03.05.2023
TAALERI PLC STOCK EXCHANGE RELEASE 3 MAY 2023 AT 8:00 (EEST)
Taaleri Plc Interim Statement 1 January–31 March 2023: Taaleri’s continuing earnings increased by 23.6% to EUR 9.8 million in the first quarter of the year
January–March 2023
- Continuing earnings grew by 23.6% to EUR 9.8 (8.0) million. The Private Asset Management segment’s continuing earnings grew by 13.8% to EUR 5.6 (4.9) million and the Strategic Investments segment’s continuing earnings by 52.2% to EUR 3.9 (2.5) million.
- Performance fees were EUR 0.0 (0.5) million, and net income from investment operations was EUR -0.6 (-2.6) million.
- Income increased by 58.9% to EUR 9.3 (5.8) million.
- Operating profit was EUR 1.6 (-1.0) million, corresponding to 16.8% of income.
- The assets under management in the Private Asset Management segment remained at EUR 2.5 (31 December 2022: 2.5) billion.
- Earnings per share were EUR 0.02 (-0.05).
Taaleri has implemented the IFRS 17 Insurance Contracts standard on January 1, 2023, and the adjusted comparative financial information for 2022 was published on March 30, 2023. The figures for the comparison period in this Interim Statement are adjusted comparison figures.
This 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 16 of the Interim Statement for further information of the accounting policies.
REVIEW BY CEO PETER RAMSAY
We promoted our strategy focusing on renewable energy, real estate and bioindustry as planned during the first quarter of 2023. Our private equity funds focused on sustainable development respond to many current societal challenges, such as mitigating climate change and strengthening self-sufficiency. This also supports new openings, such as the expansion of business to energy storage systems, which took place during the review period.
Both the private asset management business and Garantia’s guaranty insurance operations developed well during the first quarter, and the Group’s continuing earnings increased by 24%. The Group’s income grew to EUR 9.3 million and operating profit to EUR 1.6 million. Garantia’s net income from investment operations was profitable, but Group’s other unrealised changes in fair value weighed on the income and operating profit.
The continuing earnings of the Private Asset Management segment grew by 14% to EUR 5.6 million, but operating profit decreased due to investments in business growth, and the fact that no performance fees were recognised in the review period.
The renewable energy business continued to raise funds for its sixth fund, Taaleri SolarWind III. The first closing is expected to take place in the second quarter. The fund will be based on a project development portfolio that already included the targeted 35 projects at the end of the first quarter. We aim to reach a size of EUR 700 million with the Taaleri SolarWind III fund, which is double compared to the previous fund.
During the first quarter, the real estate business focused on the active development of new investment products. In addition, preparations for the exit of old funds and the identification of potential new acquisition targets continued during the review period.
During the review period, the bioindustry business prepared the next fund, the strategy of which would be to invest in start-up companies in the bioindustry sector. With the venture capital fund, our goal is to offer early-stage companies the opportunity to grow into the next, scalable phase. At the end of the review period, the Taaleri Bioindustry Fund I made its third investment in the Nordic Bioproducts Group, a company producing cellulose-based materials with a high processing value.
In the Strategic Investments segment, Garantia continued its strong performance. Garantia’s insurance service result increased by 44% to EUR 3.8 million during the review period, and the combined ratio strengthened further, being an excellent 24.3%. Garantia’s net investment income increased to EUR 0.9 million as the investment market recovered in the first quarter, but investment returns remained moderate.
In March, Taaleri published adjusted financial comparative information in accordance with IFRS 17 Insurance Contracts, applicable from the beginning of the year. In addition to changes in the valuation principles of insurance operations, one of the biggest changes is that, in the future, Garantia’s income will include not only insurance revenue and net income from investment operations, but also insurance service costs, such as claims incurred, operating expenses of insurance operations and losses arising from onerous insurance contracts. Thus, reported income will decrease, but the impact of the adoption of the standard on reported operating profit will be minor.
GROUP KEY FIGURES
|
Group key figures |
1–3/2023 |
1–3/2022 |
Change, % |
1–12/2022 |
|
Earnings key figures |
|
|
|
|
|
Continuing earnings, MEUR |
9.8 |
8.0 |
23.6 |
36.8 |
|
Income, MEUR |
9.3 |
5.8 |
58.9 |
58.9 |
|
Operating profit, MEUR |
1.6 |
-1.0 |
n/a |
27.3 |
|
Operating profit, % |
16.8 |
neg |
|
46.3 |
|
Profit for the period in consolidated income statement, MEUR |
0.6 |
-1.1 |
n/a |
21.3 |
|
Return on equity*, % |
1.2 |
-1.9 |
|
10.0 |
|
Balance sheet key figures |
|
|
|
|
|
Equity ratio, % |
65.7 |
71.4 |
|
66.9 |
|
Other key figures |
|
|
|
|
|
Cost/income ratio excluding investment operations |
81.0 |
84.0 |
|
58.0 |
|
Cost/income ratio |
86.1 |
122.1 |
|
55.2 |
|
Full-time permanent personnel, at the end of the period |
111 |
101 |
9.9 |
106 |
|
Assets under management in Private Asset Management segment, BEUR |
2.5 |
2.3 |
|
2.5 |
|
Guaranty insurance portfolio, BEUR |
1.8 |
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 May 3, 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/q1-2023-result. The event will be recorded and available later on Taaleri's investor pages at www.taaleri.com/en/investors/reports-and-presentations.
Helsinki, 3 May 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 2.5 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 Investor Relations, Sustainability and Communications Siri Markula, +358 40 743 2177, siri.markula@taaleri.com