8% to EUR 10.3 (9.4) million. The continuing earnings from the Private Asset Management segment grew by 21.6% to EUR 6.5 (5.3) million and the continuing earnings from the Strategic Investments segment by 4.2% to EUR 3.4 (3.3) million.
- Performance fees were EUR 0.0 (6.5) million, and net income from investment operations was EUR 2.8 (9.9) million. Profits totalling EUR 14.0 million were recognised in the corresponding period due to a successful exit.
- Income fell 49.2% to EUR 13.1 (25.8) million.
- Operating profit was EUR 5.7 (18.3) million, corresponding to 43.5% of income.
- The assets under management in the Private Asset Management segment grew by 4.5% to EUR 2.6 (31 December 2022: 2.5) billion.
- Earnings per share were 0.16 (0.51) EUR.
January–September 2023
- Continuing earnings grew by 14.5% to EUR 30.0 (26.2) million. The continuing earnings from the Private Asset Management segment grew by 17.5% to EUR 17.7 (15.0) million and the continuing earnings from the Strategic Investments segment by 18.2% to EUR 10.8 (9.1) million.
- Performance fees were EUR 1.5 (7.0) million, and net income from investment operations almost doubled to EUR 17.2 (9.5) million.
- Income increased by 13.9% to EUR 48.7 (42.7) million.
- Operating profit was EUR 25.0 (20.1) million, corresponding to 51.4% of income.
- Earnings per share were 0.67 (0.53) EUR.
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 Interim Statement are adjusted comparison figures.
The Interim Statement has not been prepared in accordance with IAS 34. The Interim Statement is unaudited. Unless otherwise stated, the figures in parentheses in the Interim Statement refer to the corresponding period of the previous year. See page 20 of the Interim Statement for further information of the accounting policies.
REVIEW BY CEO PETER RAMSAY
We promoted our strategy focused on renewable energy, real estate and bioindustry as planned during the third quarter of 2023. Although the operating environment has been challenging, our private equity funds supporting the green transition have responded to investor demand.
Both the private asset management business and Garantia’s guaranty insurance operations developed well during the third quarter, and the Group’s continuing earnings increased by 9.8%. The Group’s income was EUR 13.1 million and operating profit EUR 5.7 million, corresponding to a profit margin of 43.5%. Income and operating profit decreased as expected due to the successful exit in the corresponding period.
The continuing earnings from the Private Asset Management segment grew by 21.6% to EUR 6.5 million and operating profit was EUR 2.7 million, corresponding to a profit margin of 32.3%.
At the beginning of the third quarter, the renewable energy business held the first closing for its sixth fund, Taaleri SolarWind III, having raised EUR 286 million. We consider the result a success in the current operating environment. 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 review period, the business launched preparations to exit the Taaleri Wind II and Taaleri Wind III Funds, which are at the end of their lifecycle.
The real estate business continued to develop new investment products during the third quarter. In addition, it focused on optimising the profitability of the real estate portfolios owned by the funds, as well as the preparations to exit funds that are at the end of their lifecycle.
During the review period, the bioindustry business continued to map potential investees for the Taaleri Bioindustry I Fund and the due diligence processes of potential investments. In addition to the preparations for the new venture capital fund, the business promoted the construction phase of the torrefied biomass plant to be built in Joensuu and finalised the financing of the project. The construction of the biomass plant started after the review period.
In the Strategic Investments segment, Garantia has continued its good profit performance despite the tepid housing market. Garantia’s insurance service result was EUR 3.6 million and the combined ratio improved further from the already excellent level to 22.0%. Garantia’s net income from investment operations was EUR 0.7 million and the return on investment at fair value 1.4%, as the interest rates continued to rise.
We have been preparing Taaleri’s strategy update and will publish our updated strategy before the Capital Markets Day on 22 November. The Capital Markets Day presentations will shed light on Taaleri’s plans for implementing the strategy, creating value and achieving financial targets. The Capital Markets Day can be followed through a webcast open to all at https://taaleri.videosync.fi/cmd-2023/register starting at 13.00 EET. I invite all our shareholders and capital market representatives to follow the event and join Taaleri in the new strategy period!
GROUP KEY FIGURES
|
Group key figures |
7–9 /2023 |
7–9 /2022 |
Change, % |
1–9 /2023 |
1–9 /2022 |
Change, % |
1–12 /2022 |
|
Earnings key figures |
|
|
|
|
|
|
|
|
Continuing earnings, MEUR |
10.3 |
9.4 |
9.8 |
30.0 |
26.2 |
14.5 |
36.8 |
|
Income, MEUR |
13.1 |
25.8 |
-49.2 |
48.7 |
42.7 |
13.9 |
58.9 |
|
Operating profit, MEUR |
5.7 |
18.3 |
-68.9 |
25.0 |
20.1 |
24.5 |
27.3 |
|
Operating profit, % |
43.5 |
71.1 |
|
51.4 |
47.0 |
|
46.3 |
|
Profit for the period in consolidated income statement, MEUR |
4.9 |
14.7 |
-66.8 |
21.5 |
15.6 |
38.0 |
21.3 |
|
Return on equity, annualised % |
9.6 |
31.2 |
|
14.1 |
9.9 |
|
10.0 |
|
Balance sheet key figures |
|
|
|
|
|
|
|
|
Equity ratio, % |
67.7 |
67.2 |
|
67.7 |
67.2 |
|
66.9 |
|
Other key figures |
|
|
|
|
|
|
|
|
Cost/income ratio excluding investment operations |
73.8 |
48.2 |
|
78.1 |
70.2 |
|
58.0 |
|
Cost/income ratio |
58.0 |
29.7 |
|
50.5 |
54.5 |
|
55.2 |
|
Full-time permanent personnel, |
112 |
107 |
4.7 |
112 |
107 |
4.7 |
106 |
|
Assets under management in Private Asset Management segment, BEUR |
2.6 |
2.5 |
|
2.6 |
2.5 |
|
2.5 |
|
Guaranty insurance portfolio, BEUR |
1.8 |
1.8 |
|
1.8 |
1.8 |
|
1.9 |
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 1 November 2023 at 11:00 EET at Event Venue Eliel in Sanomatalo, Töölönlahdenkatu 2, Helsinki. The webcast can be followed online at: https://taaleri.videosync.fi/q3-2023-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, 1 November 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